Product Overview

A secured credit card functions like a traditional credit card: you make purchases, carry a balance, and make monthly payments. The key difference is that the available credit limit is secured by a deposit made to the bank. First Citizens BancShares’ secured offering is intended for applicants with limited or imperfect credit histories who want to build payment history, reduce outstanding debt responsibly, and prepare to qualify for an unsecured card in the future.

Key Features

• Security Deposit Backing: Your credit line is secured by a refundable deposit held with the bank. The deposit amount typically determines the initial credit limit.
• Credit Bureau Reporting: Responsible account activity is reported to major credit bureaus, allowing on-time payments and prudent usage to positively impact your credit score.
• Predictable Terms: Clear statements, regular billing cycles, and an accessible online account center make it easy to track balances and payments.
• Access to Full-Featured Card Services: Use the card for everyday purchases, recurring payments, and online shopping where credit cards are accepted.
• Transition Path: Cardholders who establish a strong payment history may become eligible for review and possible transition to an unsecured credit card product.

How It Works

After approval, you provide a refundable security deposit. The deposit secures your credit line and is typically held until the account is closed or transitioned to an unsecured product. You receive a physical credit card tied to your secured account. Each billing cycle you receive a statement showing purchases, payments, and interest or fees if applicable. Making timely payments and keeping utilization low are the primary drivers of positive credit impact.

Benefits of Choosing This Card

• Credit Building: Monthly reporting of payment history helps establish or rebuild a credit profile when payments are made promptly.
• Responsible Spending Habits: A secured limit helps contain spending and encourages budgeting.
• Refundable Deposit: The deposit is refundable, offering a clear path to reclaiming funds when credit is managed well or when moving to an unsecured product.
• Support from a Established Institution: Account tools, customer service, and educational resources assist with financial management and planning.

Who Should Apply

This secured card is suitable for individuals who are new to credit, those who have experienced credit setbacks and are working to rebuild, or anyone who prefers to manage credit with reduced risk by limiting exposure through a secured limit. It is also suitable for customers seeking to establish a positive payment history to qualify for more favorable credit terms in the future.

Eligibility & Documentation

Typical eligibility considerations include proof of identity, sufficient income or ability to make monthly payments, and a refundable security deposit. Applicants should be prepared to provide basic personal information for underwriting and identity verification. Terms, minimum deposit requirements, and approval criteria vary based on individual circumstances and regulatory requirements.

Fees, Rates & Terms

Specific fee and rate information is detailed in the cardholder agreement and disclosure documents. Prospective applicants should review annual fees, periodic interest rates, late payment fees, and other applicable charges before applying. Keeping balances low and paying in full each month helps minimize interest charges and fees.

Security & Protections

• Fraud Monitoring: The account includes protections against unauthorized transactions with monitoring and dispute processes.
• Card Controls: Manage your card through online or mobile tools, set up alerts, and review activity to catch and address issues quickly.
• Privacy Practices: Your personal and financial information is handled according to regulatory and institutional privacy practices.

Tips for Building Credit with a Secured Card

1. Make at least the minimum payment on time each month — on-time payments have the greatest impact on credit history.
2. Aim to pay the statement balance in full each billing cycle to avoid interest charges.
3. Keep your credit utilization low by maintaining a balance well below the available credit limit.
4. Monitor your credit reports regularly to track progress and verify accurate reporting.
5. Consider setting up automatic payments to avoid missed due dates.

Transitioning to an Unsecured Card

After demonstrating consistent, responsible use, many cardholders become eligible for review to transition to an unsecured product. Criteria typically include a history of on-time payments, responsible utilization, and meeting internal review thresholds. When approved for an unsecured card, the refundable deposit may be returned, and the account’s terms may be adjusted to reflect unsecured status.