Secured credit cards are currently not available in Australia
Cards that are featured on our comparison table are alternatives to secured credit cards. These are cards with low rates and lower credit limits.
What is a secured credit card?
Secured credit cards are not available in Australia, at the time of writing, but they are available in the US, Canada, and other markets. They are designed for individuals with low credit scores or limited credit history. To open an account, the cardholder must provide a security deposit (usually held by the bank) to act as collateral.
In Australia, credit cards are unsecured, meaning approval is based on your creditworthiness, and no collateral or cash deposit is required. Your credit limit is determined by factors such as your income, credit score, and financial history.
How secured credit cards work
Secured credit cards offer a structured way to build or rebuild credit. If a payment is missed or the account defaults, the issuer may use the security deposit to cover the outstanding balance.
Require a refundable deposit
Cardholders must deposit funds (e.g., $100–$200 or more), which determines their credit limit.
Report to credit bureaus
Responsible use, such as paying on time, can help improve a person’s credit score over time.
Operate like a standard credit card
They allow purchases up to the available credit limit, with repayments due each month.
Come with interest charges
If the full balance isn’t paid by the due date, interest accrues on the outstanding amount.
Alternative secured credit card options in Australians
Since secured credit cards are not available in Australia, those looking to build credit or improve approval chances may consider:
Low-limit credit cards
Some banks offer entry-level credit cards with low credit limits and basic features like low rate credit cards.
Secured personal loans
A personal loan backed by a savings account, term deposit, or asset can help establish a positive repayment record.
Student or starter credit cards
Designed for young Australians, students or first-time credit users with limited credit history.
Becoming an authorised user
Some banks allow individuals to be added as a secondary cardholder on an existing credit account to help build their credit history. Not to be confused with a joint credit card.
