I've been looking around but I can't find a hard statistic on how large the secured credit card industry is. I just keep either finding advertisements or advice on them when I search. In fact I can't find much of an answer as to how popular they are in the market. Ex do 1/10 people have an asset backed credit card? I did see a study stating that 66 of the 100 or so banks they checked offered asset backed cards, but that isn't all that revealing about real consumer behavior.

Do many people transition successfully from them or are they simply a profit center for banks?

I was curious because a friend was talking about them. I'd never really thought about them before. I was hoping the market size would give a clear picture of their use and function. I read a bunch of posts asking if they actual existed, were popular, or could build credit score but no one ever mentions is many people use them, for how long, etc.

Clearly there is no hard and fast rule here. But perhaps the industry has a market size of X, and users are short term generally (they use them to repair their credit for a few years before graduating to a better card). Or not. If you know I'd love to hear and see your sources.

1 Answer 1


I would say the market is not that large, because many secured credit card offerings have maximum limits of $500 - $3000

Whereas the same companies give unsecured credit lines of $50,000 - $120,000

Source? Bank of America. It isn't a quantitative analysis.

Consumers have to seek out secured credit cards themselves and the limits are low, they can be used to establish credit as well as repair credit.

  • Interesting! I found it surprising that there is so little data on the market, but that makes sense. Do chance you have an estimation on how many people use them?
    – Tai
    Jun 8, 2015 at 0:38

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