As is the way with many other types of secured cards, you can get started with no problem as long as you have enough saved up for a security deposit.
This is a rare exception that can get the user a high limit despite bad credit scores. Which means that it could also be a chance to invest and get a better hold of your financial life. If you’re looking for this type of card stay tuned. We’ll explain all the benefits, application, fees and rewards involved in it.
Credit Builder Secured Card
Easy to apply high limitHow does the Armed Forces Bank Credit Builder Secured Visa Card work?
Let’s get started with what people are most curious about the Credit Builder Secured Visa Card: it doesn’t have any fees and anyone can apply. This card works like most other secured cards, the user makes a deposit in an Armed Forces Bank savings account, which will contribute to a credit limit.
This means that someone with a pretty bad score can still get a hold of the credit card. Anyone who’s trying to get a better score knows: simply by keeping a credit card with low balance and paying the bill off every month you can get better numbers.
That’s exactly the objective of Credit Builder Secured Visa Card, an easy, quick and efficient way to build credit.
What is the Armed Forces Bank?
The Armed Forces Bank is a traditional American institution that aims to help those serving in the military through quality financial services. The institution has been around since 1907 and is part of a group with over $1.6 billion in assets.
It’s present all over the USA, serving users in all 50 states and even in units throughout the world. While its banking services are focused on those in the military, many people don’t know that its credit cards are for everyone. We’ll explain in more detail below, but for now let’s just focus on this: the Credit Builder Secured Visa Card is a great option for those within and without the army.
Credit Builder Secured Visa Card fees and rewards
The Credit Builder Secured Card has no fees to open an account. However, some fees apply once you already have your credit card. There are transaction fees that apply in certain cases, such as foreign transaction fees or cash advance fee.
The value can go from 2% up to 5% in the case of cash advance fee. If no currency conversion occurs in foreing transactions, users must pay a 0,8% fee or 1% of the U.S. dollars value if there is a conversion.
Some penalty fees also apply, including:
- $25 late payment fee;
- $25 returned payment fee;
- $5 card replacement fee;
- $4 copying fee for copies of transaction documents;
- Up to $35 processing fees.
It’s important for the client to be aware of such taxes when considering this otherwise free credit card.
Can anyone get a Credit Builder Secured Visa Card?
Almost everyone can apply for a Credit Builder Secured Card. All you need to start in the Credit Builder Secured Card’s website is:
- Drivers license or any type of Government-issued ID;
- E-mail address;
- Date of birth;
- Social security number;
- Current home address.
The other requirement is to make a deposit to your recently opened Armed Forces Bank savings account equivalent to the credit limit request. Among other secured credit cards, this is one of those with highest possible limits, going from $300 to $3.000. But everything depends on the security deposit made to your savings account.
Security deposit to get a Credit Builder Secured Card
As with any secured card, you’ll need to make a security deposit. The main difference here is that there isn’t a fixed value, the minimum is $300 but you can deposit up to $3.000 in a savings account in the bank. This is a refundable fee that you’ll get back eventually once you upgrade your card.
Did you make the minimum payment the first time around, but would like a credit card with a higher limit now? No problem! Credit Builder Secured Card is one of the few in the market that allow an adjustable credit limit.
Every month you can make deposits starting with $50 to get a higher limit. This only applies for those paying the whole amount in their balance monthly.
Can you upgrade to an unsecured card?
More good news to anyone considering this secured credit card: there is a clear path to a regular version. According to the Armed Forces Bank’s own website, clients with good performance, meaning timely payments.
The same bank offers regular credit cards with limits up to $10.000. It’s also an option without fees, but with no rewards or cashback programs.
Interest rates for the secured credit card
This credit card has a fixed interest rate of 25.99% per month. As is the case with many other credit builder cards, the APR is quite high, especially if you compare with regular credit cards. We strongly recommend that anyone who applies for this card keeps full monthly payments to avoid the expensive interest rates.
Another important detail is that there aren’t any rewards related to this card. That doesn’t change once you upgrade to a regular Armed Forces Bank Credit Card either. In that case, you might be interested in checking other options in the market with cashback programs or rewards.
Application step by step
Applying is quite simple. To begin, you must access the Armed Forces Bank website and look for its free secured credit card area. There, you must give some personal information to get started with a savings account.
After the application is approved you must make the security deposit to your own Armed Forces Bank savings account. Remember, the deposit is equivalent to your credit card’s limit, so for a higher limit all you must do is get started with a bigger deposit.
How to apply for the Armed Forces Secured Credit Card
To apply you must visit the Armed Forces Bank website and look for the secured credit card area (you’ll find a link directly to this webpage below). You’ll have to give some personal information, such as name, address and e-mail to open a savings account and be able to make your first security deposit.
Choose the amount wisely, since the limit for your new secured credit card is the same as your security deposit. This is a rare credit card option that has an adjustable limit, all you have to do to get an increase is make new deposits to your savings account over the next few months.
Conclusion
The Armed Forces Bank Credit Builder Secured Visa Card is a robust option for individuals seeking to rebuild their credit. With no annual fees, flexible credit limits based on your security deposit, and a straightforward application process, it stands out as a practical choice for those with bad credit scores. However, users should be mindful of transaction and penalty fees, as well as the high fixed interest rate, ensuring they make full monthly payments to avoid extra costs. While the card doesn’t offer rewards, its primary benefit lies in its potential to improve your credit score and provide a path to a regular unsecured credit card. For those committed to bettering their financial health, this card is a valuable tool.
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