Such insurances and loans will need a good credit score and history. If that isn’t the case with you, an option to start improving your scores is looking for secured credit cards that accept people with low numbers.
nRewards Secured Credit Card is such a secured card that you can get even with limited or no credit score.
Find out everything you need to know before applying, as well as APR, benefits, rewards and application method in the article below.
nRewards Secured Credit Card
$0 annual fee $0 foreign transaction fee.How does nRewards Secured Credit Card work?
We recommend this card to people who have bad credit scores and would like to get better or someone who is still new to credit.
That is the case of young people on their first few credit cards or immigrants who arrived in the USA not too long ago.
Well, if you find yourself in a bit of a financial pinch we have good news: nRewards Secured Credit Card might be a good choice.
This credit card is aimed at people who wouldn’t qualify for regular options and has reasonably low fees when compared to the competition.
Despite the APR being high, it’s still lower than most secured credit cards, which should be quite the advantage if you have to hold a balance.
However, one of the main drawing points of this credit card option is that it has a rewards program that we’ll explain further ahead.
Is it a secured credit card?
Yes, we’re talking about a secured credit card that requires anyone who wishes to be approved to make a security deposit.
The minimum deposit is $200, quite the standard in the area, and the amount you deposit will affect your starting credit limit.
Your deposit will end up in a savings account that you cannot access at will. While you wait to be able to get this money back it will earn some dividends.
However, we recommend you don’t use this savings account as an investment, since dividends on savings accounts are generally low.
If you have some money that you’d like to set aside, it’s better to check some high yield savings accounts instead.
Main benefits for nRewards Secured Credit Card
Getting started, nRewards Secured Credit Card has a few perks that aren’t common for secured cards, such as rewards and quick limit review. You’ll understand the main ones below:
- Credit limit review within the first three months of using the credit card;
- Possibility of having your savings account hold removed every six months;
- No limit on rewards (although they must be used before four years);
- No annual fees;
- Zero balance transfer fees;
- Reports to all three of the major USA’s bureaus;
- No foreign transaction fees (good if you’re thinking of traveling with this card);
- Earn points for dollars spent.
Yes, this credit card has some rewards for users! We’ll explain in detail in the next topic.
Rewards and perks for this secured credit card
This secured credit card uses a point system to give users some rewards. Every time someone makes a purchase, they’ll earn 1 point for every dollar spent.
Unlike some other systems, there isn’t a monthly or annual limit, meaning that you can keep winning rewards no matter how much you use the card.
You can exchange the points for money, gift cards or even merchandise. If you already have this credit card you can see the amount of points there and possibilities for exchanges.
Are you thinking about a trip? There’s also the possibility of exchanging these points for flights, hotel stays and rentals.
Everything happens through a website that’s easy to set up and use. Just remember that these points expire after four years. But we’re sure you can come up with a creative way to use these gifts.
Cons for the credit card
Not everything is perfect with nRewards Secured Credit Card.
There are some key problems that we must address before you make any type of decision, including:
- High APR (up to 18%) that makes it quite costly to hold a balance;
- Requires a Navy Federal membership.
The last point is quite important, to be able to apply for a membership you must have a relative who is a veteran or currently in the military.
This can include a parent, grandparent, child or grandchild who fits this criteria. Obviously, veterans can also apply themselves and use the many advantages of this credit card.
If you’re already a member, even the application process becomes simple. All you’ll have to do is access the site and check if you’re pre-approved before submitting an official application.
Can you get an unsecured credit card over time?
Yes! This is a possibility if you keep making timely payments and use your credit card responsibly.
After you start using your credit card, you’ll be evaluated by the financial institution every six months. During these evaluations there’s a chance of either:
- Gaining access to your savings account so you can retrieve the security deposit and interest;
- Getting upgraded to an unsecured credit card option, that should have better benefits and lower fees and APR.
That happens as long as you don’t miss any payments, so keep an eye out.
APRs and fees
There is a standard APR for this credit card of 18%. While it is low when compared to other secured or unsecured credit cards for bad scores, it is still quite high for anyone holding a balance.
Let’s say you decide to keep a $100 balance, after a month you’ll already have to pay $118 instead, quite the difference.
As for fees, nRewards Secured Credit Card is quite straightforward.
Without an annual, foreign transaction or balance transfer fee, this is a simple way to keep your finances up to date.
How to apply for nRewards Secured Credit Card?
If you’re already a member of the Navy Federal’s Credit Union then the process is simple.
Go over to the credit card’s website, check if you’re pre-qualified without doing damage to your score and finally finish your application.
However, if you haven’t become a member yet there’s a need to apply and open a savings account with at least $5 in deposit.
Conclusion
The nRewards Secured Credit Card by Navy Federal Credit Union is a strong choice for individuals looking to build or improve their credit scores. Its key advantages include no annual or foreign transaction fees, the potential for credit limit increases, and a rewards program that is uncommon among secured credit cards. While the 18% APR is relatively high, it’s competitive within the secured card market.
The primary drawback is the requirement to be a Navy Federal member, which necessitates a connection to a military member or veteran. However, for those who qualify, the card offers a straightforward path to building credit with the potential for future upgrades to an unsecured card.
By responsibly using this card and making timely payments, users can improve their credit scores and eventually qualify for better financial products. For those who meet the membership criteria, the nRewards Secured Credit Card presents a valuable tool in their financial toolkit.
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