U.S. Bank Secured Visa Card Review: A Good Way to Rebuild Credit
This Low-Cost Card Might Get You Into an Unsecured Card Faster Than Most
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A secured credit card is a good credit card solution for consumers who need to build or rebuild their credit. The U.S. Bank Secured Visa Card is a good choice. It has a low annual fee and a decent interest rate considering it's a secured credit card.
Paying Your U.S. Bank Secured Visa Card's Deposit
You can pay your deposit for the U.S. Bank Secured Visa Card online with funds from your checking or savings account. If you need to pay with cashier's check or money order by printing and mailing your application. U.S. Bank won't accept a personal check for your security deposit.
If your application is approved, U.S. Bank will issue a credit card to you with the credit limit equal to your security deposit. Your deposit secures goes into a U.S. Bank savings account and secures your credit limit in case you default on your payments. You'll still receive a bill each month and you're required to make the monthly minimum payment on your card each month.
After several months of timely payments, U.S. bank may allow you to convert your card to an unsecured card.
Deposit between $300 and $5,000 in hundred dollar increments only.
Pricing for the U.S. Bank Secured Visa Card
APR for purchases and balance transfers 20.99%. Cash advance APR 25.99%. There's no penalty APR which means your interest rate won't increase after a late payment. Some credit card issuers raise your interest to 29.99% or more when you're 60 days behind on your credit card payments.
There's a $29 annual fee, which is ok for a secured credit card.
Certain transactions on your card will incur a fee:
- Balance transfers, 3% or $5
- Convenience check cash advance, 3% or $5
- Cash advances, including ATM cash advances and cash equivalent advances, 4% or $10
- Foreign transactions made in U.S. dollars are charged a 2% fee while those made in a foreign currency are charged a 3% fee.
- Late payments, up to $39
- Returned payments, up to $35
Additional Perks With the U.S. Bank Secured Visa Card
You won't earn any rewards with the U.S. Bank Secured Visa Card, but does offer zero fraud liability, auto rental insurance, online banking, and automatic bill pay. You'll also get access to U.S. Bank's FlexControl tools which let you set your due date and set up automatic payments to reduce your balance.
U.S. Bank Secured Visa Card Compared to Other Secured Credit Cards
There are quite a few bad secured credit cards, but the U.S. Bank Secure Visa Card isn't one of them. The annual fee and interest rate are competitive with similar secured credit cards. You can always pay your balance in full each month to avoid paying interest on your credit card balance.
The minimum security deposit is higher than the Capital One Secured MasterCard, which allows a deposit as low as $49, and the Discover it Secured Card, which accepts a minimum $200 deposit. Both have a higher purchases APR, but neither has an annual fee.
Edited by LaToya Irby. Credit card terms and sign-up bonuses are subject to change from the time of this review. Refer to the application for current terms and conditions.