Armed Forces Bank Credit Builder Secured Card

The Credit Builder Secured Visa® Credit Card offered by Armed Forces Bank is available to civilians and active-duty service members. It stands out from other credit cards in its category with several characteristics that are exclusive to it.

It is a feature not available on any other secured credit card; therefore, you won't find it on any other secured credit card if you get this card. Additionally, it is one of the few credit cards available these days that will let you establish an account jointly with someone else. In addition, much like other reputable secured credit cards, it does not charge an annual fee, provides a route to upgrade, and sends your payment history to all three main credit agencies in the United States.

However, there are a few things that you should be aware of before signing up, such as the relatively expensive minimum deposit requirement and the annoying hidden cost. The Credit Builder Secured Armed Forces Bank issues Visa® Credit Card. Here are five things you should know about this card:

Although There Is No Annual Cost, There Is Another Kind Of Fee That You Should Be Aware Of

The card does not have an annual fee, which is an excellent feature for a secured credit card. However, this tells part of the tale. Cardholders must pay a $5 fee each quarter if they do not enrol in electronic statements. If you want to get your statements in print form, the annual fee for carrying this card will amount to twenty dollars.

The Discover it® Secured Credit Card and the Citi® Secured Mastercard® are two excellent examples of additional secured credit cards that do not charge any form of yearly or quarterly fees. Finding more secure credit cards is not too difficult. In addition, these credit cards will record your activity to all three major credit agencies.

The Minimum Deposit Is Significant, But You Have Some Leeway In Determining Your Credit Limit

This card, like other secured credit cards, enables you to make a deposit and then spend up to the limit you've set for yourself. In this scenario, you must deposit a minimum of $300 into your Credit Builder savings account. This requirement is on the higher end when compared to those for other secured credit cards.

For instance, the Discover it® Secured Credit Card and the Citi® Secured Mastercard® both need a minimum deposit of $200 to open an account. In addition, if you are approved for the Capital One Platinum Secured Credit Card, you may earn a credit limit of up to $200 with an initial deposit of $49, $99, or $200, depending on the option you choose.

On the other hand, in contrast to all of those other credit cards, the credit limit on your Credit Builder Secured Visa® Credit Card may be adjusted. You can raise your credit limit by depositing monies (in increments of at least $50) into the savings account you set up for the card, and the maximum amount you can raise it to is $3,000. In most cases, this feature is not available on other types of secured credit cards, and if it is, you will need to submit an increase request.

You Will Soon Be Able To Upgrade To An Unsecured Card

This particular secured card does, however, provide a straightforward way to upgrade to a "normal" unsecured credit card, which is something not all secured credit cards provide. According to Armed Services Bank, if you maintain "excellent performance," you may be eligible to transition from the Credit Builder Secured Visa® Credit Card to an unsecured product. This translates to a "normal" credit card that does not need a security deposit to open an account.

When applying for a secured credit card, an upgrade route is an important feature since it allows you to avoid immediately cancelling your old card and establishing a new one. In most circumstances, you will get a refund of the deposit you made when applying for an upgrade path.

There Is A Negligible Amount Of Interest Accrued On Your Deposit

As of June 2022, the amount you put into your Credit Builder savings account gets 0.05% interest. This implies that if you put $500 into the account, it will only earn a fourth of what it was originally worth after a year.

The Card Enables Shared Account Owners To Make Purchases

Because many card issuers do not let joint account owners on credit cards, the fact that you and another person would want to hold a card jointly might be a reason to acquire this card. Both parties must fill out the card application if the account is to be opened as a joint one.