Pros
- No membership fees
- No foreign fee
- Qualify with limited or no credit history
Cons
- High regular APR
- Requires security deposit
USAA® Secured American Express® Card
Secured Card
Min Deposit of $250
One-Time Fees
$0
Regular APR
26.90% (V)
Annual Fee
$0
Monthly Fee
$0
Credit Score
Bad
Additional Info
- Best for members rebuilding or establishing credit.
- It's not a debit or prepaid card.
- Determine your own credit limit ($250 to $5,000) with a security deposit.
- USAA membership is available to active and former military and their eligible family members.
- Travel Benefits: Auto Rental Coverage, Travel Accident Insurance, Trip Cancellation and Interruption Coverage, Baggage Delay and Reimbursement.
- To apply for the card, an existing checking or savings account with USAA Federal Savings Bank is required and it must have a minimum balance of $250.
- Your credit information is reported to the three major credit bureaus. Periodically, your credit history and other factors will be reviewed to determine if you qualify for an upgrade to an unsecured credit card.
- More Details & Reviews About USAA® Secured American Express® Card
The Verdict: USAA offers a pair of secured credit cards — an Amex and a Visa — that cater the exact same middle-of-the-road terms to the military families who are eligible for membership. That’s right; you need a military affiliation to get either offer.
Both the USAA® Secured American Express® Card and the USAA® Secured Visa Platinum® Card do not charge annual fee. Both also require a $250 minimum security deposit, the amount of which serves as your spending limit, and allow you to put as much as $5,000 down. But, again, neither amount really stands out, either positively or negatively, relative to other secured cards.
So with that being said, USAA’s secured credit cards are a fine option for building or rebuilding your credit. You can learn more about why that’s the case in our breakdown of the offer below.
The Highlights
- Can Help You Build Or Rebuild Credit: Like all credit cards, whether secured or unsecured, the USAA Secured Amex and Visa report account information to the major credit bureaus on a monthly basis. As long as this information reflects responsible behavior — particularly on-time payments — your credit standing will gradually improve.This positive information will either devalue negative marks on your credit report or build on a thin credit file. Depending on your exact starting point, you should be able to graduate to an unsecured credit card.
- $0 Annual Fee: While avoiding an annual fee can be a smart move for building credit, this benefit isn’t unique in today’s secured credit card market. That said, this card still saves you $26.75 per year compared to the average credit card offer.
- Security Deposits Accrue Interest In A CD: One of the downsides to many secured cards is the fact that cardholder deposits do not accrue interest. Rather, they are stuck in a non-interest-bearing deposit account, preventing your funds from even keeping up with inflation while you’re working to improve your credit standing. That, however, is not the case with USAA’s secured cards.If approved, you’ll open a Certificate of Deposit (CD) where your deposit will be securely held and earn interest. The funds in your CD will accrue interest over time and won’t be used to make your payments.
The Lowlights
- $250 Minimum Deposit: Some secured cards require deposits of as little as $200, giving users an extra $50 (relative to USAA’s offers) that can be used for monthly bill payments and other necessities. That also provides users with added flexibility, especially when you consider that you’ll have the freedom to add to your deposit over time, thereby boosting your spending power.
Other Things To Consider
- Choice of Visa or Amex: How do you choose between credit-card offers that are identical save for their card network? Well, consider what card networks ultimately dictate: where a card can be used and what peripheral benefits the holder receives. In this case, Visa has a decided advantage over Amex in terms of usability.
- No Foreign-Transaction Fee: If you’re planning some international travel or a big order from a merchant based outside the U.S., the lack of a foreign surcharge is sure to make your wallet happy. And that will be the case whether you have the Visa or Amex. The market-average foreign fee, in case you’re wondering, is currently 1.58%.
- No Penalty APR Or Overlimit Fee: You won’t get slapped with a rate hike after missing a payment or spending in excess of your credit limit (if such a transaction even goes through). That’s certainly nice to know, but you shouldn’t count on this accommodating feature, as it’s best to never need it.
Compared To The Competition
Below, we compared the USAA Secured Credit Card to the market’s most popular secured alternatives in terms of six essential elements that collectively drive secured-card costs.
| WINNER | ||
|---|---|---|
minimum deposit$250 | minimum deposit$250 | minimum deposit$49, $99 or $200 |
one time fees $0 | one time fees $0 | one time fees $0 |
annual fee $0 | annual fee $0 | annual fee $0 |
monthly fee $0 | monthly fee $0 | monthly fee $0 |
Regular APR26.90% (V) | Regular APR26.90% (V) | Regular APR29.49% (V) |
rewards rate N/A | rewards rate N/A | rewards rate N/A |
SponsoredApply Now | SponsoredApply Now | SponsoredApply Now SponsoredApply Now |
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