A credit score is the first consideration when one applies for a bank loan. And, if yours is not at par, then you will not get the loan! However, the USAA Secured Credit Card will come to your rescue. The card is a savior for those who want to turn their credit from bad to good.
Those seeking to find a stepping stone after bankruptcy can use it as the stone for better credit ratings and should sign up for the card. The card offers reward points on several occasions like dining out, grocery shopping, store purchases, or gas, and they can be high.
How the USAA Secured Credit Card Operates
- Unlike regular credit cards, the card is secured, and you can use it as a standard credit card.
- You have to load a deposit from $250 – $5,000, which doubles up as your credit line. You can start with smaller deposits and then increase your credit line by adding money to the CD.
- The deposit is put into a USAA certificate of deposit (CD), thus earning you interest.
- If you pay as agreed without defaulting payments, you will get the entire amount after the maturity of the CD.
Growing Your Credit Using the card
Since the USAA Secured Card is not a prepaid debit card but a credit card, all transaction details will be submitted to central credit bodies. So, how does the card improve your credit score? Loading small amounts to your card and paying on time is part of the information shared with credit bodies. To accomplish this, set up automatic deductions from your account.
Another method to boost your credit score is to make a higher cash deposit to impact your credit use ratio positively. In simpler terms, it is your debt against your sum of credit limit, and the ratio is about 30% or below.
So, a high credit limit on your USAA Secured Card American Express account and maintaining a low balance will positively impact your score over time. If you can pay the total amount monthly, you are in a better position. Master these two techniques, and you will be in good books. Then follow these procedures to keep rising:
- Never close old accounts – Closing your old account will negatively affect your score.
- Use various credits – Using a secured card gives you more options like balancing everything with a loan installment.
- Don’t apply for new credit often – New credit application calls for an inquiry, reducing your score. So, only apply for credit if it is unavoidable.
The USAA’s primary purpose is to aid you in growing your credit score. There are no rewards, cash back, or points, but a good plan for your credit score to look up fast.
Banking Benefits for Military Members
USAA has customers all over, including military members and their families who enjoy these benefits:
- Reduced APR for deployment or PCS – Deployment of officers or Permanent Change of Station wins your annual reduction on your pay down to 4%, and pressure to payback is reduced.
- Reduced APR while on active duty – The same reduced 4% is extended to members who still settle their balances while on active duty.
- Rebate interest charge – Cardmembers who win medals in the global war against terrorism benefit from rebate interest charges. USAA has a team of qualified specialists who can assist in managing your account throughout your deployment: before, during, and after. All you have to do is call them for these benefits to be practical because they understand.
- Travel and Shopping – The card has built-in perks that reduce stress when you take a trip or go shopping. And, you will not incur extra expenses for purchasing outside the U.S territory. You are also entitled to a 24/7 concierge service to help you plan a getaway. The card also covers if your rental car is damaged or stolen. When away from home traveling, the card offers emergency medical aid.
- Baggage Delay – The USAA secure card protects members from financial bursts, especially when misfortunes happen while on a trip. If you use the card later and find it is cheaper elsewhere, you can receive a refund of up to $250 if you claim the lapse of 120 days since your purchase.
- Extended warranty – Any item you buy with a manufacturer’s warranty is doubled up by USAA if you paid with the card. Most of these benefits might be available with other credit cards but not secured cards.
Who is Eligible to Open the USAA Secured Card American Express Account?
The benefits above are attractive, but the opportunity is not open to all. You need the following to qualify as a member.
- A member of the U.S military: Active, retired, or separated with honor.
- A commissioned military officer; Academy, ROTC, OCS/OTS.
- Dependent on a military serviceman: spouse, widow, adult child, or stepchild.
A USAA Secured Card American Express account is a savior to many. It is also a terrific choice for military personnel who are trying to rebuild their credit. The card deposit should never go below $250, or it will not work. Also, make your payments on time to positively impact your score.
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