Before we start digging on how American Express secured credit cards can be your financial savior, we need to know what exactly a secured credit card is. A secured credit card has some similarities with a traditional one, technically. However, unlike the unsecured credit card, the secured one requires its user to deposit some cash as a security deposit. Not many banks provide this service. One of them is Amex secured credit card which is called as USAA Secured Card from American Express.
The Amex secured credit card is designed especially for a personal consumption usage. It cannot be used for any business spending. However, a good business starts from a good credit history from its cardholder. Most of business lenders will identify the owner’s personal credit score. Thus, a qualified credit score is a highway to improve your business financial. Therefore, the cardholder can use the Amex secured credit card first to build a qualified credit score to support establishing business.
Other magical thing that can be done by the secured credit card is rebuilding a bad credit history. Everyone can face a bad credit score because of the economics recession or just simply because of unwise monetary spend. For million people, a second chance and opportunity are needed. Amex secured credit card holder can get this chance and rebuild their credit score. The deposited cash in American Express is a way to help you out during the hard time when you cannot pay your bills.
Reasons to Love Amex Secured Credit Card
Amex secured credit card can be seen as a tool to practices credit plan before you are qualified enough to start using a traditional credit card which is bigger and potentially more harmful. Even though the main concept of all secured credit card is similar, each bank has their characteristics and fundamental features offered to its cardholder.
One unique feature that Amex secured credit card deliver is the special offer for military recruits. When you have a balance on your American Express account at the time when you enter a military duty, you will get 4% APR up to 12 months after deployment. A professional deployment team will help you during the process. In addition, Amex did not charge any foreign transaction and this is a good feature we all definitely love.
However, you have to consider these few requirements before getting the Amex secured credit card features. Regardless how much you spend, Amex secured credit card will charge you $35 for annual fee. This fee is needed to keep your account accessible. In addition, you will also have to pay 3% balance transfer fee when you have prior balance to transfer into the credit card.
None of the requirements above are designed to keep you way from using Amex secured credit card. But being aware of the various fees needed to establish your secured credit card is important to make sure you are making excellent decision. It is easy to be clumsy while using them but please be aware of the future problems that may be come.