USAA Secured Credit Card

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Secured credit card is suitable for first timers since they have no experience for using regular credit card. In general, it is quite similar, but you need to open account for security deposit. The card owners have their limitation depending on how much money on deposit. USAA Secured Credit Card is the top choice on this industry because of several benefits.

Before taking further exploration on USAA Secured Credit Card, you need to understand definition of secured credit card and its difference from prepaid card. In general, secured one has the same function, but limited to security deposit as collateral. Credit card is type of loan where bank or card issuer lends money to fulfill your expenses. As loan, it creates debt that needs to be paid off entirely, including the interest. On the other side, prepaid debit card uses your own money without interest. You cannot buy or pay anything with price more than what you have on account.

The main purpose of USAA Secured Credit Card is good credit score. First timers build their score from secured loan. If you are 30 days late for credit card payment, use this one to keep the score in check. The most important thing is a person with bankruptcy in the last five years. He or she might be in difficult situation to rebuild credit score from devastating history. Those are primary reason to choose this secured credit card from USAA.

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USAA Secured Credit Card and Its Benefits

First benefit is security deposit called certificate of deposit or CD. USAA offers different platform for secured credit card in order to attract more clients. Usually, you only open account for deposit and put money on it. This account is not a bank saving and only for collateral as long as you spend the expenses though credit card. To make this account more interesting, USAA gives interest as similar to bank account. Therefore, your money will grow and it is yours. This is the main difference between USAA Secured Credit Card and others.

As it mentioned above, USAA Secured Credit Card has credit limit at specific range. For this credit, you only pay CD between $250 and $5,000 as credit balance. Unsecured credit card also has limitation, but no deposit for collateral. Choose the limit based on your financial ability.

Bank or credit card issuer understands that credit card is high-risk business. That is the reason for high rate with two digits. You will not find rate less than ten percent, even for secured one. What does happen when client does not pay the bill? Well, USAA certificate of deposit contains enough money to cover cost and payment for USAA Secured Credit Card.

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This bank offers two options for USAA Secured Credit Card: American Express and MasterCard. Each has its own service, features, and benefits. In general, both are still unsecured credit cards, which apply the basic rule or regulation. In order to obtain secured credit card from USAA, you need to complete several requirements. It also has mobile app to manage credit limit and track all record for client’s expenses.