American Express Secured Credit Card
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If you are already a USAA member, perhaps you are looking for ways to build your credit history, or rebuild your credit using the right financial products. Now, we are all aware of the fact that it is very difficult to apply and get approved for loans or credit cards if your credit history is limited or if you have a bad credit rating due to past bankruptcies or defaults. But through USAA, you can try to get a secured credit card in order to start building your credit, such as an American Express Secured Credit Card.
How does a USAA secured card work? A secured card means you also open a security deposit in order to be approved for and issued the card. For the American Express Secured Credit Card, you will also open a USAA 2-year Certificate of Deposit. This is an interest-earning deposit account with a $250-minimum initial deposit and a two-year term. Now, the amount of your security deposit will be the credit limit of your card.
A secured credit card is an excellent way for you to rebuild your credit, and is also a way for banks and financial institutions to issue credit to you without risk to them. The American Express Secured Credit Card is an actual credit card, not a prepaid or debit card, so this can really help to improve your credit score if you stay within your credit limit and do not miss payments.
Another advantage of the American Express Secured Credit Card is the CD you deposit earns interest as well, so your initial deposit also grows and is yours to keep as long as your credit card remains in good standing. Currently, the interest earned for the CD is at a variable rate of 0.54% APY. Over time, if you make additional deposits to your CD, you are allowed to do so, and you can request for a credit limit increase on your credit card when you make additional deposits.
Of course, this is an American Express card, so you can use it anywhere in the United States or internationally where American Express is accepted. You can use your card for store purchases, at dining and entertainment establishments, as well as online retailers that accept American Express. Just keep in mind that you need to make your monthly payments on time, stay within your credit limit, and keep your American Express Secured Credit Card in good standing, because this will be reported to the major credit bureaus and can have a positive effect on your credit rebuilding. As a cardholder, you can also utilize the CreditCheck Monitoring feature which allows you to review and manage your credit via the Web.
As a cardholder, you also get to enjoy the many perks of being an American Express cardholder, such as emergency assistance, roadside help, and concierge service. You can also avail of travel accident insurance coverage worth up to $1 million, among other travel and retail privileges as an American Express Secured Credit Card holder. For instance, if you use your card to pay for a rental vehicle, coverage for collision damage pays for physical damage and theft to rental vehicles with a cost of $50,000 or less.