A secured credit card like the MasterCard offered by the American Heritage Federal Credit Union is specifically designed for someone that has a low credit score because of financial mistakes they have made in the past. This type of credit cards is a way for them to rebuild their credit score.
Using the credit card chaser tool is free and an excellent way to compare credit cards online!
How a Secured Credit Card is Different
The main thing that makes a secured credit card different from other credit cards is that is requires a sort of security deposit. The cardholder must put down the amount of money that they want their credit limit to be for that credit card. The money put down for the credit card is there to cover any charges if the credit cardholder does not make their payments.
The minimum amount of money needed to open this type of credit card account is $300. It is important for someone wishing to improve their credit score to make their payments on time and not default on this credit card. The cardholder’s activity is directly reported to the three main credit bureaus, so their credit score will reflect their activity differently than with a normal credit card.
Fees Associated with this Credit Card
Unlike the other MasterCards available through the American Heritage Federal Credit Union, the Secured MasterCard has an annual fee. The annual fee for this card is $35.
This credit card also has a higher annual percentage rate because the cardholder will have a lower credit score than the other cardholders. The annual percentage rate for this secured credit card is 15.9%. While this is a high rate for this credit union, it is not a high rate in comparison to most credit cards on the market today.
Use the credit card chaser tool to compare other secured online credit cards!
- Fort Worth Community Credit Union Share Secured Classic MasterCard Credit Card
- First Bank of Delaware Granite MasterCard Credit Card
- Andrews Federal Credit Union Visa Platinum Secured
- Hanscom Federal Credit Union Visa Platinum Secured Credit Card
- Monterey County Bank MasterCard Emblem Credit Card
- American Heritage Federal Credit Union Classic MasterCard
- Polish & Slavic Federal Credit Union Visa Secured Credit Card