Read through this review of the New Millennium Bank Secured Black Diamond credit card to decide if this is the best credit card for your needs. New Millennium Bank is a community bank located in Somerset and New Brunswick of New Jersey. They opened their doors in 1999 locally as well as online and today provide a full service of banking and loan options. In addition to personal and business banking, they offer secured credit cards for people who need to establish credit or even repair it. The Secured Black Diamond Credit Card offered by New Millennium Bank is a great option if you need a credit card; but, can’t obtain an unsecured one. Click the apply button to submit a New Millennium Bank Secured Black Diamond credit card application or visit our home page to compare many different credit cards and find the credit card that is right for you.
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Secured Credit Cards versus Unsecured Credit Cards
Secured credit cards are similar to unsecured credit cards in that they allow you to use the credit card to make purchases and pay off the balance. The difference is that a secured credit card requires a linked savings account as collateral to offset your credit card limit. If you do not yet have credit history or if you have poor credit history, a secured credit card is set up with a savings account of equal monetary value to provide the bank with insurance in case you default on your credit card.
Unsecured credit cards (credit cards that are obtained without first securing monetary collateral) assume greater risk and therefore are usually just extended to people who have already demonstrated financial responsibility. If you are unable to obtain an unsecured credit card, then it may prove useful to get a secured credit card to establish your credit and maintain good financial habits, such as paying your bills on time every month, so that you can build your credit and raise your credit score.
The key to using your secured credit card from New Millennium Bank is to boost your credit rating by using the card for a few minor purchases every month and then paying them off promptly. The interest rates are high and there is no grace period (See “Black Diamond Card Fees” below), so you want to simply use your card to show that you are upholding your financial obligations. Make a few purchases, pay for them promptly, and repeat every month. Soon you will see a healthy credit history emerge and a favorable credit score rise.
As soon as your credit is good or excellent and you have the means of obtaining an unsecured credit card, you should consider closing the secured credit card account. Look for an unsecured credit card with a lower APR than your current secured card and preferably one without any annual fees. That way you can save money with the new card and still build your credit history using a traditional credit card. Just remember to continue to buy only what you can afford to pay each month and you can avoid future problems with your credit report.
Benefits of the Black Diamond Card
Not all secured credit cards report your payment history to the credit bureaus, which defeats the purpose of using a secured credit card. New Millennium Bank reports your credit card payment activity to all three main credit reporting agencies so that you can truly start to establish a good credit record. The three main credit bureaus still in force today are Equifax, Experian, and TransUnion.
Credit card companies, banks, mortgage lenders, auto lenders, and utility companies all report payment history to one or more of these credit reporting agencies. They use information such as your balance due and your credit limits along with your payment history to determine your credit score. Your credit history and credit score are then used for a number of determining factors, such as if you qualify for a new credit card. It helps decide not only if you get approval for a loan, but it also determines the interest rate you will be given. This impacts everything from credit cards to mortgages and can even affect a job for which you are applying.
You may not realize it, but even your car insurance premium can be impacted by your credit score. Obviously, the higher your credit score the better rates and offers you will receive, so you want to maintain a healthy payment history and be sure that information gets reported to the right agencies.
New Millennium Bank guarantees approval for all applicants provided they are of legal age and reside in the United States with a valid social security number. You need to open a savings account with a minimum of $300 up to $5,000. Your credit limit is guaranteed to match your deposit, so you actually get to set your credit card limit. If you default on your credit card payment, the money owed will be deducted from your savings account and the remaining balance in your savings account will be returned to you.
You are allowed to make deposits to your savings account whenever you want, increasing your balance and therefore your credit card limit up to the maximum allowed. However, you will not be allowed to withdraw money from the savings account since it is being used to secure your credit card, so do not deposit more than you can afford to save. Once you close your account your credit card purchases will have to clear before receiving any remaining balance and interest earned, which can take up to ten weeks.
Your new savings account will earn interest at 6% for the first three months and then 2% for the nine months subsequent to that. This calculates an APY (Annual Percentage Rate) of 3% for the first year. Succeeding years will yield a 2% APY, although rates are subject to change. In addition to earning interest, your savings account will not incur any monthly activity fees.
In addition to receiving interest in your savings account and building your credit with guaranteed approval, there are more benefits to having a secured Black Diamond Card. You can use your credit card to get cash at more than 740,000 ATMs (Automatic Teller Machines). This is good if you need instant cash, but money withdrawn from an ATM is considered a cash advance, which incurs an additional fee (See Black Diamond Card Fees below). You can also get emergency cash as a transfer if needed.
The New Millennium Bank secured credit cards come with various insurance protection including auto rental insurance and travel accident insurance up to $100,000. An extended warranty protection is also available for select purchases.
Black Diamond Card Fees
As with most credit cards, secured or other, an annual percentage interest rate (APR) applies to balances on the account. The Black Diamond Card is a fixed 19.5% rate for both purchases and cash advances. There is also an annual membership fee of $59 and a onetime application processing fee of $35.
As a secured credit card, there is no grace period, which means you will incur finance charges for your purchases and cash advances immediately until the balance is paid. The minimum finance charge is $0.50 per month. Late payment fees are $20 and if you go over your limit you will be fined another $20. Cash advances cost 2% of the advance amount with a minimum $1 fee and maximum $20 fee.
Secured credit cards are a great way to build or repair your credit, but only if you make timely payments and your resulting payment history is reported to the credit bureaus. New Millennium Bank reports to the big agencies, helping you with your credit. They also provide you with an interest bearing savings account to be used as collateral against your secured credit card. And since they offer you double or nothing on the application fee to guarantee your approval, you really have nothing to lose but everything to gain from completing an application online now using the link at the top of the page!
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