Does Navy Federal Have Secured Credit Cards?
As one of the largest credit unions in the United States, Navy Federal Credit Union offers a range of financial products and services to its members. When it comes to building or rebuilding credit, a secured credit card can be an excellent option. But the question remains: Does Navy Federal have secured credit cards?
What are Secured Credit Cards?
Before we dive into the answer, let’s take a step back and define what a secured credit card is. A secured credit card is a type of credit card that requires a security deposit, which becomes the credit limit on the card. This deposit is typically equal to the credit limit, and it’s used to reduce the risk of lending to the cardholder. In return, the cardholder receives a line of credit, which can be used to make purchases, pay bills, and build credit.
Secured Credit Cards: Pros and Cons
Secured credit cards can be an excellent option for individuals who are building or rebuilding credit, as they offer several benefits:
- No credit check: Since you’re putting up collateral in the form of a security deposit, lenders don’t need to perform a traditional credit check.
- Lower risk: The security deposit reduces the risk for the lender, making it easier to get approved.
- Building credit: By using a secured credit card responsibly, you can build credit and establish a positive credit history.
However, there are also some potential drawbacks to consider:
- Fees: Secured credit cards often come with fees, such as annual fees, interest rates, and late payment fees.
- Interest rates: Secured credit cards may have higher interest rates than unsecured credit cards.
- Collateral risk: If you fail to make payments, you risk losing your security deposit.
Does Navy Federal Have Secured Credit Cards?
The answer is yes, Navy Federal Credit Union does offer a secured credit card option. The Navy Federal Secured Credit Card is designed for members who are building or rebuilding credit. Here are some key features:
- Credit limit: The credit limit is equal to the security deposit, which must be at least $200 and no more than $10,000.
- Interest rate: The annual percentage rate (APR) is 11.90% variable.
- Fees: There is an annual fee of $39, and late payment fees may apply.
- Credit reporting: Navy Federal reports payments to all three major credit bureaus (Equifax, Experian, and TransUnion).
Alternatives to Navy Federal Secured Credit Cards
While Navy Federal’s secured credit card is an excellent option, there are other alternatives to consider:
- Navy Federal Credit Builder Card: This credit card is designed for members who want to build credit without the need for a security deposit. It has a credit limit of up to $1,000 and an APR of 12.90% variable.
- Other credit unions: Some other credit unions, such as Alliant Credit Union and State Employees’ Credit Union, offer secured credit cards with competitive terms and fees.
- Bank-issued secured credit cards: Banks such as Wells Fargo and Capital One offer secured credit cards with varying terms and fees.
Conclusion
Navy Federal Credit Union does offer a secured credit card option, which can be an excellent choice for members who are building or rebuilding credit. However, it’s essential to weigh the pros and cons and consider alternative options before making a decision. By choosing the right secured credit card, you can build credit, establish a positive credit history, and take control of your financial future.
Table: Secured Credit Card Options
| Credit Union/Bank | Secured Credit Card Option | Credit Limit | APR | Fees |
|---|---|---|---|---|
| Navy Federal | Navy Federal Secured Credit Card | $200-$10,000 | 11.90% variable | $39 annual fee |
| Navy Federal | Navy Federal Credit Builder Card | $0-$1,000 | 12.90% variable | $0 annual fee |
| Alliant Credit Union | Alliant Secured Credit Card | $200-$5,000 | 12.99% variable | $35 annual fee |
| State Employees’ Credit Union | SECU Secured Credit Card | $200-$5,000 | 12.99% variable | $20 annual fee |
| Wells Fargo | Wells Fargo Secured Credit Card | $300-$5,000 | 24.99% variable | $39 annual fee |
| Capital One | Capital One Secured Mastercard | $49-$3,000 | 24.99% variable | $0 annual fee |
Frequently Asked Questions
- What is the minimum security deposit required for Navy Federal’s secured credit card?
The minimum security deposit is $200. - Can I use my Navy Federal secured credit card for international transactions?
Yes, but be aware that international transactions may be subject to additional fees. - Can I convert my Navy Federal secured credit card to an unsecured credit card?
Yes, after 12 months of on-time payments, you may be eligible to upgrade to an unsecured credit card.
By considering your options carefully and choosing the right secured credit card, you can take the first step towards building a stronger financial future.
