US Bank secured credit cards to rebuild credit
US Bank offers two secured credit cards designed to rebuild credit history or establish credit from the scratch. The first is universally accepted U.S. Bank Secured Visa Credit Card that gives you great power and flexibility with all the protections and benefits you expect from Visa. The second and even better, is SKYPASS Secured Visa Credit Card that doesn't not just help to rebuilt credit, but also comes with a nice perk - it gives 3,000 bonus miles with your first purchase. And you earn more miles as you use this card.
First thing first and here is US Bank secured credit card - the regular one in nutshell.
Open a US Bank savings account, by simply sending a cashier check, a certified check or a money order from $300 to $5,000 with your credit card application to the following address -
U.S. Bank National Association ND
P.O. Box 6363
Fargo, ND 58125-6363
Upon approval you will be send a credit card with a credit line matching your saving account balance. This secured credit card looks and works just like a regular one. The money in your savings account is only there to secure your card and is FDIC insured and won't be touched as long as you make all of your credit card payments on time and your account remains open. You even will earn some puny interest on this account. Each month you will get a bill. Payments are NOT automatically deducted from your savings account. You must pay at least your minimum payment by the due date each month. After 12 months of timely payments, U.S. Bank may offer to you an unsecured credit card.
You also get car rental discounts, 24 hour toll-free card member services and, most importantly fraud protection, guaranteeing no responsibility for unauthorized charges if your U.S. Bank Secured Visa Credit Card is lost or stolen. Replacement cards are promptly sent within 48 hours. You can pay your bill online and receive extra credit cards for family members.
How much does it cost you? Not too much if you behave responsibly, meaning you use this card for purchases only and pay the balance off monthly within allocated 20 to 25 day grace period. Annual fee is only $35. If you, however, choose to carry a balance, the 19.49% Annual Percentage Rate on purchases may simply ruin your credit history before you rebuild it. It is so high that 23.99% Delinquency Rate doesn't scare anyone. Variable Cash Advance Rate of 20.99% and Delinquency Rate of 28.49% equally spell D-I-S-A-S-T-E-R. Plus, there are separate fees for Cash Advance and Balance Transfer of 3.00% and 4.00% of the transaction amount. Finally, Late Payment and Over Limit fees are capped at $39. So it is a nice secured credit card to use as long as you do it wisely.
The SKYPASS Secured Visa Credit Card issued by US Bank in association with Korean Air, is a nicer choice to rebuild credit and enjoy occasional free plane ticket to your favourite destination. That is if Korean Air flies there. But even if you are not planning to fly, the variable Annual Percentage Rate for Purchases is 14.49% - 5 full percentage points lower than that of the first card - especially important if you carry a balance. Annual Fee is $50. Everything else is virtually the same. For a benefit of those who still wish to rebuild credit and indulge into flying, here are few things you get,
- 3,000 SKYPASS bonus miles with your first purchase
- 1,000 Bonus miles at renewal
- earn 1 mile for every $1 net purchase
- $250,000 in Travel Accident Insurance
- redeem miles for free travel on Korean Air and SkyTeam partners
- redeem miles for free upgrades on Korean Air flights
- no cap on miles
- combine your SKYPASS Visa miles with your SKYPASS flight miles
- earn miles even faster when you pay bills online
- English and Korean languages automated 24-hour account access and customer service available
- auto rental insurance
Finally a very important if not unfriendly disclosure on both US Bank secured credit cards -
Your APR may increase if you fail to make timely payments to another creditor as reflected in your credit report. All Account terms are governed by the Cardmember agreement sent with the card. Account and Cardmember Agreement terms are not guaranteed for any period of time, U.S. Bank may change all terms, including APRs and fees, in accordance with the Cardmember Agreement and applicable law.
The first line warning is quite important. Do not default on any payments that are reported to credit bureaus. US Bank will, as any other bank that looks at the status of other creditor lines you have, and not all banks do, use this as an excuse and cause you much grief. Note that this post neither offers advice nor endorses US Bank and Visa, and the information posted may be incomplete and is current only as the time of this post. Visit U. S. Bank for complete descriptions and disclosures.
Mon Jan 19, 2009 04:01PM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips | Comments (0)
Recent Entries
- Capital One Secured Credit Card to Improve Credit Score - Review
- How to get approved for mortgage - loan approval help
- Spouse average FICO credit score is higher?
- Why average credit score?
- Getting mortgage after bankruptcy - go FHA
- Debt settlement and how it affects credit score
- Debt settlement with Citibank
- Can I settle with credit card company with no late payments?
- Credit card limit lowered, credit score goes down
- Gold price will rise in 2011
