Navy Federal Secured Credit Card
The Navy Federal Secured Credit Card is a type of secured credit card offered by Navy Federal Credit Union. Here are some key features and benefits of this card:
- Security deposit: The Navy Federal Secured Credit Card requires a security deposit of at least $200, which will determine your credit limit. You can deposit up to $5,000, and your credit limit will be equal to your deposit.
- Credit building: Like other secured credit cards, the Navy Federal Secured Credit Card is designed to help you build credit. By making on-time payments and keeping your balance low, you can establish a positive credit history.
- Low APR: The card has a variable APR starting at 18.00%, which is relatively low for a secured credit card. This can be beneficial if you need to carry a balance from month to month.
- Rewards: The Navy Federal Secured Credit Card does not offer rewards, unlike some other secured credit cards. However, it does offer perks such as extended warranty coverage and travel and emergency assistance services.
- No annual fee: The card has no annual fee, which can save you money compared to some other secured credit cards that charge an annual fee.
Overall, the Navy Federal Secured Credit Card can be a good option if you are looking to build credit and prefer to use a credit union rather than a bank. However, it’s important to keep in mind the security deposit requirement and lack of rewards when deciding if this card is right for you.
What are 2 downsides of getting a secured credit card?
A secured credit card is a type of credit card that requires a cash deposit as collateral to secure the credit limit. While secured credit cards can be a useful tool for building credit or improving a poor credit score, there are a couple of downsides to consider:
- Cash deposit requirement: One major downside of a secured credit card is that it requires a cash deposit upfront, which can be a financial burden for some people. The deposit is typically equal to the credit limit, so if you want a higher credit limit, you’ll need to deposit more money. While the deposit is refundable if you close the account or upgrade to an unsecured credit card, you’ll still need to have the cash available in the first place.
- Higher fees and interest rates: Secured credit cards may also have higher fees and interest rates compared to unsecured credit cards. This is because they are designed for people with no credit or poor credit, so they may be considered higher risk by the credit card issuer. Before getting a secured credit card, it’s important to compare the fees and interest rates to ensure that you’re getting a good deal.
How often does Navy Federal increase credit limit on secured?
The frequency of credit limit increases on a Navy Federal Secured Credit Card may vary depending on the individual’s credit profile and payment history. Navy Federal Credit Union may periodically review your account and creditworthiness to determine if you qualify for a credit limit increase.
Typically, if you consistently make on-time payments and demonstrate responsible credit behaviour, Navy Federal Credit Union may consider increasing your credit limit. However, there is no guarantee that you will receive a credit limit increase, and it’s ultimately up to Navy Federal Credit Union’s discretion.
If you’re interested in increasing your credit limit on a Navy Federal Secured Credit Card, you can contact their customer service team to inquire about the process and eligibility requirements. It’s important to remember that even if you do receive a credit limit increase, you should still use your card responsibly and make timely payments to avoid accruing high-interest charges and fees.