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U.S. Bank Secured Visa Card

This Low-Cost Card Might Get You Into an Unsecured Card Faster than Most

About.com Rating 4 Star Rating
User Rating 1 Star Rating (1 Review)

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This card looks like one of the quickest ways to advance toward getting an unsecured card, provided you exercise good credit behavior.

Who the U.S. Bank Secured Visa Credit Card Is For

  • People who have been turned down for a credit card or are rebuilding their credit.

Credit Rating Required

  • Bad (below 620)

About the U.S. Bank Secured Visa Card

Pros

  • Low annual fee.
  • Interest earned on security deposit.
  • No account processing fee.
  • Quick graduation to unsecured card if you qualify.

Cons

  • High interest rates.
  • Not available in all states.

Security Deposit Required

  • $300 to $5,000.

Rewards

  • None.

APRs

  • 20.99 percent on purchases and balance transfers; 23.99 percent on cash advances.

Fees

  • Annual fee: $35.
  • Late payment fee: $19-$39.
  • Returned payment fee: $39.
  • Over-limit fee: $39.
  • Balance transfer fee: 3 percent of balance.

U.S. Bank Secured Visa Card Review

Despite its high interest rate, this card from U.S. Bank looks like one of the better ones in the secured card area. The bank says that if you manage this card well, it may be able to promote you up to an unsecured card in as little as 12 months. That's a big plus in your quest to improve or establish your credit score.

By comparison, some other secured cards say they will review your credit in a year, and then they might be willing to increase your credit line by a small amount, while asking you to secure 50% or more of the line with a bigger deposit. You don't want to have a secured card any longer than you have to.

The annual fee of $35 is at the low end of the secured cards. The bank also says it pays interest on your deposit.

U.S. Bank offers this card only in those states where it has retail branches, which pretty much covers the U.S. west of the Mississippi and a handful of states east of it. Visit the U.S. Bank website to learn if there's a retail branch in your state.

Recommendation

This is one of the better secured cards. As for the high interest rate, you can always avoid paying hefty finance charges by paying your balance in full before the grace period ends.

User Reviews

Reviews for this section have been closed.

 1 out of 5
I can't say enough bad things about this card, Member KennyAngel007

I signed up for this card under the impression that after a year I could upgrade to an unsecured card. Despite a good credit rating they would not upgrade me after 2 years. After writing them the required letter to cancel the card it took 3 months to get my security deposit back. I just checked my credit report and it is showing an incorrect debt to USBANK in the amount of $9. The customer service rep told me the whole reason it takes so long to get the security deposit back is so they can deduct any money you owe them from the refund check. If they did this correctly I should not still have a balance.

4 out of 5 people found this helpful.

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