DCU Visa® Platinum Secured Credit Card Review: Is It Worth It?

The DCU Visa® Platinum Secured Credit Card is a solid card because it offers cardholders a way to build credit with minimal fees — including a $0 annual fee — and a low APR. The only fee is the late fee which can be avoided if you make your monthly payment on time.

However, a few downsides make it less enticing than other secured credit cards. One is that the card requires a much larger-than-usual minimal security deposit of $500. Another hurdle is that since the issuer, Digital Credit Union, is a credit union, you must become a member to apply for the card. That said, even if your employer isn’t a credit union partner, you can join an organization to become eligible for DCU membership.

• Accessible even if your credit isn't great

  Consumers who are looking to establish or improve their credit have a chance with the DCU Visa® Platinum Secured Credit Card. Applications are open to those with poor credit and with responsible use of the card, you can steadily build your credit score.

  Note that this is a secured credit card which means that once approved for the DCU Visa® Platinum Secured Credit Card, you’ll need to submit the minimum $500 security deposit. This serves as your credit line and when you close your account in good standing, you’ll receive the deposit back.

  → Learn how to build credit with a credit card

• Low APR

  Credit unions offer some of the lowest credit card APRs and the DCU Visa® Platinum Secured Credit Card is no exception. It has a low 16.25% (variable) APR, which is well below the average credit card interest rate of 24.71%. Remember that you don’t pay interest when you pay your balance in full each month; only if you carry some of the balance to the next month. However, this low rate is nice in case you do have to roll over a balance due to a financial emergency.

• Very few fees

  The DCU Visa® Platinum Secured Credit Card has very few fees. That includes:

  • $0 annual fee
  • $0 foreign transaction fee
  • $0 balance transfer fee
  • $0 cash advance fee

  It does have a late payment fee of up to $35 per occurrence, which is comparable to other cards’ late fees.

• Reports to the three credit bureaus

  When you’re trying to build credit, you want a card that reports to all three major credit bureaus: Experian, Equifax and TransUnion. This is important because, for example, when you take out an auto loan, you don’t know which credit report the lender will pull. If your credit card doesn’t report to all three, there’s a chance the lender won’t see the full picture of your credit history, and possibly deny the loan request. Your credit history is a factor in your credit score and having a good credit score is important for getting the best rates on loans.

• You must be a DCU member

  There’s a bit of extra work involved if you want to get the DCU Visa® Platinum Secured Credit Card. You need to become a member of DCU and open a savings account first.

  That said, DCU makes it easy to join. You can become a member if:

  • You work for, or have retired from, one of their hundreds of partner employers.
  • You are a relative of a current DCU member.
  • You live, work, worship or attend school in an eligible community.
  • You belong to an eligible organization.
  The easiest, and most affordable way to open a DCU membership is joining Reach Out for Schools. Memberships start at $10. You can join a participating organization during your DCU membership application.

• High security deposit

  The DCU Visa® Platinum Secured Credit Card‘s $500 deposit is higher than average. A typical minimum security deposit is around $200-$300, and it’s possible to get one lower than that. The Capital One Platinum Secured Credit Card, for example, requires a minimum deposit of $49, $99 or $200 which is determined after Capital One reviews your application.

  Depositing a larger amount isn’t necessarily a negative. It gives you a larger credit line for purchases and can also help you keep your credit utilization ratio low — a major factor in credit scoring. However, if you are cash-strapped and seeking the lowest deposit possible, you should check out other secured credit cards.

• No rewards

  The DCU Visa® Platinum Secured Credit Card doesn’t earn rewards, but that’s not necessarily bad. When you’re building credit, you should focus on using your card responsibly. For some people, earning cash back could tempt them to overspend or carry a balance and pay more in interest than they earn in rewards. Fortunately, there are secured cards like the Discover it^® Secured Credit Card that do offer rewards.

DCU Visa® Platinum Secured Credit Card vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card is consistently a top choice for secured credit cards, It comes with a $0 annual fee, reasonable security deposit, low intro APR on purchases and a rewards program. You don’t need a credit score to apply, so even those with thin credit files or bad credit can apply. The card requires a minimum $200 security deposit but offers a path to upgrade to an unsecured card since Discover begins doing automatic monthly reviews of your account after seven months.

The Discover it^® Secured Credit Card lets cardholders earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. However, be sure to pay your statement in full each month — the Discover it^® Secured Credit Card charges a high APR on unpaid balances.

DCU Visa® Platinum Secured Credit Card vs. Capital One Platinum Secured Credit Card

If putting down a $500 deposit for the DCU Visa® Platinum Secured Credit Card is too much, consider the Capital One Platinum Secured Credit Card. It offers some cardholders a deposit of as little as $49 for a $200 line of credit. Of course, not everyone qualifies for that; some people have to put down the full $200 to secure their credit line. Unfortunately, you won’t know if you’re approved for a lower amount until your application is approved.

You won’t earn rewards on your purchases. However, the annual fee is $0 so it won’t cost you anything besides the security deposit. You should aim to pay your balance in full each month as the card charges a 29.99% (Variable) APR on purchases.

DCU Visa® Platinum Secured Credit Card vs. OpenSky^® Secured Visa^® Credit Card

If bad credit is preventing you from opening a credit card, you may have a chance with the OpenSky^® Secured Visa^® Credit Card. It doesn’t require a credit check.

It comes with a $35 annual fee and requires a $200 minimum deposit. But it offers the opportunity to transition to an unsecured card; you may be eligible in as few as six months. The 25.14% (variable) is also lower than average for a secured credit card.

The DCU Visa® Platinum Secured Credit Card may be a good fit for you if you’re looking for a secured card and already a member of the credit union. It’s an affordable option for building credit, since it comes with few fees and a very low APR.

If becoming a member of DCU isn’t something you want to do, there are plenty of other secured credit card options without membership requirements and smaller minimum deposits. You may even find a card that lets you earn rewards, like the Discover it^® Secured Credit Card.