U.S. Bank Secured Visa Card Review

If you’re looking for a basic credit card to help you build credit, the U.S. Bank Secured Visa Card is an affordable option. While you’ll need to put down at least a $300 deposit to open the card, you won’t have to pay annual fees or maintenance fees to keep your account open. The card reports to all three credit bureaus, and there’s potential to upgrade to an unsecured card and have your deposit refunded if you keep your account in good standing.

The downside is this card doesn’t come with rewards or many benefits. There are better cards out there for people with poor or limited credit that offer rewards on every purchase.

• No annual fee

  Many credit cards for people with low credit scores come with expensive fees, like a monthly maintenance fee or annual fee. The U.S. Bank Secured Visa Card comes with a $0 annual fee, making it an affordable option to start building credit.

• Flexible billing due date

  The U.S. Bank Secured Visa Card allows you to choose when your payment is due. This can be helpful if you want to plan your credit card payments around paychecks or other payment due dates. When you’re approved for the U.S. Bank Secured Visa Card, you can contact U.S. bank to set up your payment due date. Not all payment due dates may be available.

• Chance to graduate to a secured card

  The U.S. Bank Secured Visa Card offers a path to upgrade to an unsecured credit card with responsible credit use. U.S. Bank will start reviewing your account after 12 months of account history to determine if you’re eligible. If you qualify, your account could be automatically upgraded and your security deposit will be returned to you within one to two billing cycles. To determine if you qualify, U.S. Bank may look at things like your payment history.

  A card with a clear path to upgrade can save you from having to apply for an unsecured card later on, and generating a hard inquiry on your credit history.

• Reports to all three credit bureaus

  The U.S. Bank Secured Visa Card is a great credit-building tool. U.S. Bank will monitor your credit activity and regularly report your card status to the three major credit bureaus — Equifax, Experian and TransUnion. These reports are used to generate your credit score. If you use your card responsibly and make on-time payments, you’ll see positive results in your credit score.

  You can also check your credit score anytime with U.S. Bank’s mobile app or online banking. This feature is completely free to use with the U.S. Bank Secured Visa Card.

• Requires a security deposit

  The U.S. Bank Secured Visa Card is a secured credit card, meaning you’ll be required to put down a security deposit upfront to own the card. You’ll need to deposit at least $300, with a maximum of $5,000. Your security deposit will become your credit limit. The security deposit is refundable and you’ll get it back when you close the card or upgrade to an unsecured card.

  The upper end of its credit limit is high compared to other secured cards. For example, the Discover it^® Secured Credit Card has a maximum security deposit of only $2,500. But there are many cards that offer a lower minimum deposit. For example, the Capital One Platinum Secured Credit Card allows you to make a deposit of $49, $99 or $200 to get a credit limit starting at $200, depending on your credit history.

  Secured credit cards are generally a better choice than unsecured credit cards for bad credit. Unsecured cards for people with low credit scores often come with expensive (and nonrefundable) fees that can amount to more than $100 each year. Secured cards tend to be much more affordable over the long term, and may be easier to get approved for.

• No rewards

  The U.S. Bank Secured Visa Card doesn’t come with a sign-up bonus or rewards program, which is pretty common for secured cards. If you’re focused on credit building, rewards shouldn’t be your top priority, but they are a nice-to-have that can add significantly to the value of a card.

  There are a few secured cards with good rewards programs. For example, the Discover it^® Secured Credit Card offers bonus rewards on purchases at gas stations and restaurants plus additional rewards on everyday purchases. The Capital One Quicksilver Secured Cash Rewards Credit Card offers bonus rewards on hotels and restaurants booked through Capital One Travel and on everyday purchases.

• High interest rate

  The U.S. Bank Secured Visa Card comes with a high 29.24% variable APR. This APR is high compared to the average APR for secured credit cards. It’s best to pay your balance in full each month to avoid paying interest. However, if you have a tendency to carry a balance on your accounts, you might want to steer clear of this card, as it will be costly.

• Additional transaction fees

  While the U.S. Bank Secured Visa Card comes with no annual fee, there are a few other fees to be aware of including:

  Foreign transaction fee: 3% of each foreign purchase transaction or foreign ATM advance transaction in U.S. dollars; 3% of each foreign purchase transaction or foreign ATM advance transaction in a foreign currency.

  There are similar cards that don’t have a foreign transaction fee, that can save you money if you use your card while traveling outside the U.S. This includes:

  • Discover it^® Secured Credit Card
  • Capital One Platinum Secured Credit Card (see rates & fees)
  • Capital One Quicksilver Secured Cash Rewards Credit Card (see rates & fees)

  Balance transfer fee: Either 3% of the amount of each transfer or $5 minimum, whichever is greater.

  If you’re planning to use your card for a balance transfer, you may want to consider the Discover it^® Secured Credit Card. This card offers a 10.99% Intro APR for 6 months on balance transfers, followed by a 27.74% Variable APR.

  Cash Advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater.

U.S. Bank Secured Visa Card vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card is one of the best secured cards for building credit. It offers much more value than you’ll get with the U.S. Bank Secured Visa Card. You can 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.

You’ll also qualify to upgrade to an unsecured card quicker than with the U.S. Bank Secured Visa Card. Discover will conduct monthly reviews starting at seven months to see if you’re eligible to upgrade. There’s also a lower minimum security deposit of $200 and a $0 annual fee.

U.S. Bank Secured Visa Card vs. Capital One Platinum Secured Credit Card

The Capital One Platinum Secured Credit Card is another $0 annual fee secured card (see rates & fees). What makes this card stand out is that there’s an opportunity to put down a lower security deposit. Depending on your credit profile, you’ll pay a deposit of either $49, $99 or $200 to get a $200 starting credit limit.

In any case, you can pay a lower deposit to open the card versus the $300 minimum deposit for the U.S. Bank Secured Visa Card.

U.S. Bank Secured Visa Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card

The Capital One Quicksilver Secured Cash Rewards Credit Card is another secured credit card option that offers cash back. You’ll earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). This card also offers a $0 annual fee (see rates & fees). Its rewards make it a better choice than the U.S. Bank Secured Visa Card.

The U.S. Bank Secured Visa Card is a decent option if you’re looking for an easy-to-use credit card to build credit. It’s worth it if you plan to use it responsibly for a potential upgrade to an unsecured U.S. Bank card.

But, if you’re looking for a secured credit card to help you build credit, there are better secured credit cards that let you earn rewards while you work toward a higher credit score.