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If your credit score prevents you from being approved for a traditional credit card, you could apply for a secured card. This type of card might be a good way to build your credit. You put cash on the card, and that will be your credit line for the account. Several companies offer secured cards. American Express provides a secured card issued by USAA bank.

american-express-secured-credit-cardsThe American Express secured credit card offers numerous benefits. The downside to this card is that not everyone is eligible. You must be military or family of military to enjoy this card. If approved for this card, you will open a CD (certificate of deposit) with the bank. This will earn you a variable interest rate of .54%. If you would like to increase your credit, you can add additional money to the account.

For purchases, you will earn .45% of purchases up to $5,000. If you spend between $5,000 and $10,000, you will earn .85% plus $22.50. If you spend between $10,000 and $17,000 each year, you will earn 1% plus $65.00. If you spend above $17,000, you will earn 1.25% plus $135.00. Therefore, for a secured credit card, the rewards are nice.

The annual APR ranges from 10.15% to 20.15%. APR on balance transfers carry the same APR; however, there is a 3% balance transfer fee. The card does carry an annual fee of $35. You can make a security deposit that is between $250 and $5,000. The term on your CD will be two years.

citi-secured-credit-card-3If you make a late payment, you will be charged $25.00. A second late payment will be $35. If you are deployed, you will get some benefits. Active military members and individuals who participate in the military campaign also get some perks.

The card offers chip security. There are no foreign transaction fees, and you will have access to identity theft protection. You will not be liable for purchases that you did not authorize, and you can access your account on any device.

The fact is that the American Express secured credit card has many things to offer. If you are eligible for this card, it is highly recommended. Keep in mind that it will be a two-year commitment. One of the disadvantages to this card is that the company does not offer the option for you to promote to an unsecured card. However, if you get your score up, you can then apply for an unsecured card. American Express will report all payments to all three credit bureaus.