If you want to build your credit score, the Armed Forces Bank Credit Builder Secured Visa Card is a simple and effective tool to help you. It is important to know that you do not need to be in the military to apply for this card. It is available to everyone in the U.S. who qualifies.
This card is a type of credit card called a “secured card.” This means you give the bank a small, refundable deposit, and that becomes your spending limit. It’s a very safe way to start building a positive credit history. Let’s look at how this simple card can help you reach your financial goals.
What are the Benefits?
This card has several great features that are easy to understand.
- It’s Open to Everyone: You do not need a military background to apply. As long as you are a U.S. resident and meet the basic requirements, you can be approved.
- It Builds Your Credit History: This is the most important benefit. The bank reports your on-time payments to the three major credit bureaus: Equifax, Experian, and TransUnion. This is how you build a good credit score.
- You Can “Graduate” to a Regular Card: After about a year of making your payments on time, the bank may offer to change your card to a regular, unsecured credit card. If this happens, you get your full security deposit back.
- Your Deposit is Safe and Earns Interest: Your security deposit (from $200 to $3,000) is kept for you in a savings account that is insured by the FDIC and earns a little bit of interest.
- It Has a Low Annual Fee: There is a $35 fee each year to keep the card. This is a low cost for a tool that can help you improve your credit score.
- The Interest Rate is Lower: The interest rate (APR) on this card is often lower than on many other credit-builder cards. It is always best to pay your bill in full, but this lower rate can help you save money if you need to carry a small balance.
- It’s a Real Visa Card: You can use it anywhere Visa is accepted, including for online shopping or travel. It also protects you from charges you didn’t make.
Who Can Apply for This Card?
You can apply for this card if you are a U.S. resident and:
- You are 18 years old or older.
- You have a U.S. address and a Social Security Number.
- You have the money for the refundable security deposit (the minimum is $200).
- You have had trouble with your credit in the past, or you have no credit history at all.
How Do You Apply?
The process is simple and can be done online.
- Go to the Armed Forces Bank Website: Find the page for the Credit Builder Secured Visa Card.
- Fill Out the Form: The online application will ask for some basic information about you.
- Get Your Decision: Because it is a secured card, you will likely be approved if you meet the basic requirements.
- Send Your Deposit: After you are approved, you will need to send your security deposit to the bank.
- Get Your Card in the Mail: Once the bank receives your deposit, they will mail your new card to you. You can activate it and start using it right away.
Common Questions
- Do I have to be in the army or another military branch to get this card?
No, you do not. This card is available for anyone in the U.S. to apply for, whether they have a military connection or not. - What happens to my security deposit? Do I get it back?
Yes, you will get your security deposit back. It is your money. The bank will return it to you when you are upgraded to a regular credit card or if you decide to close the account in good standing with a zero balance. - Does this card give me cash back or other rewards?
No, this card does not have a rewards program. Its only job is to help you build a positive credit history, which is a very valuable reward in itself for your future. - What is the best way to use this card?
The best way to use this card is to make a few small purchases each month that you can easily afford. Then, when you get your monthly bill, pay the entire balance off before the due date. This shows that you are a responsible borrower and is the best way to build your credit score.
