Table of Contents
Introduction
When it comes to choosing a credit card, consumers have a plethora of options to consider. One such option is the Applied Bank Secured Visa Gold Preferred. This credit card is marketed as a gold standard for individuals looking to build or rebuild their credit. However, is it truly a gold standard or just fool's gold? In this article, we will delve into the features, benefits, and drawbacks of the Applied Bank Secured Visa Gold Preferred to help you make an informed decision.
The Basics of the Applied Bank Secured Visa Gold Preferred
The Applied Bank Secured Visa Gold Preferred is a secured credit card, meaning it requires a security deposit to open the account. The credit limit is typically equal to the amount of the security deposit, which can range from $200 to $5,000. This card is specifically designed for individuals with limited or poor credit history who are looking to improve their credit score.
One of the key selling points of the Applied Bank Secured Visa Gold Preferred is that it reports to all three major credit bureaus, namely Experian, Equifax, and TransUnion. This means that responsible use of this card can help individuals establish or rebuild their credit history.
The Benefits of the Applied Bank Secured Visa Gold Preferred
1. Credit Building: As mentioned earlier, the Applied Bank Secured Visa Gold Preferred reports to all three major credit bureaus. This is a significant advantage for individuals looking to improve their credit score. By making timely payments and keeping credit utilization low, cardholders can demonstrate responsible credit behavior, which can positively impact their creditworthiness.
2. Security Deposit: The security deposit required to open the Applied Bank Secured Visa Gold Preferred account acts as collateral. This reduces the risk for the bank, allowing them to offer credit to individuals with limited or poor credit history. Additionally, the security deposit is fully refundable if the cardholder closes the account in good standing.
3. No Credit Check: Unlike traditional credit cards, the Applied Bank Secured Visa Gold Preferred does not require a credit check during the application process. This makes it an accessible option for individuals who may have been denied credit in the past due to their credit history.
4. Online Account Management: The Applied Bank Secured Visa Gold Preferred provides cardholders with convenient online account management tools. This allows users to easily track their spending, make payments, and monitor their credit score.
The Drawbacks of the Applied Bank Secured Visa Gold Preferred
1. High Annual Fee: One of the major drawbacks of the Applied Bank Secured Visa Gold Preferred is its high annual fee. At $48 per year, this fee can significantly impact the overall cost of using the card. It is important for individuals to consider whether the benefits of the card outweigh the annual fee.
2. Limited Rewards Program: Unlike many other credit cards, the Applied Bank Secured Visa Gold Preferred does not offer a rewards program. This means that cardholders will not earn cash back, points, or miles on their purchases. While this may not be a deal-breaker for individuals solely focused on credit building, it is worth considering for those who value rewards.
3. High APR: The Applied Bank Secured Visa Gold Preferred has a relatively high annual percentage rate (APR) of 9.99%. This is higher than the average APR for secured credit cards. It is important for cardholders to pay their balance in full each month to avoid accruing interest charges.
Is the Applied Bank Secured Visa Gold Preferred Worth It?
While the Applied Bank Secured Visa Gold Preferred offers some benefits for individuals looking to build or rebuild their credit, it is important to weigh these benefits against the drawbacks. The high annual fee and APR may deter some potential cardholders, especially those who are eligible for other secured credit cards with lower fees and APRs.
However, for individuals who have been denied credit in the past and are looking for a viable option to improve their credit score, the Applied Bank Secured Visa Gold Preferred can be a valuable tool. By using the card responsibly and making timely payments, cardholders can establish a positive credit history and potentially qualify for better credit card offers in the future.
Conclusion
The Applied Bank Secured Visa Gold Preferred is not without its flaws, but it can be a gold standard for individuals who are in need of a credit-building tool. By understanding the benefits and drawbacks of this card, consumers can make an informed decision that aligns with their financial goals. Remember, credit cards are just one piece of the puzzle when it comes to building a strong credit profile. Responsible financial habits, such as paying bills on time and keeping credit utilization low, are equally important in achieving long-term financial success.
