OnPath Credit Union

Platinum Secured VISA®

If you have a few hiccups in your credit history, it can be difficult to get a credit card. However, having one is essential for emergencies. If you've been turned down for traditional cards, what are your options? Here at OnPath Federal Credit Union, we offer a solution: the Platinum Visa Secured credit card.

What Is a Secured Card?

Most credit cards are unsecured, meaning you don't have to put up assets for collateral. A secured credit card, in contrast, requires a deposit, the amount of which determines your limit. For example, if you put down $200, the limit could be $200 or less.

The deposit allows financial institutions to lend without fear of losing money since they already have funds to cover their losses if borrowers default. This allows them to offer credit lines to customers who otherwise wouldn't qualify.

What's the Difference Between Secured and Regular Credit Cards?

When it comes to function, regular and secured credit cards are very similar. You can make purchases up to the limit, creating a balance. You're then charged interest based on the APR and current balance, and are required to make a minimum payment every month.

However, there are a few differences:

  • Fees: Secured cards typically have fees that traditional cards don't. These may be taken out of your deposit.
  • Interest Rates: Due to the deposit, secured cards tend to have lower interest rates. At OnPath Federal Credit Union, we offer rates as low as 4.25%.
  • Limits: The limits of secured cards are usually lower than traditional cards.

The Benefits of a Secured Credit Card

One of the major benefits of a secured credit card is the opportunity to improve your credit. Making regular payments is a great way to build a credit history, and the low interest of a secured card makes it easier to pay down the principal.

Additionally, some companies may allow you to transition from a secured to an unsecured card if you qualify. Generally, you have to go 12 to 24 months with no late payments before the option becomes available.

If you do default on payments, you don't have to worry about harassment from debt collectors. Since the bank holds your deposit, it doesn't need to pursue alternative payment routes.

Where Can You Apply?

OnPath Federal Credit Union is proud to offer the Platinum Secured Visa to help our members take advantage of financial opportunities. To find out more or to submit an application, give us a call at 800-749-6193 or contact us online.