The Navy Federal Credit Union nRewards® Secured Card is designed to assist members of the military community in building or repairing their credit.
As a secured credit card, it requires a deposit that also acts as your credit limit, but unlike many secured cards, it also allows you to earn rewards on every purchase, making it an excellent tool for financial rehabilitation and growth.
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300-689 (Poor – Fair)
CreditFinder’s Rating: 4.6/5
Secured Credit with Perks: This card strikes an impressive balance between a secured credit format and reward-generating potential. With a minimum security deposit of $200, which is fully refundable, cardholders can enjoy the simplicity of a flat-rate rewards program:
- Earn Rewards: 1 point per dollar spent on all purchases, which is competitive among secured credit cards.
- Dividend Earnings: Your security deposit earns dividends as if it were in a savings account, adding a unique benefit not offered by most secured cards.
Introduction and Key Features:
- No Annual Fee: Maximizing the value of earned rewards without the deduction of an annual fee.
- Variable APR: A relatively low APR of 18.00%, which is advantageous compared to other secured cards that often charge higher interest rates.
- Automatic Reviews: Navy Federal reviews accounts after six months to consider transitioning users to an unsecured card, which is a significant benefit for those looking to improve their credit quickly.
Building and Managing Credit:
- Credit Line Increases: Regular reviews for credit line increases without additional deposits if account activity is responsible, promoting good credit habits.
- Credit Bureau Reporting: Monthly reporting to the three major credit bureaus to help build your credit score through consistent, responsible use.
Reward Utilization and Flexibility:
- Redemption Options: Points can be redeemed for gift cards, merchandise, and cash back, providing flexibility in how rewards are used, which is a strong feature for a secured card.
- No Reward Expiry: Points do not expire as long as the account remains open and in good standing, allowing you to accumulate and use rewards at your convenience.
Cardholder Benefits:
- Military Benefits: Tailored to the needs of military families, offering features like no foreign transaction fees and low interest rates, which are particularly beneficial for those stationed overseas.
- Additional Perks: Includes rental car collision damage waiver and access to Navy Federal’s Member Deals, which offers exclusive discounts and rewards for shopping, travel, and more.
Considerations and Drawbacks:
- Eligibility: Restricted to Navy Federal Credit Union members, which includes military personnel, Department of Defense civilians, and their families, potentially limiting accessibility for the general public.
- Initial Deposit: While the $200 minimum deposit is standard for secured cards, it may still be a barrier for some potential users.
Conclusion: The Navy Federal Credit Union nRewards® Secured Card is an excellent choice for anyone eligible through military affiliation who needs to build or rebuild their credit while still enjoying the benefits of a rewards card.
The combination of low fees, potential for credit line increases, and the ability to earn dividends on your security deposit makes this card a standout option in the secured card market.
