Although there’s debate about who said it first, Benjamin Franklin is often credited with coining the adage about death and taxes being the only certainties in life. Well, Ben left one thing out: if you want to establish or rebuild/strengthen your credit, you need to have decent credit to begin with.
You can’t blame him for dropping that one. It just doesn’t roll off the tongue very well.
Nevertheless, it’s true. Creditors generally aren’t eager to lend to people who don’t have any credit history, and those with lower credit scores typically end up paying higher interest rates on their loans.
A secured credit card can be the way for many to establish, strengthen and rebuild their credit. For the most part, a secured card works the same as a typical credit card for making everyday purchases. The difference? That’s where the “secured” part comes in.
Secured vs Unsecured
Standard credit cards are basically unsecured lines of credit. That is, the credit card company accepts the risk for lending you money and determines your credit limit and the interest rate you’ll pay based on several factors, including your credit score, credit history and your ability to handle the monthly payments.
With a secured credit card, you provide collateral in the form of a cash deposit that’s set aside as, well, security. Your credit limit is based largely on the amount of money you pledge as a security deposit.
Introducing the TCU Visa Accelerate Secured Card
TCU recently launched the Visa Accelerate secured credit card to help our members establish or improve their credit. It uses your own money as collateral (held in a special savings account at TCU) until you reach the second step of a simple two-step program. You’re rewarded as you achieve milestone credit scores and use your card responsibly.
Here's How It Works
The Accelerate card helps you build your credit in two steps:
- Reach a credit score of 650 after the first year and you’ll receive a lower rate.
- Reach a credit score of 680 after the second year and we’ll refund your security deposit.
Besides helping you build your credit, TCU’s Visa Accelerate card has many of the benefits of a standard TCU Visa card, including: no annual fee, no application fee, easy cash advances at ATMs and Visa’s own Zero Liability coverage.
We’ve made applying for your TCU Accelerate card easy with a simple online application. You can also stop by a branch and talk to a TCU Team Member about which credit card is right for you.
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