DCU Secured Credit Card Review
Digital Federal Credit Union, known as DCU, offers a secured credit card for people with bad credit or people with no credit history, as a way to build or rebuild their credit. Secured credit cards require a security deposit in order to get the card, but after that, the card works like any other credit card. If you pay your DCU secured credit card bill on time each month, it should help you improve your credit score.
Because DCU is a credit union, you must be a member in order to get the DCU Visa Platinum Secured Credit Card. While DCU branches are in Massachusetts and New Hampshire, you can become a member no matter where you live. If you are a relative of a DCU member or work for a participating employer, you are eligible. But even if you don’t qualify that way, you can easily join one of the “participating organizations” for a small fee to gain access to DCU.
How It Works
To get the secured card, you make a security deposit of the amount you want as a credit line on your card. Say you want a $500 credit line, you must deposit $500 with DCU in order to get the card. You then use the card just like a regular Visa credit card to make purchases. When your bill comes, you also pay it just like any other credit card. The initial security deposit you made is not used to pay your balance. You must pay your credit card bill from other funds. The security deposit is only there as collateral for DCU in case you eventually fail to pay. But, if you want your credit to improve, you will make your payment on time each month with money that does not come from your security deposit.
If you use this card correctly, making payments on time each month, you should improve your credit score enough to eventually qualify for a regular, unsecured credit card that does not require a deposit. If that happens, and you no longer want or need the DCU secured card, you can cancel the card, and you will then have access to the security deposit you originally made.
- Interest Rate: If you don’t pay off your complete credit card balance when a bill is due, any amount remaining will be charged interest at an annual interest rate of 12.75%. (If your payments are late, this rate could go up to 18% as a penalty.)
- Annual Fee: None.
If you need to build or rebuild credit, the DCU Visa Platinum Secured Credit Card is a great way to do it. With no annual fee and a very low interest rate for a secured card, it compares very favorably to other secured credit cards on the market.
As noted above, we give this card 5 Stars.