BBVA Optimizer Secured Credit Card Review | CreditShout

BBVA Optimizer Secured Credit Card Review

By Dan Rafter / June 22, 2016
BBVA Compass Optimizer Secured Credit Card Review

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BBVA Compass Optimizer Secured Card

Optimizer Secured Credit Card Analysis

CreditShout Rating

Annual Fee: $40

How This Card Works*:

  • Credit line is secured by an interest-bearing collateral savings account
  • Easily increase your credit line by simply depositing additional funds to savings account
  • Accepted virtually everywhere -- accepted at over 28 million locations worldwide that accept Visa®
  • Earn interest on your savings while building your credit history.
  • The Optimizer Secured Credit Card looks and works like a regular credit card.
  • Multiple Payment Options – You can pay by mail, automatic debit, online banking or in a branch.
  • Visa Zero Liability

Intro APR

N/A

Intro Balance Transfer

N/A

Regular APR

16.49% Variable

If you have a limited or weak credit history, you'll struggle today to land the top credit cards. Cards with rewards programs or cash-back bonuses will be out of your reach. You can, though, rebuild your ailing credit by taking out a secured credit card, one that reduces the risk card issuers take in approving you for credit. One such option is the BBVA Compass Optimizer Card, a secured credit card that will allow you to gradually rebuild your credit and, eventually, apply for those cards that do come with valuable perks.

Overview

To start, you will need to take out an interest-bearing savings account with BBVA Compass. The money in this account acts as collateral. 

Like most secured credit cards, you'll set your own spending limit with the Optimizer Credit Card. This means that the amount of money that you deposit in your account will serve as your Optimizer card's spending limit.

If you fail to pay your bills -- something that your low credit scores hint that you might do -- BBVA can simply pay off your debt by withdrawing the money you owe from your savings account.​ But be warned: banks will not always automatically apply your balance to pay your bill. So, if you fail to make timely payments, you can still incur late fees and interest charges.

How This Card Works

You can increase your spending limit at any time by adding more money to your BBVA savings account.

Don't expect any perks with this card, and don't expect to nab a low purchase interest rate. This card is designed for consumers with bad or limited credit histories. Banks charge higher rates and hold a deposit to protect themselves in case cardholders default on their payments.

Shopping and Travel Benefits

Because the Optimizer credit card is designed for consumers with low credit scores, it offers few perks. However, if you use this card properly, you can steadily improve your credit. The key is to pay your bill on time every month. It helps, too, to refrain from carrying large amounts of credit card debt from month to month.

It takes time to rebuild ailing credit, but if you do pay your bills each month, eventually your credit score will improve enough so that you won't need a credit card backed up by collateral.

Fees

The purchase interest rate with this card is a fairly high 16.49 percent. The variable APR for cash advances is 25.49%. These interest rates are not surprising considering that this card is designed for consumers who have a history of missing payments or running up large amounts of debt.

The card also charges an annual fee of $40. Cash advances cost and balance transfers both cost $10 or 4 percent of the advance amount, whichever amount is higher.

The late-payment fee can run as high as $37, while the card's returned-payment fee can hit $27.

Verdict

A secured credit card is a great way for those with limited or poor credit to build up their credit score. The key is to pay your bills on time, refrain from running any balance, and show responsibility even as your credit line increases. The BBVA Compass Optimizer Secured Card can help you do all this.

Pros:

  • Gives you the chance to rebuild your credit.
  • You can set your own spending limit.
  • Can increase spending limit by depositing more money in your BBVA savings account.

Cons:

  • High purchase interest rate.
  • Annual fee of $40.
  • No perks.
The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.Additionally, the opinions of the commenters are not necessarily the opinions of this site

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