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The Verdict: New York’s Municipal Credit Union offers a host of credit cards, most of them with low purchase interest rates. If you’re a member of this credit union — and you most be employed by the city of New York or a federal government employee working in the city to qualify for membership — you can apply for the MCU Secured Visa credit card. It’s a good way for someone with limited credit to build credit-card experience. It’s also a good way for someone with bad credit to start the repair process.
Overview: Secured credit cards are a good option for consumers who because of limited or bad credit struggle to qualify for a traditional consumer credit card. The downside is that these cards often come with high purchase interest rates. The MCU Secured Visa credit card, though, bucks this trend. The card actually comes with a purchase interest rate that’s quite reasonable.
How This Card Works: With a secured credit card, you set your own credit limit by making a deposit with the financial institution offering the card, in this case Municipal Credit Union. This deposit becomes your credit limit. If you deposit $2,000, you’ll have a credit limit of $2,000. With the MCU Secured Visa credit card, you can deposit enough money for a maximum credit limit of $5,000. By having your credit limit secured by your deposit, banks protect themselves in case you default on your credit-card payments.
Travel & Shopping Benefits: The main benefit of any secured credit card is the opportunity for you to build or repair your credit.
Fees: The MCU Secured Visa comes with a purchase interest rate of 11.90 percent. This is a low rate for a secured credit card. The card comes with no annual fee. The card’s late-payment fee can run as high as $25, while its returned-payment fee can reach $20.
- Chance to build or repair credit.
- Low purchase interest rate.
- No annual fee.
- Credit limit determined by your initial deposit.
- Must be member of Municipal Credit Union to apply for this card.