Applied Bank Secured Visa Gold Preferred Credit Card Guide
Understand how the Applied Bank Secured Visa Gold Preferred credit card works, including costs, benefits, and tips to use it to build credit.
The Applied Bank Secured Visa Gold Preferred credit card is designed for people with limited or damaged credit who want a real credit card rather than a prepaid option. This guide explains how the card works, what it costs, and how to decide whether it fits your credit-building strategy.
Overview: What This Secured Card Offers
A secured credit card requires a cash deposit that generally acts as your credit limit. The Applied Bank Secured Visa Gold Preferred card follows this model and is aimed at consumers who may not qualify for traditional unsecured cards.
- Card type: Secured Visa credit card
- Intended users: Consumers with poor, limited, or no credit history
- Key feature: No traditional credit check and no minimum credit score requirement to apply in most marketing materials
- Primary goal: Help cardholders build or rebuild a credit profile when used responsibly
Unlike a prepaid card, this product creates a revolving credit line and typically reports to the national credit bureaus, which is essential if you are trying to establish a track record of on-time payments.
Security Deposit and Credit Limit Details
The security deposit is the foundation of any secured card. Understanding how it works will help you avoid surprises.
- Minimum deposit: Commonly advertised minimum of $200 to open an account
- Maximum starting deposit: Often up to $1,000 initially, with the ability to increase later
- Potential maximum line: Marketing indicates you may increase up to about $5,000 by adding deposits over time, subject to issuer approval
- Refundability: The deposit is typically refundable if the account is closed in good standing and any balance is paid off, which is standard industry practice for secured cards according to federal guidance
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The Consumer Financial Protection Bureau (CFPB) notes that secured card deposits are usually placed in a separate account and can be returned after account closure, provided you have paid all charges and fees.
| Feature | Applied Bank Secured Visa Gold Preferred |
|---|---|
| Typical minimum deposit | $200 |
| Typical maximum starting deposit | $1,000 |
| Possible maximum credit line | Up to $5,000 with added deposits |
| Deposit refund | Generally refundable when the account is closed in good standing |
Interest Rate, Fees, and Cost Structure
When choosing a card for rebuilding credit, a clear understanding of the ongoing cost is critical.
Purchase APR
- Purchase APR: About 9.99% fixed, which is relatively low for a card marketed to consumers with weaker credit histories
- Fixed APR: A fixed APR means the rate is not directly tied to a benchmark index like the prime rate, so it generally changes less frequently than a variable APR
Most cards for people with poor credit carry significantly higher APRs; Federal Reserve data show that average credit card interest rates are often above 20% for many subprime products, so a sub-10% fixed APR is comparatively favorable if you must carry a balance.
Annual Fee and Other Charges
- Annual fee: Approximately $48 per year
- Penalty APR: Reviews report no separate penalty APR, so the interest rate does not automatically jump for late payments
- Late payment fees: Late fees can apply when you miss the due date; CFPB rules cap many penalty fees and require they be reasonable and proportional, though exact amounts depend on the card’s terms
- Foreign transaction fees: Some reviews indicate no foreign transaction fee, but you should always confirm current terms directly with the issuer
Even with a low APR, interest charges can add up if you carry balances over time. Paying in full each month is still the best strategy for both building credit and minimizing costs.
Approval Criteria and Application Experience
One of the main reasons people consider this card is the ease of qualifying.
- No minimum credit score: Marketing materials frequently emphasize that there is no required minimum FICO score to be considered
- No traditional credit check: Many independent reviews mention that the issuer does not perform a standard credit bureau inquiry in many cases, which can be appealing if you want to avoid a hard inquiry
- Basic information required: You still must provide personal data such as your name, address, and verification details for identity and fraud prevention purposes
According to the CFPB, card issuers are required to use reasonable identity verification procedures under federal law, even when they do not rely heavily on credit scores. That means you can expect to submit identifying information and potentially documentation, even when the marketing highlights “no credit check.”
How the Card Can Help You Build Credit
When used correctly, a secured card like this can help establish a positive payment history with major credit bureaus.
- Monthly reporting: Applied Bank’s own materials and third-party reviews indicate that account activity is typically reported to all three national credit bureaus
- Payment history: Your record of paying on time is one of the largest components of your credit score; consistent on-time payments can improve your profile over time, according to FICO and CFPB guidance
- Utilization ratio: Keeping the balance low relative to your credit limit (for example, below 30%) is commonly recommended to avoid negative impacts on your score
The CFPB explains that responsible use of a secured card—making small purchases and paying the bill on time each month—can help many borrowers move into better terms with unsecured products later on.
Comparing This Card With Other Credit-Building Options
To decide if the Applied Bank Secured Visa Gold Preferred card fits your needs, it is useful to compare it with alternative tools for building credit.
| Feature | Applied Bank Secured Visa Gold Preferred | Typical Secured Card | Prepaid Card |
|---|---|---|---|
| Credit check | Often marketed as no traditional credit check | Usually requires at least a soft or hard credit check | No credit check |
| Reports to credit bureaus | Yes, typically to all three bureaus | Yes | Generally no |
| Security deposit | Required ($200–$1,000+) | Required | Not a deposit; you load spending funds |
| Annual fee | Around $48 | Varies; some are $0, others higher | Often monthly or transaction fees |
| Primary purpose | Build or rebuild credit | Build or rebuild credit | Payment convenience only |
CFPB resources note that prepaid cards generally do not help you build credit because they do not create a credit line or report borrowing behavior to credit bureaus, unlike secured credit cards.
Pros and Cons of the Applied Bank Secured Visa Gold Preferred
Key Advantages
- Low fixed APR: A purchase APR around 9.99% fixed is low compared with many cards aimed at consumers with poor credit
- Accessible approval: Lack of a strict minimum credit score requirement can be valuable if your credit report has serious negative marks
- No penalty APR: Your interest rate does not automatically spike because of a late payment, though penalties and credit damage may still apply
- Credit bureau reporting: Activity is usually reported to all three major credit bureaus, a must-have for credit building
Potential Drawbacks
- Annual fee: The $48 yearly fee can be higher than some competing secured cards that charge no annual fee
- No rewards: There are typically no cash back or points rewards, unlike some newer secured products marketed as “rewards-building” cards
- Large deposit needed for higher limit: To access a higher credit line, you must tie up more cash as a security deposit, which may not be feasible for all users
The CFPB recommends comparing at least a few credit-building products—including secured cards from different issuers and possibly credit-builder loans—from reputable institutions or credit unions to ensure you are choosing the most cost-effective option for your situation.
Best Practices: Using This Card Responsibly
Regardless of which secured card you choose, the way you manage it will determine whether your credit improves.
- Pay on time, every time: Set up automatic payments or reminders to ensure you never miss a due date. Payment history is a major driver of your credit score.
- Keep balances low: Try to keep your statement balance below about 30% of your credit limit; lower is generally better from a utilization standpoint.
- Use the card regularly but lightly: Make small, manageable purchases you can pay off each month, such as a recurring subscription or fuel purchases.
- Monitor your credit reports: Use your free annual credit reports to confirm that the account is reporting accurately to the three major credit bureaus.
The CFPB and other regulators emphasize that building credit is a long-term process. It may take many months of responsible use before you see substantial score improvement, especially if you have serious derogatory marks on your report.
Steps to Decide if This Card Fits Your Situation
Before applying, work through a simple decision process to see whether this product aligns with your needs.
- Clarify your goal: Are you mainly trying to rebuild credit, or do you need short-term spending flexibility? If credit building is the priority, a secured card that reports to all three bureaus is often more helpful than a prepaid card.
- Check your budget for the deposit: Confirm you can afford to set aside at least $200 for the deposit without putting your emergency savings at risk.
- Compare at least two other secured cards: Look at annual fees, APRs, and any potential upgrade path to unsecured cards. Some secured products offer automatic reviews for graduation to an unsecured line after several months of on-time payments.
- Review the official terms: Always read the latest Schumer box (cost disclosure) on Applied Bank’s official site to verify rates and fees before applying, as terms can change.
Frequently Asked Questions (FAQs)
Q: Is the Applied Bank Secured Visa Gold Preferred card a real credit card or just a prepaid card?
It is a real secured credit card. You receive a revolving credit line backed by your deposit, and your usage is generally reported to credit bureaus, unlike a prepaid card, which does not involve borrowing.
Q: Can this card help me improve my credit score?
Yes. If the issuer reports to the three major credit bureaus as described in marketing materials, on-time payments and low balances can support credit score improvement over time, according to CFPB guidance.
Q: Will applying for this card hurt my credit score?
Independent reviews report that Applied Bank often does not perform a traditional credit check, which can reduce the likelihood of a hard inquiry. However, you should review the latest application disclosures because issuers can change their processes.
Q: When do I get my security deposit back?
In general, secured card deposits are refundable when you close the account in good standing and pay any remaining balance. The CFPB explains that this is standard for secured products, but timing and procedures vary by issuer, so you should confirm directly with Applied Bank.
Q: Are there rewards or cash back on this card?
Most public reviews indicate that the Applied Bank Secured Visa Gold Preferred does not offer rewards such as cash back or points. Its primary purpose is credit building rather than earning rewards.
Q: How does the 9.99% fixed APR benefit me?
If you carry a balance, a lower APR can reduce the amount of interest you pay compared with high-rate cards that charge 20% or more. However, consumer regulators still recommend paying balances in full each month to avoid interest whenever possible.
References
- Applied Bank Secured Visa Gold Preferred Credit Card — Finance Globe (card overview and terms). 2024-03-15. https://www.financeglobe.com/credit-cards/card-1580/
- Applied Bank Secured Visa Gold Preferred Credit Card Review — LendingTree (rates, fees, and feature analysis). 2023-09-12. https://www.lendingtree.com/credit-cards/review/applied-bank-secured-visa-gold-preferred-credit-card/
- Secured Credit Card – 9.99% APR Secured Visa Gold Preferred Card — Applied Bank (official product page). 2024-05-01. https://content.appliedbank.com/AppliedBank/cards.html
- Credit Cards — Applied Bank (general credit card information). 2024-05-01. https://www.appliedbank.com/cards.html
- Applied Bank’s Secured Visa Gold Preferred Card Is Our 2019 Editor’s Choice — CardRates.com (editorial review). 2019-04-05. https://www.cardrates.com/news/applied-bank-secured-visa-gold-preferred-card-named-editors-choice/
- Applied Bank Secured Visa Gold Preferred Credit Card Review — FinMasters (expert review). 2022-08-10. https://finmasters.com/applied-bank-secured-credit-card-review/
- Secured Credit Cards — Consumer Financial Protection Bureau (how secured cards work, general guidance). 2023-06-01. https://www.consumerfinance.gov/consumer-tools/credit-cards/secured-credit-cards/
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