US Bank Cash+ Visa Secured Card Review

Top benefits

This card offers more benefits than your average secured credit card.

Earn up to 5% cashback rewards

With the US Bank Cash+® Visa® Secured Card you get great purchase rewards that put most secured credit cards to shame. You'll receive a base rate of 1% cash back on eligible purchases. Plus, you'll earn higher rewards for purchases in qualifying categories:

• Earn 5% cashback in two categories of your choice. You can choose two categories from the options including home utilities or TV, internet and streaming services.
• Earn 2% cash back in an everyday category of your choice. Options include gas stations, grocery stores and restaurants.

Bonus cash back rewards are limited to the first $2,000 in combined category purchases per quarter. New categories can (but do not have to) be selected every three months.

You can redeem cashback rewards for statement credit. To redeem your rewards, you must have accumulated at least $25 in cashback.

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Pay a $0 annual fee

Despite its great benefits, the US Bank Cash+® Visa® Secured Card has no annual fee. This means you don't pay a fee just to keep your account open. This also means you don't have to worry about paying annual fees while you wait to switch to an unsecured card. Considering that some secured credit cards charge annual fees of $49 or more, that's a big bargain.

Switch to an unsecured credit card

Secured credit cards are designed to build credit – and are not a forever card. The US Bank Cash+® Visa® Secured Card becomes an unsecured credit card once your credit improves. US Bank will automatically update your secured card once you meet its requirements. Your deposit will be fully refunded if you upgrade your card. Automatic upgrades are ideal compared to secured cards that require you to close an account to get rid of it.

What could be improved

Secured credit cards often have drawbacks, and this one is no exception.

Comparatively high minimum deposit requirement

The US Bank Cash+® Visa® Secured Card has a similar disadvantage to other secured cards: the down payment. To open and maintain your account, you pay a deposit in cash. And at $300, this card requires a higher minimum deposit than many other secured credit cards. Some cards allow you to deposit as little as $49.

At the other extreme, you can deposit up to $5,000 to get a higher credit limit. This is a higher maximum than comparable cards.

Foreign transaction fee

This card charges a 3% fee for foreign transactions. These are all transactions that are made in a foreign currency or processed through a foreign bank. In other words, when you travel abroad and use this card, you pay an additional 3% fee for every purchase. If you travel a lot, you'll want to look for a card that doesn't charge foreign transaction fees.

No welcome bonus or APR offer

Another major downside to the US Bank Cash+® Visa® Secured Card is that there are no new cardholder bonuses or introductory offers. You will not receive a welcome bonus no matter how much you spend. The card also doesn't come with an introductory APR offer, so you pay the APR right from the start. This is pretty normal for secured cards, but it's worth pointing out.

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