WHAT IS A SECURED CARD?

  • Secured Credit Card accounts are credit cards branded by VISA which require a share account (savings) to be established to serve as collateral for the credit card.
  • These accounts provide an opportunity to establish and build credit history.
  • There is a set and approved credit limit for use which requires the credit builder share account (savings) to serve as collateral for the credit card account.
  • Availability of credit limit amounts are dependent on transactions posted for purchases and payments to the account. This may reduce the revolving credit limit available.
  • The Visa Secured Credit Builder Credit Card account is subject to penalty fees for late payments, returned payment fees and fees on certain types of transactions, etc.
  • Interest charges and finance charges may be applied to the account balance if the account is not paid in full each billing cycle.
  • Cardholders are responsible for timely payments on specific due dates.
  • The Credit Builder Share Account used as collateral should not be relied upon to pay any outstanding balances for the Visa Secured Credit Card account.
  • Our Visa Secured Credit Builder Credit Card account does not allow for transactions relating to rental car transactions or hotels.

HOW TO OBTAIN A SECURED CREDIT CARD?

  • Members may apply for the Visa Secured Credit Card Account by applying at a credit union location or by visiting our website.
  • No phone applications are accepted.
  • Credit Card applications are subject to Underwriter’s approval.
  • Underwriting guidelines are not for public knowledge.
  • If payment default occurs, the collateral account will be liquidated to apply to the outstanding balance on the Visa Secured Credit Card account.

HOW TO QUALIFY FOR A SECURED CREDIT CARD?

These are our general guidelines:

  • Legal age (18 or older) in the state of your residence for a credit card.
  • Reside in the United States.
  • Have the funds available to deposit into the secured share account (savings) to serve as collateral.
  • Meet our minimum debt to income requirements.

WHO CAN APPLY?

Any Adult is welcome to apply for the account if the applicant understands he/she must have an income source that is not someone else’s income. The income must be from the APPLICANT. Joint applications are also available, if applicable.

IS IT POSSIBLE TO HAVE A JOINT CREDIT CARD?

  • Yes
  • Both parties must be on the credit application.
  • Both parties must be owners of the Share Account (savings) that is used as collateral.

WHAT WILL MY CREDIT LIMIT BE IF I AM APPROVED FOR A SECURED CARD?

Your credit limit will be equal to the balance in your credit builder share account (savings).

WHAT IS THE TURNAROUND TIME FOR SECURED CREDIT CARD APPROVAL?

Up to 2-3 business days, other circumstances may delay the approval time, as applicable.

WHAT IS THE DELIVERY TIME FOR CREDIT CARDS?

  • Regular delivery is typically between 10-14 days after the approval of the credit card application. Holidays and weather may impact delivery times.
  • Expedited mailing is available for a fee. Expedited mailing is delivered 2 days after approval of the application.

CAN CARDS BE DELIVERED TO A PO BOX?

Yes.

CAN CARDS HAVE EXPEDITED DELIVERY TO A PO BOX?

No, expedited cards must be delivered to a physical address and there must be someone there to sign for the delivery. There is a charge for expedited cards.

CAN A PRIOR SHARE ACCOUNT BE USED TO SECURE THE VISA SECURED CREDIT CARD?

No. A specific Credit Builder Share Account (savings) is required for the Visa Secured Credit Builder Credit Card account to be used as the collateral account.

HOW TO MAKE PAYMENTS FOR THE SECURED CREDIT BUILDER CREDIT CARD?

  • Mailing a check and the payment stub from the monthly statement to the address provided.
  • KUMC Credit Union locations can accept a payment (Cash, Check, Transfer, etc.).
  • Members can pay online at kumccu.org or mobile app using Member.Net if needed.
  • Online by using ezcardinfo.com to set up a one-time payment or recurring ACH payments using a Share Draft Account (checking) or Share Account (savings) account.

HOW TO AVOID PAYING INTEREST?

  • Interest charges will not be imposed if you pay your entire balance, including purchase and balance transfer transactions, in full by the due date each month.
  • Interest does begin accruing on cash advance transactions as of the date of the transaction.
  • Each due date will be the 4th of each month.

ARE WITHDRAWALS ALLOWED FROM THE CREDIT BUILDER SHARE ACCOUNT (SAVINGS)?

No. The savings account acts as collateral for the Visa Secured Credit Card.

DO YOU REPORT TO THE CREDIT BUREAUS?

Yes. We report your repayment and performance history to all three bureaus.

WHAT IS THE PRIME RATE?

The Prime Rate is the Index used to calculate the interest rates on variable rate accounts. For each billing cycle, variable APRs are calculated by adding a specified amount (“Spread”) to the U.S. prime rate published in the Money Rates table of The Wall Street Journal that is in effect on the last day of the month (“Prime Rate”).

WHAT IS A VARIABLE RATE?

A variable rate is a rate that can change with the market based on an Index (such as the Prime Rate)

CAN THE PRIME RATE GO UP OR DOWN?

Yes, the Prime Rate can go up or down.

IF THE PRIME RATE GOES UP OR DOWN, WHEN DOES IT AFFECT MY ACCOUNT?

If the Prime Rate changes, the new APRs will take effect on the first day of your billing cycle beginning in the next month.