The Armed Forces Bank Credit Builder Secured Visa Card is a financial instrument designed to provide a secure and structured mechanism for U.S. consumers to establish or rebuild their credit profiles. This product operates as a secured credit card, collateralized by a cash deposit, which allows the bank to extend a line of credit to individuals with limited, nonexistent, or poor credit histories.
A critical and often misunderstood attribute of this card is its universal availability; eligibility is not contingent upon military affiliation and is open to all qualified U.S. citizens and permanent residents.
Core Features and Cardholder Benefits
- Universal Eligibility for U.S. Residents: A key feature of this card is that it is available to the general public. Applicants do not need to be a member of the armed forces, a veteran, or have any military connection to be approved.
- Comprehensive Credit Bureau Reporting: Account activity is reported monthly to the three principal U.S. credit bureaus: Equifax, Experian, and TransUnion. This regular and comprehensive reporting is the essential mechanism for building a strong, nationally recognized credit file.
- Potential for Graduation to an Unsecured Card: After a period of consistent, positive payment history (typically 12 months or more), cardholders may be reviewed for an upgrade to a traditional, unsecured Armed Forces Bank credit card. This process, known as graduation, results in the full refund of the security deposit while preserving the age of the account history, which is beneficial for credit scoring.
- Interest-Bearing Security Deposit: The cardholder’s security deposit, which ranges from a minimum of $200 to a maximum of $3,000, is held in an FDIC-insured savings account at Armed Forces Bank where it accrues interest.
- Low Annual Fee: The card has a fixed annual fee of $35. This represents a low cost of entry for a credit-building program with this feature set.
- Competitive Variable APR: The card offers a variable Annual Percentage Rate (currently around 18.24%) that is notably lower than the rates typically found on other secured and, particularly, unsecured credit cards for the subprime market.
- User-Controlled Credit Limit: The cardholder’s credit limit is equal to the amount of their security deposit. This feature provides direct control over the available line of credit, encouraging responsible spending within a manageable limit.
- Standard Visa® Protections and Convenience: The card includes Visa Zero Liability Protection against fraudulent transactions and is fully compatible with major digital wallets such as Apple Pay®, Google Pay™, and Samsung Pay®.
Applicant Eligibility Criteria
To be considered for the Armed Forces Bank Credit Builder Secured Visa® Card, applicants must meet the following qualifications:
- Be a minimum of 18 years of age.
- Be a U.S. citizen or a permanent resident.
- Possess a valid U.S. physical street address (P.O. Boxes are not accepted).
- Have a valid Social Security Number.
- Be able to provide a refundable security deposit of at least $200.
- Pass the bank’s identity verification procedures.
How to Apply for the Card
The application is a standard online process that can be completed in a few steps.
- Visit the Official Website: Navigate to the Armed Forces Bank website and locate the application page for the Credit Builder Secured Visa® Card.
- Complete the Application Form: Fill out the secure online application with all required personal and financial information, including your name, address, SSN, and income.
- Review Terms and Disclosures: Carefully read and agree to the card’s official terms, conditions, and fee disclosures before submission.
- Receive an Approval Decision: After submitting, the bank will process your information. Approval odds are high for applicants who meet the basic eligibility criteria due to the secured nature of the card.
- Fund Your Security Deposit: Upon approval, you will receive instructions on how to transfer funds from an existing bank account to fund your security deposit.
- Receive Your Card: Once the deposit has been successfully processed, your new credit card will be mailed to your address.
Frequently Asked Questions
- To be clear, is military affiliation required to apply for this card?
No, it is not. The Armed Forces Bank makes this specific credit-building product available to the general public, including all qualified U.S. citizens and permanent residents who meet the standard application criteria. - What is the primary advantage of this card’s $35 annual fee compared to a no-annual-fee secured card?
The primary advantages are the potential to graduate to an unsecured card and the lower variable APR. Many no-annual-fee secured cards do not offer a clear path to an unsecured product and may have higher interest rates. The $35 fee is the cost associated with this card’s specific feature set. - Is the graduation to an unsecured card a guaranteed process?
Graduation is not guaranteed. It is based on a review of your account and overall credit history after about 12 months. To increase your chances, you should make all payments on time, pay your balance in full each month, and maintain a good credit standing overall. - How is the security deposit returned to the cardholder?
The security deposit is returned in full under two circumstances: 1) if your account is upgraded (graduated) to an unsecured card, the deposit is typically credited to your account or sent to you via check; 2) if you choose to close your account and it has a zero balance and is in good standing, the deposit will be refunded to you.
