TD Bank announced this week that it enhanced the rewards and benefits of the TD Cash Secured Credit Card. The card would allow current and prospective cardholders to build their credit while still earning bonus rewards in popular categories. But take note: The card comes with a $29 annual fee.
Read on to learn more about the card and whether it might be a good option for you.
[Read: Best Secured Credit Cards.]
All About the New Rewards
The card will use the same rewards structure as the unsecured TD Cash Credit Card:
— Unlimited 3% cash back on purchases in the cardholder’s first-choice category
— Unlimited 2% cash back on purchases in the second-choice category
— Unlimited 1% cash back on all other eligible purchases
Cardholders can change their top categories every quarter and can choose from:
— Dining
— Entertainment
— Gas stations
— Grocery stores
— Travel
Previously, TD Bank’s secured card offered 1% cash back on all purchases. Existing TD Cash Secured Credit Card holders will automatically be upgraded to the new reward structure.
Other Key Information
The card has an annual fee of $29 and a regular purchase annual percentage rate of 28.24% variable. The TD Cash Secured Credit Card also charges a 3% foreign transaction fee.
To qualify for the card, applicants must be located in a state that TD Bank serves:
— Connecticut
— Delaware
— Florida
— Maine
— Maryland
— Massachusetts
— New Hampshire
— New Jersey
— New York
— North Carolina
— Pennsylvania
— Rhode Island
— South Carolina
— Vermont
— Virginia
— Washington, D.C.
If you apply and receive conditional approval, you must open a TD Simple Savings account and deposit between $300 and $5,000 to secure your credit line. Your deposit will serve as your credit limit. You may be able to upgrade to an unsecured TD Bank Credit Card if you keep your secured card in good standing.
Alternative Credit Cards to Consider
If you’re looking to build your credit, you can apply for a secured card that doesn’t charge an annual fee and still earn rewards. For example, the Discover it® Secured Credit Card earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back rewards on all other purchases. Plus, Discover matches all the cash back you’ve earned at the end of your first year. The card has a minimum required deposit of $200 but it’s refundable, and you don’t have to fund it via an account with Discover. There is no foreign transaction fee. (See Rates & Fees)
College students with limited or no credit history who want rewards can check out the Discover it® Student Cash Back card. Cardholders can earn 5% cash back in categories such as grocery stores, restaurants and gas stations, up to the quarterly maximum when they activate. You’ll earn 1% back on all other purchases. New cardholders receive a 0% introductory purchase APR for six months. Also, Discover will match all the cash back you’ve earned at the end of your first year. It has no annual or foreign transaction fee, and it doesn’t require a security deposit. (See Rates & Fees)
[Read: Best Credit Cards for Bad Credit.]
Should You Get the TD Cash Secured Credit Card?
Getting a secured credit card can be a good way to build or repair your credit. That said, many major issuers offer secured or other credit-builder cards that don’t charge an annual fee. If you’re considering the TD Cash Secured Credit Card, make sure the value you get from the card exceeds the $29 annual fee, and focus on paying your bills on time, without carrying a balance.
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TD Bank Boosts Secured Credit Card Rewards, Offering Up to 3% Cash Back originally appeared on usnews.com
