Finance | Credit Cards

How to Get An American Express Secured Credit Card

The American Express is an American multinational financial services corporation that started its operations in 1850. Its headquarters are at 200 Vessel Street in New York City. It is also known as Amex, the short form of American Express. The company is one of the 30 components of the Dow Jones Industrial Average. It offers a card processing network as well as issuing various cards such as American Express secured credit card, unsecured credit cards, and debit cards. American Express Company is both a bank and a card network provider.

An American Express secured credit card means that you have to deposit some amount of money before getting the card. The amount of money you deposit acts as security. In case you are unable to repay your credit debt, then the issuer can get their money from the deposited amount. In most cases, secured credit cards do not require your credit history or your credit scores. They are of no importance since you have already paid a deposit to act as security. After some time, the deposit is open for use.

If you want to know how to get a secured credit card for American Express, then I suggest that you stick around as a lot of information is on the way. There is no need to carry a lot of money in your purse or wallet. The small plastic can take thousands of dollars that you cannot carry by yourself. The most important thing you can do upon getting an American Express secured credit card is to utilize it effectively so that you can have a good credit report as well as credit scores.

What can I do with an American Express secured credit card?

American Express Secured Credit Card

There are many things you can do with this card. First of all, you can pay for goods and services using the card. There are numerous stores worldwide accepting American Express credit card payments. Even if you travel from the United States of America, then you can still use the card to buy various goods as well as services in stores accepting card payments in the current country.

Moreover, with an American Express secured credit card, you can send money to your loved ones. Sending money is one way of utilizing your credit. Your friends and relatives will always be happy if you send them something.

It does not matter which bank you are sending the money to as long as you have the correct details of the recipient. You can transfer money using the routing number and account number of the recipient of a different bank. Having a credit card ensures that when you haven’t received your monthly salary, you can still stay a comfortable life.

Again, you can withdraw money from any ATM accepting American Express cards across the world. Sometimes you need to have some cash in your pocket as some goods and services require you to pay with cash. Most public transport, eateries, shops, and other forms of businesses do not have the equipment to accept card payments. The only option they have is to take real money.

What are the main differences between secured and unsecured American Express credit cards?

There are a few differences that arise between secured and unsecured credit cards. They include the following.

  • Secured credit cards require a deposit, while unsecured credit cards do not.
  • If you are getting a secured American Express secured credit card, know that you will pay a deposit to act as security. For unsecured credit cards, you may pay some processing fees only.
  • Secured credit cards do not require credit history while most unsecured credit cards do.
  • Credit history shows how you have been making payments on your previous debts. By checking your credit scores, a financial institution can give or deny you a loan or a line of credit. Secured credit cards have bad credit cards guaranteed approval since you only need a deposit as well as valid identity documents.
  • Secured credit cards charge less interest rate as compared to unsecured credit cards.
  • However, despite the differences, both types can help you improve your credit scores since the card issuer reports to the credit bureaus every month. Furthermore, both secured and unsecured credit cards allow you to borrow money for use.

How do I get an American Express secured credit card?

Various American Express credit card issuers can issue different types of American Express cards. American Express themselves are both network providers as well as card issuers.

Again, banks and other financial institutions such as Wells Fargo and Asiana Airlines have partnered with American Express to issue payment cards. Bank of America, Capital One, and Chase are examples of American Express credit card issuers.

However, secured credit cards are not for everyone. For you to get a secured credit card from American Express themselves, you must be a United Services Automobile Association (USAA) member. Only active or former military men and women can join USAA. You can as well join USAA if your spouse or any of your parents is a USAA member with a USAA auto/property insurance policy.

The secured card charges $35 annual fee,3% balance transfer fee,3% cash advance fee, $35 penalty fee for late or returned payments, and Variable APR on any balance you carry from month to month. Your deposit earns interest with time. At the same time, the card helps you to build your credit with time.

Moreover, if you do not belong to USAA or you do not have a spouse or parent in USAA, you can as well get a secured American Express credit card from other issuers such as banks and credit unions. The institutions can give you a secured credit card that depends on the American Express network.

The most common credit cards directly from American Express meant for civilians are the unsecured credit cards. Although it might be challenging to get a credit card with a 5000 limit with bad credit directly from the company, various banks on the American Express network do.

Which are the Alternatives of a secured American Express credit card?

As you have seen, it is not possible to get an American Express secured credit card if you are not a member of USAA. However, there are various unsecured American Express cards that you can get with a fair credit score. They include the following.

1. Blue Business plus Credit Card

Using this card, you can earn 2x membership rewards points on daily business purchases up to $50K. There is no category restriction on the benefit. Moreover, you get 0.0% introductory APR on all transactions involving purchases for 12 months from the date you open your account.

Afterward, you will have a variable rate APR of 13.24% – 19.24%. It will depend on your creditworthiness as well as other factors as determined at the time you opened your account. Apply.

2. Plum Card

Upon getting this card, you will earn unlimited 1.5% cash back automatically when you pay in 10 days in all categories of products. If you need employee cards, there are no additional fees. You will pay a $0 intro annual fee for the first year. The card gives you an option to pay your debt in full every month or to carry a balance for up to 60 days without charging you interest. Apply.

3. Lowe’s Business Rewards Card

Enjoy a $0 annual fee with this card. Get a 5% off every day at Lowe’s on all eligible purchases you make. You also earn points that you can redeem for gift cards. Also, with this card, you get 0.0% introductory APR on purchases for six months starting from the date you opened your account.

Afterward, your APR rate will carry between 15.74% – 24.74%. The variation depends on your creditworthiness and other factors that arise at the time of account opening. Apply.

4.  Amazon Business American Express Card

With this card, you can earn up to $225 in savings. Upon getting the card, you receive a $100 Amazon.com Gift. If you succeed in getting a Prime membership, you get a $125 Amazon.com Gift Card as soon as you get an approval for the card.

Moreover, you earn an additional $100 statement credit when you spend a total of $3,000 using the card, 2% back and 1% back categories in the first three months of the card usage. Apply.

5. Delta SkyMiles Platinum Business Card

With this card, you will earn 3X miles on Delta purchases as well as on all eligible hotel purchases. You also benefit from Delta Sky Club’s exclusive per-visit rate of $39 per person. You can also come with up to two guests with your Business Card as well.

Afterward, your APR rate will carry between 15.74% – 24.74%. The variation will depend on your creditworthiness. Other factors also contribute to the rate. With this card, you will be able to earn a $100 statement credit when you make a Delta purchase within your first three months using the card. Apply.

Other cards include Business Gold Card, Business Platinum Card and Business Green Rewards Card, among others.

Bottom Line

American Express secured credit cards from the company are not available for the civilians, but only for military citizens and their close relatives. However, you can get an American Express secured credit card from banks as well as other financial institutions. You can also get an American Express unsecured credit card. Most of them have various benefits that are good to consider.

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