U.S. Bank Secured Card Review: A Basic Option for Building Credit

The U.S. Bank Secured Visa® Card is an easy-to-get card designed for those who are working on their credit score. It has the most important features for a secured card, including no annual fee and the option to graduate to an unsecured, traditional credit card. There aren't many other benefits, though, like cash back or rewards. Read our full U.S. Bank Secured Visa® Card review to decide if you should apply.

This credit card is a good fit for: Consumers who need to raise their credit score, either because they've never used credit before or because of previous credit missteps.

Top perks

The U.S. Bank Secured Visa® Card doesn't have a ton of features, but it has what you need to build credit.

Flexible approval requirements

Since this is a secured credit card, it's much easier to get than most credit cards. You can qualify for it if you don't have any credit history yet, or if you have a low credit score due to previous issues.

No annual fee

When you're building or rebuilding credit, this is one of the most important features to look for. You don't want to get stuck paying an annual fee as you work on your credit score.

Another reason it's good to build credit with no annual fee cards is that you can keep your card account open as long as you want. The age of your credit cards is a factor in your credit score. If this is your first or only credit card, you'll be able to keep it and continue building your credit history without paying a yearly fee.

RELATED: What First-Time Credit Card Users Need to Know

Reports to all three credit bureaus

U.S. Bank reports your card status and activity to all three of the consumer credit bureaus, which are Equifax, Experian, and TransUnion. This is another important feature. Each bureau calculates a credit score for you. To improve your credit score with all three, you need your card activity reported to each of them. If you use your card responsibly, and most importantly pay its bills on time, you'll improve your credit and eventually be able to qualify for the best credit cards.

Choose your credit limit

When you open this U.S. Bank card, you need to make a refundable security deposit. You can choose to deposit between $300 and $5,000 (in $100 increments). Your deposit amount becomes your card's starting credit limit. This gives you control over a key feature of your credit card. If you need a higher limit, you can get it, as long as you have enough money to deposit.

Upgrade to unsecured credit card

The security deposit for this card is refundable, and one of the ways to get it refunded is by upgrading to an unsecured credit card. U.S. Bank gives you that option, and it actively monitors your account to see if you're eligible for an upgrade. It first reviews your account after 12 months if all of the following are true:

• Your account is in good standing.
• You don't have any recent bankruptcies.
• You have a Social Security number connected to your account.

The other way to get your deposit back is to close the card. Upgrading is better, because it allows you to keep the card open and continue building your account history.

Credit score monitoring

U.S. Bank offers a free credit score tool you can use through your online account or the mobile app. It provides your VantageScore, which is updated monthly, and the factors affecting your score. It also has other useful tools, including CreditCompass℠. That allows you to set a credit score goal, and then it tells you the steps you can take to get there.

It's worth mentioning that another type of credit score, FICO® Score, is the most widely used by lenders. VantageScore isn't, so this tool isn't quite as useful as it would be if it provided your FICO® Score. But it's still helpful, especially the advice on improving your credit score.

What could be improved

There are some drawbacks to this U.S. Bank credit card compared to the competition.

High minimum security deposit

The minimum security deposit to open this credit card is $300, which is expensive. Some secured credit cards have minimum deposit amounts of $200 or less, and the lowest I've seen is $49. It will cost you much more to open this U.S. Bank card, and that could be an issue if you're on a tight budget.

SEE MORE: Best Secured Credit Cards

No rewards

Unfortunately, this card doesn't earn any sort of rewards, such as cash back or points. It also doesn't have a welcome offer you can earn. This isn't a huge issue -- the point of the card is to improve your credit, not earn rewards. But there are secured credit cards that also earn rewards, giving you the best of both worlds. It's worth reading other credit card reviews before settling on this card.

Foreign transaction fee

For international transactions, there's a foreign transaction fee of 2% - 3%. If you plan to travel abroad anytime soon, this probably isn't the card for you. Lots of secured cards and starter credit cards have this type of fee, but there are some that don't.

OTHER OPTIONS: Best Starter Credit Cards

There's no minimum credit score for the U.S. Bank Secured Visa® Card. U.S. Bank says that its secured cards are for consumers who are building or repairing credit. It also says that this card is available to consumers with low credit scores or no credit at all. Here's a look at the information U.S. Bank provides on its website.

You may want to apply for the U.S. Bank Secured Visa® Card if:

• You have a low credit score because of issues on your credit file, such as late payments or delinquent accounts.
• You haven't used credit cards or loans before, so you don't have any credit history yet.

In either of those situations, it's hard to get a credit card, so this U.S. Bank card could be a good option. Just keep in mind that even among credit cards for bad credit, there are options that come with more benefits, such as rewards. Consider checking those out first to see if you can qualify for a card that offers more value.

MORE PICKS: Best Credit Cards for Bad Credit

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.