AeroMexico Visa® Secured Card Review
Minimum Security Deposit: $300
Maximum Security Deposit: $500
Interest Rate: 22.99%
Introductory Interest Rate: None
Grace Period: 24 days
Foreign Transaction Fees: 2% in US dollars or 3% in foreign currency
Annual Fees: $25, waived first year
Application Fees: None
Rewards Program: Yes, AeroMexico Miles. 1 miles per $1 spent, 2 miles per $1 spent on gas & groceries.
Signing Promotion: Yes, 5,000 miles for first purchase
Interest Earned on Security Deposit: Yes, money is deposited into a FDIC insured savings account. Click to view rates.
- $99 AeroMexico companion ticket on renewal
- 10% discount on AeroMexico purchases
- Free internet banking
- Automatic bill pay
- Zero fraud liability
- Fraud protection
- Travel & emergency assistance
- Travel accident insurance
- Auto rental collision damage waiver
This review was provided by William Charles, editor of Doctor of Credit.
AeroMexico is a decent secured credit card, but not in the top tier of cards currently available. Having no annual fee is a positive, but it only lasts for the first year and the card it graduates to (AeroMexico Visa® Card) has an even more expensive annual fee of $45. It should really only be of interest to consumers that regularly use AeroMexico.
AeroMexico is a U.S. bank product and is processed by Visa.
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AeroMexico is one of three cards that don’t have an annual fee for the first year (along with two more cards offered by U.S bank). It’s fee of $25 per year after the first year is on the lower side of annual fees charged by secured cards, the only options being cheap are the no annual fee cards and Fifth Third Secured Mastercard which has a fee of $24 per year.
AeroMexico has one of the highest APRs at 22.99%, only two cards having higher APRs. The lowest APRs for secured cards are offered by credit unions, with DCU’s offering at 11.50% and Navy Federal starting at 8.99%.
The APR shouldn’t really matter on a secured card as users should be looking to pay off the full amount each and every month to build or rebuild a solid credit history.
AeroMexico is one of the few secured cards with a rewards program. The miles can only be used to redeem flights (products are also available, but are only shipped to Mexico), so the usefulness of these points will depend on how often the card holder goes to Mexico. 10% off AeroMexico flights is a nice bonus for those who use the airline regularly, along with the 5,000 bonus points after first purchase. Unfortunately the 10% discount is only when reservations are made at a ticket office or by calling their phone number 800-237-6639 which means any web only sales/discounts they offer aren’t available.
2 miles per $1 spent are earned for purchases made on gas and groceries whilst 1 mile per $1 spent is earned for all other purchases. Navy Federal nRewards Secured Card & BankAmericard® Secured Credit Card both offer rewards programs which are much more flexible and offer competing rates (maximum of 3¢ cash back for the BoA card and 1¢ in gift certificates for Navy Federal per dollar spent).
This card reports to all three of the major credit bureaus, like all other secured cards currently on the market. It also reports as a secured card.
Cardholders can add funds to this card, starting a minimum of $100. This will increase the credit limit of the card. Whenever funds are added, a hard pull is NOT done. Which is unlike a lot of other cards on the market.
UPGRADING TO AN UNSECURED CARD
After a minimum period of 12 months, card holders can call U.S bank and request that their secured card be graduated to the AeroMexico Visa® Secured Card. U.S bank generally requires card holders to have a FICO score above 680 (though some people with a score in the low 600’s have been approved) and a history of paying the current card on time.
U.S bank almost never approves applicants with a bankruptcy still on their credit reports. In fact they don’t like to approve accounts that have negative items that can result in a judgement against them.
There are a lot of better secured cards on the market. If you’re looking for a secured card with a rewards program your best option is probably BankAmericard® Secured Credit Card or if you’re military or ex military the Navy Federal nRewards Secured Card.
If you’re looking for a card with no annual fee then the Navy Federal option is again a good option. Or you can go for Harley-Davidson® Visa® Secured Card also offered by U.S bank. DCU Visa Platinum Secured Credit Card is also a card with no annual fee, but you’ll need to pay $15/year to become a member of DCU.
There is no reason to apply for this card, unless of course you frequently fly to Mexico or use AeroMexico. In which case the 10% discount and miles may make up for the other short falls this card has.
Still want to apply? Use the link found below.