Published on December 6th, 2013 | by William Charles2
Secured Cards With Rewards Programs
There are currently 8 secured credit cards on the market that offer rewards programs. Below is a full list of the cards and the rewards program for each.
- BankAmericard® Secured Credit Card.
Cash rewards gives 1% cash back on all purchases, 2% for grocery stores and 3% for gas stations (a maximum of $1,500 can be claimed per quarter for grocery stores and gas stations). Card holders must call to get Cash rewards added to their card. This is the clear leader for secured cards rewards programs.
- Navy Federal nRewards Secured Card.
Earn 1 point per $1 spent. Rewards can be redeemed starting at 1,000 points. 2,000 points = $10 gift card. 7,500 points = $75 gift card. Points are worth between 0.5¢ & 1¢. This card has no annual fee unlike the BankAmericard so it’s perfect for those not spending a lot. Unfortunately you need to either be active military or ex military or have a family member who is.
- SKYPASS Visa® Secured Card.
Earn 1 mile per $1 spent. There is also a bonus 5,000 miles after a card holders first purchase, another 1,000 miles are given on renewal as well. These miles can be used for all Sky Team partners. This card is useful for those who regularly fly with Sky Team partners, although consumers with high monthly spends might be better off with the BankAmericard depending on their circumstances.
- Harley-Davidson® Visa® Secured Card
Earn one H-D Genuine Rewards point per $1 spent. Points can be redeemed for Harley Davidson chrome cash (1 point = 1¢), chrome cash can be used to purchase Harley Davidson products at participating stores. Bonus $10 in Chrome Cash at sign up. Also entered into a sweepstakes once sign up, the winner of which receives a Harley Davidson motorcycle. This card has no annual fee and is suitable for Harley lovers that have a low monthly credit card spend, those spending more (especially on groceries and gas) would most likely be better off with a BankAmericard.
- LifeMiles Visa® Secured Card.
Earn 1 LifeMile per $1 spent, bonus 5,000 miles on sign up. 15% discount on excess baggage when using LifeMiles. LifeMiles has a lot of international airline partners (US Airways & United Airlines in the US) and is suitable for people with a low monthly spend that have points/miles with a participating partner. This’ll allow cardholders to use their points for a flight. Consumers with a higher monthly spend should go with the BankAmericard as the yearly fee will quickly become insignificant compared to the extra cash back.
- LANPASS Visa® Secured Card
Earn 1 LANPASS mile per $1 spent, bonus 10,000 miles with first purchase. Card holders also get a 10% discount on one LAN purchase per year (up to a maximum of $500). This card is for people that plan to make an international trip with LAN or plan to visit South America. Round trip tickets to South America from United States cost as little as 20,000 miles – with the bonus cardholders would need to spend $10,000 minimum to be able to make this trip. Most cardholders will only be able to make use of the 10% discount, unfortunately this can only be used once per year.
- AeroMexico Visa® Secured Card
Earn 1 AeroMexico mile per $1 spent, earn 2 miles for gas & groceries. 5,000 miles are given as a bonus when the card is first used. There is also a 10% discount on all AeroMexico purchases. This card is suitable for people who regularly fly with AeroMexico. Most cardholders won’t be able to reach the minimum points necessary for a free flight, so the main bonus is the 10% off. Unfortunately this discount only applies to purchases made through their ticket office or by calling 800-237-6639 – meaning the web only sales will not have the discount applied.
Which Secured Card Has The Best Rewards Program?
BankAmericard® Secured Credit Card has by far the best rewards program out of the lot. 1-3% cash back is exceptional value, as long as you’re planning on spending at least $3,900 per year (which would be $39 in cash back at 1% and is also how much this card charges as an annual fee per year). If you’re not spending that much, you’re better off going with Navy Federal nRewards Secured Card as this card has no annual fees and 0.5-1¢ back per dollar spent. Unfortunately it’s military only, so for the non military the Harley-Davidson® Visa® Secured Card is going to be the best option.
All of that is null and void if you plan to travel with any of the airline branded cards shown above. Got a question about these rewards programs? Let us know in the comments!