Business Edition® Secured Mastercard® from First National Bank of Omaha review

Terms shown were recorded in May 2024 and may have changed. Confirm current terms with the issuer before applying.

When it comes to selecting the right credit card, individuals with no credit history or poor credit often face significant challenges. The Business Edition® Secured Mastercard® from First National Bank of Omaha aims to address this specific market segment by offering a secured credit card option. However, it comes with its own set of trade-offs. In this review, we will delve into every aspect of this credit card to help you make an informed decision.

Overview

Introduction

The Business Edition® Secured Mastercard® from First National Bank of Omaha is targeted primarily at individuals with no credit history or poor credit scores (0-579). As a secured credit card, users are required to make a security deposit, which serves as collateral against the credit limit. This type of card can be an essential stepping stone for those looking to build or rebuild their credit history. However, it comes with an annual fee of $39 and a high variable APR of 29.24%.

Features and Specifications

• Annual Fee: $39
• APR for Purchases: 29.24% Variable
• APR for Balance Transfers: 29.24% Variable
• APR for Cash Advances: 29.24% Variable
• Credit Limit: Up to $100,000
• Credit Score Requirement: No Credit History to Poor (0-579)
• Balance Transfer Fee: Either $10 or 5% of the amount of each transfer, whichever is greater
• Cash Advance Fee: Either $15 or 5% of the amount of each cash advance, whichever is greater
• Late Payment Fee: $35 if New Balance is less than $500, $39 if New Balance is equal to or greater than $500
• Return Payment Fee: $35

Business Edition® Secured Mastercard® from First National Bank of Omaha Key Takeaways

• Target Audience: Primarily designed for individuals with no credit history or poor credit scores.
• High APR: The variable APR of 29.24% is considerably high, making it less suitable for carrying a balance.
• Annual Fee: The card charges an annual fee of $39, which might be a downside for some users.
• Security Deposit: As a secured card, it requires a security deposit that usually matches the credit limit.
• No Rewards Program: The card does not offer cash back, miles, or points, which might be a deal-breaker for some.
• Credit Building: One of the few options available for those looking to build or rebuild their credit.

Business Edition® Secured Mastercard® from First National Bank of Omaha Pros and Cons

Pros

• Credit Building Opportunity: This card serves as a viable option for individuals looking to establish or rebuild their credit history.
• High Credit Limit: Offers a maximum credit limit of up to $100,000, which is relatively high compared to other secured cards.
• Accessibility: Available to individuals with no credit history or poor credit scores.
• Security: As a secured credit card, it helps minimize the risk for the issuer, making it easier for individuals with poor credit to get approved.
• Issuer Reputation: Backed by First National Bank of Omaha, a reputable institution with a variety of credit card offerings.

Cons

• Annual Fee: The card has an annual fee of $39, which might not be ideal for everyone.
• High APR: The variable APR of 29.24% is quite high, making it expensive to carry a balance.
• No Rewards: The card does not offer any rewards like cash back, miles, or points.
• Additional Fees: Fees for balance transfers, cash advances, late payments, and return payments can add up.
• Foreign Transaction Fees: High fees for foreign transactions may discourage international use.

Business Edition® Secured Mastercard® from First National Bank of Omaha Benefits

Building Credit

The primary benefit of the Business Edition® Secured Mastercard® from First National Bank of Omaha is its ability to help users build or rebuild their credit. By making timely payments and managing your credit responsibly, you can gradually improve your credit score. This can open the door to better credit card offers and financial opportunities in the future.

High Credit Limit

One standout feature is the potential for a high credit limit, up to $100,000. This is significantly higher than most secured credit cards, which typically offer much lower limits. This can be particularly beneficial for business owners who need a higher credit limit to manage their expenses.

Security

As a secured credit card, the risk for the issuer is minimized, making it easier for individuals with poor credit to get approved. The security deposit acts as collateral and helps ensure that the cardholder can manage their credit responsibly.

Issuer Reputation

The card is backed by First National Bank of Omaha, a reputable institution known for its wide range of financial products and services. This adds a layer of trust and reliability for potential cardholders.

Manage Your Account Online

First National Bank of Omaha offers an online platform where you can manage your account, pay your bills, and monitor your spending. This is a convenient feature for users who prefer to manage their finances digitally.

Conclusion

The Business Edition® Secured Mastercard® from First National Bank of Omaha offers a viable solution for individuals with no credit history or poor credit scores who are looking to build or rebuild their credit. While it comes with an annual fee and a high APR, its primary advantage lies in its accessibility and potential for a high credit limit. It doesn’t offer any rewards, which might be a downside for some users, but its primary purpose is to help you establish or improve your credit score.

If you are comfortable with the annual fee and high APR, and you are primarily focused on building your credit, the Business Edition® Secured Mastercard® could be a good fit for you. However, if you are looking for a card with rewards or lower fees, you might want to explore other options.

In summary, the Business Edition® Secured Mastercard® from First National Bank of Omaha serves its purpose well as a credit-building tool but comes with certain trade-offs. Make sure to weigh the pros and cons carefully before making your decision.