NYCB Secured Visa® from First National Bank of Omaha Review

When it comes to rebuilding or establishing credit, secured credit cards can be a viable option for many individuals. The NYCB Secured Visa® from First National Bank of Omaha is one such card, specifically designed for those with no credit history or poor credit scores ranging from 0 to 579. Though it lacks the glitz and glamour of cash-back, miles, or points rewards, it offers a practical stepping stone for those looking to fortify their financial footing. In this review, we will delve into the various aspects of the NYCB Secured Visa® card to provide you with a comprehensive understanding of its features, benefits, pros, and cons.

NYCB Secured Visa® from First National Bank of Omaha Key Takeaways

Before diving into the nitty-gritty details, let’s highlight some key takeaways about the NYCB Secured Visa® card:
– Annual Fee: $0
– APR: 29.49% Variable
– 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
– Penalty Fees: Up to $35 for return payments and up to $40 for late payments
– Issuer: First National Bank of Omaha

NYCB Secured Visa® from First National Bank of Omaha Pros and Cons

Pros:

1. No Annual Fee: One of the most attractive aspects of this card is the absence of an annual fee. This is quite beneficial for individuals who are just starting to build their credit and may not have a lot of disposable income.
2. Accessible to Poor Credit: This card is specifically designed for individuals with no credit history or poor credit scores, making it an accessible starting point for building or rebuilding credit.
3. Security Deposit: As a secured credit card, it requires a refundable security deposit. This can range based on your credit profile and serves as your credit limit. This deposit reduces the risk for the bank and provides an opportunity for users to manage their credit responsibly.

Cons:

1. High APR: The card has a high variable APR of 29.49%, which can be quite punitive for those who carry a balance from month to month. Given this high rate, it’s crucial to pay off your balance in full each billing cycle to avoid accruing interest.
2. No Rewards Program: Unlike many other credit cards, the NYCB Secured Visa® does not offer any rewards such as cash back, miles, or points. This can be a significant drawback for those looking to earn rewards on their spending.
3. No Introductory APR: There is no introductory APR period for purchases or balance transfers, which could be a disadvantage for those looking to make a large purchase or transfer an existing balance.
4. Foreign Transaction Fee: The card may come with foreign transaction fees, making it less ideal for international use.
5. Penalty Fees: Late payments can incur fees up to $40, and returned payments can result in fees up to $35, adding additional costs for any missteps.

NYCB Secured Visa® from First National Bank of Omaha Benefits

Credit Building

The primary benefit of the NYCB Secured Visa® card is its ability to help individuals build or rebuild their credit. By making on-time payments and maintaining a low balance, cardholders can gradually improve their credit score. First National Bank of Omaha reports to all three major credit bureaus, which ensures that your positive payment history will reflect on your credit reports.

Zero Annual Fee

The absence of an annual fee makes this card more accessible to individuals who are budget-conscious. Many secured credit cards come with annual fees that can add up over time, so having a card without this fee is a significant advantage.

Security Deposit and Credit Limit

The required security deposit acts as your credit limit and can be adjusted based on your financial situation. This deposit is refundable, assuming the account is closed in good standing. This feature allows cardholders to start with a manageable credit limit while providing a safety net for the issuer.

Online Account Management

Cardholders can manage their accounts and pay their bills online through the issuer’s website. This convenience is particularly beneficial for those who prefer digital banking solutions and want to keep track of their spending and payments easily.

Customer Service

First National Bank of Omaha offers customer service support, providing assistance to cardholders who may have questions or need help with their accounts. This support can be invaluable, especially for individuals who are new to credit cards and need guidance.

NYCB Secured Visa® from First National Bank of Omaha Features

No Rewards Program

Unlike many credit cards that offer rewards such as cash back, miles, or points, the NYCB Secured Visa® card does not provide any rewards. This lack of a rewards program means that cardholders won’t earn any bonuses on their spending, which could be a deal-breaker for some.

High Variable APR

The card comes with a high variable APR of 29.49%. This rate is considerably higher than the average credit card APR and can be costly for those who carry a balance from month to month. It’s essential for cardholders to pay off their balance in full each billing cycle to avoid accruing interest.

Balance Transfer and Cash Advance Fees

The card charges a fee for balance transfers, which is either $10 or 5% of the amount of each transfer, whichever is greater. Similarly, cash advances come with a fee of either $15 or 5% of the amount of each cash advance, whichever is greater. These fees can add up quickly and should be considered before using these features.

Penalty Fees

The NYCB Secured Visa® card imposes penalty fees for late payments (up to $40) and returned payments (up to $35). These fees can be a significant burden for individuals who are already struggling with their finances, so it’s crucial to make payments on time and ensure that funds are available to cover them.

Foreign Transaction Fees

Cardholders may encounter foreign transaction fees when using the card abroad. This fee can make international travel more expensive and may be a drawback for those who frequently travel outside the United States.

Security Deposit

As a secured credit card, the NYCB Secured Visa® card requires a refundable security deposit. This deposit serves as the credit limit and reduces the risk for the issuer. The amount of the deposit can vary based on the cardholder’s credit profile and financial situation.

About the Issuer: First National Bank of Omaha

First National Bank of Omaha (FNBO) is a reputable financial institution with a long history of providing various banking and financial services. They offer a range of credit card options tailored to different needs, including secured cards for individuals looking to build or rebuild their credit. FNBO’s commitment to customer service and financial education makes them a reliable choice for those seeking to improve their credit standing.

Manage Your Account & Pay Your Bill

FNBO provides convenient online account management, allowing cardholders to monitor their spending, make payments, and manage their accounts through the issuer’s website. This digital accessibility is a significant advantage for individuals who prefer online banking solutions.

Customer Service

First National Bank of Omaha offers customer service support to assist cardholders with any questions or issues they may encounter. This support can be particularly valuable for individuals who are new to credit cards and need guidance on managing their accounts effectively.

Conclusion

The NYCB Secured Visa® from First National Bank of Omaha is a practical and accessible option for individuals looking to build or rebuild their credit. With no annual fee and a requirement for a refundable security deposit, it offers a straightforward path to establishing a positive credit history. However, the card’s high variable APR, lack of rewards program, and potential penalty fees are significant drawbacks that should be carefully considered.
For those who are committed to improving their credit and can manage their spending responsibly, the NYCB Secured Visa® card can be a valuable tool. However, cardholders should be diligent about paying off their balance in full each month to avoid accruing interest and incurring penalty fees.
Ultimately, the NYCB Secured Visa® card serves its purpose as a credit-building tool, but it may not be the best option for everyone. Individuals should weigh the pros and cons and consider their financial goals and spending habits before applying for this card.
If you are looking for a secured credit card with the potential to help you build or rebuild your credit, the NYCB Secured Visa® from First National Bank of Omaha is worth considering. Just be mindful of the high APR and lack of rewards, and focus on using the card responsibly to achieve your credit goals.