Coastal Community Bank’s Sable One Secured Credit Card removes many obstacles to getting a loan. Unlike some other secured credit cards, this one allows you to choose the security deposit amount does not require a credit check, and even receives awards.

In addition, it is one of the few safe options that offer a direct route to an unsecured loan. Sable—the mobile fintech company behind the card—uses your interactions, interactions, and behavior with your secured credit card to determine if you’re eligible to switch to Sable’s unsecured credit card.

However, you will need a Sable bank account to get the card.

Here’s what else you need to know about the Sable One Secured Credit Card.

1. You will need a Sable bank account and deposit

No credit check is required, but to qualify for a Sable One secured credit card, you’ll need a Sable bank account, a security deposit, and Social security number if you have. Otherwise, you can qualify with a passport, US visa or non-tourist Form I-94 and a US address.

This is a low fee bank account…

You can start using the bank account and secured card as soon as the deposited amount is available in the account. Virtual cards for online transactions will be provided while you wait for the physical cards to arrive in the mail. The Sable Bank Account has no overdraft fees or monthly fees, and no minimum deposit requirements. You may have to pay ATM fees if your provider charges them.

The bank account will help move your chosen security deposit amount to a reserve account where it will be held as collateral.

… And the security deposit is flexible

Other secured credit cards typically require hundreds of dollars in upfront deposits, and that amount becomes your line of credit. But with the Sable One Secured Card, you decide how much you deposit.

Ideally, you’ll be able to add enough money to keep the bottom line credit utilization ratio. It’s the percentage of your total credit that you’re using, and it affects your credit to a large extent credit scores. It is recommended not to use more than 30% of your card’s credit limit, especially if the goal is to build credit. For example, if you put down $100 as a security deposit, this will mean that no more than $30 will be charged to the card.

If you can’t afford a large security deposit, you can later increase it — and therefore your credit limit.

Nerd tip: If you don’t want to have a bank account, you’ll have a harder time finding a secured credit card that doesn’t charge several hundred dollars for security as a requirement. Let’s consider 0 dollars– annual fee Capital One Platinum Secured Credit Card. Depending on your credit, a $200 line of credit with an initial deposit of $49, $99 or $200 may be an option.

2. It offers decent rewards, signup bonus and perks

The Sable One Secured Credit Card earns 2% cash back on select brands — like Amazon, Spotify, Netflix, Uber and Uber Eats, Hulu and Whole Foods — and 1% on all other purchases.

Those are decent rewards for a protected product, and new cardholders are also eligible for a potentially valuable sign-up bonus: Get a dollar-for-dollar match on all your money back at the end of your first year.

Plus, you’ll also get access to money-saving benefits, including:

If you prefer a credit card that offers rewards in broader categories that match other spending, consider 0 dollars– annual fee Discover it® Secured Credit Card. It earns 2% cash back at gas stations and restaurants on combined purchases of up to $1,000 each quarter. All other purchases earn 1%.

3. It has small fees and a relatively low annual percentage rate

The Sable One Secured Credit Card has no annual fee or late fees. On other cards, late payment fees can be as high as $41, according to the Consumer Financial Protection Bureau.

If you’re learning to manage your credit, a no-fee card can be especially helpful for the occasional mistake. But try not to get into the habit, because not paying bills for 30 days or more can affect your credit score. Eventually, after several months of missed payments, Sable will close your credit card account and potentially use the deposit to cover the balance.

You will also be charged interest on any current balance. This is a lower value than other secured credit cards, but if possible, it’s a good idea to pay off the credit card in full each month to avoid interest. As of July 2022, the card charged a variable APR of 6.99% plus an additional prime rate of 5.50%. (The prime rate is the interest rate that banks charge their biggest customers. When the prime rate changes, credit card interest rates often change as well.)

4. You may be able to upgrade to an unsecured Sable card

As with other secured credit cards, you can get your security deposit back—either by closing your Sable One Secured Credit Card in good standing or switching to another product—in this case, the Sable One Milestone Credit Card.

It’s a traditional “unsecured” credit card that doesn’t require a deposit, and you can qualify for it in as little as four months depending on your account activity (or “milestones” you can reach). These stages include:

  • Make purchases of at least $250 per month.

  • Making at least 15 purchases per month.

  • Setting a secured credit card limit of at least $200.

  • Payment of the monthly minimum balance every month.

  • Payroll setup or direct deposits of at least $150 per month.

Not all milestones need to be met, but according to Towers Wilen, co-CEO of Sable, checking these boxes can improve the chances and speed of graduation. The Company does not rely on external data collection to determine eligibility. Instead, it takes interactions, interactions, and behaviors with a Sable account through an important milestone.

Sable will let you know if you’re eligible for a release by email or in-app notification. When you expire, you’ll stay with the same card and reward rates won’t change. The account will become unprotected after accepting the new terms presented in the program.

Once you qualify to switch to the Sable One Milestone Credit Card, your security deposit will eventually be returned as a payment toward the balance owed. Any money left over will be issued as an unsecured credit card statement.

5. You can use several lending functions

Sable Credit Cards reports your payments to Experian, Equifax and TransUnion, credit bureaus which collect information used to calculate credit scores. This is a key step in building credit.

And upgrading to the Sable One Milestone Unsecured Credit Card has its own credit benefits. To get started, you will receive your deposit without having to close your account. like this good for your credit scores. In addition, you do not need to submit a new application for the card, which saves you money hard request and the temporary ringing in your scores that may accompany it.

You may even be able to make more progress by increasing your credit limit. Sable periodically checks the account to determine if you are eligible for it. Increasing your credit limit can also improve your credit scores, assuming again that you maintain a low level of credit utilization.

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