The Sable One secured credit card from Coastal Community Bank makes it easier to build credit by getting rid of a lot of the barriers that stand in the way. Unlike some other secured credit cards, this one lets you choose how much you want to put down as a security deposit. It also doesn’t check your credit and gives you rewards.
Plus, it’s one of the few ways to get secured credit that leads directly to unsecured credit. The company that makes the card, a mobile fintech company called Sable, looks at how you use and interact with the secured credit card to decide if you are ready for Sable’s unsecured credit card.
To get a Sable credit card, you will need a Sable bank account.
Here’s more about the Sable One secured credit card that you need to know.
You’ll need a deposit and a Sable bank account.
No credit check is needed, but you’ll need a Sable bank account, a security deposit, and a Social Security number if you have one to get a Sable One secured credit card. Other than that, you can qualify with a passport, a non-tourist U.S. visa or I-94, and a U.S. address.
It’s a bank account with low fees…
Once the money you put into the account is there, you can use the bank account and secured card. While you wait for your physical cards to arrive in the mail, you will be given virtual cards to use online. There are no overdraft fees, monthly fees, or minimum deposit requirements for the Sable bank account. If the ATM provider charges fees, you might have to pay them.
The bank account will make it easy for you to move the amount you choose for the security deposit into a reserve account, where it will be kept as collateral.
… And the deposit isn’t set in stone.
With most other secured credit cards, you have to put down hundreds of dollars upfront, which becomes your credit line. But with the Sable One secured card, you choose how much you want to put down as a deposit.
You should be able to add enough money so that your credit utilization ratio stays low. That’s how much of your total credit you’re using, and it’s a big part of how your credit scores are calculated. It is best not to use more than 30% of your card’s credit limit, especially if your goal is to build credit. For example, if you put down $100 as a security deposit, you wouldn’t be able to charge more than $30 on the card.
If you can’t afford a big security deposit, you can always raise it, which will also raise your credit limit.
It has good rewards, perks, and a sign-up bonus.
With the Sable One secured credit card, you can get 2% cash back at Amazon, Spotify, Netflix, Uber and Uber Eats, Hulu, and Whole Foods, and 1% cash back on everything else.
Those are good rewards for a secured product, and new cardholders can also get a potentially valuable sign-up bonus: Get a dollar-for-dollar match on all cash back at the end of your first year.
You’ll also have access to the following money-saving benefits:
- Cell phone protection.
- Watch out for prices.
- Rental car insurance.
Consider the $0 annual fee Discover it® Secured Credit Card if you want a credit card with rewards in a wider range of categories that match your other spending. It gives you 2% cash back at gas stations and restaurants on purchases of up to $1,000 each quarter. For everything else, you get 1% back.
It doesn’t cost much and has a low APR.
There is no annual fee or late fee for the Sable One secured credit card. The Consumer Financial Protection Bureau says that late fees on other cards can be as high as $41 if you pay them late.
As you learn how to manage your credit, a card with no late fees can be especially helpful for the times when you make a mistake. But try not to make it a habit, because if you don’t pay the bill for 30 days or more, it can hurt your credit score. After missing payments for a few months, Sable will eventually close your credit card account and may use the security deposit to pay off the balance.
You’ll also have to pay interest on any balance that you still owe. It’s on the lower end compared to other secured credit cards, but if you can, you should still pay off the credit card in full every month to avoid interest. As of July 2022, the card had a variable APR of 6.99%, plus a 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, too.
You may be able to graduate to an unsecured Sable card
As with other secured credit cards, you can get your security deposit back if you close your Sable One secured credit card in good standing or upgrade to a different 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 get it in as little as four months, depending on how you use your account (or what “milestones” you can reach).
Among these landmarks are:
- Buying at least $250 worth of things each month.
- Buying at least 15 things each month.
- Putting at least $200 on the limit of the secured credit card.
- Every month, paying the minimum balance.
- Setting up at least $150 per month in payroll or direct deposits.
Towers Wilen, co-CEO of Sable, says that you don’t have to meet all of these milestones, but if you do, it can improve your chances of graduating and make it happen faster. The company doesn’t use outside data collection to figure out who is eligible. Instead, it looks at how the Sable account is used, how people interact with it, and how they act through the milestone path.
Sable will send you an email or app message letting you know if you are ready to graduate. Once you’ve graduated, you’ll keep the same card, and the rewards rates won’t change. When you agree to the new terms and conditions in the app, the account will become unsecured.
When you’re ready to move up to the Sable One Milestone credit card, your security deposit will be returned to you in the form of payment toward the balance. Any money that is left over will be put on the unsecured credit card as a statement credit.
You can use a number of ways to build your credit.
The Sable credit cards send information about your payments to the credit bureaus Experian, Equifax, and TransUnion. This information is used to figure out your credit score. It’s an important step in building credit.
Upgrading to the unsecured Sable One Milestone credit card has its own credit benefits. First, you won’t have to close the account to get your deposit back. That will help your credit rating. Plus, you don’t have to fill out a new application for a card, which can cause a hard inquiry and a temporary drop in your credit score.
If your credit limit goes up, you might even be able to make more progress. Sable looks at your account on a regular basis to see if you are eligible for one. A higher credit limit can also help your credit score, as long as you don’t use too much of it.
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