The AeroMexico Secured Credit Card, offered by US Bank, provides an opportunity for individuals with limited or no credit history to build their credit while enjoying rewards and benefits. Designed primarily for those who frequently travel to Mexico or have a strong connection to the country, this card offers a rewards program focused on gas, groceries, and AeroMexico purchases.
With an annual fee of $25 and a required deposit amount ranging from $300 to $5,000, the AeroMexico Secured Credit Card encourages responsible spending habits. The card has an APR of 24.74% and offers cardholders the opportunity to earn 2X points on gas and groceries, as well as 1X points on all other spending. The AeroMexico Visa Signature Card additionally offers family-friendly perks, such as a $99 companion ticket and a free fourth ticket when purchasing three tickets on the same flight.
By carrying the AeroMexico Secured Credit Card, users can benefit from the rewards program while simultaneously working on improving their credit score. This review aims to thoroughly examine the features, benefits, and potential drawbacks of this secured credit card to help prospective cardholders make an informed decision.
Aeromexico Secured Credit Card Overview
Card Issuer and Partnership
The Aeromexico Secured Credit Card is a Visa card issued by US Bank in partnership with Aeromexico, a major Mexican airline. This secured card is designed for those looking to build or improve their credit while earning rewards for Aeromexico flights and related purchases.
Key Features and Benefits
Annual Fee and Deposit Amount: The card has an annual fee of $25 and requires a minimum security deposit of $300, which can be increased up to $5,000.
Rewards: The Aeromexico Secured Credit Card provides several rewards opportunities:
- 2X rewards on gas and grocery store purchases
- 2X rewards on Aeromexico purchases
- 1X rewards on all other purchases
Bonus Miles and Companion Certificates:
- 3,500 bonus miles are rewarded upon card approval, and cardholders also receive a complimentary Companion Certificate.
- An additional $99 Companion Certificate is provided upon annual renewal.
APR: The card has an APR of 24.74%.
The Aeromexico Secured Credit Card offers cardholders a way to build or improve their credit while enjoying perks and benefits associated with the Aeromexico airline. By making regular on-time payments and responsible use, cardholders can work towards graduating to an unsecured credit card and continue earning rewards.
Earning Rewards and Benefits
Rewards Rate and Categories
The AeroMexico Visa Secured Card offers a competitive rewards program for cardholders. With this credit card, you will earn:
- 2X miles on gas and grocery store purchases
- 2X miles on AeroMexico purchases
- 1X miles on all other purchases
These rewards rates make it an attractive option for those who frequently travel with AeroMexico or spend on gas and groceries.
Complimentary Companion Certificate
Another valuable benefit of the AeroMexico Visa Secured Card is the Complimentary Companion Certificate. This allows cardholders to receive a $99 companion ticket when they purchase a qualifying AeroMexico flight. This is an excellent perk for families or couples who often travel together.
Club Premier Mile Program
The miles earned on your AeroMexico Visa Secured Card can be redeemed through the Club Premier Mile Program. This program offers a wide range of travel rewards, including award flights on AeroMexico and its SkyTeam alliance partners. By accumulating and strategically redeeming these points, cardholders can enjoy even more savings and benefits on their future travel adventures.
Fees and Costs
The AeroMexico Secured Credit Card has an annual fee of $25. This fee is comparatively low compared to other similar secured credit cards.
APRs and Interest Rates
- Regular APR: The card comes with a 24.74% variable APR for purchases.
- Cash Advance APR: If you withdraw cash using your AeroMexico secured card, a 28.74% variable APR applies.
- Intro APR: The AeroMexico secured card does not offer any introductory APRs or promotional rates.
Please note that these APRs could change, and it’s essential to review the cardholder agreement for the most current rates and fees.
Balance Transfer and Cash Advance Fees
- Balance Transfer Fee: A 3% fee (of the amount being transferred) is charged for balance transfers.
- Cash Advance Fee: The AeroMexico Secured Card charges a cash advance fee, which could be either a flat fee or a percentage of the amount being withdrawn. Please review the cardholder agreement for the specific fees applicable.
Foreign Transaction Fees
The AeroMexico Secured Credit Card charges a 3% foreign transaction fee on all transactions made in a foreign currency or processed outside the United States. Be aware of these fees if you plan to use the card while traveling or making international purchases.
Application Process and Approval
Eligibility and Application Form
To apply for the AeroMexico Secured Credit Card, applicants need to have a poor to excellent credit score, ranging from 300 to 850. The application form can be found online and requires standard personal, employment, and financial information. Ensure that all your provided details are accurate to avoid any discrepancies with credit bureaus.
Security Deposit and Credit Limit
Upon approval, cardholders must provide a security deposit ranging from $300 to $5,000. This deposit determines your initial credit limit on the card. Remember that the deposit serves as collateral; it is refundable if you close the account with no outstanding balance.
Approval Timeline and Credit Score Impact
The approval process for the AeroMexico Secured Credit Card typically takes a few business days. Upon approval and card activation, the issuer will report your account and payment activity to major credit bureaus. By maintaining good payment habits and keeping your balance low, this card can positively impact your credit score over time.
Building and Rebuilding Credit
Transitioning from Secured to Unsecured Card
The AeroMexico Visa Secured Card is designed for individuals who are rebuilding credit or building credit from scratch. A secured credit card typically requires a deposit, which serves as collateral and sets the spending limit. By maintaining responsible use of a secured card, cardholders can gradually improve their credit scores.
After demonstrating responsible credit behavior with the AeroMexico Visa Secured Card, the cardholder may have the opportunity to transition to an unsecured card. It is not uncommon for a credit card issuer to review a cardholder’s history and offer an upgrade to an unsecured card with better terms, increased credit limits, and additional benefits.
Tips and Strategies to Improve Credit
Improving credit with a secured card takes time and discipline. Here are some keys to success when rebuilding or building credit with the AeroMexico Visa Secured Card:
- Make payments on time: Late or missed payments can negatively impact your credit score. It’s crucial to pay your credit card bill on time every month to avoid credit damage.
- Maintain low credit utilization: Keeping your balance low relative to your credit limit enhances your credit utilization ratio, a significant component of your credit score. Aim to use no more than 30% of your available limit.
- Monitor your credit reports: Regularly review your credit reports to track your progress and spot any errors or discrepancies. If you find any inaccuracies, notify the credit bureaus immediately to have them corrected.
- Consider additional secured credit cards: If your goal is to improve your credit score as quickly as possible, obtaining multiple secured credit cards and using them responsibly can help. Just be sure not to overextend yourself with too many accounts.
Balancing the tips and strategies mentioned above with responsible use of the AeroMexico Visa Secured Card can contribute to building or rebuilding credit effectively. Patience and discipline are essential, as credit improvement takes time, but the rewards from an improved credit score can open doors to a range of financial opportunities.
Fraud Protection and Customer Support
Travel Accident Insurance
The AeroMexico Secured Credit Card, issued by U.S. Bank, offers Travel Accident Insurance as one of its benefits. This feature provides cardholders with compensation in case of accidental death or dismemberment while traveling on a common carrier, such as airplanes or trains. It’s essential to review the terms and conditions in order to understand the coverage amounts and any applicable exclusions.
Fraud Protection Features
U.S. Bank takes fraud protection seriously and offers several features to help safeguard its AeroMexico Secured Credit Card customers. Some of these features include:
- Zero Fraud Liability: Cardholders are not held responsible for unauthorized charges if they report any suspicious activity promptly.
- Fraud Alerts: Customers receive alerts via email or SMS if suspicious transactions are detected on their accounts.
- Card Lock: In case the card is lost or stolen, users can lock it through the U.S. Bank online portal or mobile app to prevent any unauthorized usage.
Providing excellent customer support is a priority for U.S. Bank, and they strive to assist AeroMexico Secured Credit Card users in various ways:
- 24/7 Customer Service: Cardholders can contact support anytime via phone or secure messaging within the online portal.
- Live Chat: Users can chat with a U.S. Bank specialist for real-time assistance with any queries or concerns.
- U.S. Bank Logos: Access to a dedicated website containing the U.S. Bank logos and guidelines to ensure proper usage of these assets by customers.
Please remember to always read the terms and conditions of any credit card to understand the full scope of its features and benefits.
Comparisons and Alternatives
Aeromexico Secured Card vs. Competitors’ Cards
The AeroMexico Secured Credit Card, issued by U.S. Bank, is unique in its ability to provide an opportunity for rebuilding credit while earning rewards. With a deposit amount ranging from $300 to $5,000 and an annual fee of $25, it is worth considering if you want to rebuild credit and earn travel rewards. The APR for this card is 24.74%.
However, some competitors’ cards also offer options for rebuilding credit. For instance, the Capital One Platinum Secured Credit Card has no annual fee and a refundable security deposit starting at $49 with a $200 initial credit line. Although this card does not offer travel rewards, it is an excellent option for those who want to build credit without additional costs.
Alternative Credit Cards for Building Credit
If the AeroMexico Secured Card isn’t the best fit for you, below are some alternative credit cards to consider:
- Chase Freedom Unlimited: This card doesn’t require a security deposit and offers bonus miles as part of its rewards program. Its advertising partners include airlines, hotels, and rental car companies to provide a wide range of earning and redemption options. However, this card is geared toward applicants with a good credit score, making it more challenging for those with poor credit to be approved.
- Discover it Secured: This secured credit card offers cash back rewards on purchases, specifically 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% cash back on all other purchases. It has no annual fee, and the initial deposit starts at $200.
- Capital One QuicksilverOne: This card is aimed at users with average credit and offers 1.5% cash back on all purchases. While there is a $39 annual fee, there is no security deposit required for this card.
To summarize, the AeroMexico Secured Credit Card provides a unique opportunity to rebuild credit while earning travel rewards. Competitors like Capital One Platinum Secured Credit Card offer other credit-building opportunities without rewards. When considering alternative cards like Chase Freedom Unlimited, Discover it Secured, and Capital One QuicksilverOne, it is essential to evaluate the rewards structure, fees, and credit score requirements to find the best fit for your situation.
Frequently Asked Questions
Pros and Cons?
The AeroMexico Secured Credit Card offers a few benefits for its users, including the ability to earn rewards on spending and a signup bonus of 3,500 points. However, this card also comes with a high variable APR starting at 24.74% and an annual fee of $25. Additionally, there is a 3% foreign transaction fee.
The application process for the AeroMexico Secured Credit Card can be completed online, and you will need to provide basic personal and financial information. This will include a credit check, which may affect your credit score.
Impact on Credit Score?
The AeroMexico Secured Credit Card can help you build or rebuild your credit score, as it reports your payment history to major credit bureaus. Using this card responsibly, by making payments on time and keeping your balance low, can lead to an improved credit score.
Interest Rates and Fees?
The variable purchase APR for the AeroMexico Secured Credit Card starts at 24.74%. There is an annual fee of $25 and a 3% foreign transaction fee. Additionally, balance transfers have a fee of 3%.
Cardholders can earn 2X points on gas and groceries and 1X points on regular spending. You can also earn interest on the security deposit required for the card, which ranges from $300 to $5,000. The card also offers a signup bonus of 3,500 points.
Upgrade to Unsecured?
Upgrading to an unsecured credit card is possible after a certain period of responsible card usage and consistent on-time payments, but it will depend on your individual credit profile and the card issuer’s policies. You will need to contact the card issuer, U.S. Bank, to discuss upgrading to an unsecured card.