Banking and Finance

How to Close My Navy Federal Secured Credit Card

July 27, 2021

At the end of 2021, the number of credit card users reached an all-time high, with over 196 million people in the United States having some sort of credit card account. It makes sense, as credit cards are one way to build a great credit history. However, they’re not the only way.

If you already have a Navy Federal Secured credit card and are finding that it’s too tempting to charge purchases to the card or too difficult to make payments on time then you can simply close your account. We know, we know. Closing a credit card may seem like a daunting task, but it's quite simple. 

In this quick guide, we'll walk you through the steps to close your Navy Federal Secured credit card. We'll also explain why you might want to close your card and provide some tips for doing so. So if you're ready to say goodbye to your Navy Federal Secured Credit Card, keep reading!

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How Do Secured Credit Cards Help You Build Credit?

A secured credit card can be a good tool to help build credit for those with little to no credit history (or those with poor credit who can’t access traditional credit cards). With a secured credit card, you put down a deposit that becomes your line of credit. For example, if you put down a $500 deposit, your credit limit will be $500. 

You use the secured credit card like any other credit card, making purchases and paying your bill on time each month. As you make payments, the secured credit card issuer reports your activity to the credit bureaus. Over time, this can help to improve your credit score.

What to Know About the Navy Federal nRewards Secured Credit Card

We’ve reviewed quite a few secured credit cards, and if you’re looking for the best secured credit card with the lowest APR then the Navy Federal Secured card is a great option for you. 

However, to qualify for this card you need to be a current or former military member (or family member of one). With that in mind, let’s review some of the fees, benefits, and other information about this card.

  • Annual Fee: $0
  • Late Fee: Up to $20
  • Foreign transaction fee: $0
  • APR: 18% variable. (A lot lower than other standard secured cards. Bank of America, US Bank, and Citi all offer secured credit cards with around a 26% to 27% APR)
  • Deposit: minimum $200 (You have to deposit this to your Navy Federal savings account)
  • Rewards: 1x points per dollar you spend
  • Other perks: Rental car coverage

How Much Deposit Do I Need for a Credit Limit?

The minimum deposit for the Navy Federal Secured credit card is $200. However, you can deposit however much you want if you’re interested in a higher credit limit. Keep in mind that you won’t be able to use this money for at least six months, though, as they review your account and determine your eligibility for an unsecured credit card.

How to Increase Your Navy Federal Credit Limit

There are two ways you can potentially increase your Navy Federal credit limit. The first way is to sit tight and wait for three months. After those three months, Navy Federal will review your account to see if you’re eligible for a credit limit increase (without an additional security deposit).

After that initial review, requesting a credit limit increase is pretty simple. The easiest way is to log into your credit card account online or through their mobile banking app. Tap on your card details and you will see the option to request a credit limit increase.

If you’d rather speak to someone over the phone so that you can receive assistance, call Navy Federal’s customer support at 1-888-842-6328.

How to Close Your Navy Federal Secured Credit Card

If you have a Navy Federal Secured credit card, then you may be wondering, “What happens if I close my card?” While your credit score might take a slight hit (closing accounts can often temporarily lower your credit score), nothing necessarily “bad” happens when you close a credit card account.

To close your Navy Federal Secured credit card, you can:

  • Find the Account Shutdown option under your card details online. 
  • Close your account online by sending Navy Federal an eMessage or you can visit a local branch to close your account in person. 
  • Call Navy Federal’s customer support at 1-888-842-6328.

How to get your security deposit refunded

When you close your account, Navy Federal should send you your deposit back. Typically, they’ll send the money to you in the form of a check or issue the refund directly to the bank account you used when signing up. Or, if you are eligible to graduate to an unsecured credit card, Navy Federal will also sent your security deposit back. 

Better Ways to Build Credit

If you’re working hard to build credit then it’s important to know that secured credit cards aren’t your only option. Instead, a credit builder loan can be a better way to build credit. Why?

With a credit builder loan, you can borrow a small amount of money and then repay it over time. This helps to show lenders that you're capable of making on-time payments, which can boost your credit score. 

Additionally, credit builder loans typically have lower interest rates than credit cards (between 5% and 15% depending on where you live in the US), so you'll save money in the long run. And, unlike with a secured credit card, you won't have to put down a deposit to qualify for a credit builder loan. 

So if you're looking for an effective way to build credit, a credit builder loan may be the best option for you.

Build Credit With Cheese Credit Builder

Are you interested in credit builder loans as a way to help you build your credit? Cheese offers a credit builder loan to help you build your credit and save money at the same time!

All you have to do is apply for a credit builder loan of as little as $500 and choose a term length of 12 or 24 months. Use our autosave feature to make on-time payments and build a great credit history little by little. We report your payments to all 3 creidt bureaus.

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