LANPASS Visa® Secured Card Review
Interest Rate: 16.24%*
Introductory Interest Rate: None
Grace Period: 24 days
Foreign Transaction Fees: 2% in US dollars or 3% in foreign currency
Annual Fees: $25, waived first year
Application Fees: None
Rewards Program: LANPASS miles
Signing Promotion: 10,000 bonus miles after first purchase
Interest Earned on Security Deposit: Yes, money is placed into a FDIC insured savings account. Current interest rates.
*Varies based on the prime rate
- 10% discount on LAN purchases (once per year, maximum of $500)
- Zero Fraud Liability
- Fraud Protection
- Travel & Emergency Assistance
- Auto Rental Collision Damage Waiver
- Travel Accident Insurance
- Free Internet Banking
- Automatic Bill Pay
This review was provided by William Charles, editor of Diabolika.
LANPASS Visa Secured is another one of the four secured cards offered by U.S bank. It’s a solid offering with a rewards program that’s useful if you spend time in South America but it’s annual fee and the fact it graduates to another card with an annual fee is off putting to those wanting to increase the average age of their accounts.
The first year is free with this card, after this the fee kicks in at $25 per year. Unfortunately even if U.S bank graduates card holders to the unsecured version of this card the annual fee is still applied and actually becomes $45 per year.
There are three cards on the market will no annual fee, which would be better options for those looking for this feature.
At 16.24% LANPASS has one of the lower interest rates on the market. There are a number of cards that are lower with a number in the 10-12% range, but it’s not nearly as bad as the other U.S Bank secured cards which are above 20%. We never recommend carrying a balance on any card, let alone a secured card so it’s not something to be too worried about as long as you only make purchases you can afford to pay off immediately.
This card lets you earn LANPASS miles at a rate of 1 mile per $1 spent. There is also a first purchase bonus of 10,000 miles. There is also a 10% discount on LAN purchases, unfortunately this can only be used once per year and there is a maximum discount of $500.
Return flights to South America can be found for as little as 20,000 miles – meaning cardholders would need to spend $10,000 on the card (minimum) before they could afford a flight in miles.
Other secured cards offer cash back starting at 0.5¢ per dollar spent, with a maximum of 3¢ per dollar spent on certain purchases.
Like all secured cards, the LANPASS card reports to all three credit bureaus, it also reports itself as a secured card.
Card holders are able add a minimum of $100 at a time, when they add funds a hard pull is not carried out. Some cardholders have complained that they were only able to add funds after the card had been active for a minimum of six months.
UPGRADING TO AN UNSECURED CARD
It’s possible to upgrade this card to the LANPASS Visa® Credit Card. U.S bank doesn’t automatically graduate their secured credit cards so cardholders wanting to upgrade will need to call them.
To be eligible for the upgrade cardholders will need to have held their secured card for a minimum of 12 months. A FICO score of 680+ is also usually required as well as a history of on time payments for the secured cards.
As this is a secured card, most applicants will be approved. U.S bank will normally not approve applicants with a bankruptcy or a lot of recent charge offs.
There is no reason to apply for a LANPASS visa card unless you plan to make a large purchase with LAN in the near future (this’ll let you take advantage of the 10% discount). There are cards with no annual fees (compared to this card which has an annual fee after 12 months) that graduate automatically.
The rewards program is also fairly lacking, the 10,000 mile bonus is nice but there aren’t many if any rewards that can be redeemed for 10,000 miles meaning cardholders will need to spend a lot before they are able to make use of this bonus.
[Read: Best Secured Credit Cards]
Still want to apply? Use the link found below.