LATAM Visa® Secured Card Review
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LATAM Airlines Group is one of the largest and most popular Latin American airlines, which includes LAN Airlines and TAM Airlines. With its headquarters in Chile, the airline provides flights to destinations in South America, North America, the Caribbean, Polynesia, and many other locations. The LATAM Visa® Secured Card is a secured card that allows you to not only establish or reestablish a positive credit history, but also provides the opportunity to earn miles that can be redeemed for airfare with LATAM Airlines and oneworld alliance partners.
If you are in the process of building your credit and frequently travel with LAN or TAM Airlines, this card may be the card you need for earning rewards and repairing your credit. (See also: Best Secured Credit Cards)
How This Card Works
This card requires a security deposit of at least $300 which is held in a U.S. Bank account that earns interest. Your account history is reported to the three major credit bureaus, TransUnion, Equifax, and Experian, and through responsible management of the account, can result in a positive credit rating. When your account is reviewed after 12 months, you could qualify for an unsecured credit card.
The card includes a rewards program which awards one mile for each dollar you spend with your card. You can earn an unlimited number of miles, but your miles expire 36 months after they are earned. You can redeem your miles for seat upgrades and for flights. You can also redeem miles for flights with oneworld airlines, which includes over 800 destinations worldwide with airlines such as American Airlines and British Airlines. (See also: Best Secured Cards with Travel Rewards)
Pros
Annual fee waived first year. The annual fee of is about mid-level when compared to other secured cards on the market, but it is waived the first year. This gives you a year to use the credit card without paying an annual fee — something that isn't standard with other secured credit cards. (See also: Best Secured Cards with No Annual Fee)
Rewards program. Another feature not offered by all secured credit cards is the rewards program which allows you to earn miles for any purchase made with your card, without purchase or rotation categories. This provides some freedom in the purchases you make with the card, but also allows you to earn a little bit back for each purchase you make.
Deposit earns interest. The U.S. Bank secured credit cards are among a handful of secured cards which allow you to earn interest on your security deposit while it is being held in the event a default occurs. Most secured cards on the market do not include this option.
Cons
High APR. As is common especially with secured credit cards, the APR is tremendously high and can be costly if you carry a balance from month to month. If you pay your balances in full each month, you can avoid paying the high amount of interest, but if you carry a balance, the interest you pay on your purchases is going to exceed any value you might receive from the rewards program. There are a number of secured cards available with lower APRs, and although many are without rewards programs, you can save a great deal of money in interest.
Miles expire. Miles expire after three years, so if you aren't planning on using the miles during that time, you should instead consider a secured credit card with rewards you will actually use.
Foreign transaction fee. If you make foreign purchases, you will pay a fee of at least 2% of the transaction and as much as 3% if the transaction involves foreign currency. This is another fee that cancels out any rewards you earn with the card, and should be reconsidered if you frequently travel abroad. (See also: Best Secured Cards with No Foreign Transaction Fees)
Who This Card Is Best For
The LATAM Visa® Secured Card is best for card holders who are in the process of building or rebuilding credit, and frequently fly with LATAM Airlines Group. It is also best for those who can pay balances in full each month to avoid the high APR, and can take advantage of the rewards program and annual discount in order to help offset the card fees.
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