Rebuilding your credit can feel like a tough climb, but it’s a journey many people successfully make. One of the best ways to start is with a secured credit card that helps you build a positive payment history. The right card doesn’t just help you get back on track—it can also reward you along the way. In this detailed guide, we’ll walk you through seven easy steps to build your credit while earning rewards with Navy Federal Credit Cards, specifically focusing on the powerful cashRewards Secured card. We’ll cover everything from how the card works to how you can boost your credit limit and eventually upgrade to an unsecured card.
📚 Table of Contents
- 🎯 Understanding the Navy Federal cashRewards Secured Card
- 🔍 Step 1: The First Deposit – Securing Your Credit Limit
- 💡 Step 2: Making Smart Purchases to Earn Unlimited Cash Back
- 📈 Step 3: Boosting Your Credit Limit in Just Three Months
- ✅ Step 4: The Path to an Unsecured Card in Six Months
- 💰 Step 5: How to Use Your Card Responsibly for Credit Growth
- 🛡️ Step 6: Monitoring Your Credit Score and Progress
- ⚖️ Step 7: Comparing Navy Federal Secured Cards to Others
🎯 Understanding the Navy Federal cashRewards Secured Card
The Navy Federal Credit Cards cashRewards Secured card is a powerful tool for anyone looking to build or rebuild their credit. Unlike a traditional unsecured card, a secured card requires you to make a deposit, which then becomes your credit limit. This deposit acts as collateral, which means less risk for the lender. For you, it’s a low-risk way to show you can handle credit responsibly. What makes this particular card stand out is that it not only helps you build your credit score but also gives you unlimited 1% cash back on every single purchase. This means you’re earning rewards while you improve your financial health—a win-win situation.
Card Benefits at a Glance:
- UNLIMITED 1% CASH BACK – Earn rewards on all your purchases, big or small.
- BUILD CREDIT – Reports to all three major credit bureaus to help improve your score.
- NO ANNUAL FEE – A cost-effective way to get started on your credit journey.
- PATH TO UNSECURED CARD – A clear and defined process to upgrade in as little as six months.
| Card Feature | Benefit for You |
|---|---|
| Secured Deposit | Your deposit is your credit limit, making it easier to qualify while you establish good habits. |
| Cash Back Rewards | You earn money back on your everyday spending, a great perk for a secured card. |
🔍 Step 1: The First Deposit – Securing Your Credit Limit
The first step to getting your Navy Federal Credit Cards cashRewards Secured card is making an initial deposit. This deposit determines your credit limit. For example, if you deposit $500, your credit limit is $500. This is a crucial step because it’s how the card is “secured.” The funds are held in a separate account and are not available for spending. This setup allows Navy Federal to offer a card to those who might not qualify for a traditional unsecured card. Remember, the higher your deposit, the more credit you’ll have available, but it’s important to only deposit what you can comfortably afford. Your goal is to use this card to show responsible spending habits, not to overextend yourself.
Deposit Details:
- MINIMUM DEPOSIT – The minimum deposit required to open the card.
- CREDIT LIMIT – Your deposit amount equals your credit limit dollar for dollar.
- FLEXIBILITY – You can add to your deposit later to increase your limit, but an initial strategic deposit is key.
💡 Step 2: Making Smart Purchases to Earn Unlimited Cash Back
Once you have your Navy Federal Credit Cards, it’s time to put it to use. The key is to use it responsibly. This means making small, regular purchases that you can easily pay off. For example, use the card to pay for your monthly streaming service, groceries, or gas. The cashRewards Secured card gives you an unlimited 1% cash back on every purchase. This is a fantastic perk for a secured card. The cash back you earn is a bonus that can be redeemed as a statement credit, deposited into your account, or used for gift cards. This reward system motivates you to use the card, which in turn helps you build a payment history. The most important thing is to use the card for purchases you were already going to make, and to never spend more than you can afford to pay back.
| Smart Purchase Example | Benefit |
|---|---|
| Groceries | Regular, small transactions build consistent payment history. |
| Gas | A predictable expense you can easily budget for and pay off. |
📈 Step 3: Boosting Your Credit Limit in Just Three Months
One of the most valuable features of the Navy Federal Credit Cards cashRewards Secured card is the potential for a credit limit boost. After just three months of responsible use, Navy Federal may review your account. What does “responsible use” mean? It means paying your bill on time and keeping your credit utilization low. Credit utilization is the amount of credit you’re using compared to your total credit limit. Ideally, you want to keep this below 30%. If your review is positive, Navy Federal may increase your credit limit without requiring you to make an additional deposit. This is a significant step forward, as a higher credit limit and low utilization are key factors in improving your credit score.
✅ Step 4: The Path to an Unsecured Card in Six Months
The ultimate goal for many secured cardholders is to graduate to an unsecured card. With Navy Federal Credit Cards, this is a real possibility in as little as six months. By consistently demonstrating responsible credit behavior—making timely payments, keeping a low balance, and using the card regularly—you can show the credit union you are ready for more responsibility. Navy Federal will automatically review your account around the six-month mark. If you qualify, they will upgrade your secured card to an unsecured one, and your initial deposit will be returned to you. This is a monumental step in your credit journey and a testament to your hard work. This process is a clear roadmap to financial health that few other cards offer.
💰 Step 5: How to Use Your Card Responsibly for Credit Growth
Using your Navy Federal Credit Cards responsibly is the most important part of this process. The key is to treat it like a debit card and only spend what you have. Paying your balance in full every month is crucial. This not only avoids interest charges but also shows lenders that you are a reliable borrower. Keeping your credit utilization low is another essential factor. If your credit limit is $500, try to keep your monthly balance under $150. This demonstrates that you don’t need to use all of your available credit, which is a positive signal to credit bureaus. Consistently following these steps will significantly impact your credit score over time. Remember, the goal is long-term financial health, not just a quick fix.
🛡️ Step 6: Monitoring Your Credit Score and Progress
Building credit is a marathon, not a sprint. It’s important to monitor your progress regularly. Navy Federal Credit Cards often provide free access to your FICO score, which can be an incredibly useful tool. By checking your score monthly, you can see the direct impact of your positive habits. You’ll notice your score slowly but surely improving as you make timely payments and keep your utilization low. Seeing this progress can be a huge motivator to stay on track. It also helps you spot any potential issues, such as fraudulent activity or reporting errors, early on. Understanding the factors that affect your credit score will help you make smarter financial decisions in the future.
⚖️ Step 7: Comparing Navy Federal Secured Cards to Others – Best Credit Card 2025
While there are many secured cards on the market, the Navy Federal Credit Cards cashRewards Secured card stands out for a few key reasons. Most secured cards don’t offer cash back rewards. The fact that Navy Federal offers unlimited 1% cash back on all purchases is a significant advantage. Furthermore, the clear, defined path to both a credit limit boost and an upgrade to an unsecured card is a major benefit. Many other secured cards can be a dead end, where you must apply for a new unsecured card from a different lender. Navy Federal’s program is designed to guide you from a secured product to an unsecured one within their ecosystem, making the transition seamless and less stressful. This comprehensive approach truly sets it apart.
❓ Frequently Asked Questions
The card helps you build credit by reporting your payment history to all three major credit bureaus. By making on-time payments and keeping your credit utilization low, you establish a positive credit history, which is a key factor in improving your credit score.
Yes, your security deposit will be returned to you. After using the card responsibly for at least six months, you may be eligible to graduate to an unsecured card. When you’re upgraded, your security deposit is automatically refunded to you.
The secured card is designed for people who have limited or poor credit history, so there is no specific minimum credit score. Your membership with Navy Federal is the primary requirement, and the security deposit minimizes the risk, making it easier to qualify.
The card offers unlimited 1% cash back on every purchase you make. This is a great benefit for a secured card, allowing you to earn rewards while you work on improving your credit score.
While not guaranteed, you may be eligible for an upgrade to an unsecured card in as little as six months. This is based on a review of your responsible credit behavior, including on-time payments and low credit utilization.
IrFm
Digital Content Specialist
Expert in Navy Federal Credit Cards and personal finance
⚠️ Important Notice
This information is for general guidance regarding Navy Federal Credit Cards. Before making any final decisions, please consult with a financial advisor to ensure it aligns with your personal financial situation.