TD Bank TD Cash Secured Credit Card Review: Strong Cash Back for Credit Building
The TD Cash Secured Credit Card offers surprisingly strong cash back rewards for a secured card, ideal for building credit. However, a $29 annual fee and high APR mean maximizing benefits requires paying your balance in full each month.
| Annual Fee | $29.00 |
| Sign-up Bonus | No signup bonus |
| Rewards Rate | 1-3% Cash Back on purchases |
| Regular APR | Annual Percentage Rate (APR) for Purchases: 26.49% variable APR APR for Balance Transfers: 26.49% variable APR APR for Cash Advances: 28.74% variable APR |
| Other Fees | Balance Transfer Fee: Either $5 or 5% of the amount of each transfer, whichever is greater. Minimum Interest Charge: $1 Cash Advance Fee: $10 or 5% of advance whichever amount is greater Foreign Transaction Fee: 3% of each transaction in U.S. dollars Late Payment: Up to $40 Returned Payment: Up to $40 |
Overview
The TD Cash Secured Credit Card stands out in a crowded field of credit-building cards by offering a surprisingly robust rewards program. Cardholders can earn an impressive 3% cash back in one chosen spending category and 2% in another, with the flexibility to change these categories quarterly. This is a rare and valuable feature for a secured card, which often provides no rewards at all. With categories like dining, gas, and groceries available, it allows you to earn rewards while you focus on establishing a positive payment history and improving your credit score.
However, the card's strong rewards are tempered by its costs. It comes with a $29 annual fee, which can eat into your cash back earnings, and a very high variable APR. This makes it a poor choice if you plan to carry a balance from month to month. The card also lacks a sign-up bonus or any introductory APR offers, which diminishes its upfront value compared to some competitors that may have fewer fees.
Ultimately, the TD Cash Secured Credit Card is best suited for individuals who are new to credit or rebuilding their score but are disciplined enough to pay their balance in full each month. If you can maximize the bonus categories and avoid interest charges, you can earn solid rewards while working toward graduating to an unsecured card. For those who might carry a balance, however, the high APR and annual fee could make other secured cards a more cost-effective choice.
Pros & Cons
What's great
- Cashback on purchases
- Rotating bonus categories
- Good for building credit
Things to consider
- Has annual fee
- No intro APR period
- High regular APR
- No sign-up bonus
- Foreign transaction fees apply
- High balance transfer fee
Benefits
Customizable Cash Back Rewards
For a secured card designed to help build credit, the TD Cash Secured Credit Card offers a surprisingly robust and flexible rewards program. Cardholders can earn an impressive 3% cash back in a spending category of their choice, 2% back in a second chosen category, and 1% on all other purchases. The bonus categories cover common household expenses, including Dining, Entertainment, Gas Stations, Grocery Stores, and Travel. This structure is a significant step up from the flat 1% rate (or no rewards at all) offered by many competing secured cards. Best of all, you can change your bonus categories each quarter, allowing you to adapt your earnings to your spending habits throughout the year.
A Clear Path to Building Credit
Beyond its rewards, the card's primary benefit is its function as a tool for establishing or rebuilding your credit history. Your credit limit is determined by your refundable security deposit (from $300 to $5,000), giving you a measure of control. With responsible use, such as making on-time payments, you may become eligible to graduate to an unsecured TD Bank credit card. This is a crucial feature, as it provides a clear pathway to a traditional credit card and the return of your security deposit, all without having to close your account and potentially shorten your credit history.
Drawbacks
Despite its strong rewards for a secured card, this card comes with several significant costs. Unlike many competing cards for building credit, the TD Cash Secured Credit Card charges a $29 annual fee. This fee directly reduces the net value of any cash back you earn. Furthermore, its regular variable APR of 26.49% is quite high, and with no introductory 0% APR offer, carrying a balance from month to month will be very expensive. For anyone working to build credit, this high interest rate makes it crucial to pay the balance in full every billing cycle.
The card also lacks a sign-up bonus, which is a missed opportunity to provide initial value and help offset the annual fee. Cardholders who travel or make purchases from international merchants should also be aware of the 3% foreign transaction fee, which will add to the cost of every transaction made abroad.
Decision Guidance
This card is a strong fit for credit-builders who are disciplined enough to pay their balance in full each month, allowing them to capitalize on the excellent, customizable cash back rewards. However, if you anticipate carrying a balance, the combination of a high APR and an annual fee makes other, less expensive secured cards a more practical choice, as interest charges would quickly erase any rewards earned.
Summary
The TD Cash Secured Credit Card offers a rare and valuable opportunity for credit-builders to earn excellent, customizable cash back rewards, a feature almost unheard of on secured cards. However, the card's $29 annual fee and very high APR mean this value is quickly erased if you carry a balance. It's a strong choice only for disciplined spenders who will pay in full each month to maximize rewards while improving their credit score.