Home Improvement Financing For

Kitchen

Bath

Floor

Use your home’s equity to finance your home renovation project with American Floor and Home

Home Equity Line of Credit (HELOC)

Current Promotional Annual Percentage Rate (APR)

5.79% APR1

Fixed for 2 years

Current Variable Annual Percentage Rate

7.50% APR1

As of 01/01/2025, subject to the   
floor rate of 4.50% APR

Plus, 30-Day Ready-to-Sign2

For completed applications, we’ll have your loan documents ready to sign within 30 days,2   
so you can start achieving your dreams – sooner than later!

APPLY NOW

Download Application  |  Consumer Loan Fee Schedule

 

Couple painting home

Application Steps

1

Apply for an ASB HELOC by clicking the Apply Now link and entering your information (you will want to apply jointly with all owners of your property).

2

Once you have applied, our dedicated bankers at the McCully Branch or  the Salt Lake Shopping Center Branch are ready to assist you. They will connect with you, explain the process and review the documents needed for your application. You may contact them directly at McCullyBanker@asbhawaii.com or SaltLakeBanker@asbhawaii.com.

3

You will be notified of the decision by your banker, any pending conditions and any additional required documentation.

4

If your HELOC is approved, your banker will schedule a time and location to sign your HELOC documents.

5

At signing, you will be able to transfer funds from your HELOC to your ASB personal checking account — if you do not already have an ASB personal checking account, your banker will help you open one.

couple looking at color swatches

Product Features & Benefits

  • No closing costs3

  • Get up to $500 to switch from another financial institution4

  • Lines of credit available up to $1,000,0005

  • $50 annual fee waived with automatic payments from your ASB Kalo DeluxeSM Checking or Private Banking Checking account6

  • Access your HELOC by checks, Online Banking transfers, or by visiting a branch

  • Lock in a fixed rate with our Fixed Rate Equity Loan Option (FRELO)

Fixed Rate Equity Loan Option

Once you have a HELOC, you can convert (minimum $10,000) all or a portion of your outstanding principal balance to a fixed rate.

Current Promotional APR7

5.99%

Fixed for 10 years

Current Non-promotional APR

(As of 01/08/2025)

8.50%

Fixed for 10 years

Product Features & Benefits

  • HELOCs have up to 5 FRELOs available to draw at any time during its draw period; the FRELO maturity date must not go past the HELOC maturity date
  • Loan terms from 3 years to 20 years with predictable fixed monthly payments for the life of the FRELO
  • As you repay your FRELO, your line of credit is replenished during the draw period
  • Sign the FRELO Addendum to lock in your fixed rate
  • FRELO rates and terms
  • No fee to convert to FRELO

Common Questions:

  1. Offer is a 2-year promotion (Promotion Period): Annual Percentage Rate (APR) is 5.79% fixed for 2 years from the date your new Equity Express (EEX) account is opened. All loans are subject to credit and property approval. Offer is for a qualifying first or second lien request on an owner-occupant or an investor application received 12/15/2024 through 1/14/2025 that funds by 2/14/2025. Promotional rates require automatic payments from an American Savings Bank (ASB) personal checking account. If you do not have an ASB personal checking account, a Kalo Checking account must be opened. Please see the Personal Deposit Account Terms and Conditions for other terms, conditions, and fees for Kalo Checking accounts. Cancellation of automatic payments anytime during the life of the loan may increase your rate to the current non-discounted rate. Offer is not available for properties listed for sale during the prior six months or to an ASB home equity line of credit account secured by the subject property that was closed during the prior six months. If you have not signed your loan documents and a new promotion begins with a different rate, you may opt for the new promotion. After the Promotion Period ends, the interest rate is variable. Current Variable Rate effective 1/1/2025 is 7.50% APR and is subject to change monthly based on the highest Prime Rate published in the Wall Street Journal, plus a margin (subject to the floor rate of 4.50% APR; maximum APR is 18.00%). If your line amount is more than $25,000, a fee of $500 will be assessed if you request we close it within three years from the agreement date. This fee will not be assessed if: (i) your line is $25,000 or less, (ii) you sell the collateral to an unrelated/unaffiliated third-party, or (iii) you pay off your loan with proceeds from a real estate secured loan from us. EEX must be secured by fee simple property located in Hawaii. Fire, hurricane, flood (if in flood hazard zone) and localized peril (if in a lava hazard zone) insurance policies are required at homeowner’s expense.
  2. ASB will process your application, and if approved, have the loan documents ready to schedule your signing appointment within thirty calendar days of receiving the completed application with all necessary documentation. This does not apply to the following: 1) applications for lines greater than $400,000; 2) applications that require an appraisal; 3) applications made simultaneously with an application for a residential first mortgage loan; 4) application delays relating to title, trust, insurance, and property condition reports; 5) application delays caused by business disruptions. Effective for applications received 12/15/2024 through 1/14/2025. Subject to credit approval.
  3. Home Equity Line of Credit accounts up to $400,000 (excluding properties listed for sale within the prior six months), American Savings Bank (ASB) will pay or waive fees and costs for flood certification (up to $9), bank’s title insurance (up to $150), credit report (up to $2.50 per borrower), condo review, mortgage recording, recording fee for the release of third-party mortgage, and valuation through an automated valuation model and property condition report (up to $185) of ASB’s choice; however, at their own cost, customers may request an appraisal at an estimated cost between $500 and $1,500.
  4. For owner-occupant Home Equity Line of Credits (HELOCs) up to $400,000 (excluding properties listed for sale within the prior six months), receive a credit of up to $500 at loan signing to offset a third-party lender’s early closing fee when you make an initial advance on your new HELOC to pay off your existing home equity line balance of at least $10,000 with that third-party lender. This early closing fee must be assessed and identified by the third-party lender through its payoff procedure to receive the credit at loan closing.
  5. Line of credit amount depends on home equity borrower’s creditworthiness and occupancy.
  6. You will be assessed a $50 annual fee on your first periodic statement and annually thereafter during the draw period. The annual fee may be waived by setting up automatic payments from an American Savings Ban (ASB) Kalo DeluxeSM Checking or Private Banking Checking account at loan signing. If you do not have an ASB Kalo DeluxeSM Checking or Private Banking Checking account, one must be opened. Please see the Personal Deposit Account Terms and Conditions for other terms, conditions, and fees. Cancellation of automatic payments from the Kalo Deluxe Checking or Private Banking Checking account anytime during the draw period may cancel the annual fee waiver and the fee will be assessed annually thereafter.
  7. Promotion effective for requests submitted 12/15/2024 through 1/14/2025. The promotional rate applies up to five Fixed Rate Equity Loan Options (FRELO) during the draw period of your Home Equity Line of Credit (HELOC); and is available to existing and new owner-occupant or investor HELOC accounts with automatic payments from an American Savings Bank personal checking account. See the FRELO Conversion Addendum for minimum and maximum amounts for conversion to a FRELO. Based on a 10-year fixed rate loan of $10,000 at 5.99% APR, there will be 120 monthly principal and interest payments of $110.97. Current non-promotional rate as of 01/08/2025 is 8.50% APR for a 10-year fixed rate loan. Other FRELO terms and rates are available. FRELO may be added upon your request.
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Home Equity in Hawaii: How and When to Use It

ASB December 02, 2021 | 5 min read Personal

With home values in Hawaii on the rise, your home's equity could be worth more than you thought. Equity in your home is the amount of the property that you own — minus any loans such as a mortgage. You can tap into your home’s equity in several ways, giving you access to cash. The most common options are a cash-out mortgage refinance or Home Equity Line of Credit (HELOC).

Keep reading to learn more about each type of loan and when you should consider them to access the equity in your home.

family

What is Refinancing?

A mortgage refinance doesn’t rework your existing mortgage. Instead, the process of refinancing involves taking out a new mortgage and using the funds to pay off your existing mortgage. Many homeowners refinance their homes to take advantage of more desirable home loan terms. This could include lower interest rates, a shorter loan term, or a lower monthly payment. For example, if you qualified for a 10% interest rate on your original mortgage and interest rates are lower than when you bought your home, you can refinance to get a new mortgage with a 5% interest rate.

What is a Cash-Out Refinance?

Cash-out refinancing works the same way as a normal refinance — with one exception. Rather than taking out a loan in the remaining balance of your original mortgage, a cash-out refinance takes out a loan for an amount higher than your current balance. The new mortgage is first used to pay off your existing mortgage. The remaining funds go to you as a lump sum of cash.

There are restrictions to cash-out refinances, notably the maximum amount of loan you can get. You’ll need to have equity in your home to be eligible for a cash-out refinance, and most lenders limit how much equity you can access.

For example, if your home is worth $500,000 and your current mortgage balance is $300,000, you will have $200,000 worth of equity in your home. You might qualify for a cash-out refinance that lets you access up to 80% of your home equity, or $160,000. If approved, you could take out a new mortgage for up to $460,000. The new mortgage funds would first pay off your remaining $300,000 mortgage balance and you would receive $160,000 in a lump sum.

What Can Cash-Out Refinancing be Used For?

Funds from a cash-out refinance can be used for almost anything. Want to remodel your kitchen or bathrooms? Looking to consolidate existing debt? Considering how to pay for your children’s college costs? The lump sum of money from a cash-out refinance can help cover all of these costs.

Of course, just because you can access funds doesn’t always mean you should use them. Home improvements could add some value to your property, but the increased value often doesn’t cover the cost of remodeling. Likewise, consolidating existing debt or using cash-out refinance funds to pay for college could give you a lower monthly payment for these debts. However, stretching the loan out for another 15 or 30 years in a mortgage means you’ll likely pay more in interest.

When Should Hawaii Homeowners Refinance?

The idea of a cash-out refinance is appealing to many homeowners in Hawaii, but is it right for you? Before you decide, be sure to consider these factors:

  • A cash-out refinance is a long-term loan that you may have to pay interest on for decades.

  • Many homeowners use cash-out refinancing for home improvement projects, which could give you access to tax deductions.

  • Like any mortgage, you’ll have to pay closing costs on your refinance.

  • You may get access to a lower interest rate by refinancing your home.

couple

What is a Home Equity Line of Credit (HELOC)?

Another option to access the equity in your home is a Home Equity Line of Credit also known as a HELOC. Where a cash-out refinance gives you a lump sum of money, a HELOC is a revolving line of credit that can be accessed over again (provided you pay off your balance).

This type of HELOC functions like a credit card that utilizes the equity in your home. Your credit limit is based on the equity you have and the amount you qualify for. You can withdraw funds from the credit line any time during the draw period. The money you withdraw is added to your balance. You pay off your balance and get access to your full credit limit again.

Unlike refinance mortgages — which usually have fixed interest rates — HELOCs have variable interest rates. That means your interest rate could go up or down depending on the current state of rates.

What Can HELOC Funds be Used for?

Just like cash-out refinance funds, money from your HELOC can be used for anything. However, it’s usually not recommended to use HELOC funds if you only need to borrow a small amount of money or to cover daily expenses.

When Should You Use a HELOC to Access Home Equity in Hawaii?

A HELOC is a great option to help cover recurring large expenses. That’s because you can borrow the money to pay for expenses and then pay the balance down over time. Many homeowners in Hawaii use HELOCs for home improvement projects or even college tuition payments.

For example, if you’re renovating your kitchen, you can borrow from your HELOC whenever you need to pay a contractor’s bill and pay it off over time.

Should You Refinance Your Home or Take Out a HELOC?

At ASB, we understand choosing to refinance your home or take out a HELOC to access equity is a big decision. The choice you make will likely have an impact on your finances for years. Luckily, our team of experienced home loan officers can help you navigate the refinance or HELOC process. We can help you determine what option is right for you and walk you through the loan application process. Find an expert home loan officer to learn more about refinancing or taking out a HELOC on your Hawaii home today.

APPLY FOR A REFINANCEAPPLY FOR A HELOC



Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion that it is appropriate for readers. The information that is contained in this material is general nature. Readers should seek professional advice for their respective situations.

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What a Business Credit Card Can Do for You

ASB November 29, 2021 | 3 MIN read Business

As a business owner, managing your cash flow is probably one of your biggest priorities. Many business owners find that they need extra cash to cover both unexpected and planned expenses. Whether you’re waiting for a customer invoice to clear or are experiencing a slow period, a business credit card can help cover expenses while you wait for funds to come in.

cards image

WHAT ARE BUSINESS CREDIT CARDS?

Business credit cards work almost exactly the same as personal credit cards. However, business credit cards often offer rewards, interest rates and exclusive offers designed especially for small businesses.

Like any credit card, this card serves as a revolving line of credit for your business. Think of it as a loan to your business that can be used over and over again. You’ll be given a credit limit, which is the maximum amount you’re able to borrow for purchases on the credit card. When you pay off your bill, you’ll get access to that credit again.

For example, your business needs new equipment that costs $1,000 and you make the purchase on your business credit card, which has a credit limit of $5,000. After buying the equipment, your credit limit drops to $4,000. However, when you pay off the $1,000 for the equipment, you have access to the full $5,000 again.

BENEFITS OF BUSINESS CREDIT CARDS

Business credit cards do more than help you pay for business needs. They often come with perks that can make managing your business finances easier, such as:

  • Easily Record Expenses: When you use a personal credit card or checking account for business expenses, it can be difficult to separate your business and personal financial records. Using a business credit card for all of your business expenses gives you an easy to read — and easy to find — report of your spending. You can use monthly statements to see what you’ve spent your money on and where. This information is vital when listing business expenses at tax time.

  • Earn Rewards: Some business credit cards earn you rewards with your purchases. You can usually redeem these rewards, like points, for business needs. For example, you might be able to redeem rewards for travel vouchers for your next business trip.

  • Build Business Credit: Did you know your business has its own credit score? Just like your personal credit score, your business credit score can help you access funding such as business loans. Business credit cards are one of the easiest ways to build your business credit, because they’re often easier to qualify for than other types of financing.

  • Access Flexible Financing: A business credit card can give your business access to flexible financing that can be used when you need it most. Other types of financing, like business loans, require monthly payments whether you need the money at the time or not. With a credit card, you’ll only pay when you use the card to make purchases.

cards image



GETTING A CREDIT CARD FOR YOUR BUSINESS

Are you on the fence about whether a business credit card is right for your business? You might find other financing options, like a business loan or line of credit, make more sense for your small business. However, getting a credit card could be a good backup source of financing if you find yourself in need of working capital quickly. A business banker can help you better understand your business financing needs, including credit card options. Before applying for a new credit card, make sure your financial information is organized and you’re ready to apply. This could mean collecting profit and loss statements to help prove your business is profitable (and will be able to make credit card payments).

APPLY FOR A CREDIT CARD



Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion that it is appropriate for readers. The information that is contained in this material is general nature. Readers should seek professional advice for their respective situations.

BANK FOR EDUCATION:    
KEIKICO CONTEST

Our annual KeikiCo Contest is a business plan competition where students can showcase their best ideas to win $5,000 to $25,000 for their schools.

keikico

Congrats to our 2024 KeikiCo Contest Winners!

ELEMENTARY SCHOOL DIVISION

1ST PLACE

CrayCrayons
Jefferson Elementary School

2ND PLACE

Clutter-2-Charity
Our Lady of Good Counsel

MIDDLE SCHOOL DIVISION

1ST PLACE

Aqua Monitor
Highlands Intermediate School

2ND PLACE

Lotus Journal
Highlands Intermediate School

HIGH SCHOOL DIVISION

1ST PLACE

Recycle the Runway
Punahou School

2ND PLACE

Scrappahz Union 96792
Nanakuli High & Intermediate School

Mahalo to everyone who voted for their favorite teams in the People’s Choice category of this year’s KeikiCo Contest!

Congratulations to these winners:

People’s Choice Category ($5,000 per school)

ELEMENTARY SCHOOL DIVISION

Hydro Pole
Manoa Elementary School

MIDDLE SCHOOL DIVISION

J & A Self Defense
Kalakaua Middle School

HIGH SCHOOL DIVISION

Eco Paws
Pearl City High School

HOW IT WORKS

  1. Open to the first 60 schools to submit their School Registration Form. Teams can be made of 2 to 5 students (teams of 5 are recommended to best evenly distribute the work).

  2. Competing divisions from public, private and charter schools in Hawaii:

    • Elementary (Grade 3-5), Middle (Grade 6-8) and High School (Grade 9-12)

  3. Cash Prizes for your school: $5,000, $15,000 or even $25,000. Prizes include:

    • First Place: $25,000 to the school of the winning team NEW! Students on First Place teams also have chance to win individual prizes of $250 - $500.

    • Second Place: $15,000 to the school of the winning team

    • People's Choice: $5,000 to the entry with the highest votes (one per division)

IMPORTANT DATES

Monday, Aug. 28: Contest officially begins!

Monday, Nov. 6 at 5:00 p.m. HST: Deadline for teams to submit Business Plans, Video Pitch link and all completed waivers.

Tuesday, Nov. 22: Notification to winning schools

Monday, Nov. 25 - Tuesday, Dec. 2: People’s Choice Award Voting Opens

Monday, Dec. 9 - Friday, Dec. 20: Awards ceremonies at schools.

KEIKICO RESOURCES

Common Questions

CONTESTBUSINESS PLANVIDEO PITCH

CONTEST

OTHER QUESTION CATEGORIES

BUSINESS PLAN

OTHER QUESTION CATEGORIES

VIDEO PITCH

OTHER QUESTION CATEGORIES
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Thank you for joining our Home Equity Line of Credit (HELOC) vs. Mortgage Refinance virtual seminar

We hope the presentation on Wednesday, November 17, 2021 was informative to you. To better serve your needs, please take the quick survey below regarding this virtual seminar and be sure to contact one of our expert bankers who are here to help you plan, today and into the future!

Let's Talk

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Make an Appointment

Find a Home Loan Officer

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Calculators to Help You Achieve Your Dreams

See where your money's going with easy-to-use inputs. Our free financial calculators can help prepare you for your next milestone.

Start Calculating
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Free courses with ASB Financial Education

Explore our complimentary playlists with topics on everything from budget planning to debt management - each topic takes just 5 minutes to complete

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Thank you for your interest in our Wealth Management virtual seminar

We hope you enjoyed the presentation on Wednesday, November 10, 2021. To better serve your needs, please take the quick survey below regarding this virtual seminar and be sure to contact one of our expert Financial Advisors who are here to help you plan, today and into the future!

Let's Talk†

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Natalia Peters

FIRST VICE PRESIDENT
WEALTH ADVISOR
Phone: (808) 541-8423
Start Planning

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Jeffrey Bonk

VICE PRESIDENT
FINANCIAL ADVISOR
Phone: (808) 952-7019
Start Planning

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Calculators to Help You Achieve Your Dreams

See where your money's going with easy-to-use inputs. Our free financial calculators can help prepare you for your next milestone.

Start Calculating
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Free courses with ASB Financial Education

Explore our complimentary playlists with topics on everything from budget planning to debt management - each topic takes just 5 minutes to complete

START LEARNING
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† Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investments are offered. Advisory services are only offered by Investment Adviser Representatives. Registered address and phone number: American Savings Investment Services, 300 North Beretania Street Honolulu, HI 96817. (808) 735-1717.

Not FDIC Insured
Not Bank Guaranteed
May Lose Value
Not Insured by any Federal Government Agency
Not a Bank Deposit
 

Click to view Cetera Investment Services Privacy Policy and other Important Information.

This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com.

 
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Credit Cards vs. Debit Cards - What's the Difference?

ASB November 15, 2021 | 6 MIN read Personal

Credit and debit cards often look nearly identical at first glance. When someone pulls a card out in the checkout line, you may not know if they’re using credit or debit. The difference between these cards, however, is important. 

Credit cards let you temporarily borrow money from the credit card company to make purchases. You’ll pay the lender back at the end of the month with your credit card bill. Debit cards are linked directly to your checking account. When you use a debit card, the money is immediately withdrawn from your account. 

At American Savings Bank, we offer both credit and debit cards. Each type of card has its advantages and disadvantages. Read on to learn more about credit cards vs debit cards.

cards image

WHAT’S A CREDIT CARD?

Credit cards are essentially a line of credit. They’re issued by a company that agrees to lend you money to make purchases. You agree to pay back money you borrow, usually with interest charges added to the total balance. 

Your credit card comes with a maximum amount you’re allowed to borrow, known as your credit limit. You won’t be able to make new purchases on your card if you’ve reached your limit. You’ll have to pay down your existing balance before you can use the credit card again. 

For example, if you’ve maxed out a credit limit of $1,000 and pay $200 toward your credit card balance, you’ve reopened $200 of credit available for spending on the card.

PROS AND CONS OF CREDIT CARDS

Many people use credit cards for everything from everyday purchases to major expenses. While there are many benefits of using credit cards, they also come with unique risks. 

PROS OF CREDIT CARDS

  • Builds Credit: Your credit card issuer reports to the three major credit bureaus. When you make on-time payments, this regular report helps you build your credit score. As long as you’re using your credit card responsibly and paying your bills on time, a credit card could be one of the best ways to build or improve your credit score.

  • Earns Rewards: Many credit cards come with rewards like cash back or points you can redeem for gift cards. Reward cards often let you earn rewards with every purchase, so you’ll be rewarded each time you swipe your card.

  • Fraud Prevention: Credit cards are generally better at preventing or fixing fraudulent charges than debit cards since your money doesn’t leave your account until you pay your credit card bill. This gives you more time to look over recent transactions and identify any fraudulent charges. Most credit cards have built-in fraud protection that reduces your liability if you fall victim to fraud.

  • Widely Accepted: Some purchases may require a credit card instead of a debit card like hotels and rental cars, which almost always require a credit card. This helps the company ensure that you’ll be able to pay for their services.

CONS OF CREDIT CARDS

  • Easy to Get into Debt: Using a credit card can lead to overspending since the money doesn’t leave your account until you pay your bill. If you’re not careful, this overspending could put you into debt. Even if you make your minimum payment each month, you could be accruing interest charges on your remaining balance. Every time you make a purchase on your card, your balance increases and it may get more difficult to pay it off.

  • Could Hurt Your Credit Score: Using your credit card responsibly is a great way to build credit. However, if you’re not careful, credit cards can also greatly hurt your credit score. If you miss payments or apply for too many cards, your credit score could go down.

  • Paying Interest and Fees: Credit card interest fees are well-known for being high. If you carry a balance, you’ll likely have to pay interest on purchases you don’t pay off with your monthly bill. These interest charges can add up over time and can increase your total credit card bill. Many credit cards also have fees like foreign transaction or annual fees.

  • Credit Limit: Your spending is restricted to your credit limit so, if you’re not approved for a high credit limit, you won’t be able to make big purchases on your card. Or, you’ll need to regularly pay down your balance to keep using the card.

cards image

WHAT’S A DEBIT CARD?

You could think of a debit card as a “plastic cash". When you swipe a debit card, the purchase amount is withdrawn from your checking account immediately. If you try to spend more than you have in your account, your bank may deny the purchase or charge an overdraft fee on your account. However, unlike credit cards, debit cards don’t accrue interest and you won’t receive a monthly bill with your spending.

PROS AND CONS OF DEBIT CARDS

Debit cards also come with advantages and disadvantages. 

PROS OF DEBIT CARDS

  • Less Likely to Cause Debt: Debit cards are tied directly to your checking account, which means you won’t receive an ongoing balance to pay off each month.

  • Just Like Using Cash: Worried about managing monthly bills or balances with a credit card? Debit cards work just like cash, so there’s no monthly bill that you need to pay or worry about.

  • Little to No Fees: While some checking accounts have fees, most debit cards won’t have fees tied to it. Many banks will even waive checking account fees if you meet certain criteria.

  • Easy to Get a Debit Card: Most checking accounts include a debit card. It’s much easier to open a checking account and get a debit card than it is to apply for a credit card and get approved. Where credit cards rely heavily on your credit score and history, most people can easily open a checking account with few requirements.

CONS OF DEBIT CARDS

  • Risk of Overdrafts: You won’t go into debt from running a balance on a debit card, but you can still overdraft on your account. This happens when you withdraw more money than you have in your checking account. You’ll usually face overdraft fees if you make a purchase but don’t have the money to cover it.

  • Doesn’t Build Credit: Debit cards don’t report your activity to the three major credit bureaus so, even if you’re responsible and never overdraft on your account, your debit card is unlikely to help you build your credit score.

  • Few Chances for Rewards: Few debit cards have rewards programs. Even those that offer rewards usually don’t have as good of rewards as a credit card. You’re unlikely to get cash back, travel miles or gift cards from using a debit card.

CREDIT CARDS VS DEBIT CARDS: WHAT’S RIGHT FOR YOU?

Whether you choose credit cards or debit cards, it could come down to which pros and cons are most important to you. It often comes down to your needs and spending habits. 

You might want to choose a credit card if:

  • You’re responsible with spending and can avoid going into credit card debt.

  • You want to earn rewards for your spending.

  • You travel a lot and need a credit card to book hotels, flights and rental cars.

  • You’re trying to build or improve your credit score.

A debit card might be the better option for you if:

  • You want to use cash without having to carry bills.

  • You’re prone to overspending and want to limit your chance of racking up debt.

  • You don’t want to manage a monthly bill.

  • You want to avoid fees and interest charges.



CHOOSING BETWEEN A CREDIT OR DEBIT CARD

Picking the right card for your situation doesn’t have to be difficult. You can open an account online, or make an appointment with one of our bankers who can help you to compare your credit and debit card options at one of our local branches.

APPLY FOR A CREDIT CARD



Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion that it is appropriate for readers. The information that is contained in this material is general nature. Readers should seek professional advice for their respective situations.

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Choosing the Right Credit Card for You

ASB November 09, 2021 | 5 MIN read Personal

Are you in the market for a new credit card? With all the options available, it’s hard to know which one is right for you. At American Savings Bank, we offer credit card options for everyone, whether you want cash back rewards or need to build your credit score. Let’s take a closer look at what to consider so you can decide what type of credit card is right for you.

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KNOW YOUR CREDIT SCORE

Your credit score plays an important role in choosing the right credit card. Credit card issuers use your credit score to help determine your creditworthiness, or ability to pay back the money you borrow. Individuals with higher credit scores usually have more card options available to them. However, you can still get a great card with less than perfect credit — some cards are even designed to help you improve your score.

Check your credit score before you apply for a new credit card. You can check your credit score using a free tool online, such as Experian or FreeCreditReport.com. If you find your score is lower than you wanted, it might be best to wait before applying for a new card. This gives you time to boost your score and increase your chances of qualifying for better credit terms.

Here are a few steps you can take to potentially improve your credit score:

  • Pay Bills on Time: One of the main factors that lenders look for on your credit report is on-time bill payments. If you reliably pay your current bills on time, lenders usually assume you’ll pay them on time as well. Be sure to pay all of your bills on time each month, not just your credit card or loan payments. Bills like rent or utilities don’t usually directly impact your credit score but missing payments could lead to collection notices that may show up on your credit report.

  • Pay Down Revolving Credit Balances: Your credit utilization rate, or the amount of available credit you’ve spent, can change your credit score. A lower utilization rate could bring your credit score up because it potentially shows that you’re responsible with credit. For example, someone who is always maxing out their credit may not have the funds to pay off their balances, suggesting that they may not be able to afford the things they buy. Lower your utilization rate by paying down your existing balances and limiting how much you spend on your credit cards or other revolving debt, like personal lines of credit.

  • Keep Unused Cards Open: Do you have an old credit card that you haven’t used in a while? Rather than closing it, keep it open to help your credit score in two ways. One, if you close your oldest account, your credit history becomes shorter. A longer credit history shows lenders that you’ve been responsibly using credit for a long time. Two, your credit card helps to increase your total amount of credit, which can help your utilization rate.

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CONSIDER DIFFERENT TYPES OF CARDS

When selecting a card, carefully compare the benefits, such as a low interest rate and reward offers with the costs of a new card. With a high credit score, you can start to look at the different types of cards available.

  • Cards for Building Credit: Have you ever noticed how it seems like you need a good credit history to qualify for a credit card? This makes it hard to get your first credit account, which you probably need in order to build your credit score. The good news is, there are cards specifically designed for people who need to start a credit history or are rebuilding their credit score. These are known as secured credit cards which let you request your own credit limit (up to a certain amount) by putting down a security deposit. After making on-time payments for a period, most secured cards return your deposit and establish a credit score.

  • Cards to Pay Off Debt: You can use a credit card to help you pay off debt. A balance transfer card lets you move your existing credit card balance from your old card to a new one. The goal is to pay less in interest by getting a new card with a lower interest rate. The best balance transfer cards offer a 0% introductory interest rate for an initial period of time, letting you pay down your balance without adding more interest.

  • Cash Back Cards: Want to get a percentage of cash back every time you swipe your card? A cash back card might be right for you. Cash back cards give you a portion of the money you spend on your card back as a cash bonus. For example, a 1% cash back card can give you 1% of your purchases as a cash reward. If you spend $100, you’ll get $1 as a reward. You can usually redeem your cash back as a statement credit and some cards let you redeem cash back directly into your account.

  • Rewards Cards: Similar to cash back cards, rewards cards let you earn rewards each time you use your card. Rewards are usually a percentage of your total spend and are usually awarded as cash back, points or travel miles. Redeeming your rewards depends on your card, such as exchanging points for gift cards, statement credits or travel purchases.

Remember to compare all credit card benefits – not just the rewards or interest rates. A lot of cards have additional perks you can use to access your account, monitor your credit score and pay digitally.



FIND THE RIGHT CARD FOR YOU

Choosing a new personal credit card doesn’t have to be overwhelming. You can make an appointment with one of our knowledgeable bankers or apply for a credit card online today!

APPLY NOW



Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion that it is appropriate for readers. The information that is contained in this material is general nature. Readers should seek professional advice for their respective situations.

< Back Helpful Articles

#ASBPride: Ryan's Story - The Power of Our Voices

ASB October 25, 2021 | 1 MIN read Community

Honolulu Pride Month is coming to an end but our support for teammates and customers with diverse backgrounds and sexual orientations continues year-round.

At American Savings Bank, we are proud to embody diversity and inclusion in everything that we do. Every teammate and customer who walks through our doors experiences a safe workplace and welcoming environment. Our inclusive culture encourages people to talk about and celebrate each other’s unique differences.

This week, we wrap up our Honolulu Pride Month celebration with the last of four videos in our #ASBPride series. Ryan Escober, Vice President, Product Management, shares his pride story in the video below.

Each year, Pride Month serves as an opportunity for us to be educated, inclusive and active in our stance for equality among all. We are grateful for the opportunity to honor and highlight the voices of our #ASBPride video series participants. A huge mahalo to all of our teammates and long-time customers for sharing their Pride stories!

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#ASB Pride: John's Story

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#ASB Pride: Elisia's Story

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#ASB Pride: Manaola's Story

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#ASB Pride: Ryan's Story

We’re proud to be a workplace where teammates and customers feel welcome and empowered to embrace and tell their stories. Want to be a part of our fun and inclusive team? We’re hiring! Click the button below to apply now and join the #ASBDreamTeam!
LEARN MORE

Click here or check us out on Facebook, Instagram or LinkedIn to see the rest of this year’s #ASBPride video series!

Brian Ako Headshot

Brian Ako

Vice President
Senior Residential Loan Officer

 

American Savings Bank

NMLS #1083184
Equal Housing Lender
Mobile: (808) 741-5130
bako@asbhawaii.com

APPLY NOWLET'S MEET

Brian joins American Savings Bank with more than 9 years of experience in the residential lending industry. His previous experiences as a loan processor, underwriter and loan officer help him to provide the quality service and expertise his clients want and deserve in their journey of realizing the dream of homeownership in Hawaii.
 
Born and raised near Diamond Head on Oahu, Brian graduated from the University of Hawaii at Manoa. Outside of work, he enjoys playing golf, surfing and spending quality time with his family. He is currently a resident of Kakaako.

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