Getting turned down for credit can make you feel a bit dejected, but the truth is that if you haven’t established your credit history, or you have made mistakes in the past, then you may have to seek an alternative to a traditional credit card. One alternative that you might want to consider is the Wells Fargo Secured credit card.
Secured credit cards require you to have an account to support your credit balance. When you use your secured card, the balance of your account doesn’t reduce, but your credit limit does. Just like a regular credit card, you have to make payments when you make purchases. Compare other online credit card offers now!
The benefit to choosing a secured card is that your on-time payments are reported to the credit reporting agencies just like a traditional card. Over time, as you maintain your regular payments, your credit score will improve and you may qualify for a traditional card.
Wells Fargo Secured Credit Card versus Other Secured Cards
One of the biggest problems people face with secured credit cards it that they typically come with a ton of fees. There are traditionally maintenance fees, annual fees, transaction fees, ATM fees and more.
This is where the Wells Fargo Secured Card is different. You do have to open what Wells Fargo calls a “Collateral Account” in order to qualify for a secured card. However, there are no fees associated with maintaining this account.
There is an annual fee for this card but it is only $18. All of the other fees associated with this card are the same fees that Wells Fargo applies to all of their credit cards. In other words, there are no unusual fees if you choose this bad credit credit card.
Lastly, most secured cards have a $500 max on your card. Some will go higher, but this is more the exception than the rule. In the case of a Wells Fargo Secured Card, you can have as much as a $10,000 credit line. Your account will be reviewed periodically for a switch over to a traditional Wells Fargo card.
Wells Fargo Secured Credit Card Benefits
- Low annual fee
- No unusual fees
- High balance allowance
Wells Fargo Secured Credit Card Considerations
- Money tied up in a Collateral Account
- 18.99% interest rate
For other options, use the free chaser tool and compare credit cards online, right now!