Of the four secured credit cards that will be reviewed in this article, the Wells Fargo Secured card seems to be a great choice for someone on a budget. This card has the lowest annual percentage rate and annual fee of the four cards.
After choosing the best card for your budget, you can do further credit card research. Suze Orman offers advice on great ways to build your financial foundation. It is also a good idea to see how JD Power rates each card with their list that they publish periodically.
What are the terms of the Wells Fargo Secured credit card?
With the Wells Fargo Secured credit card, you can deposit between $300 and $10,000 into the card’s collateral account. The available credit line for this card will be the same as the deposit amount. The deposit keeps you from going over your limit or defaulting on the card.
By making all of your monthly payments on time you can slowly establish or rebuild you credit score. Wells Fargo will review your account from time to time and if they feel you have proven to be responsible, you will be upgraded to a normal unsecured credit card and the initial collateral deposit will be refunded.
The annual percentage rate for this credit card is extremely low at 18.99%. Most annual percentage rates for secured credit cards are well over 20%. Having a low interest rate is very important for someone on a budget since interest fees can cost a lot over time. This annual percentage rate also applies to balance transfers. The annual percentage rate for cash advances and overdraft protection advances are both 23.99%.
This card also has one of the lowest annual fees at $18. The fee for balance transfers is 5% with a minimum of $5. The fee for cash advances is 5% with a minimum of $10 or $20 depending on the type of cash advance. The fee for foreign currency conversion is 3% with no minimum. The penalty fee for returned payments and late payments are both $35.
To qualify for this credit card you have to be older than 18. You can also not have any unsettled liens against you or have filed bankruptcy in the past year.
What are the terms of the Capital One Secured Master Card?
This Capital One Secured Master Card has an annual percentage rate and balance transfer rate of 22.9%. The interest rate for cash advances is 24.9%. The annual fee for this card is $29 a year, but there is no fee for balance transfers. A cash advance carries a 3% fee with a minimum fee amount of $10.
There is no fee for going over the credit limit, but there is a fee of $19 for late payments and a fee of $35 for a returned payment.
What are the terms of the Citi Secured Master Card?
The Citi Secured MasterCard is offered through CitBank. The annual percentage rate for the CitiBank card is lower than the Wells Fargo card at 18.24%, but the annual fee is higher at $29.00.
This card can also charge more interest if you cancel it early since the deposit for the card is kept in a Certificate of Deposit. You have to keep this card for at least a year and a half or the interest earned on the account will be applied to the Certificate of Deposit. You will then have to pay a fee to close the Certificate of Deposit early.
This card does come with retail purchase protection and auto rental insurance. Retail purchase protection covers most purchases up to $1000 for 90 days if they are stolen, lost to fire, or accidentally broken. The auto rental insurance provides you with coverage is you choose not to get the collision insurance offered by rental car companies.
An optional service that you can choose to have with this credit card is the Citi Identity Monitor. This service helps protect you from identity theft. Moreover, it monitors your credit score and will give you a credit report with your credit score.
What are the terms of the BankAmericard Fully Secured Visa credit card?
This Bank of America Fully Secured Visa credit card and has the highest annual fee of the group at $39. The annual percentage rate is 20.24% and a balance transfer fee of 4% with a minimum of $10.
Unlike the other cards, this one also has what is known as a penalty annual percentage rate. This means if you are late with a payment, your interest rates will automatically be increased to 29.99%.