A secured credit card is obtained via a credit application, as with an unsecured credit card. Many secured credit cards are available through banking institutions such as Wells Fargo, through credit unions, or are endorsed by sites such as Credit Karma.Continue Reading
Unlike a pre-paid credit card or a debit card that is attached solely to a checking or savings account, a secured credit card can help those with poor credit scores begin to re-establish good credit. A security deposit is always required, and the amount may vary from card to card. When searching for a secured credit card, a person should look for one that does not charge an application fee.
Most secured credit cards do charge an annual fee for this service, but not all charge the application fee. For example, Wells Fargo charges no application fee, with an annual fee of 25 dollars. It is also a good idea to shop around to find a secured card that has a relatively low interest rate. Secured cards tend to have higher interest rates because of the risk involved to the credit card companies. Also, one should read the fine print on the secured credit card application, to ensure that the card reports to all three credit bureaus so that better credit can be re-established immediately.Learn more about Credit & Lending