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How Much Do Secured Credit Cards Cost?
One popular way of establishing credit history - or for rebuilding damaged credit, is to obtain a credit card that is secured, meaning there is money on deposit with the issuer. Damaged credit may take the form of a loan default, or a bankruptcy, for instance. Secured cards may be sought when there has been prior refusal for a mainstream card.
Amounts for security deposits are usually determined by reports from the Credit Bureau, and deposits range from $49 to $10,000. Approvals are generally based on the applicant's credit history along with information provided within the application form for the card. Companies issuing these cards and typical deposit amounts include:
- Capital One - $49, $99 or $200 to start, and this goes up to $3,000
- Bank of America - making $300 to $4,900 on deposit
- Wells Fargo - $300 to $10,000 into a 'collateral account' as they call it
- US Bank Secured Visa/Skypass - min of $300 going to $5,000
Purchase Interest RatesThe amount of interest being charged is not necessarily high compared with other types of plastic, due to the fact that the balance on the card is secured in some sense. For example; Captial One charges 22.9% with a no balance transfer fee.
Annual FeesFor this special type of card an annual fee charge can generally be expected.
- Capital One - $29
- Bank of America - $39
- Wells Fargo - $25
- US Bank Secured Visa - $35