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How Much Do Secured Credit Cards Cost?

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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

Deposits are usually made with either a cashiers check, certified check or money order depending on the particular bank's requirements.

Purchase Interest Rates

The 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; Capital One charges 22.9% with a no balance transfer fee.

Annual Fees

For 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

Payments & Deposits

The purchases being made may not be deducted from the amount on deposit, so it is best to not assume this when making buys and thereafter. Also, make sure any deposits on the account are in fact refundable to you, should you desire them back.

Opting for Cards/Incentives

The US Bank Skypass is a secured card that lets you earn miles on purchases, offering 5,000 miles on your purchase and even certain types of insurance. As well as offering a HD visa card for Harley Davidson cash. Such offerings sway many devout patrons although all such cards do deserve a second look at conditions prior to signup.