U.S. Bank Secured Visa Card

This card looks like one of the quickest ways to advance toward getting an unsecured card, provided you exercise good credit behavior.

• People who have been turned down for a credit card or are rebuilding their credit.

Credit Rating Required

• Bad (below 620)

Pros

• Low annual fee.
• Interest earned on security deposit.
• No account processing fee.
• Quick graduation to unsecured card if you qualify.

Cons

• High interest rates.
• Not available in all states.

Security Deposit Required

• $300 to $5,000.

Rewards

• None.

APRs

• 20.99 percent on purchases and balance transfers; 23.99 percent on cash advances.

Fees

• Annual fee: $35.
• Late payment fee: $19-$39.
• Returned payment fee: $39.
• Over-limit fee: $39.
• Balance transfer fee: 3 percent of balance.

Despite its high interest rate, this card from U.S. Bank looks like one of the better ones in the secured card area. The bank says that if you manage this card well, it may be able to promote you up to an unsecured card in as little as 12 months. That's a big plus in your quest to improve or establish your credit score.

By comparison, some other secured cards say they will review your credit in a year, and then they might be willing to increase your credit line by a small amount, while asking you to secure 50% or more of the line with a bigger deposit. You don't want to have a secured card any longer than you have to.

The annual fee of $35 is at the low end of the secured cards. The bank also says it pays interest on your deposit.

U.S. Bank offers this card only in those states where it has retail branches, which pretty much covers the U.S. west of the Mississippi and a handful of states east of it. Visit the U.S. Bank website to learn if there's a retail branch in your state.

This is one of the better secured cards. As for the high interest rate, you can always avoid paying hefty finance charges by paying your balance in full before the grace period ends.