This card is one of the lower priced secured cards on the market, in terms of both the annual fee and the interest rate.
Who the Wells Fargo Secured Credit Card Is For
- People who don't have a credit history, been turned down for credit card, or are rebuilding their credit.
Credit Rating Required
- Poor or Bad (Below 660)
About the Wells Fargo Secured Credit Card
Pros
- Relatively low interest rate.
- Modest annual fee.
- High credit limits (up to the size of your deposit, up to $10,000).
- Eligibility one year after bankruptcy.
Cons
- Security deposit required (minimum $300).
Rewards
- None.
APRs
- 16.49 percent variable on purchases and balance transfers.
- Penalty interest rate: 27.24 percent.
Fees
- Annual fee: $18.
- Balance transfer fee: 3 percent of balance.
- Late payment fee: $20 to $39.
- Returned payment fee: $39.
Wells Fargo Secured Credit Card Review
The Wells Fargo Secured Credit Card is one of the better values in the secured card genre. The $18 annual fee is relatively modest, and the interest rate isn't too bad, either. By comparison, Citi's secured card carries a $29 annual fee, and Capital One's interest rate is a steep 19.8 percent.
On the negative side, the minimum security deposit is a fairly high $300, which could put the credit card out of reach for some. Other secured credit cards have a minimum deposit as low as $200. On the other hand, if you have plenty of cash but bad credit, you can get a credit line up to $10,000. That's double the maximum credit line on Citi's secured card and more than three times than Capital One's secured credit card.
Another positive: Wells Fargo says you might be able to qualify for their secured credit card if you've been out of bankruptcy at least a year. Other credit card issuers have a much longer waiting period before they will extend credit.
If you exhibit good credit behavior using your Wells Fargo Secured Credit Card, you could graduate to an unsecured card and have your security deposit refunded.
Although this is a secured card, don't forget that your security deposit doesn't cover any purchasing you do on the card. You still must make at least the minimum monthly payment.
Recommendation
I recommend this card for its relatively modest pricing. Wells Fargo has a good reputation for treating customers well. If you do well with this card, you're on your way to reestablishing your credit history and improving your chances of getting lower-priced loans in the future.