Secured Credit Card Tips

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Shop Around -  Each credit card issuer has its own terms: annual fees, cash advance fees, grace period, application fee etc. Find the one that's right for you.

Credit Bureau Reporting - One of the main reasons for getting a secured card in the first place is to reestablish your credit. In order to do so, the bank must report to the 3 major credit bureaus: Experian, Transunion and Equifax. Just to be sure, ask the bank.

How Is The New Card Reported? - Ask the issuer if they will flag the report as a secured card. If they do, this could act as a deterrent to rebuilding your credit.

Secured Deposit: How Much & How Long - How much of a deposit do you have to put up to get the card. Amounts vary from bank to bank. Find the one that fits you financial circumstances. Another concern is interest rate you deposit earns and how long it has to stay in escrow.

Definitions

Bank - This is the actual issuing bank, not a marketing group that promotes secured cards.

Card Class - Depends upon your line of credit.  You have the basic classic/standard Visa / MasterCard on the low end. Higher credit lines are called Gold / Platinum credit cards.

Purchase APR - This is the interest rate you pay for normal purchases

Annual Fee - How much you have to pay yearly for the privilege of being a cardholder.

Purchase Grace Period - This is the time frame in which no interest is charged as long as you pay by due date.

Cash Advance APR - This is the interest rate you will pay for a cash withdrawal. This rate can be higher than regular purchases. Generally, there are no grace periods for cash advances.

Cash Advance Fee - An additional fee for the privilege of withdrawing cash.

Fees & Terms - Costs, initial deposit, line of credit, service area.