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Wells Fargo Secured Card Among The Best

Wells Fargo's secured card among the bestIf you’ve been turned down for a credit card because you’ve had financial problems and are looking to rebuild your credit history, you might be interested in a secured card.

Wells Fargo’s secured card is among the best.

With a secured card, you put up a cash security deposit — usually $200 or $300, up to $1,000 or more — with the bank.

That deposit becomes your credit limit, although you’re still required to pay at least your minimum payment every month, hopefully more.

Unfortunately, many banks try to gouge people desperate for a credit card, and secured cards are notorious for charging high fees and high interest rates.

Wells Fargo’s secured card carries relatively low rates and low fees.

The annual fee on this card is $18, which is one of the lowest among secured cards.

The APR is reasonable for a secured card at 18.99% (that’s the prime rate of 3.25% plus 15.74%), which you can easily avoid if you pay your balance in full each month.

By comparison, Citi’s secured card costs $29 a year, and the APR on the Capital One Secured Card is 22.9%.

What’s the catch?

Since the fees are so low, it’s probably more difficult to get this card than a secured card at another bank. But it’s worth the shot.

Wells requires a minimum security deposit of $300. That’s a little higher than what some other banks require and some people not want to lock up that much money.

However, if you do have the cash, you can put up as much as $10,000 if you’d like.

The bank doesn’t pay any interest on that account, although with rates as low as they are it probably wouldn’t amount to much anyway.

Wells says it will periodically review your account, so if you show good credit behavior, you could graduate to an unsecured card and have your security deposit refunded.

That usually takes a year or so.

Among the big banks, Wells has a pretty good reputation for customer satisfaction, so if you do well with this card, it’ll be easier for you to get credit in the future.

If you have bad credit or no credit history and establishing credit isn’t that important to you, but you do want plastic, you’re probably better off getting a prepaid card.

There are several prepaid cards on the market that are much cheaper than secured cards. Plus, you can spend your own money, rather than have it tied up in a security account.

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