10 Ways to Search for a Secured Credit Card

1. APR – can have a standard or introductory rate. Can range from 7.90% to 49.9%, average ranges from 9.72% to 22%.

2. Annual fees - average fee is $40 per year

3. Minimum deposit – average deposit required is $300

4. Maximum deposit - amount deposited may depend on consumers annual income and line of credit desired, average is $10,000

5. Red Flags - look for low interest rates and fees, beware of scams, reporting to the credit bureaus – Experian, Equifax, and TransUnion, deposits, avoid cards with high fees and high interest rates, avoid cards that use your security deposit, income and age restrictions, if the card has a grace period, ask if the card is reported as a secured credit card on your credit report – this may affect future approvals for credit

6. Requirements – requires a savings or checking account with the bank, credit limit is 50-100% of the deposit, for savings accounts the limit can range from $300 to thousands of dollars, money is deposited into a savings account or CD, offer same features as an unsecured credit card

7. Earn interest – if it is a bank card they may pay interest on your deposit, the interest rate varies from 2 to 6.17%, if you deposit more than the minimum or are required to make a high deposit - it is to your advantage to ensure you earn interest on the money

8. Deposit Refund – if application is denied, refund is used to pay outstanding balance and any money left over is mailed to the consumer, may be charged penalty for early cancellation

9. Additional fees – application fee, processing fee, annual fee, finance charge, the application fee may be non-refundable depending on the company, cash advance fees, over-the-limit fees, non-sufficient fund fees, accessing account information, exceeding maximum number of transactions per month

10. Conversion – the account is not touched unless you make a late payment, after making payments on time for at least a year you may be able to qualify for an unsecured credit card, ask if your card can be converted to a unsecured credit card, account may be closed by bank if the account is seriously delinquent