Choosing the Right Card When shopping for the right secured card, it is imperative that you consider and compare the benefits and drawbacks for each one and measure how each fits with your personal needs and spending habits. Factors such as application fees, annual fees, finance charges, accrued interest on the deposit, available line of credit and minimum savings deposit are some of the most important considerations. Some secured credit card issuers require an application fee, which adds to the cost of obtaining a secured card. In some cases, the fee is non-refundable even if the applicant is not accepted by the issuer. Annual Fees Annual fees also add to the cost of having a secured credit card account.
Annual fees cover the cost of maintaining the account.
Deposit Once accepted for a card, an applicant is required to make a deposit into a savings account or a certificate of deposit as security. Our survey showed that the credit offered to consumers is usually the same or greater than the amount deposited. A few issuers, however, offer a credit limit lower than the amount deposited. The more money you wish or are required to deposit, the more important it is to have a card that offers generous interest payments. The lowest APR will help minimize your costs.