Sorry I had to make another username, but not sure how to log into my other username goose77.
Anyways, for those looking to build credit, I found a card out there with a lower annual fee and interest rate than Capitol one, Bank of America, USBANK, Merrick Bank, Wells Fargo secured card, or First progress secured Visa
The card has a 500 minimum funding balance to start off with (a little higher than the other cards), but the annual fee is only 25 and a interest rate of 11.99% (if your opening deposit is between 500-1,100) or 10.99% if you open a card with a 1,100 or higher credit line. Compared to other cards, this is how the card stacks up
Annual Fee
1-Navy Federal Credit Union 0$ NFCU Secured Card (you must be a military member or know someone who is to get this card)
2-Wells Fargo 25$ WellsFargo Secured card
3-Capitol one 29$ Capitol One secured card
4-Open Sky 29$ Open Sky Secured Card
5-US BANK 35$ US BANK Secured card
6-USAA Secured Credit Card 35$ USAA Secure Card (you must pre-qualify for the card first thru the bank)
7-Merrick Bank 36$ (than billed at 3$ a month after the first year) Merrick Bank Secured Visa
8-Bank of America 39$ Bank of America Secured Card
9-First Progress (Platinum Presitge is 49$, Platinum Select is 39$ Platinum Elite is 29$) First Progress Secured Cards
APR
NFCU 8.99-9.99% Variable
USAA 9.99%
First Progress 11.99-19.99% Variable
First Merrick 17.45%
Open Sky 17.99%
Wells Fargo 18.99%
Bank of America 20.24%
US Bank 20.99%
Capitol One 22.99%
The Pros and Cons:
First Merrick Bank, Open Sky will hold your security deposit and the only way to get it back is to have a ZERO balance and close the account. Not good if you are looking to maintain that card as one of your AAOA and closing that card that helped you build your credit will have a negative impact on your credit
Capitol One is STINGY about credit line increases. Merrick Bank on the other hand will bump up your CL without even asking them, and without even asking any additional security deposit from what you started with. However there is no upgrade option with them, it still reports as a secured card unless you close it and qualify for a unsecured card after payment history is established.
US BANK is the only card that offers discounts and travel rewards to its cardholdrs. Every other card has no benefits.
Bank of America, is the only fatest card to report to all 3 CRA. They will also waive a late fee twice a year if you are paying on time and more than the monthly minimum.
USAA requires you to maintain a CD of the deposit for 2 years, if you close the card before than, they penalize your deposit for breaking it early, so make sure it's the card you really want to get.
All cards have a minimum opening deposit of 300$ EXCEPT Merrick which can be open with as little as 200$ and Capitol one if you have bad credit but a high FICO score near 600's.
There is one credit that I did not mention. It's a Credit Union card. VERY easy to get with a low interest rate but a little higher security deposit. It also reports to all 3 CRA (not all secured cards report to all 3 CRA just a FYI).
Here is a link:Mid Florida Credit Union
Also they have what's called a SHARE LOAN. It's one of the best way to quickly build your credit score up in a year. My friend did it, He started at 557 credit score. 12 months later he's now at 673. Here's how it works
You put 750$ dollars to them as collateral, however they hand you the 750$ right back. You agree to pay 4% interest rate on that 750 that you kinda/sorta are borrowing over a course of 12 or 18 months, you can choose. Once you pay off the loan, the give you the 750 security deposit right back. I know its confusing. It's kinda like adding money to a savings account by paying it off each month but instead you get the money you put in back and the bank keeps the interest portion. They help you build you credit while cashing in on the interest but hey, 4% on a 750 loan, that's 30 bucks the bank is making off you, that's nothing.
