As an awards card offering 5% back, I think the interest rate is about right. That's in-line with a typical store card even for those with good an d great credit.
However, there is a broader issue I think is often overlooked: Secured cards offering no-rewards (and there are many out there), ~28% interest simply feels predatory.
We (rightfully) condemn lenders such as CreditOne and First Premier for their egregious fees. However, I have nearly as much disdain for some of the lenders we do not typically associate with the word "predatory" when they are charging 28% interest on a secured card, essentially making the debt risk-free.
@sarge12 wrote:
@Caardvark wrote:As an awards card offering 5% back, I think the interest rate is about right. That's in-line with a typical store card even for those with good an d great credit.
However, there is a broader issue I think is often overlooked: Secured cards offering no-rewards (and there are many out there), ~28% interest simply feels predatory.
We (rightfully) condemn lenders such as CreditOne and First Premier for their egregious fees. However, I have nearly as much disdain for some of the lenders we do not typically associate with the word "predatory" when they are charging 28% interest on a secured card, essentially making the debt risk-free.
Does it have a grace period, or is the holder of the card charged interest from the time of the charge? I know it is secured, but does that make it totally risk free? I mean, could someone go over the limit on the card? I am fairly unfamiliar with secured cards period. Like I said earlier, if it is interest free, if paid in full before the due date, it is 0 interest. If the card holder declares bankruptcy, would the security deposit be taken to satisfy the loan? I am not 100% sure they could take the security with the automatic stay. I think if you have a very low score, it might be better than a credit one card. I know for a re-builder they are often willing to pay a little to get some credit history. I hope the actions taken do not keep the card out of the hand of re-builders, that are begging for a means of re-building their credit profile.
All Synchrony cards to my knowledge have the usual grace period.
Secured cards are mostly risk free not entirely, the deposit can be snatched by others but this is absurdly unlikely given it's nearly impossible to find unless the lender reports it to the government which they won't.
I'm not sure if 28% or whatever is usurious but if we're just talking standard risk and opportunity cost modelling doesn't seem like it needs to be that high given they are getting money in hand which counts as a deposit for the rest of their business.
At the time of my credit report I was in the 693 Range so I figured I could use another Secured Credit Card, I already had the Amazon Prime Visa Card By Chase Bank for $1,000. So lets see if I qualify for a different bank's version of Amazon Store Credit Card. My goal is 21 Credit cards in 2 years, I know alot of you are saying your nuts but I am working towards a 850 Credit score. Next year 8 inquires will be deleted from the 21 I got now, lol. Anyways I applied for this Amazon Store Card and to my surprise I was not only approved for $500.00 but I didn't have to leave a deposit. How sweet is that 
One thing I learned about Credit Cards if you want a credit card to quickly show up on your credit report you to quickly make a small purchase with the new credit card as soon as you get it in the mail OR if they approve you to start making purchases on their website then go that route that way it will get on the Credit Bureau's Radar. Which will also lower your monthly credit utilization percentage (Add all credit card limits and divide by 30 percent, that is your monthly spending limit).
@Anonymous wrote:At the time of my credit report I was in the 693 Range so I figured I could use another Secured Credit Card, I already had the Amazon Prime Visa Card By Chase Bank for $1,000. So lets see if I qualify for a different bank's version of Amazon Store Credit Card. My goal is 21 Credit cards in 2 years, I know alot of you are saying your nuts but I am working towards a 850 Credit score. Next year 8 inquires will be deleted from the 21 I got now, lol. Anyways I applied for this Amazon Store Card and to my surprise I was not only approved for $500.00 but I didn't have to leave a deposit. How sweet is that
You need to stop listening to Sebby, Credit Karma and whomever else suggest that you need 21 cards to achieve an 850 score. You can achieve a perfect score with a minimal amount of credit cards as long as your pay your balances on time, keep your utilization low, and allow your accounts to age.
Also I'm not sure where you got the idea that making an immediate charge will force a card to report to the credit bureaus. Card issuers report to the bureaus based on the Statement Close date chosen when an account is opened and they rarely, if ever, vary from that. For example, a new American Express card will only report after 2 statement cycles. Based on the Statement Close date chosen by Amex's computer when the card is open, that could be as long as almost 3 months. No amount of charges to that account will make it report to the bureaus sooner.
