Some cards have names like "Platinum" or "Preferred", but that doesn't necessarily mean they're good for your wallet. Better options do exist and are surprisingly easy!
There's a good reason this card is so popular.
"Secured" cards can be a good option for people with bad credit. These cards typically have lower fees and easier approval criteria because they hold a security deposit, similar to placing a deposit on an apartment. When you close the account, if the balance is paid off, your deposit is refunded back to you.
With many subprime credit cards your application may be declined depending on your credit and other factors. Annual Fees vary widely with some nearing $1001 while Interest Rates average 21% APR2.
By comparison, below is one of the most expensive unsecured credit cards we've ever seen. With all its fees and high APR, we don't think this is a good option.
This Chime secured card has No Program or Processing Fee, No Annual Fees, No Monthly Fees, No Interest*... and No Credit Check to apply either.
Chime reports to the credit bureaus just like any other credit card so you can build up your credit with on-time payments, plus it has an easy-to-use app to help you manage your account.
Because it’s a secured card, you would have to make a security deposit, but that amount gets refunded back to you when you close the account. No annual fees, no interest, and no credit check – in our opinion this is a far better option for people with bad credit!
For example, if you’re approved for a $300 credit limit, you will need to pay a $95 Program Fee up front to open the account. Then you will be charged a $75 Annual Fee on the card for the first year, so before getting to use your card, you’ll start with only $225 credit available and a balance due of $75. In the 2ndyear, Monthly Fees will kick in along with the Annual Fee. In the first 2 years of having this account these fees would total $290. And with 36% APR, you better stay on top of your monthly payments.
Depending on your credit limit, these fees may vary.
NOTE: We are not affiliated with or authorized by First PREMIER Bank. The information herein has not been reviewed or approved by First PREMIER Bank.