If you've never had credit or you need to rebuild a poor credit history, you may not qualify for a regular credit card. A secured credit card may be the only way for you to establish, or re-establish, credit. Unlike debit or prepaid cards, this card's payment information will be shared with major credit bureaus, helping you build your credit history.
Wells Fargo has a secured Visa card that may help you with this. We take a look at the card to see if it's a good catch in a sea of secured cards.
A secured card requires a cash collateral deposit that becomes the credit line for that account. With this Wells Fargo card, you choose between $300 and $10,000 to deposit, and that's the amount you can charge. Further down the line you may be able to add more credit, or after establishing good credit by making on-time payments you will be upgraded to an unsecured credit card.
With a secured card, you want low fees and a good opportunity to build credit and this card seems like a solid choice. Wells Fargo has among the lowest annual fees of any major bank. The card has a low annual fee of $25 – one of the lowest I've seen for a secured card (Capital One Secured MasterCard and Citi Secured MasterCard both charge $29, with US Bank Secured Visa charging $35).
If possible, it's better for you to pay off your balance each month as otherwise you're paying interest to spend your own collateral. It's currently a variable 18.99% APR on purchases (I've seen a lot worse – this is an average amount for a secured card) and cash advances are not advisable as they cost even more.
The Wells Fargo brand has a good reputation when it comes to these cards helping to build or rebuild you credit. I found mainly positive comments on CardHub, which include:
""I like that it's a credit card for people with bad credit scores".
"I highly recommend it for a person that has made mistakes in the past and has ruined their score".
"I especially like the feature that it can easily transition into an unsecured card once you have built the history".
Overall, this card is one of the lower-priced secured cards on the market, in terms of both the annual fee and the interest rate. It's one of the better choices out there if you need a secured card – if you have a poor/bad credit rating below 660 (albeit absolutely not the best choice if you have a strong enough credit score to get a traditional unsecured credit card).
You can apply for the Wells Fargo secured Visa card here.