If you are looking to rebuild or build your credit, the Wells Fargo Secured Credit card is a good choice. While the credit card does charge a monthly fee, this is relatively low in comparison to other secured credit cards available. When compared to many high interest unsecured credit card offers, the amount of money you will pay towards your balance is much more reasonable.
While this type of secured credit card is not a preferred option, it can be an asset when used correctly. If you are using the card for a small expense, such as a new car, this may be a good option. However, if the majority of your expenditures are on an impulse or are non-essentials, this may not be the right card for you. A secured credit card can be a valuable tool when used responsibly, but it may not be the best choice for people with a poor credit rating.
When you apply for a secured credit card, you will be required to provide proof of identity and employment. You will also be asked to provide proof of your Social Security Number (SSN). This information is all required to process your request for a credit line.
The best part about the secured credit card is that you don't have to pay an annual service fee. Unlike some credit cards, which charge ongoing fees, this service has no renewal fee. With most secured credit cards, you also don't have to worry about penalties if you miss a payment. Because this type of card is backed by a lender, you don't have to worry about having bad credit scores. With the low monthly payments, you can easily rebuild your bad credit rating.
This type of credit card may help you in the event that you are behind on a loan, but you shouldn't count on any type of loan modification. You will still be responsible for the loan, as there is no way to get around paying your balance each month.
If you do decide to go with the Wells Fargo secured card, it is important that you review all aspects of the terms and conditions. Make sure you understand the APR (annual Percentage Rate of Interest) and any fees that may apply before you apply for the card.
Unfortunately, there are many Wells Fargo secured credit cards that do not offer the best interest rates. Be aware that you may end up paying more for your card than what you would if you applied for a regular credit card. If this is the case, you should definitely look for another lender to work with.
By using this type of card wisely, you can quickly rebuild your credit rating and avoid problems with your credit score. If you do want to use a secured credit card for a large amount of money, you should consider applying for the secured cards from other companies. Because they have lower credit lines, they have lower interest rates.