Wells Fargo Secured Credit Card
REVIEW

The Wells Fargo Secured Visa is probably best suited to those who have a banking relationship with Wells or intends to have one. Wells has been known to reject those with bad credit (even though this is secured!) so rebuilders should probably stay clear of this one. Perhaps the best feature of this card is that you can get upgraded to one of their unsecured credit cards after a certain period of time without having to reapply.

Annual Fee : $25 (used to be $18)

APR : 19.24%

Minimum Deposit : $300 (maximum is $10,000)

Do Security Deposit Earn Interest? : No

Foreign Transaction Fee : 3%

How Does It Report As : Secured

Cell Phone Protection : If you pay your cell phone bills with the card, you get $600 protection against covered damage or theft.

According to Wells Fargo's website, you can apply for this card even if you are not a US Citizen. You can be a resident and apply. However, to be considered for an upgrade to an unsecured card, you need to be either a US Citizen or a permanent resident (i.e. have a Green Card).

Unlike other cards, there are some rules as to how you can apply for this card. If you already have a banking account with Wells, then you can apply online. If you do not have a banking relationship, then you either have to apply over the phone or visit one of their branches.

If you put a table together and list the features of all secured cards, I think you will find Wells Fargo somewhere in the middle of the pack. The annual fees and rates are reasonable. Though there are cards that report as unsecured, there are just as many that report as secured. There are some that pay interest on deposit and just as many that do not. There are some cards that do not charge any foreign transaction fees but most do not. Some upgrade you to an unsecured card and some do not.

The three standout features of this card are the fact that you can deposit up to $10,000 (which could help your credit utilization ratio a lot). You also get a very neat cell phone protection plan as long as you use your card for pay your cell phone bills. This card is also open to foreigners and new immigrants (make your you get your SSN first).

Like we mentioned earlier, there are some pretty good features about this card. You can put a lot of deposit into the account (up to $10,000). The fees and rates are reasonable. You get a cell phone protection plan if you use the card to pay your cell phone bills. There is a path towards an unsecured credit card (though feedback from customers is that it is not a sure thing). If you are a new immigrant to the US, then you might be consider this card as well.

However, Wells Fargo appears to only want folks to have a banking relationship to get the card. You can only apply online if you already bank with them. If not, then you have to go to a branch or apply by phone.

If you have no credit, are new to this country, already bank with (or intend to) Wells Fargo, then you should consider getting this card.

If you have bad credit, then you might to look elsewhere. The reason is because like most secured cards issued by mainstream banks, you can actually be denied if you have bad credit (even though it is a secured card). If this describes you, then you are probably getting a card with no credit checks like the Primor secured card.

If you are a military member, there are other options like USAA.