Wells Fargo Secured Card

The Good

• A higher credit limit with this card (up to $10,000)
• Non-resident aliens of the U.S. are welcome to apply for this card

With the Wells Fargo Secured Card (as with any secured card), the amount you put down as a deposit determines what your credit limit is.  However, the Wells Fargo Secured Card is a bit different becuase they allow you to deposit much more than most secured cards – all the way up to $10,000  (you can, however, secure the card with as little as $300). Why would you want to secure the card with so much cash?  Mainly for convenience.  The larger the amount securing your card, the less likely that you’ll spend enough in a given month to exceed that amount.  So for those who have the money, this could be an option.  That said, if you have this much money, once your credit has improved to the point you can open an unsecured card, then you should put this money in a savings account with a decent interest rate.

Do I have to be a permanent resident or U.S. citizen to apply for the Credit Card? No, you don’t. Non-resident aliens of the U.S. are welcome to apply for this Credit Card. However, only permanent residents and citizens can upgrade to a Wells Fargo unsecured card.

The Bad

• Has $25 annual fee
• No rewards
• High APR around 20.49%
• High late payment fee

While this credit card has a lot of great features, it does have some drawbacks that could be deal-breakers for some. It charges a $25 annual fee.  Given that many other secured cards do not have any annual fees, I can’t really recommend paying an annual fee for a secured card unless there is a really compelling reason.

The Wells Fargo Secured Card has high late payment penalty. If you pay your statement late, you’ll get hit with a penalty fee of up to $37. If you think that keeping on top of payments will be a struggle for you, get a card with no late fees and a low APR rate. .

Overdraft fees are on the higher side as well. This card charges a $12.50 penalty for overdraft protection of $50 or less. That penalty ratchets up to $20 if the overdraft amount is over $50. Finally, there’s a 3% foreign transaction fee. Finally, the credit card comes with a 3% transaction fee on all foreign purchases. It’s not a great credit card to pack on an overseas trip.

The Summary

Meh.  If you already bank at Wells Fargo and really want to keep your secured crad there, maybe this card makes sense.  Or, it might be a good fit if you are not a U.S. citizen.  However, generally speaking, the penalties and fees with this card outweigh its benefits. For instance, if you’re prone to late payments and overdrawing your account, you could easily waste nearly 140 dollars with just two late payments and two overdraft incidents, as well as the annual fee.