With responsible spending, the Wells Fargo Secured Credit Card can help rebuild your credit.
The Wells Fargo Secured Credit Card is a no-frills secured card that can help you rebuild your credit score with responsible everyday spending and on-time payments. Like similar cards, it requires a security deposit, which determines your credit limit. And it reports to all three major credit bureaus, making it a solid option for improving your creditworthiness.
To be approved for a secured credit card, Wells Fargo recommends a poor to excellent credit score of 300 or higher. You must pledge a minimum $300 security deposit for approval.
|Product Name||Wells Fargo Secured Credit Card|
|Balance Transfer Rate (not intro)||20.74% variable|
|APR for Purchases ( Purchase Rate )||20.74% variable|
|Cash Advance Rate||25.74% variable|
|Interest Free Period|
The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement.
|Up to 25 days|
|Returned Payment Fee||$37|
|Foreign Currency Conversion Fee (VISA)|
Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You’ll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution.
|3% of transaction value|
|Minimum Credit Score||Poor (Below 660)|
|Minimum Age||18 years of age|
|Min credit limit|
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
|Returned Payment Fee||$37|
|Late Payment Fee||$37|
|Cash Advance Fee||$10 or 5% of the amount of each advance, whichever is greater|
If you have poor or no credit, a secured card can boost your creditworthiness with responsible everyday spending and on-time payments. Your initial line of credit is based on your security deposit.
- Reports to major credit bureaus. Steady reports of your on-time payments helps you improve your financial health.
- Reasonable minimum deposit. Your $300 minimum deposit is FDIC-insured.
- Upgrade with responsible use. Wells Fargo periodically monitors your account for an upgrade to an unsecured credit card.
- US residency not required. Unlike many secured credit offers, this one is available to citizens, permanent residents and nonresidents of the US.
How to make the high APR worth it
The Wells Fargo Secured Credit Card is a solid way to re-establish your credit if you use it responsibly. To avoid paying the high 20.74% variable APR on your purchases, pay your monthly balance on time or within the grace period. With on-time payments, you may be able to eventually upgrade to an unsecured credit card.
What to watch out for
Because Wells Fargo reports your responsible payments to the three major credit bureaus, you can re-establish your creditworthiness. But keep a few factors in mind.
- $25 annual fee. It’s not uncommon to pay a fee for a secured card, but you can find secured cards that don’t require an annual fee.
- No set time for upgrade. Wells Fargo’s graduation process is murky, and some secured credit card users complain that they’ve paid their bills on time but haven’t yet been upgraded.
- No rewards. You won’t get cash back or rewards with this card.
How to apply for the Wells Fargo Secured Credit Card
Always consider your options and your financial situation before you apply for a credit card.
To apply for a Wells Fargo Secured Credit Card, you must:
- Be at least 18 years old.
- Be employed with the ability to provide proof of your income.
- Have an existing Wells Fargo checking or savings account, if you’re applying online.
1. Apply for the Wells Fargo Secured Credit Card by visiting Wells Fargo’s website. Look for the Build Credit option or search the site.
2. Select the Wells Fargo Secured Credit Card option and click Apply Now.
3. Enter your personal and financial information as requested and submit. If you don’t already have an account at Wells Fargo, you’ll need to visit the bank in person to open and link a checking or savings account to your card.
Because Wells Fargo’s site provides conditional approval of your application, you should find out if you’re approved within minutes.
I got the card. Now what?
To improve your credit score, you’ll need to make timely monthly payments and keep track of your credit use.
- Avoid unnecessary fees and interest. If you’re worried about paying your statement on time, consider setting up autopay through Wells Fargo’s website.
- Build good habits. Spending smaller amounts and paying them off right away can help you establish good credit habits.
- Graduate to an unsecured card. If you keep your credit utilization ratio low, you’ll improve your credit more quickly and effectively.
- Contact customer service. Call 1-800-869-3557 24/7 or send a secure email from your online account. Connect on Facebook @WellsFargo or Twitter @Ask_WellsFargo.
What customers are saying about the Wells Fargo Secured Credit Card
The Wells Fargo Secured Credit Card gets mostly average online reviews. Consumer Affairs give Wells Fargo Bank 2 out of 5 stars, while TrustPilot gives the bank a rating of “bad.”
Secured credit cards are designed to help you build — or rebuild — your credit with regular reporting to the three main credit bureaus. With responsible spending, you could be upgraded to an unsecured credit card with perks or rewards for your spending.