Applied Bank Secured Card Review: Worth $50 Annual Fee?

5/7/2013 Update: We're sorry, Applied Bank® Secured Visa® Gold Credit Card is no longer available on CreditDonkey. This offer may have been discontinued or may no longer be available to new applicants.

Secured Card

The Applied Bank Secured Gold Card is a secured credit card. This means you need to put money on the card before it will work. Your deposit equals your total credit line. You can make a minimum deposit of $200 and a maximum deposit of $5,000.

Builds Credit

Even though the Applied Bank Secured Gold Card needs a deposit, it is a credit card, not a prepaid card. Prepaid cards do not improve your credit score; secured cards, on the other hand, can improve your credit score with responsible usage.

With this secured credit card, you get a credit line that is reported to the major credit bureaus. Your payment history for this card will show up on your credit report.

Remember, when you make purchases on your Secured Gold Card, it doesn’t spend down your deposit. Instead, you pay off your purchases each month like a regular credit card. Your deposit is used as collateral in case you cancel your card or don’t have the money to pay off your balance.

Fees

To use this card, you need to pay a few fees. It costs $50 a year to keep your Applied Bank Secured Card active. If you want to add other cards to your account, it costs another $30 per card. There are no fees for adding money to your account, so it is free to increase your credit limit.

If you keep a balance on your card, Applied Bank charges you an interest of 9.99% on your purchases. This is a relatively low rate, but keep in mind, there is no grace period for purchases. When you purchase something with the card, interest starts racking up immediately.

If you have good credit, you might want to consider an unsecured rewards credit card instead. Also, if you see your credit score improve while using the Applied Bank Secured Card, you should consider switching to a less expensive or more generous credit card.

Pros

• Real credit card, not a prepaid debit card
  
• Credit line that reports to the major credit bureaus
  
• Low annual APR of 9.99%

Con

• $50 annual fee
  
• No grace period on purchases

Bottom Line

If you want to start building a credit history but can’t qualify for a regular unsecured credit card, the Applied Bank Secured Visa Gold Card is a fair place to start. With no grace period on purchases, it is an expensive card to use.