The Orchard Bank Secured MasterCard® was last reviewed on
10th May 2008
Summary - The Orchard Bank Secured MasterCard® (issued by HSBC Bank) is a credit card specifically for those with poor credit or no credit history. Like all secured credit card, you are required to put a deposit with Orchard Bank which acts as a collateral for your credit limits. You need a minimum of $200 deposit and can increase your deposits over time in increments of $100 up to $15,000. Your credit limits is 100% of your deposit. You will also earn interest on your deposit.
Fees - Unlike other credit cards that are tailored those with poor credit, the Orchard Bank Secured MasterCard has no application fee. The annual fee ranges from $0 to $48 and is very reasonable for credit cards in this category. The APR will vary depending on your credit and ranges from 8.90% to 14.90%. The average daily balance method (including new purchases) is used to calculate monthly balances. The grace period is 25 days, slightly longer than the usual 20 days given by most credit cards.
Reports to the three major credit bureaus - The Orchard Bank Secured MasterCard reports your payments to the three major credit bureaus, Experian, TransUnion and Equifax. By paying your bills on time, you will gradually rebuild your credit and get an offer for one of Orchard Banks unsecured credit cards.
Verdict - We highly recommend the Orchard Bank Secured MasterCard® to those who have no credit, or are looking to rebuild their credit, or those who have just been discharged from bankruptcy. Orchard Bank (now owned by HSBC Bank - one of the largest and most reputable bank in the world) specializes in credit cards for those with poor or no credit. As long as you have a valid US address and social security number, you should be approved for a secured credit card.
Positives
Reasonable annual feeReports to three major credit bureausIssued by HSBC Bank, one of the largest and most reputable bank in the world
| Credit Limits |
100% of bank deposit, $200-$15,000 |
| Credit Agency Reporting |
Reports to 3 agencies |
Free Online Bill Pay
24 hour online access to account |
| Annual Fees |
$0 to $48 |
| Purchase APR |
8.90% to 14.90% |
| Cash Advance APR |
Prime Rate plus 14.65% (min 19.65%) |
| Penalty/Default Rate APR |
Prime Rate plus 18.65% (min 23.65%) |
| Min Finance Charge |
nr |
| Grace Period |
25 days |
| Balance Calculation Method |
Average Daily Balance (including new purchases) |
| Convenience Checks fee |
$10.00 for checks less than $250. No fees for checks more than $250.00 |
| Cash Advance fee |
3% min $4.00 |
| Over-the-credit-limit fee |
$29.00 |
| Late Payment fee |
$29.00 |
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