By : 
Mr Credit Card
Mr Credit CardPlains Commerce Bank Interesting Secured Credit Card
Card Details
| Annual Fee | $39* |
| Regular APR | Min 18.9% (Fixed) |
| Foreign Transaction Fee | 1.00%* |
| Credit Limit |
$200 to $1,000 initial credit limit. Can increase up to $5,000 after 1st year, subject to credit approval and additional collateral deposit. |
Fees - The annual fee for the PCB Secured Visa is $39*. They do charge a foreign transaction fee of 1.00%, which is waived the first year. The cash advance fee is also waived for the first year.
Rates - The regular APR is 18.90% (Fixed). This is average for a secured credit card.
Deposit Requirement and Credit Limit - The initial credit limit will range from $200 to $1,000. After one year, you can increase your credit limit up to $5,000 (subject to credit approval and additional collateral deposits).
*See Rates, Fees and Cost.
Comparsion with Peers
| Card | Annual Fee | APR | Credit Limit | Foreign Transaction Fee |
|---|---|---|---|---|
| Plains Commerce Bank Secured | $39* | 18.9% (Fixed) |
$200 - $1,000 initial credit limit Then Up to $5,000 after 1st year subject to credit approval |
1.00%* |
| Opensky Secured Visa | $35 | Min 17.39% | $200 - $3,000 | 3% |
| First Progress Platinum Elite Secured Mastercard | $29 | 24.99% | $200 - $2,000 | 3% |
| First Progress Prestige Secured Mastercard | $49 | 9.99% | $200-$2,000 | 3% |
| First Progress Platinum Select Secured Mastercard | $39 | 13.99% | $200-$2,000 | 3% |
| Discover Secured Credit Card | $0 | 22.99% | $200-$2,500 | 0% |
There are too many secured credit cards in the market to compare and many of them have no annual fee. And if you have no credit, it is best to apply for these first. However, no annual fee secured credit cards can deny your application if you have bad credit. Since Plains Commerce Bank charges an annual fee, they are more appropriate for those of you with bad credit. So to do a comparison with PCB, I have decided to list down secured credit cards issuers that specifically target those with bad credit card and a couple of mainstream issuers just to highlight their differences.
As you can see from the table above, the annual fee for Plains Commerce Bank Secured Visa is pretty comparable to it's peers like Opensky and First Progress. Secured cards like these are appropriate for those of you with bad credit and have been denied other bad credit cards.
Plains Commerce Bank has one feature which no other secured credit card has. And that is they waive both the cash advance fee and foreign transaction fee during the first year.
Compared to secured cards with no annual fee, PDB does lack some features which these cards (mainly mainstream issuers) offer. For example, Discover has a reward program, offers free FICO score and their secured card holders can graduate to an unsecured credit card. However, as you can see from the table above, PCB actually has a lower APR than Discover and also a higher maximum deposit amount.
Please bear in mind that issuers like Discover or Bank of America will never approve you if you have bad credit (even though it is a secured credit card).
Pros and Cons
Pros
- Approves those with bad credit - You would think that secured credit cards would approve everyone since they require a security deposit. But that is not the case with many mainstream issuers. PCB will approve those of you with bad credit scores.
- Up to $5,000 in Credit Lines - Though you can only deposit up to $1,000 initially, Plains Commerce Bank allows you to increase your security deposit (and hence credit limit) up to $5,000 after the first year. The maximum limit of $5,000 is quite good compared to other secured cards and is important because a high limit allows you to control your credit utilization (a very important factor in determining your credit score).
- Reasonable Annual Fee - Yes, there are secured credit cards with no annual fee. But $39 for an annual fee is very reasonable and within the range of most secured credit cards.
- 1.00% Foreign Transaction Fee - It would be great if they did not charge any foreign transaction fee. But 1.00% is better than the 3.00% standard fee that most credit cards charge.
- No Cash Advance Fee During 1st Year - While we never recommend taking a cash advance from a credit card, the cash advance fee is waived for the first year.
Cons
- Intitial Credit Limit Only Up to $1,000 - Even though you can deposit up to $5,000 for your security deposit after the first year, you can only deposit up to $1,000 initially. After that, you have to get approved to deposit more into your account to increase your credit limit. That might not be a problem to some of you but for others, it would be more convenient if you can deposit up to the maximum limit when you start out.
- No Reward Program - Frankly speaking, you should not expect any reward program from a secured credit card. However, some have them. Having said that, your deposit and credit limit is likely to be too small for any reward program to make an impact.
- Cannot graduate to unsecured credit card - Unlike big mainstream issuers who have an array of unsecured credit card offerings and allow their secured credit card holders to graduate to an unsecured card, this card cannot graduate.
Our Take
If you are in this situation, then this secured credit card might be an alternative for you. The annual fee is very reasonable and the minimum deposit is low enough for most of you.
You have to be aware that this is not the most feature rich secured credit card. For example, there is no reward program. You do not get perks like FREE FICO scores and you cannot graduate automatically to an unsecured credit card. But like I said before, this card should approve you if you have bad credit and are a rebuilder. The annual fee is reasonable and they do report to all three major credit bureaus.
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