Looking for a low interest secured credit card? No problem. A low interest secured credit card makes good financial sense, especially when you’re using your own money to secure the card.
With a low interest secured credit card, you get the opportunity to show creditworthiness and save money on interest if you don’t pay your balance in full each month.
People with bad credit reports will benefit from positive information reporting monthly. A secured credit card with a low interest rate like the First Progress Platinum Prestige MasterCard® Secured Credit, is designed for those who have bad credit or who need to establish a credit history.
You’ll establish good credit if you make all payments on-time.
Here is the quick low-down on the Platinum Prestige MasterCard®
Secured Credit Card:
- No Credit History or Minimum Credit Score Required for Approval
- Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
- Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
- Nationwide Program though not yet available in NY, IA, AR, or WI
*See Card Terms.
So how does it work?
To apply you must be a U.S. resident and at least 18 years of age (19 in Alabama and Nebraska) and have a valid social security number. At present this card is not available to residents in Arkansas, Iowa, New York, or Wisconsin. You provide a deposit to establish a credit line from $200 up to $2,000. The fully refundable deposit is held in a FDIC savings account but it does not earn interest. A deposit is required for two reasons:
- The cash deposit is collateral and serves as your actual credit limit.
- That deposit provides the credit card issuer with a safety net, should you default.
The refundable deposit you provide becomes your credit limit. Choose it yourself, from as low as $200 up to $2,000. Even though it is a secured credit card, it’s accepted worldwide whereever you see the Mastercard logo.
First Progress Platinum Prestige MasterCard® Secured Credit Card Benefits
The secured credit card reports monthly to Experian, Equifax and Transunion. Secured cards are a good point of entry into the credit world for consumers with no credit or damaged credit. When you get a starter line of credit, a positive payment history can be re-established. As long as you make all payments on-time, no matter the amount you deposit for your credit line, you’ll rebuild your credit history.
Never miss a payment on a secured credit card
Even with secured credit cards you must never miss a payment. Secured credit card issuers will report payment history to credit bureaus just like unsecured credit cards. One late payment on a secured credit card will crush a credit score plus remain on credit reports for 7 years.
How Long Will it Take to Rebuild My Credit?
There are no guarantees but people adding this credit card to their files have reported a boost to their credit scores by 30 to 40 points in a matter of months. Some have even reported an immediate boost in scores when the new credit line first reports. Keep the amount of debt you’re carrying ideally below 10% but definitely no more 30% of the available credit limit. For example if your credit limit is $1000, do not allow more than $300 to report to the credit bureaus.
More details about the Platinum Prestige MasterCard® Secured Credit Card
Grace Period. The Platinum Prestige MasterCard® Secured Credit Card has a 25-day grace period. Pay your balance in full, by the due date, during the grace period and you don’t have to pay any interest.
APR Rates and Fees. The APR on the Platinum Prestige MasterCard® Secured Credit Card is a low 9.99 percent. APR is the annual percentage rate. This is how most credit cards typically state their interest rates. On most cards, you can avoid paying interest on purchases if you pay your balance in full each month by the due date. APR for cash advances is 18.99 percent. The transaction fee for a cash advance is either $10 or 3% of the amount of each cash advance, whichever is greater.
Late Payment Fee: Since you are rebuilding you’ll NEVER pay late but just for your information the late fee can be up to $27.00 (up to $38.00 if you have been subject to a Late Payment Fee during any of the preceding six Billing Cycles). Set up auto pay to avoid late payments, that way at least the minimum amount due will always be on-time. Remember late payments get reported to the credit bureaus once your account becomes 30 days past due.
Annual fee: The annual fee is $49. According to 2015 data from NerdWallet, the average annual fee is $58, based on a survey of over 2,200 cards.
Foreign transaction fees: It’s 3 percent, which is within the normal range for most credit cards, whether they’re secured or unsecured.
Credit Limit Increase. The Platinum Prestige MasterCard® Secured Credit Card card does not graduate to an unsecured card. However, Synovus Bank may choose to increase your credit limit without requiring you to add to the deposit account. Any increases in your credit limit are subject to credit approval. The maximum credit limit you can obtain over time is $5,000.
Security Deposit: A minimum of $200 and a maximum of $2,000. Your security deposit will be held in a comingled non-interest bearing deposit account with other customers’ deposits. The deposit account is insured by the Federal Deposit Insurance Corporation to the extent permitted by law.
No Credit History Required. The Platinum Prestige MasterCard® Secured Credit Card does not require a credit history. This card is much easier to get approved for than some other secured cards from major banks. Because no credit history is required to qualify, this is a good choice for people new to credit. But for people who already have a negative credit history, there’s no minimum qualifying credit score.
At the end of the day the Platinum Prestige MasterCard®Secured Credit Card is a good, low interest secured credit card to build or rebuild credit. Just be sure to treat a secured credit card as you would an unsecured credit card – keep low account balances, never charge it to the limit and always make payments on or before the due date.
The best way to apply for this card is online.
No matter where you’re starting in the process to improve credit scores, don’t get discouraged. Building good credit in the long-term involves paying your bills on time, keeping your debt balances low and adding a mix of new credit accounts as you can afford them. The Platinum Prestige MasterCard® Secured Credit Card can get you back on the road to good credit.