Annual Fees

The annual fee is what you pay a credit card company for the privilege of credit. Most secured card issuers charge annual membership or participation fees. Secured cards generally charge a higher fee. They often range $50 to $150. The fees are billed on your statement once a year or once a month depending on card terms. Read the fine print.

Secured credit cards are for people who have never had credit or need to repair a poor credit history. They may not qualify for a regular credit card. For them, a secured credit card may be the only way to establish, or re-establish, credit. Although certain fees cannot be avoided, shop around when you select a secured credit card.