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.