First Option Visa secured credit card : Bad Credit Advisor

First Option Visa secured credit card

The First Option Visa is the secured credit card that is issued without any credit check whatsoever. The only things verified are age, social security number and residence. As long as you can furnish these items, you can obtain a credit card with initial credit limit equal to the amount you deposit in your collateral savings account with New Millennium Bank (NMB), minus one time processing fee of $99.95. Minimum deposit is $300, maximum deposit is $5,000 per card. You will be sent confirmation and savings account materials after NMB receives your online application and processing fee.

So, with First Option credit card your credit limit is always equal to 100% of your collateral savings account. If you fail to pay, your Visa charges will be deducted from your collateral deposit and any remaining balance will be returned to you as soon as all charges have been cleared. This secured credit card is reported to TransUnion, Equifax and Experian, helping you establish credit history or reestablish credit anew.

There are few perks - neither First Option Visa nor New Millennium Bank charges monthly activity fee, but NMB pays you some interest on your collateral deposit, which is currently 6.0% interest for the first 3 months, then 2.0% interest for the next 9 months, for a 3.0% Annual Percentage Yield (APY). After the first 12 months your account earns 2.0% APY. Rates are subject to change.

There are withdrawal limitations and some fees of course. You may not withdraw money from the account while your credit card is secured. If you ask NMB to close your account and the credit card balance is paid in full, the security deposit balance will be sent to you within 10 weeks of closing the account, after all your credit card purchases have cleared, along with your interest earned.
The Annual Percentage Rate (APR) applies to purchases and cash advances and is fixed at 19.5%. The grace period is zero days for both purchases and cash advances. Annual fee is $59. Minimum monthly finance charge on outstanding balance is 50 cents.
Other miscellaneous fees with First Option secured Visa are Late Payment fee of $20, Over limit fee of $20, and Cash Advance fee of 2% of advance with minimum and maximum of $1 and $20 respectively. Apply here. See also Citibank secured MasterCard.

Fri Dec 5, 2008 11:12PM by Tony | More in Credit Repair | Comments (0)

Helpful Links

Syndicate

Subscribe in a reader