Secure Credit Cards - Wamu

Wamu (Washington Mutual) secured credit cards is one of the many products offered by Washington Mutual Bank. Washington Mutual started its company as a loan and investment company in the late 1800's, evolved into a savings and loan in the early 1900's and later purchased Continental Mutual Savings Bank and became Washington Mutual Bank. Now known simply as WaMu, Washington Mutual Bank is a full service bank and financial institution offering everything from checking and savings accounts to home loans and credit cards.

The secured credit card is a fine option for the member who wants to begin to build credit or rebuild credit from a bad credit history.

A secured credit card is like a savings account with a credit card attached to it. Generally, you deposit a certain amount of money and your credit card limit will be based on the amount that you deposit into this "savings account." So, for example, if you deposit $300 into a WaMu secure credit card account, your credit card limit would be $300.This deposit acts as collateral for your line of credit. Most secured credit cards are reported to all of the major credit bureaus like any other credit card. As you use the credit card for purchases, your on time monthly payments will help you establish or re-establish good credit.

To qualify for the Wamu secure credit card, you must

• Be 18 years of age
• Have a valid US address and social security number
• You must deposit a minimum of $300 and up to $10,000. These funds will be blocked until credit history has been established. (The credit limit is the amount you put in.)
• Have at least an annual income of over $12,000
• You must open the account inside a branch office. (You cannot open the account online.)
• You cannot be a WaMu employee.
• You need to show identification
• You can only open up an account once every 30 days.

• Is there an introductory rate? No

• What is it and how long does it last? N/A
• After that, what will my rate be? This depends on your FICO score, but look to pay around 19.99%.
• Is there an application fee? No

• Are there processing fees? No
• Is there an annual fee? Yes, $29.
• Is there a late fee? Yes. $39 or $19 if the balance is below $200

• Is there an over-the-limit fee? Yes

• Are there any other fees, like account termination fees or balance-transfer fees? N/A
• When and how can a variable rate be changed? They use a simple cycle daily rate balance method.
• What is the grace period before interest is applied? 25 days if the new balance is paid by the payment due date.

• How will you inform me of any changes in my contract? By mail

• Will the company inform me if I am about to go over my limit? Yes

• If I go over my limit what happens? You will be charged a fee.

• What is the company policy if I have trouble paying my bill. Contact customer service for individual circumstances.
• May I pay my bill online? Yes

The WaMu secure credit card is a great option for the person with little or poor credit.

However, if you have established good credit, this card is not recommended because there are more attractive options with better apr and no initial deposit required.

If you have any experience with the Wamu secured credit card, please feel free to share in the comments section.