Fifth Third Secured

Verdict - A solid choice, but the Wells Fargo Secured card has a slightly lower annual fee and a much lower APR, and for those who plan to hold the card for a few years the Public Savings Bank Secured card has no annual fee and the lowest APR out of all the secured cards, but has a one time $79 processing fee.

Fifth Third's secured card would be a good choice if the Wells Fargo secured card did not exist.

The annual fee is very low, compared with other secured cards, but the APR is on the high end. We'd also strongly recommend considering the Public Savings Bank Secured card, which would be even better than the Wells Fargo card except for the $79 initial processing fee - this card has no annual fee and a much lower APR than other secured cards, so if you plan on holding the card for a few years or running up a balance it is the best choice.

Pros (compared with other secured cards):
A very low annual fee. A $450 and up credit line, based on the $450 or more deposited in your savings account. This is better than other accounts where you cannot remove money from your "collateralized" account. The Fifth Third name is also a bonus, because you can switch to an unsecured Fifth Third card after you build up credit, and you have access to a wide network of ATMs.

Cons (compared with other secured cards):
High APR. Also, the 21 day grace period is shorter than the 25 day grace period offered by most secured cards.

Typical (compared with other secured cards):
Getting 100% of what you deposit as your line of credit.

What is a secured credit card?
Almost anyone can qualify for a secured credit card, or alternatively for a pre-paid debit card, regardless of credit history. What's the difference?

A secured card requires a one time upfront deposit, then behaves like a normal credit card. This money is "gone" until you close the account at some future date, and is collateral for your future spending. To be clear, money you spend in the first month must be paid back at the end of the month, despite the faact that you have already deposited collateral. The size of the upfront deposit determines the size of the line of credit - typically a $500 deposit will earn you less than a $500 credit line.

On the other hand, a pre-paid debit card is a stored value card, where money deposited into the account can be spent.

Pros and Cons of a Secured Credit Card versus a Pre-Paid Debit Card
The advantage of a secured credit card is that they help you build (or damage) your credit by reporting to the 3 credit bureaus. Some pre-paid debit cards claim to do this, but this is difficult to fathom, given that credit agencies look at the ratio of your balance versus available credit, and pre-paid debit cards do not have a credit line.

The advantage of a pre-paid debit card is that it does not require a permanent deposit to act as collateral, and can be more anonymous. However, fees are generally much higher. Some of the cards promoted most heavily on the internet will cost you hundreds of dollars a year in hidden fees. Some typical examples include $2.50 for ATM transactions, $5-10 per month, $0.50 to check your balance at an ATM machine, and $15 to shut down your card. Be careful!