Consumers trying to build their credit may choose from one of the three secured credit cards First Progress offers. These cards are good alternatives, but they are not inexpensive.

• Platinum Elite
• Platinum Select
• Platinum Prestige

Your credit limit is determined by the amount of the first deposit, which may range from $200 to $2,000. However, in contrast to other secured credit cards, you will be required to pay an annual fee and won't be eligible for any rewards programs.

Despite this, applying for any of these cards will not negatively impact your credit ratings, and they will all report your activity to the three main credit agencies. In addition, they come with interest rates that are rather cheap when compared to other cards in their category, making them an excellent choice for those who carry debt.

Your Credit Limit Will Decrease By An Amount Equal To The Yearly Fee For The First Month

Because the yearly fee is required upon account creation, you will immediately have a balance of either $29, $39, or $49 on your first statement (and any statement in the future when the annual fee comes due). It is vital to keep this in mind, particularly if you made the smallest acceptable deposit, $200.

In that case, your credit limit would be reduced to $171, 161, or 151 in the first month. There are secured credit cards available that do not carry an annual fee; however, the interest rates on these cards are often higher.

For example, the Discover it® Secured Credit Card does not charge an annual fee and offers an introductory APR on balance transfers of 10.99% for the first six months after opening an account. After that, the continuing APR is a variable of 26.74%. This card, in contrast to the First Progress cards, offers incentives in the form of cashback: 2% cash back on up to $1,000 in purchases made each quarter at petrol stations and restaurants and 1% cash back anywhere else.

In addition, a benefit for new cards is described as follows: "Discover is the only company that is offering an unlimited cashback match in their first promotion. After your first year with Discover, the company will instantly double the amount of cash back you've earned! There is neither a minimum required expenditure nor a maximum possible return. Simple parity in terms of monetary value." The required minimum deposit for security is $200.

Capital One Platinum does not have any incentives associated with it. Still, if you are qualified, you may be able to receive a credit limit of $200 with a lesser initial deposit. You can qualify for a minimum security deposit of $49, $99, or $200, depending on the circumstances of your financial status.

The Application Process Will Not Have Any Negative Impact On Your Credit Ratings

Your credit scores won't take a hit if you apply for one of the secured credit cards offered by First Progress, in contrast to the case with certain other types of secured credit cards. This is because filling out an application does not result in a credit inquiry being performed, which is particularly beneficial for customers with low credit scores.

The presence of this function on secured cards is not unheard of, even though it is not very common. A few credit cards are available that do not do credit checks, do not charge an annual fee, and do not demand an initial deposit in most cases.

You Will Not Be Able To Switch To An Unsecured Card

After your credit has improved to the point where you are eligible for an unsecured card, you won't need to maintain a secured card in your pocket. However, canceling any credit card might have a negative impact on your credit ratings. Regrettably, in most cases, to get your deposit returned, you will need to cancel your secured credit card.

After making on-time payments for a certain number of months, you may be eligible for an upgrade to a secured card from the issuers of cards that provide both secured and unsecured options. However, this option is unavailable since First Progress only provides secured cards.

You are informed on the website that you can apply for a second card when you have made all your payments on time for six months, but this is not considered a product change. You would be required to apply for a second secured credit card, resulting in a second yearly fee.