Worse, if you tap your savings to pay down that expensive card, you may end up with little or no emergency fund. And since banks still use the "follow me down" approach for many cardholders with lower-than-average credit scores, saving money on your interest means taking a risk that banks may cut down your limits to match your average balances.
Still, there's hope. Check out some of this secured credit card offer to see if it can save you money:
- Public Savings Bank Open Sky Secured Visa Credit Card. Probably the best option for your case, PSB won't hurt your FICO score by running a credit check. Just send them the cash you'll need to secure your Visa card. You'll get one of the lowest rates we've ever seen on a secured card, and it will only adjust with the prime rate.
Remember to do the math before you apply for a secured credit card. Even with a lower APR, higher annual fees and other service charges could erode your savings. The secured cards on our list carry processing fees and annual fees as high as $59. To really save money, you'll probably need to transfer a balance of $800 or more and plan to pay it off completely in the first year.