Secured credit card

Secured Credit Card

A credit card with a credit limit that is at least partially collateralized by funds in a special savings account. That is, a cardholder places a certain amount of money into an account with the credit card company, and this is used to protect the company from the cardholder's default. Depending on the cardholder's credit history, he/she may be required to place anywhere from 50% to 100% of the credit limit into the savings account. These funds still belong to the cardholder, and he/she may retrieve it if he/she pays off or cancels the secured card. Because these reduce the risk to the credit card company, it may charge a lower interest rate. Secured cards are particularly useful for persons with bad credit or little credit history.

Secured credit card.

A secured credit card is linked to a savings account you open with the bank or other financial institution offering the card.

You deposit a sum of money in the account, and you can borrow up to that amount using your card. If you don't repay what you borrowed, the creditor can access your account to cover your debt. The creditor may also change substantial fees for a secured card.

Secured credit cards look the same as other credit cards, so no merchant can identify a card as secured. But if you have trouble qualifying for credit, perhaps because you've just started working, you can use a secured card as a first step toward establishing a record of using credit responsibly.

References in periodicals archive ?
Despite heavy marketing by banks, only four per cent of first-time defaulters - an emerging customer segment Deloitte is tracking - are extremely interested in obtaining a secured credit card according to the survey.
In addition, it's a good idea to get a secured credit card if you're building credit.
A secured credit card is one in which the cardholder has to make a security deposit to the issuing bank to assure it can collect on any unpaid bills for purchases made on the card.
Online payment broker PayPal announced Tuesday that it will issue a secured credit card to its 6 million account holders through Providian Financial, the nation's fifth-largest issuer of MasterCards and Visas.
QA Recently, I obtained a secured credit card through my bank in an effort to maintain my credit standing.
If not, get a secured credit card and use it as regularly as you can afford.
These new services include ATM machines at each branch, a secured credit card and various investment options, among other things.
Fortune's business development plan is based on initially serving two distinct market niches within the financial services industry; as a reseller of globally accepted secured credit card service targeted at foreign nationals employed by the maritime industry on ships calling on USA port cities, and, marketing of higher yield insurance annuity products targeted at individuals currently holding lower yielding forms of investment products, e.
The card has all of the benefits and features of a secured credit card and can be used at merchants and ATM machines worldwide.
Cardrak rated the bank's secured credit card program as one of the best in the country.
The bank also offers a nation-wide secured credit card program, which was rated by Cardtrak as one of the best secured credit card programs in the country.
com where it can be purchased via a secured credit card transaction.