Secured credit card

(redirected from Secured 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
One type of card you might want to consider is a secured card. This credit card works just like a traditional credit card, but it requires you to put down a deposit, which will likely be equal to your credit limit.
We provide incentives and rewards to make our customers get used to and opt for making secured card payments over cash payments wherever they are and whenever they want." said Chief Executive of CrediMax, Mr.
The secured card also demonstrates KeyBank's commitment to lower to moderate income consumers by aligning with the goals of the USD 16.5 billion National Community Benefits Plan.
"QNB mPOS" is a card acceptance solution that uses a compact, secured card reader that connects and transforms the merchant's smart phone or tablet into a fully certified EMV Chip & PIN mobile payment terminal.
Using a payment app developed by SecureKey to emulate a branded payment card, the Connect service successfully validated the user and the payment app, retrieved the secured card data and used the HCE protocol on the mobile device to conduct the transaction.
Talking to a private news channel, Tariq Malik said that it would be the safest and secured card as it could not be replicated.
The secured card is a normal Visa card, though interest is very high, at 29.9% compared to Capital One's typical 12.9% interest on its Platinum Mastercard.
Since a secured card requires a cash deposit as protection, it's highly unlikely that any bank will match your deposit.
Getting a secured card is probably a good way to establish or re-establish a credit rating.
Last month the Department of Justice sued MasterCard and Visa for engaging in anti-competitive practices in the credit card market and also alleged that the two companies "have slowed down the development of new card products and technologies such as smart cards, commercial cards, and systems to permit secured card transactions over the internet," according to a DoJ statement at the time.
By partnering with the store to issue a secured card, everybody wins: the retail customer, the store, and IJL.