What’s the point of a Secured Credit Card?

A secured credit card is a type of credit card that is often used to build good credit. It is different from a traditional credit card because it requires card members to make a deposit in order to qualify for the account. The amount the cardholder is required to deposit can differ from card to card and can be based on the creditworthiness of the applicant.

When the deposit is made it goes into a FDIC savings account and can be used by the card issuer if the terms and conditions of the account are not met by the cardholder. If the account becomes delinquent, then the card issuer may use the deposit to bring the account current. The deposit ensures the bank will not lose out if the cardholder does not pay on the account.

The account holder is still required to make monthly payments just like they would on a traditional credit card. Most cards still charge interest on the account and late fees even apply, too. In many ways the account works just like a credit card, except for the security deposit. Secured cards can help users build positive credit, even when they can’t qualify for a traditional credit card. If the bank reports to one of the major credit bureau you could use the card to reestablish your credit history. These cards are also ideal for those that have bad credit or limited or no credit history. Secured credit cards are also a great way to build credit after a bankruptcy or foreclosure.

Here is a list of four Secured Credit Cards that are available and some of their benefits:

Public Savings Bank Secured First Visa Card
	No Credit Check for Approval No Checking account required Prime plus 11% variable APR – Not an introductory rate We report to the three major credit bureaus: TransUnion, Equifax and Experian Lifetime credit lines up to $5,000 No upfront or monthly fees. Just a flat $50 annual fee
Intro APR Intro APR Period Regular APR Annual Fee Balance Transfer Credit Needed N/A N/A Prime + 11% See terms* No Bad

Platinum Zero® Secured Visa® Credit Card from Applied Bank®
	ZERO – 0% FIXED APR on Purchases – No Intro Rates! ZERO – 0% Rate Won’t Change – Even If You’re Late! ZERO Hassles – Choose Your Credit Limit From $500 Up To $5,000 ZERO Application Fees ZERO Worries – FREE Personal ID Theft Protection ZERO Delays – Timely CREDIT Bureau Reporting
Intro APR Intro APR Period Regular APR Annual Fee Balance Transfer Credit Needed 0% N/A 0% See Terms* No Poor

Public Savings Open Sky Secured Visa Credit Card
	Build credit history with all three major credit bureaus No Credit Check for Approval No Checking account required Choose your own Credit Limit $200-$3000 Free 24/7 Online Account Access No upfront or monthly fees. Just a flat $50 annual fee
Intro APR Intro APR Period Regular APR Annual Fee Balance Transfer Credit Needed N/A N/A Prime + 11% See Terms* No Bad