How Do Secured Credit Cards Work?
It's quite simple really. A secured credit card is a special type of credit card. You must first put down a deposit between 100% and 150% of the total amount of credit you desire. This fund is held in a savings fund by the issuing bank. Once the fund has been settled in the saving account, the secured credit card is issued. You are still expected to pay off any balance at the end of the month. However, should the cardholder default on a payment the issuing bank can pay the balance using the funds stored in the savings account. A secured credit card is a big advantage to anyone with a poor credit history.
Got bad credit, or no credit at all? Start to build your credit today! Get a secured credit card!
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