Secured Credit Cards

A secured credit card is basically a credit card that has money riding behind it. In other words, secured credit cards are “secure” because the card holder deposits a certain amount of money as a guarantee so that they can get the credit card they want. A secure credit card may require an initial deposit of 100 to 200% of your desired credit limit. If you want a credit limit of $2000, you have to deposit that full amount or more, depending on the requirements set by issuer.

Finding the best secured credit card is not an easy task because it involves much research. There are quite a lot of well known credit card companies that offer secured credit cards as an option for their clients. There are even banks who offer secured credit cards for their depositors and customers too. With secured credit cards, banks can rest assured that they can get their money back since the card holder is an existing client or depositor.

Some banks that offer secure credit cards include Chase Bank and Citibank. A Chase secured credit card is a good way for people without previous credit history to get credit cards. Though secured credit cards have been around since a long time ago, innovative banks like Citibank still offer secured credit cards for their depositors. A Citibank secured credit card also offers users the opportunity to create a favorable credit history with a credit card that is backed by an interest earning certificate of deposit that runs for 18 months.

Other credit card companies that offer secured credit cards include Visa and Capital One. Capital One secured credit cards use secured funds deposited in one of their affiliate banks as security for the card. Your Capital One secured credit card will not allow you to withdraw your security deposit until you pay off your credit card bills and decide to withdraw from being a card user. A secured Visa credit card can be obtained from banks that are affiliated with Visa. When you fill up your application card, credit secured Visa cards will be one of the options available to you, especially if you are a first time credit card user.

Secured credit card applications can be found in banks that offer them, as well as online. When you want to have your own credit card but do not have any relevant credit history to show, you should apply for secured credit cards. After you have established your credit rating and credit reliability, secured credit cards need not be your only option. You can then apply for just about any credit card you want.