What are secured credit cards?
Secured credit cards differ from their unsecured counterparts in that they function much like a debit card.
Secured credit cards, aka pre-paid credit cards, require a deposit of a certain amount into an account for your purchases.
Since the card company isn’t giving the cardholder any more funds than whats in the account, secured credit cards mean zero risk for the issuing company.
As result, there are no credit checks and the holder of the secured credit card gets instant credit so they can start building their credit rating.
Why are secured credit cards right for you?
If you don’t currently have a credit record, are unemployed or have only worked for a company for a short time period, or are trying to rebuild your credit rating after bankruptcy, for example, this type of card may be your only option.
These pre-paid cards still function like other credit cards, and have names like Visa and American Express, so you are able to make purchases just like you would with an unsecured card. You want to use this card to establish a good credit record. After time, if you have proved yourself, you will be able to apply for a low-rate credit card.
The Orchard Bank MasterCard program was established to make credit cards available to those unable to obtain them through conventional means. The program, today, is an industry leader with its unique approach to consumer education on obtaining and using credit effectively.
The road to better credit starts with secured credit cards.
Source: BICCO Media
Author: D. S. Tanger
Date: September 4, 2003