Secured Credit Cards
Secured Credit Cards Are Excellent for Establishing
or Reestablishing Your Credit
If you have a damaged (bad) credit rating, or
no credit, a secured credit card may be your ticket.
Secured credit cards are easy to get, and are
therefore a very good option for people who need
to build or rebuild their credit.
Rates and terms subject to change. For the current
rates and terms of Centennial MasterCard®/
* This online application is subject
to the terms and conditions as described in the
Important Information Section of the application.
*See the online credit card application for details
about terms and conditions. Reasonable efforts
are made to maintain accurate information. However
all credit card information is presented without
warranty. When you click on the “Apply Here"
button, you can review the credit card terms and
conditions on the cooresponding card issuer’s
What Is a Secured Credit Card?
The way these secured credit cards work is you
put a certain amount of money in a saving account
that is used specifically to secure your credit
card. You will get a card with a line of credit,
usually equal to the amount of money in your account.
A secured credit card thus does not provide you
with new credit, but does give you the convenience
of credit card. If you set aside $1,000 in the
account, the Visa or MasterCard you get will have
a $1,000 credit limit. Some secured cards make
you have an extra 25 percent or so over and above
the card limit in your savings account.
The reason the bank is willing to give you a
major credit card in spite of your bad or no credit
history is that the bank is holding the money
to make sure it gets paid. If you default on the
paying the balance on your secured credit card,
you have given them prior permission to dip into
the account to pay it.
Most secured card companies will take people
with poor credit histories, no credit histories,
or folling bankruptcy. Some companies do not request
credit records at all. Most, however, require
a minimum monthly income.
You Payment History Will Be Reported to Major
Since the main purpose of secured credit cards
is to reestablish credit, most of these companies
report to all three major credit bureaus - Equifax,
Experian and TransUnion. Some card issuers also
offer programs whereby the secured card will automatically
convert to an unsecured card offer after a certain
period of time (usually 2 years), suring which
payment has been made in a timely way. Then you
are back in the mainstream of the credit world.