ChargeItSecured Credit Card
Defination
Collateral: is one's assets or possessions a bank uses as insurance in debt collection in the case a borrower defaults.
Note
Student Card: is often a marketing term and not a secured card. It commonly refers to bonuses that are geared to students.
This is by far the safest card for the impulse buyer, the money spender at heart. The term secured comes from the fact, one must have saved money to back up their spending. You must have a savings account to use as collateral with these kinds of cards. Often this collateral or “buffer money” is the credit limit you have. Incase you cannot afford you bills, the credit company will take this collateral and can suspend your card.
Caution, these cards have few benefits. Bonuses might be offered but they are less common than standard cards. You will mostly likely be charged an annual (yearly) fee and a monthly.
Secured Card Uses
- Building Credit
- Having a card to have one
- Services that require credit