A secured credit card works like any other
credit card except that it requires a security deposit, which is held as
collateral for your account.
As a cardholder, your status is automatically reported to the
three major credit bureaus. You may earn credit line increases based on
your payment and credit history—with no additional security deposit
required. As an added benefit of this card, you can track your credit
with enrollment in CreditInform®, a service that provides you
access to your credit score as well as credit tools and information.
A secured card gives you a line of credit to make purchases. As
you know, this is particularly useful when you can't use cash or don't
have cash handy. And because this is a credit card, you can choose to
pay off your balance in full each month or over time.
How does it work?
Once you're approved, all it takes to get started is a minimum
security deposit, which you can pay all at once or over time. You can
make your security deposit online or over the phone.
When you've made your security deposit, your card will be on its
way with a credit line equal to the amount of your security deposit.
Your welcome kit will contain information about enrolling in your free
CreditInform account, which will help you track your credit information
and provide additional credit tools.
Your card status will automatically be reported to the three
major credit bureaus. Based on your payment and credit history, you may
qualify for future credit line increases with no additional security