Magazine article Black Enterprise

Secured Credit Cards

Magazine article Black Enterprise

Secured Credit Cards

Article excerpt

QA Recently, I obtained a secured credit card through my bank in an effort to maintain my credit standing. However, I have heard about banks that offer secured cards that match your account deposit dollar for dollar. Could you please send me a list of such banks and their addresses?

--M. Green

Rosharon, TX

Getting a secured credit card is a great way to begin rebuilding your credit. Since a secured card requires a cash deposit as protection, it's highly unlikely that any bank will match your deposit. In fact, the funds used as collateral, typically $100-$500, are frozen while you have the account. If you fail to make payments on your credit card accounts, these funds will be used to cover your obligations.

Once your account is in good standing (say six months to a year), some creditors may offer to double the amount you have on deposit, where part of the credit line is secured and part is unsecured, according to Consumer Action (www. …

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