A secured credit card is a great way for people with bad credit or no credit to start building or re-building their credit. In order to obtain a secured credit card, you must first deposit 100% to 200% of total amount of credit you want into a secured account.

A secured credit card works just like a traditional credit card. You must still make payments on time, and you are subject to all of the fees and interest that a typical credit card has if you do not make payments on time. Read the cardholder agreement carefully if you are ready to apply for a secured credit card.

The deposit on a secured credit card is not used to make payments on your credit balance. Even if you miss one or two payments, the deposit will not be debited. Only when the account is closed or in the case of severe delinquency (around half a year), will the secured account be debited. Up to that point though, you will still acquire interest and fees, and the ultimate balance can end up being more than what is in your secured account. The total debt can actually exceed the original deposit, so you will forfeit you balance and incur additional debt if you are severely delinquent.

New Millennium Bank Secured Platinum Visa®/MasterCard®

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