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A secured card is one in which you open a savings account---it could be a CD---and agree that the card-issuing bank can use those funds to pay off your card balance if you cannot. In essence, you are guaranteeing your line of credit with the deposit. Each secured product requires you to maintain a certain % of the credit line. For instance if you are allowed to charge up to
$1000 a month and the % is 80% of the credit line, you would need to keep $800 in the account. Another thing to realize is the funds
are not going to automatically be used to pay each months bills, the money is used as collateral if things go wrong.
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- Discussion board
By interested
On 03/31/00
