What is a Secured Credit Card?
A secured credit card is a credit card that has a security deposit equal to the credit limit of the card. The deposit is held by Home Trust in an accont that earns interest annually.
Why Should I get a Secured Credit Card?
There are many reasons why people can't qualify for a credit card from a bank such as poor credit history, no established credit history or inability to prove income. Because there is a security deposit ($1,000 - $10,000 limit), almost everybody is approved. When the payments are kept up-to-date on the card, the cardholder is building a positive credit rating.
What Happens to your Security Deposit?
Your security deposit earns interest as long as your account remains open. When the account is closed, the deposit plus the interest earned is returned.
How Does this help RE-ESTABLISH Credit?
Home Trust reports your file to the credit bureau on a monthly basis. Your file is updated and your credit history begins.