Secured Credit Cards

Secured Credit Cards Are Excellent for Establishing or Reestablishing Your Credit

If you have a damaged (bad) credit rating, or no credit, a secured credit card may be your ticket. Secured credit cards are easy to get, and are therefore a very good option for people who need to build or rebuild their credit.

Rates and terms subject to change. For the current rates and terms of Centennial MasterCard®/ Visa®,

* This online application is subject to the terms and conditions as described in the Important Information Section of the application.
*See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the “Apply Here" button, you can review the credit card terms and conditions on the cooresponding card issuer’s website.

What Is a Secured Credit Card?

The way these secured credit cards work is you put a certain amount of money in a saving account that is used specifically to secure your credit card. You will get a card with a line of credit, usually equal to the amount of money in your account. A secured credit card thus does not provide you with new credit, but does give you the convenience of credit card. If you set aside $1,000 in the account, the Visa or MasterCard you get will have a $1,000 credit limit. Some secured cards make you have an extra 25 percent or so over and above the card limit in your savings account.

The reason the bank is willing to give you a major credit card in spite of your bad or no credit history is that the bank is holding the money to make sure it gets paid. If you default on the paying the balance on your secured credit card, you have given them prior permission to dip into the account to pay it.

Most secured card companies will take people with poor credit histories, no credit histories, or folling bankruptcy. Some companies do not request credit records at all. Most, however, require a minimum monthly income.

You Payment History Will Be Reported to Major Credit Bureaus

Since the main purpose of secured credit cards is to reestablish credit, most of these companies report to all three major credit bureaus - Equifax, Experian and TransUnion. Some card issuers also offer programs whereby the secured card will automatically convert to an unsecured card offer after a certain period of time (usually 2 years), suring which payment has been made in a timely way. Then you are back in the mainstream of the credit world.