The Secured Visa credit card offered by Banamex USA is a great credit choice for someone that has made mistakes with credit cards in the past. This type of card lets the cardholder rebuild their credit score easily without having to worry about defaulting.
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Once someone damages their credit score, it can take a long time to repair it. Getting a secured credit card like the Banamex USA Secured Visa is just one-step they can take. Sites like http://suzeorman.com and http://www.mymoney.gov give excellent tips on what other steps they can take to get their credit back on track.
How Secured Credit Cards Work
The cardholder is protected from potentially defaulting on this credit card by an initial security deposit they have to make to be eligible for the card. This deposit is typically a minimum of $200 and determines the cardholder’s credit line. If they want a higher credit line, they will have to deposit more money into the collateral account associated with the card.
After the cardholder demonstrates that they can be responsible with the card by always making their payments on time and not going over their credit limit the card provider will review the account to see if the cardholder is eligible for an upgrade to an unsecured card.
What to Look for When Choosing a Secured Credit Card
One of the more important things to look for when trying to pick a secured credit card is what type of account the security deposit will be kept in. Most providers use a normal savings or money market saving account. Some providers like the parent company of Banamex USA, CitiBank, prefer to keep the money in a Certificate of Deposit.
By using a CD instead of a normal savings account, the bank requires the deposit to be kept in the CD for a certain amount of time. If the cardholder cancels the account, they might have to wait for their deposit to be returned or they might be charged an early withdrawal fee. The minimum amount of time CitiBank requires is 18 months.
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