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BANK CREDIT CARD

A bank credit card is a secured credit card. Unlike unsecured credit cards that does not require anything other than good credit (and at times, verifiable income), secured credit cards require that you have a savings account or both a savings and checking account and a verifiable source of income. Plus, a bank credit card will also require a security deposit of 100% of the credit limit you desire.

Also, once you get a bank credit card, it can be used to repair credit history. A bank credit card is also recommended for customers that are having difficulty getting an unsecured credit card. A bank credit card is directly linked to your savings account (or a special savings account where a predetermined amount is deposited) and you will still be required to pay any amount used in full at the end of each month: just like an unsecured card.

However, when you do get a bank credit card, remember that there interest rates involved (although much lower than an unsecured card). These must also be paid according to your card agreement. If you miss a payment, the card issuer can either choose to cover it with your security deposit or give you a grace period (which is typically 30-155 days). During this grace period, all interest will continue to accumulate until paid in full.

The downside on getting a bank card is when payments aren't paid on time. When interest continues to accumulate, fees paid plus amount owed could be equal or greater than the original deposit amount. You might end up paying more debt than once calculated.

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