What is a secured credit card?

A secured credit card is a type of credit card specifically designed for people with bad credit or no credit history. It is called a “secured” card because you must pledge a deposit to gain access to the credit limit, usually a few hundred dollars. This deposit guarantees the credit card company that you will pay your bills on time. In Hawaii, credit card law includes regulations for secured credit cards. Banks will not issue credit cards to people who have a poor credit score or lack a credit history unless they opt for a secured card. To obtain one of these cards, the customer must present a security deposit. The security deposit is either refundable or put in an account that earns interest. The amount of the deposit determines the credit limit. The customer will then be able to use the card just like a regular credit card. The customer must still make payments in full and on time to build their credit score. Secured credit cards are a great way for people in Hawaii with poor credit or no credit history to establish creditworthiness. This can help them get approved for a regular credit card or loan in the future.

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What is a secured credit card?

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