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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Secure Credit Card and APR Date:  1/15/2013  10:16 AM
Author:  LaraAmber Number:  306715 of 312155


Well think about the alternative from the business's point of view. They are likely paying interest on that CD. They are paying for printing your card, sending you statements, and running your charges. The potential clients for this product either have little financial history or a poor financial history. These are not clients who will run $2-5k a month through the card so you can collect fat merchant fees (think business travel credit cards). Now you're supposed to offer this special product for free? Why bother. They are offering it with a very reasonable fixed rate and letting the client set the credit limit (what are you willing to tie up in the CD). I've heard plenty of complaints from people who apply for secured cards and get 15-25% interest rates and $500 credit limits.

Honestly anyone in the position where they need a secured card should be paying it off in full every month (barring big emergencies) to learn better habits.

Lara Amber
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