Secured credit cards are ideally suited to people with no credit history like students or young couples.  In addition, if you are trying to rebuild your credit history, then secured credit cards are for you as well.

Enter the Secured Visa Credit Card……

This card is issued by Bank of America and is also called the Visa Secured credit card.  You can deposit anywhere from $300 to $10,000.  The credit limit you are given is directly linked to the amount you deposit.  The maximum you can spend on your credit card equates to the maximum balance in your account.

Your deposit is held in a security deposit account and the balance would earn interest over time.

You can use your card as you would any other credit card and you are required to pay your minimum balance each month from your own funds.  The minimum monthly payment cannot be paid from the deposit in the security account.

Once you pay your bill on time and conduct your account in a satisfactory manner, you may be entitled to an unsecured line of credit in future.

Features of the Visa Secured credit card

There is a $29 annual fee attached to this account and the variable APR stands at 21.24% on purchases.  If you fail to keep up the conditions of your credit card agreement, you are then faced with a delinquent APR of 29.99%.

Late payment and over the limit fees are $35 each while ATM cash advances carry a 4% charge and its own separate APR which is 24.24%

With regards to the grace period, you are entitled to a period of 20 days, but only if you cleared your last months account balance by the date it was due.

Extra Benefits

If you are a Platinum Visa Secured credit card holder, you have additional benefits such as:

• Online Banking service
• Total Security Protection®
• Travel and emergency assistance
• Automatic auto rental insurance

How To Apply

Applying for the Visa secured credit card is simple; all you need to do is fill in the application form on the Bank of America website.  If you reside in Idaho or Washington however, you need to submit your application by post.  A paper version can be downloaded from the website.

An alternative to the Secured Visa credit card is the Johnny Cash Prepaid MasterCard.

This card would suit you if are trying to rebuild your credit history.  The card carries a maximum limit of $2500 and you are guaranteed to be approved.  There are no employment or security checks.  The card has the advantage of not requiring you to pay a security deposit.  This would be useful if you are short on funds.  When you do have access to funds, just deposit what you want onto the Johnny Cash Prepaid MasterCard and use it to shop like any other credit card.

Feel free to compare both cards and based on your circumstances you would know which card is right for you.