hi montyloree,

are getting enough information about secured credit cards now? i saw on your post that you do have few ideas how a secured credit card works.

are you currently holding a secured card? how is your credit rating now? i hope it is smooth sailing till you reach the excellent rating.

This the first time I have heard about secured credit cards. I have heard about securing other types of debt, but never securing credit cards.

From what I understand, the credit card companies can ask for as much security as they like depending on the customers credit risk.

If you've got really bad credit the bank will ask for 200% security. This means that if you want a $1000 credit card, you've got to give them $2000 cash down.

If you've got reasonably good credit, they may only ask for 100% security. Once again, if you need a $1000 credit card, you give them a $1000 deposit..

What this does for your credit is give you a new boost to your credit score. When future creditors see that you've got a secured credit card in good standing, they are more likely to give you some credit. Other creditors and the credit bureau don't know that the credit card is secured at all. They just see the credit card notation on your credit report.