What is Guaranteed Secured MasterCard?

MasterCard primarily is the name of company which manages the payments between the purchasing customers and the bank of merchants. The developers of MasterCard were two entrepreneurs Raymond Tanenhaus and Stanley Benovitz who later sold it to the United California Bank which subsequently merged with other banks like Wells Fargo, Crocker National Bank and Union Bank of California. A MasterCard credit account provides various features like extended warranty on items bought on the card, damage waiver on cars bought with the card and accidental insurance on travel using the MasterCard. The MasterCard uses a global telecommunication network which links different MasterCard users, acquirers and data processing centers into a single financial hub. This network is known as a "Banknet".

A guaranteed secured MBNA MasterCard is provided to those who do no qualify for a normal credit card account in terms of sound financial background or credit checks. The user can use the secured MasterCard while building a healthy credit record. Due to this provision, it is widely accepted by financial institutions. A secured MasterCard is not available n every country or with every banking institutions. It is only available with secured MasterCard partnering institutions.

The applicant is required to deposit money in a savings bank account or obtain a certificate of deposit (CD). This money deposited will determine the credit limit of the Guaranteed Secured MasterCard. The deposited money will also gain interest over time. Thus this is secured as the issuer guarantees payment returns against credit card purchases. The functioning of a secured credit card is same as that of a normal credit card. The user has to make monthly payments of the bills. The outstanding bills are needed to be paid before the due date, failing to which an equivalent amount of money is deducted from the deposit money which will eventually lower the purchasing limit of the card. Maintaining a good credit history is very essential in a guaranteed secured MasterCard. The timely payments of bills help in maintaining a favorable credit history. The issuing authority keeps a watch on the credit history of the card holder and a good history is rewarded. The credit history is also forwarded to the credit card bureaus which plays a crucial role in future transactions.

However, a secured MasterCard comes with high interest rates. Unlike a normal credit card, there is no provision of a grace period for the outstanding bill payments in a secured MasterCard. The applicant is also charged for sign up process, late payments or exceeding credit limit.

Barring these, a Genuine Secured MasterCard is quite beneficial as it has a global acceptance and no liabilities against unauthorized charges. The issuing authority provides 24 hour assistance and emergency services. The account information can be retrieved through internet or phone.

Thus through a Capital One Secured M/C one can actually avail the benefits of a credit card without actually owning one.