The New Millennium Secured Credit Card has been designed for those people who are looking for a card to help repair their credit score.
Have you ever used something as collateral?
This means that if you want to purchase something but don?t have the full amount of the desired item, you can set aside an item you own as collateral in the event you default on your payments.
This is what happens when you purchase a home. The home is held as collateral against the amount of money you borrow. If you default on the loan, the bank gets the house.
This card will work the same way. They require collateral against future purchases made on the card.
You do this by opening a savings account which will earn 6% interest for the first three months, then 2% interest thereafter. The savings account is insured by the FDIC up to $100,000.
Your card works just like an unsecured one does. You can make purchases and get cash advances. Your limit is based on the balance of your new savings account. This must be between $300 and $5,000.
You should be aware that this account is secured and is not meant to be used for withdrawal of funds. It is collateral for your card!
They will report your payment history to the three bureaus; TransUnion, Experian and Equifax. By paying your statements on time and not going over your limit, you will build positive notations on your report.
Both Visa and MasterCard are issued. You can apply for one or both. You can also obtain a duplicate for your spouse.
There will be some fees: 19.5% FIXED interest rate for purchases and cash advances, $59 annual membership fee, $69.95 applicant processing fee, $20 late payment fee and $20 over limit fee. Additionally there is no grace period in which to repay either your purchases or your cash advances before a finance charge will be imposed.
This is good if you are trying to reestablish your credit score. If you are willing to pay the high interest rate of 19.5% for purchases and cash advances. As time goes by, you can always request credit increases with the requisite deposit.
If you have made mistakes you can still get approval.There is no credit check and they will only verify your address, social security number and age.
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