This comes at a time when the number of Americans with poor credit is growing. Most lenders check borrowers’ FICO credit score, which ranges from 300 to 850, to determine whether to approve them for a credit and at what terms. In general, borrowers with a FICO below 720 will end up with higher interest rates.

Today, nearly a third of consumers have a FICO score in the 550 to 699 range (according to data from FICO). And nearly half of consumers have a FICO score that’s lower than 700.

Over the past year, qualifying for a credit card has become easier for consumers with poor credit. But the rates they get are very high, higher than for consumers with near-perfect scores.

The borrowers with credit score lower than 719 and the borrowers with even lower scores who want a credit card might consider a secured credit card. To get a secured card, a borrower gives the credit card issuer a security deposit, usually at least $200, which establishes a line of credit.

This security deposit is a kind of warranty for a credit lender and eliminates the risk of running up credit card debt because you pay for it upfront. Even if you don’t have big bucks in the bank, simply having a small savings account can usually get you a secured loan.

Thus secured deposit makes possible for lenders charge considerably lower interest rates in comparison with the regular credit cards that exist for the borrowers with unattractive credit history. And the borrowers are able to boost their credit scores on fair terms.

MasterCard`s World Elite program is a rewards program offered to the credit card issuers` larger net worth customers. Also, this summer, the company plans to put a big marketing push behind its “Priceless Cities” program.

The program allows New York MasterCard customers to gain entry into special events with their credit or debit cards. New York is the first market for the Priceless Cities program; other cities will follow after the New York pilot has been deemed successful.

“It’s a wide-ranging campaign that goes from television advertising to print to outdoor to make sure that consumers that live in New York and want to enjoy what is available here can really get access to it,” chief marketing officer at MasterCard, Alfredo Gangotena said.

The goal of their new campaign strategy is to attract consumers to electronic payment methods as opposed to traditional cash and checks, according to President and Chief Executive Ajay Banga, who told analysts on a conference call for investors.

85% of all worldwide retail transactions are purchased with a check or cash at the moment. This percentage leaves MasterCard with a wide opportunity to expand its customer base, internationally. MasterCard makes a profit by processing the transactions made with credit and debit cards that have been branded with their insignia. The cards are then issued to the population via bank partnerships.

On the other end of the spectrum, MasterCard will also begin marketing its prepaid cards. Prepaid cards are usually directed towards low-income consumers or consumers who don`t have bank accounts. These consumers could be new to the credit card world, or may have suffered a financial setback in the form of bankruptcy or credit card default.

MasterCard partnered with Wal-Mart earlier this year to begin selling a MasterCard version of the Wal-Mart MoneyCard. The discount retailer already sells a Visa-branded MoneyCard. In April, MasterCard bought Travelex Holdings Ltd. for $481 million. Travelex specializes in the management of prepaid program operations. The new company under MasterCard will be called Access Prepaid Worldwide, and will focus on marketing prepaid services for its global travelers.

The Capital One Secured MasterCard is one of the cards in this segment worth signing up for. The bank does not conduct a credit check before issuing this card. All main transactions done using this card are reported on a regular basis to the three credit bureaus to help you work on your credit scores. While you can avail a credit limit of $3000 on the card on paying the security deposit, using the card prudently will help you increase the line of credit in future without having to pay a higher deposit. The card carries an annual fee of $29 and the interest rate is variable starting from 22.9%.

The Applied Bank Secured Visa Gold Credit Card is another secured card you can sign up for. This card does not carry any application or annual fees. This is one of the few cards that offer a low interest rate of 9.99% which is fixed and does not increase even in case of late payments. The credit limit on the card varies between $200 and $5000 depending on the money paid as security deposit.

If the recent economic downturn hampered your credit history, the best way to repair it is by using secured credit cards, provided you qualify for one. The qualifying criteria of a few banks for secured cards may be tough to meet, especially because they look for people without a bankruptcy record and those who have at least a checking account with another bank. But a few banks are willing offer secured cards without too many checks.

The Orchard Bank Secured MasterCard is a secured card worth applying for. The card carries an annual fee of $35 which is waived off for the first year. All the transactions made using the card are promptly reported to all the three credit bureaus to help you either create a good credit history or repair an existing bad one. There is a minimum deposit of $200 required to avail this credit card.

The Citi Dividend Platinum Select Card is another secured credit card worth a try. This card does not carry any annual fee and there is no need for a co-signer as well.

However, this is not the end of the road for people with no credit history. Banks are willing to offer secured credit cards as compared to unsecured cards for those who do not have a credit score to their backing. This is because the banks eliminate the possibility of losing money by requesting a deposit before issuing the credit card. The security deposit made by the customer determines that credit limit set on the card.

Though the credit limit offered on these cards is less than unsecured credit cards, it is worth making this compromise. Most of the secured credit cards have favorable interest rates, making it easy for the customers to repay on time. All payments and transactions made using secured credit cards are reported to the credit bureaus that are responsible for preparing the credit report for each cardholder. While managing this credit card wisely will help establish a sound and credible credit history, using them without restraint will land you in debt and also negatively impact your credit score, thereby posing a threat to financial wellbeing.

Secured credit cards work very similar to the way unsecured credit cards work. However, the only difference is that secured credit cards will need a deposit amount in the bank account which will ensure that the lender is secure in case of default by the customer. There are many credit card customers who have used cards like this to being make purchases that are affordable and can be paid off from month to month. When this habit is practiced regularly and successfully for quite some time, the users of secured credit cards have been able to build a good credit history, also witnessing a rise in their credit score over a period of time. This will also open doors for them to move on to better deals if they need.

Financial advisors at this point have a word of caution against those individuals who use secured credit cards, who are of the idea that it will definitely fix their poor credit score. It is true that secured credit cards have been used by many customers to repair their bad credit score. But there is no guarantee that it will always happen and proper financial practices have to be implemented by the customer in order to repair a bad credit score. The secured credit cards are never meant to carry a balance and for those individuals who do not have wise spending habits, a secured card could in fact result in the debt getting out of control and beyond manageable proportions.

Card holders who are using secured credit cards in the right way have been making affordable purchases on the card month after month and by proper budgeting have been paying the debt off too. Secured credit cards in the past have led to unsecured credit card offers too.

Though the secured business credit card is the best option, practically, it is not viable as banks firm up the lending criteria if it is for business purposes. Though some issuers may have withdrawn cards from their portfolios, there could be many others. Interested parties could search online for secured cards or consult with their respective banks.

The biggest disadvantage businesses face with regard to the secured card is the collateral (deposit) that is required by the bank. While it might sound like a much better option instead of having to part with a personal asset, it could create problem where cash flow is not very good. The cash that is deposited as collateral gets stuck and cannot be accessed until the closure of the card or until the business shifts to an unsecured card. For small businesses requiring $10,000 as credit for instance, the deposit required would be the equivalent amount.

Businesses get tied up when the cash is blocked in this manner and they lose opportunities to secure good deals due to the cash deficit. Cash-strapped small businesses do not possess that kind of cash flow and rely on credit due to this fact. But the banks are in a safe position due to the collateral they demand from small businesses, especially since the failure rate with these small businesses is quite high.

New businesses that do not have a credit history also use secured credit cards since they are ineligible to use unsecured cards. Higher interest rates as well as other additional fees are levied on secured credit cards when compared to the unsecured cards. This could be a setback for new businesses that have just launched. Some banks have started issuance of the “starter business cards” that are much more appropriate than the secured cards.

Customers having secured business card are at a disadvantage as the interest rates and fees are very high and are also less competitive. But for businesses that need to work on their bad credit history there are very few viable options. However, there is one other option, which is the CSI global secure MasterCard. This is a good option for small businesses that seek the secured credit card.