New Secured Card Offers Consumers The Chance To Rebuild Credit
For anyone who’s looking to repair damaged credit, establish a credit history from scratch, or just boost their credit score, a secured credit card can be a great option. And now Regions Bank is offering a new card that comes with low fees, competitive interest rates, and all the benefits that come with a Visa card.
When you have no credit or bad credit, being approved for a credit card can be a challenge. A secured card gives folks the option of putting down a deposit that acts as collateral, allowing them to have a credit card and build their credit without requiring the issuing bank to take a risk on them possibly defaulting.
A new way of using a secured card
The Regions Explore Visa Credit Card is secured by a Regions savings account; meaning cardholders open a savings account that is held in reserve and stands in for the traditional deposit required by secured cards. The secured Regions card has a credit limit equal to the balance of the Regions Explore Card Savings Account at all times. If the cardholder pays the card balance off each month, the savings account funds will be untouched and the credit limit will stay the same. Cardholders who want a higher credit limit simply need to deposit more money into their savings account, and their credit limit will go up accordingly.
Secured card fees and benefits
Secured cards can sometimes charge higher fees than other types of cards; this card has no foreign transaction fees, and the annual fee for the card is only $29. It also has chip technology, making it more secure and able to be used more places around the globe. In case of fraud, cardholders can rest easy, knowing the card is backed by a zero liability policy, which protects them in case of unauthorized transactions.
Rajive Chadha, head of retail products and payments at Regions, says the new card will help people expand their borrowing power, even if their credit isn’t perfect. “The new Explore Card helps Regions expand our product offerings, and it provides an option for consumers who might not qualify for a traditional credit card.”
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For people with limited credit, bad credit, or no credit history at all, secured credit cards are a huge help. They let folks who might otherwise have trouble getting a credit card be approved for a card and rebuild or establish credit.