US-based Public Savings Bank has announced a new Visa secured credit card that will assist consumers in building or re-establishing their credit profile.
The bank said that with a secured credit card, the customer deposits money in to a Federal Deposit Insurance Corporation- (FDIC-) insured account where it is used as security for a credit line.
Customers can deposit anywhere between $300 and $250,000 into a Public Savings Bank FDIC-insured deposit account. The card functions like any other credit card where the customer can make purchases or take cash advances up to the deposited credit line amount. Payments are reported to all three major credit bureaus thus establishing the credit history. The secured card features 0% interest on purchases for the first six months. Additionally, there is no annual fee for this card, the bank added.
Bob Wexler, executive vice president of Public Savings Bank, said: Building good credit is critical at a time when credit is getting harder to obtain. This card allows the customer to build good credit while enjoying all the benefits of a Visa card at very favourable terms. There are no income, credit or employment verifications so the application process is highly streamlined.
