What Is A Partially Secured Credit Card?

A partially secured credit card is a credit card that uses a payment or deposit to secure the credit card, but allows for more than the payment or deposit to be used as a credit line. This is a step between a secured credit card and unsecured credit card, used for those who have established credit, but not enough credit to warrant the use of completely unsecured credit cards.

Secured credit card offers are a wonderful way for young people to establish an initial credit history. They also work well for those who are trying to establish their good credit rating after a financial crisis created a bad credit issue. Generally speaking, there are no monthly fees associated with having a partially secured credit card.

Depending on the credit card issuer, there may a different amount of money required for deposit or collateral before the partially secured credit card will be given. Some providers will allow people to withdraw the deposit and convert the card to an unsecured card after they have shown a consistently good payment record for an extended period of time. If the person doesn't show a consistently good payment record, the issuing bank may reduce the credit limit to the total amount of the deposit, therefore downgrading the card to secured.