Friday, November 30, 2018

Secured Credit Cards

A secured credit card is protected against default by a deposit in a savings account. Unlike debit cards, the deposit is not spent, it is simply there as an insurance against a default. Every month you receive a card statement and can pay off anything from the minimum payment up to the balance outstanding. Provided at least the minimum payments are made, on time, and you do not overshoot your credit limit, your deposit is untouched and often earns interest. You can get your deposit back at any time by closing the card account.

In order to open a credit card account you will need:

Cheque (personal or counter) for the security deposit
Proof of ID (eg passport or full driving licence)
Proof of address (eg utility bill or bank statements)

We recommend a secured dollar-based Mastercard, issued by a licensed Caribbean bank with an UK office. The bank has been in existence for several years, and these cards have been issued to thousands of individuals and companies over the last few years without problem.

This card account is not credit checked or credit scored, and is therefore available to applicants regardless of credit history.

The standard minimum security deposit against the Classic Mastercard (there are Gold and Platinum versions also available with higher deposits) is $2250. The credit limit ratio is 66% of the deposit, so the minimum deposit mentioned would give a credit line of $1500.

We have negotiated a specially reduced rate with the card issuers, so that you can open an account with a minimum deposit of just $1000 (£690), giving a minimum credit limit of $665 (£455). In all other respects the card remains the same. The card is a full Mastercard credit card, accepted worldwide. You may carry a balance on the card month to month if you wish, subject to a minimum payment of $50 or 10%.

In the event of your carrying a balance on the card, the interest rate payable on the balance is 14.04% p.a., however up to 56 days interest free credit is available should the statement balance be paid in full within 25 days of the the statement date. You earn interest on the security deposit. There is an annual fee of $95

Payments to the account may be made by Sterling cheque, bank transfer or GIRO via any UK bank. The same is true for the initial deposit, which may be 'topped up' at any time should you wish to increase your credit line. Alternatively, they may be made in US dollars and wired directly to the Bahamas if you prefer.

Once your application and deposit have been received by the bank, your card is normally issued within five days. It will be delivered to your home address by registered post or courier. Our fee to you for facilitating and recommending your application to this card issuer is £100.

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