Secured Credit Card In UK Market!

kadiea

Hi,

I would like to know peoples opinion on a Secured credit card being launched in the UK.

Lets say you placed a security deposit of between £200 - £10,000 (this would be placed in a non or low interest rate bond on one of these cards, the card has an annual limit of £29 and reports to all three credit reference agencies.

ANYONE who passes a generic identity check would be approved.

The APR rate on the card would be 9.9% and the card would have the typical 56 days intrest free.

Online banking would be included, telephone based and online based customer services.

The card would help build peoples credit ratings and would also hold purchase protection.

Other cards would be released with added benefits like travel insurance, cashback and reward points and discounts to major entertainment events.

I would really appreciate peoples feedback, especially people who are trying to build their credit history or who have been discharged from bankruptcy.

Thanks

Sorry for the bad wording.

lee1985

kadiea wrote: »

Hi,

I would like to know peoples opinion on a Secured credit card being launched in the UK.

Lets say you placed a security deposit of between £200 - £10,000 (this would be placed in a non or low interest rate bond on one of these cards, the card has an annual limit of £29 and reports to all three credit reference agencies.

ANYONE who passes a generic identity check would be approved.

The APR rate on the card would be 9.9% and the card would have the typical 56 days intrest free.

Online banking would be included, telephone based and online based customer services.

The card would help build peoples credit ratings and would also hold purchase protection.

Other cards would be released with added benefits like travel insurance, cashback and reward points and discounts to major entertainment events.

I would really appreciate peoples feedback, especially people who are trying to build their credit history or who have been discharged from bankruptcy.

Thanks

Sorry for the bad wording.

This would only work if the deposit every customer had to pay was in excess of the credit limit given on the card. Otherwise, it wouldn't be a security; and defaults would still prove to be a loss.

This would probably appeal mostly (if not only) to the people with the worst credit records as a credit-builder programme, for example those rejected even for the Vanquis card. However, one would assume that people in this circumstance couldn't afford the security deposit anyway...

Nonetheless, in this situation it would not be so much a 'credit' card, since the 'credit' given would be less than the money paid upfront - in which case whatever purchases the person wanted to buy could just be bought with the cash in itself.

This idea would seem nothing but a marketing ploy to add a few green zeros to someone's credit record - and this can be done with existing credit builder products.

izools

Having said that, the type of customer in the market for this type of card either a) wouldn't have the readies for the security deposit or b) wouldn't see the sense in lending a card provider their money and paying an APR for the privelage.

Just wouldn't happen here, we're too wise (or broke)

llpllp

I would be the first to apply for this credit card.

My situation is: good financial circumstances, but poor credit rating.

CrashWire

I would be another one happy to apply for this card, especially if it's fee-free. Not much address history in the UK (I was rejected for Vanquis in my first year), but with some savings I am able to put into something that's reported as a credit card.