All Canadian consumers could use an accessible credit card for emergency expenses. A credit card can help to build a consumer’s creditworthiness, as well. The problem that arises with some consumers is that past errors cause lender skepticism when some debtors apply for credit cards. Persons who have low credit scores may not be eligible for a regular credit card. In such a case, a secured card may be just the right solution. RBC Bank offers a secured version of its popular credit card. A Canadian consumer with poor or low credit should consider applying for a secured card, as it may be a good idea.
How a Secured Credit Card Works
A secured credit card has the same features that a regular credit card has. Cardholders can enjoy benefits such as using the card with thousands of online and offline retailers. The difference between a secured card and an unsecured card is that the cardholder funds the credit line. In other words, the issuing bank will not give the person a credit card until he or she sends a deposit for a credit line. The credit card company will then send the person a credit card in the desired amount.
The credit card company will deposit the consumer’s security deposit into a bank account where it will accumulate interest. The consumer can use the RBC secured credit card at his or her leisure while the deposit is sitting in the bank. The security deposit protects the credit card company in case the consumer defaults. The company will report all timely payments to the credit bureau as long as the cardholder stays up to date on those payments. RBC Bank will consider returning the security deposit after the consumer has the card for 12 months. At such a time, the bank will change the status of the card to unsecured.
Is an RBC Secured Credit Card a Good Idea?
A secured credit card is an excellent idea for a person who has damaged credit. It can increase the person’s score and make his or her profile seem attractive to other lenders. RBC may reward the person with additional credit, as well. Obtaining a secured credit card can be a smart investment for someone who wants to rise up from past mistakes.
Benefits of an RBC Secured Credit Card
RBC Bank has several secured card options. The Cash Back MasterCard allows the cardholder to earn cash back on groceries, fuel, clothing and more. The card offers 1 to 2 percent cash back and no annual fee. The Shoppers Optimum MasterCard offers points that a person can earn and redeem for various discounts. Shoppers can earn thousands of points by using their card for their weekly or monthly needs.
An RBC secured credit card is the answer for any person who has difficulty obtaining a credit card. The secured card can lead the person back to financial health after a rough economic time. An interested person can complete an application with RBC today.