While Chase Manhattan Corp. was rewarding its best customers with lower rates, it also was unveiling a card geared to customers with less-than-pristine credit records.
The bank's new secured Classic MasterCard is priced more favorably than many such cards.
A growing number of banks are offering secured cards as a way to establish new relationships with consumers who have no credit record or blemished credit histories.
A spokeswoman said the cards will be initially available in its branches in New York and Connecticut.
Security Deposit
Analysts said Chase has been losing accounts to competitors, and that offering a secured card is one way of attracting new business.
Chase will charge secured card holders a $20 annual fee and a rate of 17.9%. The cardholders will be required to back their accounts with a security deposit equal to the desired line of credit.
The deposits will be held in federally insured money market accounts and earn a 4% fixed rate of interest.
