Union Bank of San francisco has begun offering a secured credit card for people with either no credit history or a credit history that has been damaged in the past.
The $16.4 billion-asset bank will market the secured card to immigrants, students who have not yet established a credit record, and people who are getting back on their feet after experiencing job losses during the recession.
The secured card carries a minimum rate of 18.8% and a $25 annual fee. The credit line is determined by the balance of a pledged savings account, with a minimum $350 deposit and a $5,000 maximum deposit.
There is a 30-day grace period for repayment of balances for purchases during which no interest in charged.
