LookCard Credit Card is a collateralized credit card/ secured credit card, a type of credit card that requires the cardholder to provide a security deposit as collateral and to obtain credit line as financial background check is not required. This deposit acts as a safeguard for the credit card issuer in case the cardholder fails to make payments. Here are the key aspects of a collateralized credit card:
- Security Deposit:
The cardholder must provide a refundable collateral amount, which usually determines the card’s credit limit, in a ratio of 80:20 (80% as credit line; 20% as collateral).
For example, a $10,000 deposit typically results in a $8,000 credit limit & $2,000 in collateral. - Building or Rebuilding Credit:
These cards are often used by individuals who are building or rebuilding their credit history. Once there is sufficient records for the credit score, user could request for credit limit increment without pledging additional deposit. - Similar to Regular Credit Cards:
Collateralized credit cards function like regular credit cards. Cardholders can make purchases, earn rewards, and are required to make monthly payments. Interest rates and fees apply if the balance is not paid in full each month. - Refundable Deposit:
If the cardholder decides to terminate the credit card, the security deposit is refundable after deducting all the outstanding balance, if any.
LookCard 信用卡是一種擔保型信用卡/擔保信用卡，是一種要求持卡人提供安全押金作為擔保並取得信用額度，而不需要進行財務背景調查的信用卡。 此押金作為信用卡發行機構的保障，以防持卡人無法付款。 以下是有擔保信用卡的重點：
1. 安全押金：
持卡人必須提供可退還的擔保金額，通常以 80:20 的比例決定信用卡的信用額度（80% 作為信用額度；20% 作為擔保）。
例如，10,000 美元的押金通常會產生 8,000 美元的信用額度和 2,000 美元的擔保。
2. 建立或重建信用：
這些卡通常由正在建立或重建信用記錄的個人使用。 信用評分有足夠的記錄後，使用者可以要求增加信用額度，而無需繳納額外的押金。
3. 類似於普通信用卡：
擔保信用卡的功能與普通信用卡類似。 持卡人可以購物、賺取獎勵，並需要每月付款。 如果當月沒有全額償還餘額，則適用利息和費用。
4. 可退還押金：
如果持卡人決定終止信用卡，在扣除所有未償還的餘額（如有）後，安全押金可退還。
