I am actually glad this product exists; secured cards are very useful for getting adults onto US credit infrastructure and they’ve largely disappeared as a marketed offering from banks with good distribution, so you previously had to call around to find a place that would do themhttps://twitter.com/Kr00ney/status/1138079703938621441 …
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The other majority case for this is someone who is newly financially independent, which is common for e.g. people who have recently moved away from parental support, divorced, etc.
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If you’re curious why secured cards disappeared: the underwriting standards for unsecured cards ate most of the market for them. Back in the day getting your first credit card was actually pretty hard for almost everyone.
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That stopped being true in about the early 2000s as banks loosened underwriting standards and found that, even with increased defaults, the business is still a happy one to be in on a portfolio basis as long as one is not adverse selected against.
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This caused secured cards to be... adverse selected against, which didn’t increase losses (tough to lose money on a secured card) but did increase ops cost and, crucially, meant graduators from the card were far less likely to be good customers than previously.
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I used CreditStacks to get started without a US credit score (they are set up for expats to get into the system and provide hints to maximise credit score quickly - I expect we'll see more of these popping up). https://creditstacks.com/i/lfejp if anyone wants to use my referral code.
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Ooh that's a good idea. Thanks, will keep it in toolbox for acquaintances/etc who need this.
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