@SlowSnow wrote:Hi, I'm concerned about Secured credit card interest. Well know financial institutions charge interest as this is a regular credit card product. Risk account default is covered by Security Deposit. I see a massive overcharge consumers for the risk that doesn't exist.
Interest charged on a secured card for carrying a balance has nothing to do with risk and everything to do with borrowed money. To use your arguement, the fact I have say, six figures in a high yield savings account with any given financial institution and a credit card with the same institution with only a four figure credit limit, I should never pay interest if I was to carry a balance (which I don't).
@SlowSnow wrote:Hi, I'm concerned about Secured credit card interest. Well know financial institutions charge interest as this is a regular credit card product. Risk account default is covered by Security Deposit. I see a massive overcharge consumers for the risk that doesn't exist.
there are risks and costs with secured credit card accounts, even though they are secured, they can't just charge 0 interest because it's secured
@pizzadude wrote:
@SlowSnow wrote:Hi, I'm concerned about Secured credit card interest. Well know financial institutions charge interest as this is a regular credit card product. Risk account default is covered by Security Deposit. I see a massive overcharge consumers for the risk that doesn't exist.
There's another consideration here, the banks are using your secuirity deposit to earn them interest,etc. as long as your account is open. Presumably they'll pay you "some" of this interest when they give your security deposit back.
The only financial institution I am aware of which doesn't pay interest (or at least didn't pay any back in 2020 when I was shopping for a secured card) is CapOne.