For card issuers, there are three strategies for secured cards:
- Issuers can invest in promising cardholders – or just cardholders capable of making a deposit
- Specialized secured card issueing companies can attract prospecitve cardholders with significant credit issues Credit unions can address their broad membership base
- Issuers would be on the lookout for bankruptcy, previous bad credit management, overindebtedness, and limited credit history
Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – U.S. Secured Credit Cards Market Forecast, 2017–2021: A Credible Product with a Dark Past
About the report
Mercator Advisory Group’s latest research reporte, U.S. Secured Credit Cards Market Forecast, 2017–2021: A Credible Product with a Dark Past, provides a view of this market of 5 million cardholders and gives a detailed view of the issuing landscape.
“Secured cards used to represent the dark side of the credit card business, with gouging fees and deceptive 900-carrier billing numbers,” comments Brian Riley, Director, Credit Advisory at Mercator Advisory Group, and the author of the research report. “Since the CARD Act cleaned up deceptive practices and unconscionable lenders, secured cards offer a mutually beneficial proposition for issuers and credit-impaired consumers. Issuers can increase their interest and non-interest revenue and also nurture pathways to other products. Consumers who either are recovering from a household financial crisis or do not have established credit have the opportunity to be included in mainstream financial services.”