I just got a notice in the mail about my parents credit union ( I am a member ) that offers secured credit cards. Money is deposited in savings account earning a paltry .25% interest but the card reports as unsecured and you can have up to a 40,000 limit with platinum card benefits. I called tonight and they said anyone regardless of credit can have this type of card. I just have to have a verifiable means of income to make the payments. It has an extremely low interest rate ( prime, which is 3.25%) for all purchases, balance transfers, cash advances etc and no b/t or c/a fees. I can use it as free overdraft protection for my checking account there which pays pretty decent interest on the deposit if I agree to electronic statements, 1 bill pay a month and 10 transactions on the debit visa card not including cash withdrawals at atms. I have some money sitting in savings and other investments which isn’t earning much anyway.   My question is…. Would it be a bad idea to get a secured card with my savings that offers these type of services? I have been worried about switching credit cards and if I would ever face AA since most of my cards are with major banks even though I rarely carry balances, I do occasionally need cash to get thru slow periods or if I find a good investment purchase. Would this be a bad idea or can anyone see a problem that could arise from doing this?   I think its a win/win for me. It would consolidate my savings for a higher limit credit card than what my others are. Maybe my other cards would match the new credit line or if I ever get a new credit card they would try to match this higher c/l. I think it unlikely to face AA on a secured card, The interest rate is rock bottom low so if I have to carry a balance the apr wont kill me and my savings is already earning about the same interest. Could it look bad for some reason having a secured credit card even if I have good credit scores?

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