This financial instrument is a type of credit card backed by a cash deposit provided by the cardholder. The deposit serves as collateral, reducing the risk for the issuer and enabling individuals with limited or poor credit history to access a revolving credit line. This product allows consumers to make purchases at Walmart stores and potentially elsewhere, depending on the card’s network affiliation, while simultaneously building or rebuilding their credit score.
The offering presents a potential pathway to creditworthiness for individuals who may not qualify for traditional unsecured credit cards. Responsible use, including on-time payments and maintaining a low credit utilization ratio, can positively impact credit scores over time. The ability to make purchases, coupled with the opportunity to improve creditworthiness, makes this card a potentially valuable tool for financial inclusion and empowerment. Historically, secured cards have played a significant role in helping individuals establish or re-establish credit following financial setbacks.
