Secured credit cards are now offering cash back rewards to their users. The users are getting a loan just like those who have the unsecured credit card. The interest rates are charged and there is a sign up fee even though there is no annual fee or service charge the customer is still charged interest for the use of the card. Many credit card companies are offering special cash back rewards as an incentive for the user to get more customers.
The secured cards are becoming popular in today's market place with all the advantages the user has and the ability to earn rewards. The credit card companies are now offering the user a chance to earn extra money by getting new customers for them. The residuals can be a onetime offer or in some cases they are giving the customer ongoing commissions for the new customers that they bring in as a secured credit card user.
The secured card user is less of a risk because they need to deposit the amount of money that they are borrowing into a savings account which guarantee's them the money. Since the money is already in the savings account making the loan secure then the credit card companies are assured that they will be paid. The customer needs to be careful that the amount of interest and other fees does not take most of their deposit. Earning cash back rewards and or getting commission for referrals is a good incentive to get a secured cash back card.