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Residents of Hawaii are often looking for bank options.  Some will actively seek a Central Pacific Bank secured credit card.  Central Pacific Bank is one of the largest financial institutions in the United States and it’s headquarters are in Hawaii.  There is current a Visa secured credit card option from this bank but remember there are other credit card opportunities as well. It might be smart to look up several different secured and unsecured credit cards before making a final decision in 2013 and beyond.

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Secured Credit Cards Help Build a Strong Credit History

There are some borrowers of money who have made very poor financial decisions in the recent past which makes it very hard to get ahead when it comes to finances.  These individuals may need to seek out unique borrowing opportunities as normal unsecured credit cards have not solved any problems.  In fact, it is often the case that bad credit borrowers end up abusing unsecured credit cards because they have a line of credit that is money they have yet to earn.  Enter secured credit cards.

A secured credit card acts in the same was as an unsecured credit card but borrowers must put down collateral or a “down payment” before spending any money on the card.  This deposit is usually sent through a cashiers check or money order.  If that particular borrower is a customer of the bank they can use money in a bank account or checking account.  Each financial institution has different requirements when it comes to the amount of money that can be put down.  Some banks limit this amount to $1000 or $2000 while other banks increase the limit to $5000 or $10,000.

Central Pacific Bank Secured Credit Card

When looking to apply for the Central Pacific Bank secured credit card always remember to consider every single option before hitting apply now or submitting an application at a bank location.  There are several different credit card options available from Central Pacific Bank so do not feel as if a secured credit card is the only way to build credit and borrow cash.  Here is much more information on the secured credit card for the Central Pacific Bank website:

“Secured Visa® Card

If you need to improve or re-establish your credit history1 , here’s a great way to begin that process. With the Secured Visa Card, you’ll enjoy the convenience of credit including the option to carry a balance while earning interest on your savings account.

BUILD YOUR CREDIT

Provides an excellent opportunity for someone starting a credit history or for someone who has been turned down for a credit card.

Simply open a secured savings account that is pledged as security for your credit card account.

Merchants and retailers won’t know your card is secured when you use it to make purchases.

Cardmember Benefits

Visa credit card also come with a variety of important features, including: extended warranty coverage, free collision damage insurance and zero fraud liability.2 See Consumer Card Features and Benefits for a complete listing of all card benefits.

Special Offers

Receive up to a $5,000 credit limit.

Purchase APR

Variable APR currently 20.99%. See Terms and Conditions for complete details.

Annual Fee

$35 Annual Fee

Minimum Requirements

Applicant must be 18 years of age, have a U.S. address and a Social Security number. A minimum security deposit of $300 is required ($5,000 maximum).”

Note that the variable APR is currently 20.99%. This is a very high interest rate on any amount of money borrowed. Those looking for bad credit installment loans and bad credit unsecured personal loans may find interest rates at more attractive levels.  As most bad credit borrowers know, finding low interest rates on any amount of money borrowed can be quite difficult.  That said, there should be a few bank options in the state of Hawaii.

Bank Alternatives in Hawaii

There are currently nine financial institutions with headquarters in the state of Hawaii with one of these banks being Central Pacific Bank.  Just because a bank is not headquartered in the state of Hawaii it does not mean there are not branches on the islands.  In fact, there are many banks that have headquarters in California and other states that have quite the presence in Hawaii.  Here are some bank alternatives that are headquartered in the state:

  • First Hawaiian Bank
  • Bank of Hawaii
  • Territorial Savings Bank
  • Hawaii National Bank
  • Pacific Rim Bank
  • Ohana Pacific Bank

Also note that those seeking secured credit cards in 2013 and beyond can do plenty of research online. Almost all banks will be willing to let potential customers contact them about a credit card. Unlike a checking account or home loan it is not necessary to be in a local area to take out a credit card. Actually, most credit card applications are done online now.  Even the credit cards that are preapproved ask potential customers to go online and fill out the information.  This makes it easier to apply for a secured credit card in Hawaii.

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Before going through many application steps it might be smart to have all information ready.  Many of these credit card applications do not have a save now and complete later feature.  This is unfortunate, but it is simply the way it is right now.  Do not think that credit card applications are long.  You may be surprised at just how short some of these applications are.  Some of the basic information like name and address as as well as annual income are part of the application.

How to Use a Central Pacific Bank Secured Credit Card

Unlike regular credit cards it is often the case that a secured credit card has a much lower credit limit.  Some borrowers of unsecured credit cards have received limits as high as $15,000 to $25,000.  This is highly unlikely with a Central Pacific Bank secured credit card.  In fact, the maximum amount has been set at $5000.  This is a good thing for many borrowers.  Rather than spending a ton of money that has not been earned it is much smarter to spend money that you actually have.

A secured credit card is basically like an allowance from when you were little.  The amount of money that can be spent on the credit card is the deposit that is given upon signing up.  Basically, if you put $3000 down you will have a $3000 credit limit on that specific secured credit card.  If you max out the card and do not pay off the amount the lender will already have the money so they will be out nothing.  This is completely different than an unsecured credit card.

If an individual has a $10,000 credit limit on an unsecured credit card and they max out the card there is nothing the credit card company can do to get this money.  They can send letters or hurt a credit score but they took a risk when they offered this unsecured debt. I would never suggest anyone do this as it will kill a credit history.  If someone defaults on a $10,000 line of credit it will take a very long time to build a credit score back to a respectable level.  This mean it could take years or even decades to have the opportunity to buy a new car or home.  When making any type of major purchase banks and lenders will look at a credit score and credit history.

After a credit score has been knocked or hit it might take a secured credit card to help rebuild that credit.  Some financial advisors will suggest putting the smallest down payment possible on a secured credit card.  Starting with $500 or $1000 might be a good choice.  Using the Central Pacific Bank secured credit card simply for gas, groceries and drug store purchases will mean the bills will not rack up quickly.  Note that this can be very hard to do for anyone who has used a credit card to make every single purchase in the recent past.

Getting Low Interest Rates on Credit Cards

The only possible way to get extremely low interest rates on a credit card is to prove to be a solid and responsible borrower of money.  Unfortunately, anyone seeking a secured credit card or a bad credit installment loan is probably considered an irresponsible borrower of money.  Paying down all high interest rate debts and keeping balances low on credit cards is a great way to increase the odds of getting low interest rates on personal loans, home loans or credit cards.

It takes more than just this though.  Borrowers will also need to have paid off a car loan, personal loan or even home loan in the last few years to be a truly good borrower of money.  If individuals have student loans they have paid over time this is another good sign that they have been a responsible borrower.  In more words or less, people need to get bills but pay them as quickly as possible.  Sometimes life gets tough and it is very hard to pay these bills but things will eventually turn around and the debts should be addressed as soon as possible.

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