BBVA Peru released information on Apr. 29 explaining how secured credit cards work and how they differ from traditional credit cards.
The topic is important for individuals who want to build or rebuild their credit history, as well as those without prior access to financial products. The bank highlights that a secured credit card requires a deposit as collateral, which typically matches the approved credit limit. This system is designed for people with no or negative credit history, or those seeking to improve their financial standing.
According to BBVA Peru, the process of obtaining a secured card involves selecting a financial institution, making the required deposit, using the card responsibly for purchases and payments, and potentially converting it into a traditional card after demonstrating good payment behavior over time. Traditional cards do not require an upfront deposit but are subject to stricter eligibility criteria based on income and previous financial conduct.
Secured cards offer easier approval compared to traditional ones because the initial deposit reduces risk for the issuer. However, these cards usually have lower limits and may lack rewards programs found in conventional products. Both types of cards help users build their credit scores if used responsibly.
BBVA Peru supports education and social development through initiatives such as Leer es estar adelante and foundation-led efforts aimed at inclusive growth according to the official website. The bank also provides services across Peru via its network of branches and digital channels according to the official website.
As part of the global BBVA group while maintaining local ties in Peru according to the official website, BBVA Peru works under strategic governance provided by its board of directors according to the official website. The organization states that it aims to make opportunities accessible while supporting aspirations throughout Peruvian communities according to the official website.
The bank’s ongoing commitment includes expanding physical branches alongside digital platforms since 1973 when it launched initiatives focused on education and social advancement according to the official website.
