Online Secured Credit Card Is Next From NextCard

NextCard Inc. says it will beta test an online secured credit card this fall, with the intent to launch the product before the end of the year. NextCard will target the secured card to consumers who were declined it's unsecured credit card. "It gives us an opportunity to build our customer base, and it gives people access to e-commerce who otherwise would not have the opportunity," says Jeremy Lent, San Francisco-based NextCard's CEO. The Internet is a cost-effective channel for secured cards because these customers are very cost intensive, he says. "Secured card issuers charge high fees, but they have high expenses because these customers call a lot [for service]," he says. "By posting all the information they need on our Web site, it lowers our costs, so we can potentially turn around and offer them lower fees."