Posted on: 02nd May, 2007 05:11 pm
I was looking for some information about secured credit cards how they work and can such cards help in reestablishing credit in any way
Hi Fitzgerald,
To get a secured card you will have to keep cash deposit which will become the credit line for your card account. Let me give you example, if you have a deposit of $1000 in your account then you would be able to charge up to this amount. Sometimes it can also happen that bank would add to your credit line to reward your good payment without you even requesting for additional deposits. These cards are reported to the bureaus and if minimum payments which become due every month are paid then it helps in improving your score.
Miller
To get a secured card you will have to keep cash deposit which will become the credit line for your card account. Let me give you example, if you have a deposit of $1000 in your account then you would be able to charge up to this amount. Sometimes it can also happen that bank would add to your credit line to reward your good payment without you even requesting for additional deposits. These cards are reported to the bureaus and if minimum payments which become due every month are paid then it helps in improving your score.
Miller
where I can take such a card from and how to get back the deposit money later and how it will be reported to the credit bureaus, sorry for so many questions together
Hi Fitzgerald,
Welcome to Mortgagefit forum.
You can look with banks and if you have a credit union membership then you can also ask about secured cards from them also. Many such unions offer secured credit cards and can have lower rates and might also waive annual fees on the card.
"how it will be reported to the credit bureaus, sorry for so many questions together"
Most issuers will report it as being a secured card to the bureaus but you should inquire with the issuer about it.
Lastly you have asked about the deposit. Normally, if you properly maintain the monthly payments then there will not be any problem in getting back the deposit amount. After one year of regular payments of the minimum amount every month you can ask about getting an unsecured card from the bank and chances are that they will agree. At this time you would get the deposit amount back. But if you want to close the account you will have to pay any balance dues on the account or such amount will be deducted from your deposit. In case the account is paid in full you will be returned the full deposit money.
Colin
Welcome to Mortgagefit forum.
You can look with banks and if you have a credit union membership then you can also ask about secured cards from them also. Many such unions offer secured credit cards and can have lower rates and might also waive annual fees on the card.
"how it will be reported to the credit bureaus, sorry for so many questions together"
Most issuers will report it as being a secured card to the bureaus but you should inquire with the issuer about it.
Lastly you have asked about the deposit. Normally, if you properly maintain the monthly payments then there will not be any problem in getting back the deposit amount. After one year of regular payments of the minimum amount every month you can ask about getting an unsecured card from the bank and chances are that they will agree. At this time you would get the deposit amount back. But if you want to close the account you will have to pay any balance dues on the account or such amount will be deducted from your deposit. In case the account is paid in full you will be returned the full deposit money.
Colin
From my knowledge of secured cards. these are the cards that can help you re-establish your credit or assist you to build up good credit I case you don't have it. And, believe me, you won't get regular credit cards in such cases. That's where secured card helps.
Secured cards are issued against a cash deposit which acts as the collateral. The deposit is the line of credit for the account. It varies from one company to another. The credit limit isn't most cases is equal to the deposit amount or it is a certain percentage higher than the deposit.
Secured cards are issued against a cash deposit which acts as the collateral. The deposit is the line of credit for the account. It varies from one company to another. The credit limit isn't most cases is equal to the deposit amount or it is a certain percentage higher than the deposit.
Hi Fitzgerald! Secured credit cards actually work in the same way regular credit cards do. The only difference is that you have to put a deposit which in turn, will become your credit limit. If you pay your balance in full and on time every month, it will also help improve your credit score. Once your credit score improves, eventually banks will raise your credit card limit and issue you a regular credit card.
Sorry i have no idea on this topic get help from some Credit Repair Advice company for solving your problem.
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