Comments on: How does a secured credit card exactly work?

By: Hinuntapol

Hinuntapol — Tue, 01 Sep 2009 11:43:44 +0000

i think that this website will help you a lot

By: Michael T

Michael T — Mon, 31 Aug 2009 02:43:53 +0000

My understanding is that whatever deposit you put down is the maximum amount that you can charge. Each month you will get a statement which you can pay in full or make a partial payment. If you pay in full, you again get the full limit of deposit.

If you don’t make a payment, the money to pay the payment is taken from the deposit.

If you make payments on time, your credit score should rise since you are making on-time payments but if you miss a payment, your credit score will fall every time the bank makes the payment from your deposit.

After about a year of building up your credit score, you may then be able to get an unsecured credit card and cancel the secured credit card and get your deposit back.

By: glendaokoeguale

glendaokoeguale — Fri, 28 Aug 2009 19:30:02 +0000

It works just like any other credit card. The only difference is that you are giving the bank the amount of money you want for your credit limit. For example, if you send the bank $200 they will send you a card with a $200 limit. You can make purchases, pay bills, etc. up to $200. Every month you will get a bill for the balance, and must pay the minimum payment due. A secured card is basically used for the purpose of building credit. If you pay the bill on time every month or not, the bank will report it to the credit bureaus. Once you’ve established credit, and can get an unsecured (regular) credit card, you can send a written request to the secured credit card company to cancel your account and get your $200 deposit back (as long as you don’t owe them any money).

By: scottsmylie

scottsmylie — Fri, 28 Aug 2009 06:10:40 +0000

Usually you credit limit is the deposit you make on the account. This pretty much eliminated the risk to the bank but allows you the freedom to have a credit card.

By: Mek

Mek — Tue, 25 Aug 2009 07:41:09 +0000

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By: saved_astronaut

saved_astronaut — Sat, 22 Aug 2009 21:49:23 +0000

i think u pay a security deposit

By: v b

v b — Wed, 19 Aug 2009 23:21:56 +0000

Go to your bank and ask.

The plans may vary–though I am pretty sure that your $200 deposit only gets you a $200 credit limit. After all, that’s all the “security” you put up.