blue11 asked:
I have just applied for a Wells Fargo Credit Card–I also have a checking account with them as well. Anyways, i was approved for a secured credit card of 800 dollars and denied a personal line of credit? I have to send them 300 dollars for collateral to get my card. Can someone explain this to me more thoroughly. Thank you.
http://1mortgagecalculator.info
I have just applied for a Wells Fargo Credit Card–I also have a checking account with them as well. Anyways, i was approved for a secured credit card of 800 dollars and denied a personal line of credit? I have to send them 300 dollars for collateral to get my card. Can someone explain this to me more thoroughly. Thank you.
http://1mortgagecalculator.info
Your best bet is to actually ask Wells Fargo.
Being a Banking industry vet, I can assume that what Wells Fargo terms a “personal line of credit” is actually an unsecured credit card.
You may not have enough credit or a low credit score, so they have offered you a secured credit card, i.e. one backed by some collateral (your $300) and most likely a higher rate of interest.
Hopefully after some time with responsible usage and on-time payments, they will reconsider.
A secured credit card means they hold onto some money as a deposit against your card.
An unsecured credit card is one where you sign for the money you owe. Both the secured and unsecured are what they call a revolving credit account where money is paid out to merchants everytime you charge and you make a payment, part, some, all or nothing each month. Whatever payment you make goes first to interest and then towards your balance.
A personal line of credit could be a one-time personal loan without a plastic charge plate. You make a set payment every month that includes principal and interest.
OKAY, the difference between a credit card and a line of credit is very simple. The interest rate. Think of it this way, a credit card interest rate has two types of rates. One is a regular rate and APY(Annual Percentage Yield) and the other is and advanced rate, which is usually high and can get you in a lot of trouble. If you went into the bank and got an advance on a credit card your rate might be as high as 23% verses the 14% purchase rate you have.
A line of credit might not have a great rate either, but at least it does not charge you an advance rate fee.
I have found a button on the source. It leads to a site that does not turn anyone down for a credit card and no credit checks. The site is great for other resources.