Secured CC Help

powder21 · #1 (**permalink**) 02-02-2008, 11:53 PM

I have figured out that the only way I'm going to be able to get a credit card is with a secured credit card. Now I have a question about how those work.

I plan on making a $300 deposit which will give me $300 line of credit. However, since I will be making payments on the balance just as if it were a normal card, I'm wondering what happens to that deposit. Will I ever see that money again or is it just the price for building credit?

I would appreciate any help anyone can give. Thanks.

-Ryan

P.S. For those of you who read my previous post, I will be doing this after I resolve my current situation.

Bahamut · #2 (**permalink**) 02-03-2008, 07:38 AM

Never had a secured one, but usually when you have been in good standing with that account some months (6 to a year) there is the possibility to ge an unsecured one (probably the secured one will "transform" into unsecured.

Then... the deposit will be credited back in your checking account or it will be used for the following payments.

Remember, this post is based on my logic. Do not trust me 100% as I never had an secured one. But I'm sure you get back the money.

Read the private policy and terms of conditions... should be there.

Jeanie · #3 (**permalink**) 02-03-2008, 09:57 AM

powder21 here is an article on Secured Credit Cards Maybe this will help you better understand them. Good Luck!

powder21 · #4 (**permalink**) 02-03-2008, 10:20 PM

Thank you for the replies. Unfortunately, that article doesn't contain any information on what happens to the deposit. Nor does any other article I can find. I will try contacting Orchard Bank to see what they say. However, if anyone else knows whether or not I get that deposit back at some point, please feel free to post a reply.

Thanks again.

-Ryan

AMJ21 · #5 (**permalink**) 02-04-2008, 08:04 AM

Your deposit is just that, a deposit. It's yours. You'll get it back eventually.

Depending on the issuer, over time (12+ months), you may get it back if they unsecure the card.

amolyneaux · #6 (**permalink**) 02-09-2008, 09:40 PM

the bank holds the deposit unit you are either upgraded to an unsecured account or until you close the account. It differs from bank to bank, but the bank I work for will send you a check for the full deposit when you are upgraded, and if you close the account they will use the deposit to pay off the card, then send you the remaing funds(if any).

powder21 · #7 (**permalink**) 02-09-2008, 11:27 PM

Cool, thanks again for the help.

jmale · #8 (**permalink**) 03-16-2008, 12:34 PM

your deposit is yours, its just for security just in case you fail to keep up the payments.