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How do secured credit cards work?

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    How do secured credit cards work?

    I've been looking into getting a secured cc now that our BK is discharged and closed. We want to start to rebuild our credit and realized that renting a vehicle is a lot easier with a credit card than a debit card.

    I'm curious how secured credit cards work. I know that I will front money. Do the cards match what I front. Say, I front $1000, will they match $1000 giving me a $2000 limit or will I just be using my own $1000 as available credit.

    Any insight would be greatly appreciated.
    5/9/11 - Filed CH7 - No Asset
    7/1/11 - 341 Meeting
    9/1/11 - Discharged; 9/22/11 Case Closed

    #2
    It depends on the bank and your credit worthiness. I received a secured card right out of bankruptcy from Firth-Third (5/3) Bank. They made my credit limit 66.67% of my deposit. (So, to get a $1,000 credit line, I had to deposit $1,500.) After 3 months of this, I complained and they removed the entire security -- the card is no longer secured! That doesn't happen for everyone.

    I probably would only use a bank that provides $1 for $1 matching of the credit line.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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      #3
      HSBC/Orchid is 100%
      All information contained in this post is for informational and amusement purposes only.
      Bankruptcy is a process, not an event.......

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        #4
        Capital one can be more than 100%

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          #5
          Originally posted by frogger View Post
          HSBC/Orchid is 100%
          but then again, they charge an extremely high annual fee,
          Don
          Filed Pro Se on 8/4/11 (No Asset, Chapter 7)
          Redeemed Automobile ProSe (722 Redemption),Discharged on 11/3/11

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            #6
            We went thru a local credit union. They froze the amount of our credit limit on the card, but we continue to receive interest on the frozen funds... and NO fees for the card. Except of course there is interest if we carry a balance, which we do not.

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              #7
              Originally posted by doni49 View Post
              but then again, they charge an extremely high annual fee,
              Perhaps, but mine was with no fee.
              All information contained in this post is for informational and amusement purposes only.
              Bankruptcy is a process, not an event.......

              Comment


                #8
                Originally posted by help1234 View Post
                We went thru a local credit union. They froze the amount of our credit limit on the card, but we continue to receive interest on the frozen funds... and NO fees for the card. Except of course there is interest if we carry a balance, which we do not.
                I did the same....went thru local credit union. Put $500. in a secured acct and my limit is 500. on the credit card. No annual fees.
                Earning interest. WOW i have made .32 since april. Hey better than paying interest.
                They said that after a yr in would change over to non-secured. I don't really care about that. i would just assume leave it secured.
                It states on my credit report that it is a secured card.
                filed: 8/10 ...341:10/8/10 ... Discharged & Close: 12/9/10
                "Nothing is easy to the unwilling" Thomas Fuller

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                  #9
                  I have Crap One. Deposited 200, they matched 151. It varies.
                  Filed August 20 341 on September 23 Report of No Distribution - September 24 Case Discharged and Closed on November 23!!!

                  Comment

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