i was talking to someone earlier about secured CC, she told me that u dont need to get apporval for one . but i was just reading questions on here related to secured cc, most of the people say that u do need to get approval..so which one is it?
2006-10-26 17:45:08 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
A secured credit card is basically a credit card with a "deposit" account linked to it. Most banks have minimum deposits of $300-$500. For the most part, you are approved as long as you can supply the money for the account. If you can't supply and ID and a Social Security number you can't be approved --the same rules as setting up a savings account. What ever your deposit is, that is your credit limit. If you add money your credit limit increases. You still get monthly statements and are charged interest on unpaid balances. Activity is reported to bureaus and there are late fees for late/non payment. If you have a good 1 year history, the bank may then convert it to a non-secured traditional credit card. Be careful with secured credit cards though -- many banks use them to prey on people with no, lower or bad credit scores and charge outrageous interest and fees -- read the term and conditions CAREFULLY. I would suggest checking out a credit union --they are more consumer friendly. I pay no annual or service fees. I also earn interest on the savings account.
2006-10-26 17:58:20 · answer #1 · answered by The Count 4 · 1⤊ 0⤋
Usually, yes. Sometimes no. Secured cards are similiar to a debit card from a bank account, only without the bank acoount.
The security deposit is collateral, so there is much less of a risk, so many banks dont require approval; however most banks do want to know that you are who you say you are and the only way to find out is by pulling your credit reports.
Make sense...
I highly reccommend this one: http://www.goeufora.com/418121496892
It is a loaded value card. You are automatically approved.
It reports to the credit bureaus that you have a open installment loan and adds a lot of points to your credit scores.
If you get it, make sure you get the Elite Level with "Credit Builder", if you dont you will not get all the benefits.
2006-10-27 01:28:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A secured card is one where you put up a certain amount of money on deposit to cover any charges on your card.
Such as you put $300.00 in a secured account(which they will pay you interest on) This money stays in the bank as long as your card is active.
So you don't need approval because you secured your card, with your three hundred dollars.
Your card limit is controlled by how much you deposit.
Check with your bank to be safe.
Some of the companies out there
will charge you 85.00 for the first year, sixty dollar approval charge plus you have to deposit the secure amount.
2006-10-27 02:27:25 · answer #3 · answered by Anonymous · 0⤊ 0⤋
particular it is going to help. a secure mastercard isn't one the place you place the credit decrease. it quite is a card the place you open an unaccessable decrease value costs or checking account with the issuing financial employer and deposit adequate income it to pay the stability off in finished on the mastercard in case you may default. those tend to be $3 hundred or $500 limits. then you definately use and pay on the mastercard as you may routinely. you will could try this and bear a larger value and annual and in step with risk month-to-month costs for some million to 2 years to truly set up a first rate credit historic previous and bump your credit up.
2016-10-16 11:08:22 · answer #4 · answered by winstanley 4 · 0⤊ 0⤋
generally if you've got a bank/checking account, you'll be able to get one without approval. they may've been referring to folks without an account. The deal with secured (if ya don't know) is that you deposit a certain amount of $ in escrow, then borrow against it. Paying back the purchases. it's a good way to re-establish a positive credit pattern, and is pretty much no-risk for the bank.
2006-10-26 18:13:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Nowadays, it is very strict about who you are especially having a bank account, debit card or credit card.
You have to comply with the KYC policy. In regards to secured CC, I am sure the bank would like to know more than the KYC. It is to do with your credit rating and fund in account.
2006-10-26 17:52:31 · answer #6 · answered by AO 2 · 0⤊ 0⤋
What do you mean approval? Are you on debt management?
Even if you were on debt management, I still don't think you need any approval. If you men credit approval; then, the answer is no.
Secured credit card requires a cash deposit on your account. The credit limit is equal to your deposit. It is one way to re-establish your credit rating as long as you make the payment on time.
2006-10-26 17:54:00 · answer #7 · answered by Anonymous · 0⤊ 1⤋
It really depends on the provider of the credit card. Shop around and you will find one that works for you.
2006-10-26 17:48:46 · answer #8 · answered by Carl 7 · 1⤊ 0⤋
read lefty's answer!! LOL how much u need 60 $ for wat?? LOL
2006-10-27 06:22:37 · answer #9 · answered by kanto boy 2 · 0⤊ 0⤋