I was pre approved for the Orchard Bank secured credit card. I wanted to get it to start fixing my credit but my question is this. They ask me to put my bank acounnt information so that they could transferr $200 from my bank account to my credit card limit. My question is that what is exaclty the $200 for, When i buy somthing do i have to pay it monthly or do i not have to pay it since i have already put $200 in my credit card limit.
2006-12-29 03:31:21 · 6 answers · asked by LaDii Kiki 1 in Business & Finance ➔ Credit
So i have to waste $200 to get the credit card and also pay addition if i use the card. So the transferr of the $200 is pointless
2006-12-29 03:37:40 · update #1
That $200 is their security deposit. Which means that's your credit limit. You'll be paying interest on your own money, yes, monthly. It's a means to an end, not ideal, but if you need to re-establish credit, you have to do what you have to do. Good luck.
2006-12-29 03:34:20 · answer #1 · answered by Lori E 4 · 1⤊ 2⤋
It's not pointless. If your credit is damaged this is definitely a starting point for you to get back to being creditworthy. The Orchard Card is issued by HSBC, which issues many many types of cards for those with great and not so great credit, this card is just about the BEST "Fix your credit" card out there.
Here's what they're asking you to do: Deposit money with them that may or may not earn interest, once you show that you have learned from your errors of the past and have good history with them, they will probably release the Money back to you + interest, and might even up your credit line.
Why is this possible? Well, Credit Cards are nothing more than loans that can have a set payment on them (minimum amount due) or whatever you want, and they always keep the balance available for you to borrow the same, instead of borrowing a bulk amount in the beginning and then paying it off until you're done. With a Mortgage or car loan, you have obvious colateral, and this $200 would act as colateral for you to borrow against.
If you can't deal with depositing the money with them, then having a credit line to borrow against, then you really shouldn't have a credit card and just use cash for the time being. But if you're serious about repairing your credit, I'd do it.
A bank that also offers secured cards is Bank of America, I do all my Banking through them, and have a credit card through them, and for my Brother they offered him a secure card, awesome deal!
2006-12-30 16:44:32 · answer #2 · answered by Alyssa 5 · 2⤊ 0⤋
That is a secured card so the 200 dollars you are giving them is the security deposit on this account. Yes you will still make monthly payments on whatever you charge. Your security deposit gets interest. Not a lot really. I strongly advise you to check with your local bank first to see if they have a secured credit card program. I have dealt with a lot of people that have had major issues with some of these secured credit card companies. They can be very scandolous. It is better if you can to deal with a local bank that you have more access to. A lot of banks now offer these programs. It is also more beneficial to you as you have a bank that can help you to reach your credit goals. Most banks are very willing to explain what you need to do and to help with ideas on doing so. Most of these online banks won't do that and if you run into problems you have no place to go.
I don't know what banks are in your area but I would call around and check.
2006-12-29 11:38:58 · answer #3 · answered by logan 5 · 0⤊ 1⤋
"Pre-approved" only means they will entertain taking your money. There are less expensive ways to improve your credit. That initial $200 will be eaten up mostly by their fees your first month. You'll end up sending them payments every month and you still won't have a "credit card". I think those pre-funded cards now have to bear the words "Debit Card". Chances are, you will be disappointed. Those same organizations that keep files on you and assign some score to you will also sell you that same information back to you. Thats so you can belittle and demean yourself just in case some secretary hasn't done it for you lately. Don't ever give those people your bank account number.
2006-12-29 11:45:18 · answer #4 · answered by Anonymous · 0⤊ 1⤋
The card is secured via your bank account. Basically it's nothing more than a bank card that is reported to credit agencies.
2006-12-29 11:33:57 · answer #5 · answered by ? 6 · 0⤊ 1⤋
youll be using your own money from your own bank account.dont do it, its stupid.
2006-12-29 11:34:09 · answer #6 · answered by julia4evert 4 · 0⤊ 1⤋