ok i am trying to apply for a credit card, since i have no credit, i need to build some up.... i was looking at orchard bank, and they want a down payment of your choice of $200, $500, and i think $1,000.... is that more like a pre-paid card more than a credit card? if i paid $200 for my down payment would that be my spending limit?
2007-10-24 10:16:05 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
That is not a down payment it is a secured credit card.
If you put $200 on the card, the money is held until the secured card is closed, defaulted on or the card becomes unsecured.
If the account is closed or becomes unsecured you will be refunded the $200. If you default on the card they will use the $200 to go against what you owe.
If you are planning on getting a secured card you would be better off going with your own bank or credit union or Bank of America.
If you go with your bank or credit union ask if their secured cards eventually unsecure.
Orchard will not unsecure a secured card and it will not grow with you.
When your credit scores rise where you qualify for unsecured cards you would have to either leave the secured Orchard open or close it.
If you leave it open and it is only a $200 card, the low limit could hurt. If you leave it open your $200 will remain tied up with that card.
If you close it you will lose history on your reports, which will hurt.
Find a creditor that offers secured cards that will eventually unsecure and grow with you.
2007-10-24 10:37:40 · answer #1 · answered by echo 7 · 2⤊ 0⤋
It's a secured line of credit. You give them 200, 200 is your limit they hold on to it and you still make the payments. Since you have no credit they know they won,t loose if you default they keep the original 200. But it reports to the credit bureau and you build a credit history. You want unsecured credit try a store card, target, wal-mart, they report too but the interest is high. Your best chance for an unsecured card (no down payment) is to be a student or try capitol one. I just got my first card there.
2007-10-24 10:29:20 · answer #2 · answered by persuader 3 · 2⤊ 0⤋
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2016-10-22 23:00:05 · answer #3 · answered by ? 3 · 0⤊ 0⤋
First of all, join a credit union. They have cards for most of their members, and they are a good place to start off on your financial life.
They will issue you a card with a limited amount of credit, but it is cheaper than a secured card without any fees.
2007-10-24 11:16:56 · answer #4 · answered by Steveo 5 · 0⤊ 0⤋
I dont know about that, but I remember I kept trying to get credit and the first place to actually give me credit was capital one. It was a 300 dollar limit and I was 19.
Whatever you do though, just be careful and ALWAYS pay on time and dont max out your card.
2007-10-24 10:21:05 · answer #5 · answered by kelmc623 2 · 0⤊ 1⤋