Secured Credit Card Review
Author: Steve
Posted: Fri Jul 02, 2004 10:20 am
Post subject: Secured Credit Card Review
6/21/2002 12:49 am CDT
Go to their website and print out the application or call and they'll fax you one. They issue cards with limits from $250 up to $5,000 (or higher I believe). But, of course, you must open a savings account with them and have that amount as your balance.
BOA isn't a scam but be careful of any company who calls you at home asking for a checking account number over the phone in order to open your new credit card account!
www.bankofamerica.com
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Misty
Posted: Fri Jul 02, 2004 10:21 am
Post subject: Secured Credit Card Review
6/21/2002 8:30 pm CDT
Normally, I would encourage someone to apply for a secured card w/BOA, but unfortunately in this situation w/a BK just being filed last year, you wouldn't even qualify for a secured credit card w/BOA. I know it sounds dumb, but the reason is that the secured card after 1 year is reviewed to be changed to unsecured. Unsecured credit isn't granted to someone who has a BK in their bureau, so there would be no point to issue the secured card because as long as the BK was there, it would never change to unsecured; and the accounts are only meant to be secured for 1 year. You may want to review the cards listed on this site for people w/not so good credit and see what happens. Good luck!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Booshi
Posted: Fri Jul 02, 2004 10:22 am
Post subject: Secured Credit Card Review
6/24/2002 4:51 pm CDT
hey misty, how does a secured credit card work as far as reporting to the credit bureau? For that matter, how does a secured credit card work period? Like 'on time payments' and stuff like that? If you miss a payment, doesn't it come out of your savings? And will that go on your credit as a bad mark?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Misty
Posted: Fri Jul 02, 2004 10:23 am
Post subject: Secured Credit Card Review
6/24/2002 7:09 pm CDT
The only difference between how a secured and unsecured card reports to the credit bureau is that a secured card reports as secured; late payments, high balance, limit, ect report the same.
As far as how a secured card works-I can only tell you how it works w/the company I work for which is Bank of America. The minimum required deposit is $250. You can either apply at a branch or go online and request an app. Whatever you want your limit to be is what you send for a deposit. So if you want to be able to charge $1000, you have to send in $1000. Once we receive your deposit, a savings account is opened and your funds are deposited. We place a hold on that account so you have no access to that money. Then if your application is approved, you are sent a visa w/a limit for your deposit amount. When you charge something, you are sent a bill for the minimum payment due-just like a regular card. After one year, your account is reviewed to see if you qualify to be changed to unsecured. If you do, we change your account number, release the hold from the savings so you can w/drawl your money and send you a new unsecured card. If you default on payment(usually 2 months consecutive w/no payment), your credit card account is closed and we seize whatever funds are necessary from the savings account to pay the balance on the credit card and if there is any amount left in the savings, we release to you. Any late payments over 30 days are reported to the bureau just like a regular card. Hope this helps!
Posted: Fri Jul 02, 2004 10:20 am
Post subject: Secured Credit Card Review
6/21/2002 12:49 am CDT
Go to their website and print out the application or call and they'll fax you one. They issue cards with limits from $250 up to $5,000 (or higher I believe). But, of course, you must open a savings account with them and have that amount as your balance.
BOA isn't a scam but be careful of any company who calls you at home asking for a checking account number over the phone in order to open your new credit card account!
www.bankofamerica.com
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Misty
Posted: Fri Jul 02, 2004 10:21 am
Post subject: Secured Credit Card Review
6/21/2002 8:30 pm CDT
Normally, I would encourage someone to apply for a secured card w/BOA, but unfortunately in this situation w/a BK just being filed last year, you wouldn't even qualify for a secured credit card w/BOA. I know it sounds dumb, but the reason is that the secured card after 1 year is reviewed to be changed to unsecured. Unsecured credit isn't granted to someone who has a BK in their bureau, so there would be no point to issue the secured card because as long as the BK was there, it would never change to unsecured; and the accounts are only meant to be secured for 1 year. You may want to review the cards listed on this site for people w/not so good credit and see what happens. Good luck!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Booshi
Posted: Fri Jul 02, 2004 10:22 am
Post subject: Secured Credit Card Review
6/24/2002 4:51 pm CDT
hey misty, how does a secured credit card work as far as reporting to the credit bureau? For that matter, how does a secured credit card work period? Like 'on time payments' and stuff like that? If you miss a payment, doesn't it come out of your savings? And will that go on your credit as a bad mark?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Misty
Posted: Fri Jul 02, 2004 10:23 am
Post subject: Secured Credit Card Review
6/24/2002 7:09 pm CDT
The only difference between how a secured and unsecured card reports to the credit bureau is that a secured card reports as secured; late payments, high balance, limit, ect report the same.
As far as how a secured card works-I can only tell you how it works w/the company I work for which is Bank of America. The minimum required deposit is $250. You can either apply at a branch or go online and request an app. Whatever you want your limit to be is what you send for a deposit. So if you want to be able to charge $1000, you have to send in $1000. Once we receive your deposit, a savings account is opened and your funds are deposited. We place a hold on that account so you have no access to that money. Then if your application is approved, you are sent a visa w/a limit for your deposit amount. When you charge something, you are sent a bill for the minimum payment due-just like a regular card. After one year, your account is reviewed to see if you qualify to be changed to unsecured. If you do, we change your account number, release the hold from the savings so you can w/drawl your money and send you a new unsecured card. If you default on payment(usually 2 months consecutive w/no payment), your credit card account is closed and we seize whatever funds are necessary from the savings account to pay the balance on the credit card and if there is any amount left in the savings, we release to you. Any late payments over 30 days are reported to the bureau just like a regular card. Hope this helps!
posted by CardRatings.com at 11:52 AM
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