+ Reply To This
Results 1 to 6 of 6
06-15-2015, 07:53 AM #1
Denied Approval on Secured Card? Try This
If you've ever been rejected for a secure credit card where you need to pony up a deposit to cover potential losses it can really sting. It's not too hard to understand because you are only putting up a 25-50% security deposit in case you fall on hard times. However, it's a company policy on who they will lend to based on the applicant's credit.
The first thing you should do is review your credit report for any potential inaccuracies like a collection debt that should not be there; like those from a doctor or cell phone company. Tackle that debt and request a removal if you are right and they are wrong.
The second thing is to apply for a 100% secured loan that reports to the bureaus. How that works is you will have a small installment loan that is repaid over time and secured by your savings account.
Last edited by Frank C; 07-07-2015 at 07:58 AM. Reason: typo
07-07-2015, 07:59 AM #2
Good tips that are useful for anyone in that situation. Hopefully your message will reach someone and make their financial situation better.
07-30-2015, 09:39 AM #3
You'd really have to have some really bad credit to be denied a secured credit card. Your cash money is backing up what you spend which makes it odd that you'd be denied.
08-06-2015, 09:02 AM #4
Bankruptcy and major collections could be the triggers where you are not approved but I'd have to agree with you that if you put up the money for what you charge as a deposit, it is in effect a debit card.
08-12-2015, 07:46 AM #5
Some secured cards don't make ypu put up all the money. Maybe aorund 75% after you've been a good customer but at first it is usually 100% from what I recall.
01-31-2016, 10:42 AM #6
Just remember that with secured cards, you still need to pay your bills every month. The card company will not automatically debit your security deposit. In fact, their goal is to have you leave that security deposit up the entire time.
And some secured cards don't provide a grace period - they start charging interest from the date of the transaction, regardless of whether you pay your bill in full and on time. Stay away from those cards!
One final note: secured credit cards usually have fairy high interest rates, even with the security deposit. So try to pay in full every month.