re: ♥

Quoting ღ Amberrrr:" Wouldn't it be a good thing people are attempting to get good credit though?"

Nope. Change is generally bad. So a bunch of hits on your credit could mean that you're suddenly living outside your means (new car, new house loan, more credit cards). It could give them pause that you suddenly need money since you need a bunch of credit cards. It's not an automatic denial or anything, but it is something they consider.

Quoting ღ Amberrrr:" so a secured card is where you put money on it up front and just spend it on the card? and that helps build credit...?"

I had one, you give them x amount of $ and that is what your credit limit is. You use the card as you would any other credit card but they hold the $ so if you become delinquent they have the $ already. If you pay off the card in full and choose to close the account, you get the $ you paid up front back.

Quoting ღ Amberrrr:" Wouldn't it be a good thing people are attempting to get good credit though?"

Not all people want good credit, or at first they think that having a CC will be no big deal but then things come up and they can't pay, it goes to collections etc.

Quoting she nan igans:" Yep. Say you have a 300 limit, which is pretty typical. You give them 300 taht they hold, then you use ... [snip!] ... they are holding those funds in case you don't pay. It removes their risk so they'll give them to people with bad credit. "

Wait. I'm confused now. So they don't put that $300 on your card, kinda like a gift card? They just 'hold' the money and you still have to pay it off? What do they do with your $300 if you pay the card off like you should?

Quoting ღ Amberrrr:" Wait. I'm confused now. So they don't put that $300 on your card, kinda like a gift card? They just ... [snip!] ... just 'hold' the money and you still have to pay it off? What do they do with your $300 if you pay the card off like you should?"

Yeah, they hold it and then use the card like a regular card with a 300 limit. When you close the account they give it back. Or, when you've built enough credit they'll send you a check for that amount. Once we'd had the card for like a year they mailed us the 300 back because they didn't need to hold it anymore. We had enough credit for it back.

Quoting ღ Amberrrr:" Wait. I'm confused now. So they don't put that $300 on your card, kinda like a gift card? They just ... [snip!] ... just 'hold' the money and you still have to pay it off? What do they do with your $300 if you pay the card off like you should?"

If you pay off the card in full and want to close the account you get the $ you sent in back. It is a secured card meaning you put up 'collateral' so to speak to get your credit limit.

Quoting ღ Amberrrr:" Wait. I'm confused now. So they don't put that $300 on your card, kinda like a gift card? They just ... [snip!] ... just 'hold' the money and you still have to pay it off? What do they do with your $300 if you pay the card off like you should?"

Ok, you give them lets say a $300 "deposit" that way in case you stop paying on the card they're protected and can use the $300 that you gave them up front to take care of your delinquent card. You use it like a credit card, and pay it off like one, but if you were to close the account you'd get the $300 back. Understand now?

Quoting she nan igans:" Nope. Change is generally bad. So a bunch of hits on your credit could mean that you're suddenly living ... [snip!] ... money since you need a bunch of credit cards. It's not an automatic denial or anything, but it is something they consider. "

Ahh okay. Makes sense. I've only applied for a store card 3 times and then I just tried to apply for Discover. Hmm, that's kinda smurffy they do that but I guess it's understandable.

Ahh okay, I get the secured card thing now. Thanks ladies! Really appreciate it.