Secured Cards Security Deposit

[14x3er]

I'm helping my friend try to build his credit. He has no credit at all. I'm going to suggest he go for the Capital One Secured card, however, I'm not sure how the security deposit works.

Do you ever get the security deposit refunded before closing the card? Does anyone have experience with getting a CLI on the card without requiring an additional deposit? I've never used a secured card so I have no idea how they work.

Thanks!

[Anonymous]

I have this card, and have had it for around 6 months. I've also researched it a lot, both on this forum, and elsewhere.

It is VERY rare to get your deposit back before closing the account. I've only seen one report of someone getting the deposit back, and it wasn't verified.

I'd say plan on never seeing it until the account is closed.

Hope this helps!

[Beckhsrules]

I have had a BofA secured card and they valuate your account after 1 yr and return money without closing the account. They even give you a CLI. Also you can request for the Cash Rewards version of the card even though it is a secured one. I had my direct deposit set up with them if that info helps.

[Anonymous]

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@Beckhsrules wrote:

I have had a BofA secured card and they valuate your account after 1 yr and return money without closing the account. They even give you a CLI. Also you can request for the Cash Rewards version of the card even though it is a secured one. I had my direct deposit set up with them if that info helps.

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Yeah definitely go with BofA's Secured Cash Rewards card. I've seen people get their deposit back in as little as 6 months, but the norm is a year.

[Anonymous]

I spent a long time deciding which secured card would work for me and my future goals.

This list here was very helpful in evaluting which secured card to get: Updated for 2015: Secured Credit Card List

The best would be:

1. NFCU nRewards Secured Visa: low APR, no AF, eligible to graduate (with a return of deposit) after 12 months and reports as secured BUT you must qualify for eligibility requirements

2. DCU Secured Visa Platinum: low APR, no AF, graduates (with a return of deposit) BUT you must apply & get approved for the CU which costs a HP

3. Discover It Secured: no AF, eligible to graduate (with a return of deposit) after 6 months, the same rewards system as unsecured card BUT it's only (not always) offered after being denied for an unsecured Discover It

4. US Bank Harley Davidson Secured Visa: no AF, eligible to graduate (with a return of deposit) after 12 months BUT it has a pretty crappy rewards system*

*I chose this card ultimately because I didn't want an annual fee and I wanted a card that would graduate without another HP or having to close the account and apply for another

If an annual fee is not a problem then I think these are good options:

1. US Bank Secured Visa: $29 AF, eligible to graduate (with a return of deposit) after 12 months, can possibly be PC'd into Cash+ from the Platinum card BUT they are very conversative

2. Bank of America Secured Visa: $39 AF, eligible to graduate (with a return of deposit) after 12 months, can possibly PC'd into another card, can add rewards to card

As for Cap1, I don't have experience to answer the direct questions but I would rank it similar to the BOA secured card except it doesn't have the ability to graduate

[crrredit]

FNBO secured "Kickstarter" can graduate after 11 months, Annual Fee $29. They have been advertising on these boards quite a bit lately. They say you could get an unsecured CLI after 7 months, but I haven't been offered that yet (8 months) and my score has gone up over 150 points since I got the card.

[brother7]

My friend applied for and was approved for the Capital One Secured MasterCard earlier this week.

For this particular card, it does NOT graduate, ie it will always be a secured card.

I'm not sure if you can get your security deposit back before closing the account.

When you decide to close the account, the security deposit is first applied to any outstanding balance on the account. If there's anything left over, it is refunded to the cardholder.

I hope that answers some of your questions. To answer your other questions, simply call their 800 number. That's what I did. The customer service rep was very helpful.

[sjt]

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@14x3er wrote:

I'm helping my friend try to build his credit. He has no credit at all. I'm going to suggest he go for the Capital One Secured card, however, I'm not sure how the security deposit works.

Do you ever get the security deposit refunded before closing the card? Does anyone have experience with getting a CLI on the card without requiring an additional deposit? I've never used a secured card so I have no idea how they work.

Thanks!

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Generally when you close a secured card there is a waiting period of up to 60 days before they release the security deposit.

Capital One has given unsecured CL increases.

Depending on your friends credit profile, I would look into secured card programs that graduate such as BofA, Citibank, Wells, SunTrust, US Bank, etc.

[Anonymous]

Just got my deposit back today.  Took 2 weeks after closing the card to get it back.  I got an increase after the 6th statement posted.  Closed the card because it served its purpose. 

[Anonymous]

If you have a secured card that doesn't graduate and you've managed to improve your score and obtain other unsecured cards, consider this before you cancel your secured card to get your deposit back. One of the large factors of your credit score is LENGTH OF CREDIT and for most that are rebuilding, the secured card is their oldest credit line. So make sure your score can handle the potential hit from dropping your oldest line of credit.