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Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
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Re: Secured card help

[ Edited ]

Lambo23 wrote:
Obviously no one understood what I meant. This person has bills to pay. They would like to use the card to pay the bills to build their credit. For now say they have only 100$ for a deposit and that gives them a $300 limit.
If the limit is $300 and they push another 300$ to the card from the bank bill pay system, they now have a $300 credit along with a $300 limit. Would they be able to use it to make a purchase for say $500-600?
Similar to a normal credit card in which you need to spend more than your limit on a purchase. You can push money over from the bank and have a credit plus your credit line. Not sure if that would work for a secured card as well. That is my question..

I would not even attempt this with a secured card. If you wanted to make big purchases, why not just add a larger deposit to the card? The point is to show responsible credit behavior so that eventually it's possible to get unsecured credit. If someone can't afford the deposit they need, or can't manage the use of the card carefully - then maybe this isn't the way to go.

Frequent Contributor
NonSufficientFunds
Posts: 332
Registered: ‎04-09-2013
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Re: Secured card help

[ Edited ]

InvincibleSummer3 wrote:

Lambo23 wrote:
Obviously no one understood what I meant. This person has bills to pay. They would like to use the card to pay the bills to build their credit. For now say they have only 100$ for a deposit and that gives them a $300 limit.
If the limit is $300 and they push another 300$ to the card from the bank bill pay system, they now have a $300 credit along with a $300 limit. Would they be able to use it to make a purchase for say $500-600?
Similar to a normal credit card in which you need to spend more than your limit on a purchase. You can push money over from the bank and have a credit plus your credit line. Not sure if that would work for a secured card as well. That is my question..

...If you wanted to make big purchases, why not just add a larger deposit to the card?


Of course - I forgot about this option:  when you log into your Capital One Secured account, there is a button that says something like: "Increase your available limit by adding funds to your account" - this is the easiest way to get CapOne to report a higher limit (and increase the available funds - so you don't need to worry about exceeding such a small initial limit).

Frequent Contributor
Lambo23
Posts: 255
Registered: ‎04-16-2012
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Re: Secured card help

The real problem is this person does not feel comfortable putting $500+ down for a deposit. Maybe once they get the card and are more comfortable with it then they will add more money to the deposit. Thanks everyone for your input.
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vish1
Posts: 1,129
Registered: ‎01-20-2011
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Re: Secured card help


Lambo23 wrote:
The real problem is this person does not feel comfortable putting $500+ down for a deposit. Maybe once they get the card and are more comfortable with it then they will add more money to the deposit. Thanks everyone for your input.

You mentioned in a post that the person is doing this to rebuild. They don't need to use the card extensively to rebuild. Just use it occassionally and PIF.

 

Heavy usage has NO role in credit building.

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Lambo23
Posts: 255
Registered: ‎04-16-2012
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Re: Secured card help

@vish

Good point. Will mention to them.

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