Simple Credit Union Secured Credit Card Question

[Ms-Kato]

Hi Everyone...

I'm going to call my CU today and ask for a secured CC.

I have a little over 11g in my checking/savings account.

If I asked for a 5g limit will they give me that much or is their a limit regardless how much you have in your account. I have

my paycheck directly deposited into my credit union every week for years.

Thanks

[Anonymous]

The maximum limit for the card will depend on your CU. Each bank/CU has their own rules about what the max line is. Some have it at 3k, some have it at 5k, some at 10k - not sure if anyone goes above that. But you won't really know until you ask.

The amount you have on your account won't really affect it (unless they manually review everything and want to see that you've been regularly saving money etc). Keep in mind that the money is going to get moved to another account that you can not touch until you close the card or it unsecures. While it's still your money, it'll be held as collateral for the credit line, so you won't be able to withdraw it without closing the secured card. So you'll no longer that 11k in your savings, you'll have 5k in your savings and the 6k you want to put on the card will get set aside into a CD/savings account that you don't have access to.

At least this has been my experience with all banks/credit unions so far, it's possible yours might do something differently.

[Ms-Kato]

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AndyK wrote:

The maximum limit for the card will depend on your CU. Each bank/CU has their own rules about what the max line is. Some have it at 3k, some have it at 5k, some at 10k - not sure if anyone goes above that. But you won't really know until you ask.

The amount you have on your account won't really affect it (unless they manually review everything and want to see that you've been regularly saving money etc). Keep in mind that the money is going to get moved to another account that you can not touch until you close the card or it unsecures. While it's still your money, it'll be held as collateral for the credit line, so you won't be able to withdraw it without closing the secured card. So you'll no longer that 11k in your savings, you'll have 5k in your savings and the 6k you want to put on the card will get set aside into a CD/savings account that you don't have access to.

At least this has been my experience with all banks/credit unions so far, it's possible yours might do something differently.

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Danke Schoen for the chockfull full of info post !

[Ms-Kato]

Well I called my CU and they are giving me a secured CC..the thing is the starting limit is only $500 regardless how much

you have in your account. She said it will go up in a few months when they see payments are being made.

They also have a set up that's called EZ  card where my secured card payments will be auto deducted from

my checking account so I don't have to worry about late payments which is my problem..not lack of funds..just being lazy !

I'm Happy..Screw You Cap One !

Oh Yeah ..I'm on my way !

[Anonymous]

Are they saying you'll get an unsecured CLI after a few months of good use? Or that you can then increase your security deposit for it?

While I'm surprised they're only letting you have a 500 line, it's good in a way, especially since it sounds like they're trying to protect you from yourself by offering to set up a way to make sure you don't get any negatives from using the card (i.e. low limit, auto-pay, etc).

If I ever have to get a secured card again (and I hope I don't), I'm definitely looking into using a CU for it, it does seem like it's a way better choice than Orchard or Cap One. And BofA.. well, who knows if they'll be around with the way they keep treating customers.

[Ms-Kato]

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@Anonymous wrote:

Are they saying you'll get an unsecured CLI after a few months of good use? Or that you can then increase your security deposit for it?

While I'm surprised they're only letting you have a 500 line, it's good in a way, especially since it sounds like they're trying to protect you from yourself by offering to set up a way to make sure you don't get any negatives from using the card (i.e. low limit, auto-pay, etc).

If I ever have to get a secured card again (and I hope I don't), I'm definitely looking into using a CU for it, it does seem like it's a way better choice than Orchard or Cap One. And BofA.. well, who knows if they'll be around with the way they keep treating customers.

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I was the one who asked about the auto payment and was informed they do have something call the EZ payment ..That's great for me

and it's a good thing they have that option for people like me who are too lazy to stop and pay the bills..LOL...not for lack of funds.

They said they start everyone off at $500.

She did ask if I wanted to also take out a loan ( I have great history with my CU and loans..well it's deducted right

from my paycheck..that's why) I said no. She asked because I explained that I need to establish credit so I can get a mortgage with a good rate.

I might take that loan later on and deposit it right back into my account and let it ride for a year then pay it off to build additional good tradelines.

If I do decide at a later date I won't touch the money because i don't really need it.

I didn't ask about  unsecured card...baby steps my friend..baby steps