Secured Cards?

EaglesFan2006 — Thu, 24 Sep 2009 18:08:14 GMT

1) when opening up a secured card online, and you send in the initial deposit, orchard bank says they open a savings account...i do have one already as a well as a checking account but i'm nervous about chexsystems and another acct...could i be denied htis card because of chexsystems?

2) what happens to that initial deposit...let's say its $200. do secured cards eventually graduate in to unsecured? or am i basicly just paying that 200 for the right to have 200 dollars of credit and they essentially keep it (assuming i don't default or anything)

Re: Secured Cards?

Anonymous — Thu, 24 Sep 2009 18:28:01 GMT

@EaglesFan2006 wrote:
1) when opening up a secured card online, and you send in the initial deposit, orchard bank says they open a savings account...i do have one already as a well as a checking account but i'm nervous about chexsystems and another acct...could i be denied htis card because of chexsystems?

2) what happens to that initial deposit...let's say its $200. do secured cards eventually graduate in to unsecured? or am i basicly just paying that 200 for the right to have 200 dollars of credit and they essentially keep it (assuming i don't default or anything)

1. Some banks will check the chexsystems and some won't. I know Alliant will. As far as I know for now,the bank Orchard uses to hold your deposit does not go through chexsystems.

2. The initial deposit will sit in an interest-bearing savings account until it unsecures or you close the account. You are putting up collateral to have the account. In case you don't pay the card, they will take whatever you owe from the savings account.

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Secured Cards?

Re: Secured Cards?