Bank of American Secured Card

[Creditaddict]

I applied, few minutes later got e-mail saying decision had been made, logged in... DECLINED.

How do you get declined for a card that you are securing with your cash! isn't that the purpose of a secured card.

Tried to call in and it says wait 10 days for final decision before talking to someone, what does that mean?

I'm about over them.

[llecs]

The same happened to me. I appd with a request for $500 in August. I already had an opened checking acct at BofA, but it was a no go. I had NO credit cards and had an EX of 545. It didn't make sense to me, but a maxed-out CO could produce a figure much higher than the secured amt.

[Anonymous]

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Creditaddict wrote:

I applied, few minutes later got e-mail saying decision had been made, logged in... DECLINED.

How do you get declined for a card that you are securing with your cash! isn't that the purpose of a secured card.

Tried to call in and it says wait 10 days for final decision before talking to someone, what does that mean?

I'm about over them.

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Sorry to hear about the decline, creditaddict.

IMO, even though secured cards are secured, they are not entirely without risk to the lender.  It is possible for someone to run the card up and disappear, allowing late fees and overlimit fees to accrue in amounts that go far beyond the original securing deposit.

More than that, though, BofA in particular likes to unsecure their cards after a year or so.  They probably have standards in place that determine not only whether you qualify for a secured card now, but also whether in their estimation you will be able to qualify to have the card unsecured when the time comes.

BofA Secured is one of the tougher secured cards to get.  Have you tried Orchard Secured or a CU?

[Creditaddict]

Everyone keeps saying, a secured card is not without risk.  THAT IS SO FALSE. you have $300, you might get $302 out of it and it's going to be cut off. if you walk away and don't pay, yes they will start imposing fees, but those fees are not really a loss to the bank, in the end they would loose $2!!! (with my example.

and just becuase they usually go unsecured after a year, should have nothing to do with rather they approve you. if your not going to give the card to people that are willing to pay for it, you shouldn't call it a secured card.

They are the only bank I have ever been declined for when I'm trying to pay!

and now it's just the point, I have to get the card! lol

[orl2185]

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Creditaddict wrote:

Everyone keeps saying, a secured card is not without risk.  THAT IS SO FALSE. you have $300, you might get $302 out of it and it's going to be cut off. if you walk away and don't pay, yes they will start imposing fees, but those fees are not really a loss to the bank, in the end they would loose $2!!! (with my example.

and just becuase they usually go unsecured after a year, should have nothing to do with rather they approve you. if your not going to give the card to people that are willing to pay for it, you shouldn't call it a secured card.

They are the only bank I have ever been declined for when I'm trying to pay!

and now it's just the point, I have to get the card! lol

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Wow, you got one heck of a point. My db got turned down bc bk from 07-06, but told about being preapproved for the secured card. Only one pull will be done.

[Anonymous]

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Creditaddict wrote:

Everyone keeps saying, a secured card is not without risk.  THAT IS SO FALSE. you have $300, you might get $302 out of it and it's going to be cut off. if you walk away and don't pay, yes they will start imposing fees, but those fees are not really a loss to the bank, in the end they would loose $2!!! (with my example.

and just becuase they usually go unsecured after a year, should have nothing to do with rather they approve you. if your not going to give the card to people that are willing to pay for it, you shouldn't call it a secured card.

They are the only bank I have ever been declined for when I'm trying to pay!

and now it's just the point, I have to get the card! lol

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You're right that the fees don't represent a direct loss to the issuer, but unpaid interest does!  We may just consider interest as "finance charges" which represent pure profit, but CC issuers see it as compensation for the risk they take in lending money.  Since they could have invested that money in risk-free instruments, but instead decided to loan it out and earn a higher return, any unpaid interest is a real loss to the issuer, due to the lost opportunity of earning a return elsewhere.  Since secured cards are only secured to the extent of the card's credit limit and not to the extent of accrued finance charges, I still maintain that they are NOT risk-free to the issuer.

Message Edited by cheddar on 03-06-2008 08:55 PM

[llecs]

It also costs the bank money; it is a negative balance to them and they have to borrow money to cover the loss.

[Anonymous]

I'd say go for a card through Orchard, they're less likely to grow with you than a BofA but it'll still help you build up your credit until you can get BofA to approve you.  I app'd with BofA for a reg card in hopes of getting the partially secured offer, but just got a straight decline.  I ended up signing up for an Orchard secured that's in the mail and a week later BOOM a letter in the mail from BofA saying upon further review we've decided we can give you a secured card.  So I sent that in also (hopefully I put all the info on there they needed rofl).

Hang tight, maybe you'll get that same letter...

[Red1Blue]

Hi CreditAdditct, as cheddar said there is a risk to card issuer even though the card is completely secure. There was a time 9 months ago, before I started cleaning up my credit,  I was turned down for secure card. Yes from BOA and couple of other Card issuers.

That is when I decided it is time to clean up the CR and started working on it. I kind of stopped pursuing the clean up for last 5 months. Now that my app for Citi Flex LOC is declined, I am getting back to cleaning up remaining negative information on my CR.

You could try apping for First National Bank of Omaha Secured Card. They gave me secured card when others turned me down for secured card. You have to call them and ask them to mail you secured card application. They do not have online application for secured card. Also try your local credit unions. They are much more willing to consider cases like this.

Good Luck.

[Anonymous]

National City is a good secured card also.  They report as unsecured and do periodical reviews for upgrade to a regular card.  The annual fee isn't bad at $36 and they deduct it monthly ($3 mth).  They pulled TU for me and I'm in TX. My score at the time was 604. You have to call them and ask them to mail you and app.  They were very friendly when I called and answered all my questions.  This is their number - (800)282-7541.

Message Edited by kball64 on 03-07-2008 08:03 AM