Secured Card with a Balance?

[NRB525]

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@Anonymous wrote:

So even if they keep the security deposit which would cover the $3000 balance, it would still affect my credit?

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Yes, because the only way to get to the security deposit is if you stop paying, and that's a late. 

You our might see if the will let you walk down the limit and release some of the security, so if you pay $500, maybe they reduce the CL by $500 and send you back $500 out of the deposit. Then use that $500 to pay down the balance, another CL reduction, another release of funds to you.

Or you could call them and see if they have a more efficient option. They may just move the security over to pay the balance and reduce the limit all in one go.

[brother7]

The proper way to close a secured card is to pay off any balance to bring it down to zero, then inform the CCC that you wish to close the secured card. At that point, they will close the card and return your security deposit.

Is it possible for you to do that?

[Anonymous]

This is an interesting question, and I remember Capital One used to say they'd use your secured deposit to pay off your balance and would mail you the difference, but they don't say that on their site anymore.  Now it says your deposit is only refundable if you close your account and pay your balance in full; I don't see any information about the security deposit being used to clear the balance anymore.

You may want to go to Capital One's chat and ask them, though.  And then log out and log back in and ask a second rep to confirm (yeah, I know how cynical that sounds but sometimes you get weird information from them).

[Anonymous]

I'm sorry to read all this but OP,please tell us what happened???

Any update s

[Anonymous]

I would really love to pay the card in full and close it and then wait to recieve the security deposit back but i am just not able to. I guess i will try to chat with them and see what options do i have. Has anyone ever been in this situation before? and if so what was the outcome.

[fltireguy]

I can speak from experience on this one. When you ask them to close the account, they will apply your deposit towards the entire balance. IF you have a refund due, they will send you a check. It will report just like the image below.. I closed mine, and it had about a $900 balance, and I had a $1500 deposit. I got a refund check of $600 or so a month after closing the account... Don't worry, it is NOT a derog!

[Anonymous]

Thx for posting @fltireguy! 

@Op.....that is some great news! Good luck to you! Wishing you the best! 

[Anonymous]

Wow, Thats a relief. Thank you so much for posting.