Credit Term Question

[Anonymous]

No, the savings account is simply how much you want the credit line for.  Put $1k in, you'll get a card with a $1k limit.  The interest rate is since after a year it becomes a revolving line they charge you the interest from the beginning to basically "train" you into using a regualar credit card that way after a year you get the initial deposit back and it's not a big surprise to all of a sudden be charged interest every month.

It's kind of an asenine way of doing things, paying interest on your own money, but all the deposit is, is a garuntee to the bank that you are going to use the card responsibly that way if you default the bank doesn't take a loss.  Unfortunately for people that are in your shoes (I was there too) there really aren't that many other options...

[Anonymous]

I understand I will have to pay certain fees, get screwed on certain deals, because essentially that's what I did to some of these companies.  However, Is it truly worth $270 the first year in interest, processing fee, and annual fee? 

Also, any chance someone is recommending this card because they pay $50 for all recommendations?

[Anonymous]

Acidsniper.

i am in the same situation and would like to know what you guys think of the BANK OF AMERICA secured credit card? also, how did your "balance" got up to $1500 when you only deposited $300? The amount of deposit you put is what your credit limit is..correct?

Also, after the card becomes unsecured after a year...do you still have to pay the annual fee?

[Anonymous]

It is not exactly like a debit card. The way this card works is, you put money into a savings account, and they keep their hands on it and if you don't pay, they can take it under the circumstances outlined in the agreement. Using the card does NOT reduce the amount of savings in your account. The actual workings of the card are like any other credit card. You charge stuff, you get a bill, you pay it. If you don't pay, they pound on you, put late pays on your credit file, charge fees. If you continue to be unwilling or unable to pay, at some point in the process, they take money out of your savings account that they have, sufficient to pay what you owe. If it were exactly like a debit card, when you bought things, that would reduce the money in your savings account right then, and you would be under no further obligation. Wells Fargo has a secured card with an $18 annual fee, and a grace period where you don't pay any interest if you pay the bill in full within the allotted time. That's the card to get, if you can get it, I think.

[Anonymous]

Yes you still pay the annual fee, the balance went up because after a year of good payment history and you receive the deposit back you can call the company and ask for a re-evaluation, they will in turn look at your payment and useage history, and increase your line (i do this every 12 months) I have asked for a re-evaluation twice, and got bumped to a $800 line the first, and it got bumped to $1,500 the second time.

But yes initially the first deposit you make is the initial credit line avail for the first year...  You can always add more as well if you want, all up to your financial abilities.

As far as the BofA card, I work for another large financial institution, and have several co-workers from BofA, they said they wouldn't recommend it since they don't have a credit increase option and are quick to jump the gun and close the card if you miss just 1 payment or pay just 2 days late.

[Anonymous]

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MikeToreno wrote:
Wells Fargo has a secured card with an $18 annual fee, and a grace period where you don't pay any interest if you pay the bill in full within the allotted time. That's the card to get, if you can get it, I think.

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Didn't know about the WF card, I'll have to look at it... Do you know if they offer a credit increase option??

[Anonymous]

I never even knew that New Millennium Bank has secured credit cards...Do you know if i would be able to apply for this card if i go in person?

[Anonymous]

http://www.nmbdiamondcards.com/index.php?id=h56451403h

[Anonymous]

there is a $150 "processing fee" for this as well?

I was just at their website and that application said $35 processing fee...

[Anonymous]

I know when I signed up there was a $35 processing fee, there wasn't any $150 fee, then again this was over 2 yrs ago too may have changed...  The best thing to do, is call them and ask all of the pertinant questions:

1. Fees (processing, admin, annual)

2. Interest Rates

3. Deposit return policy

4. Credit increase re-evaluations

5. Reporting bureaus

6. Frequency of reporting

7. Grace period details