i closed down my secured credit card do i have to pay the balance if its my own money?
i applied for secured card at bank of america last year using my own money of $300 as a collateral deposit and now i closed the account since i am building a credit score through car loans and i was qualified for capital one credit card. and today i received a letter from the bank that i have to pay my remaining balance on the secured credit card. Why do i have to pay my own money. i have $286 balance left in the card. please help
- bdancer222Lv 78 years agoFavorite Answer
You have to pay the card off and then the collateral will be returned. Secured cards are NOT like prepaid cards where you put money on the card and use it up.
If the secured card has to take the collateral to cover the balance owed on your card, it will be reported as a defaulted account -- you didn't pay and they had to take the collateral. It really makes a difference.Source(s): BD
- Go with the flowLv 78 years ago
You have to pay, then they give you your $300 back.
Just the way things work.
With that capital one card. Be very careful with them.
To get good credit use the card for things you need like food or gas.
Pay in full each month.
0% interest or 99% does not matter when it comes to credit scores.
Carrying balances can cause serious harm to credit scores. Never do it.
- Rick BLv 78 years ago
Of course you must pay it! Once you pay it of they I'll return your deposit to you.