What happens to the deposit on secure credit cards?
I'm researching starter credit cards, and I've seen with secure cards, you have to put down a deposit, and that becomes your limit. My question is, what happens to the deposit? Is it just held in case you can't make your payment? If you cancel the card, do you get it back?
- Silly GooseLv 78 years agoFavorite Answer
It's like a checking account (in a way).
You use the money in the account.
Make sure you replace it once a month when you get the bill.
Carrying balances (not paying in full) is a fast way to destroy credit.
When you close or cancel the card, you get the balance you have back.
- 4 years ago
in case you are able to no longer pay the deposit required for a secured mastercard, you have no company establishing an account. Your account would be closed and the creditor will notify the credit bureaus which you probably did no longer pay the deposit. this might permit all different lenders understand to circumvent you interior the destiny in view which you're a credit possibility.