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Secured Credit Card Application

SeptusSeptus Registered User regular
edited February 2009 in Help / Advice Forum
I applied for a secured credit card, and sent in my check for(it's been deposited). Well, three weeks later I'm finally getting a follow-up email saying that the application is almost finished. First of all, how much should I be worried about the time this is taking? I don't see why the application process should be hard at all, the deposit should be all the safety they need.

Should I be worried about them emailing me and asking me to call, or email, with my home address, birth date, and last 4 numbers of my social? I'm pretty sure my earlier application would have at least included my address and birth date.

PSN: Kurahoshi1
Septus on

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    bowenbowen How you doin'? Registered User regular
    edited February 2009
    Wait a second. You sent a check in for a credit card application?

    bowen on
    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
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    DeathwingDeathwing Registered User regular
    edited February 2009
    This sounds rather fishy - what company is this card through?

    Deathwing on
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    DustyBottomsDustyBottoms Registered User regular
    edited February 2009
    Guys, a secured credit card is a credit card that requires a certain amount of money to be deposited in an account to back the card. It's for people who have no credit history. Probably not a big shocker that he had to send in the money with the application.

    DustyBottoms on
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    DeathwingDeathwing Registered User regular
    edited February 2009
    Guys, a secured credit card is a credit card that requires a certain amount of money to be deposited in an account to back the card. It's for people who have no credit history. Probably not a big shocker that he had to send in the money with the application.

    I would think that they would wait till the application had been approved before asking for the deposit, but maybe i'm way off the mark. Re-asking (and by email) for the address, birthday, and partial SSN when presumably all that & more was on the application seems more on the strange side, really.

    If we're talking about one of the large national banks here or a local credit union or something here, OP, I think a call to their customer service would be in order just to make sure everything is kosher.

    Deathwing on
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    SeptusSeptus Registered User regular
    edited February 2009
    Yeah, I sent the check assuming that the approval would be swiftly forthcoming.

    I don't recall whether I gave them my SS info in the application, but the other info seems likely. But presumably giving just my last four digits at this point shouldn't be dangerous, just perhaps dumb and inefficient?

    Unfortunately it's not a big national bank, I don't remember seeing any, that offered a secured card with decent terms.

    Septus on
    PSN: Kurahoshi1
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    bowenbowen How you doin'? Registered User regular
    edited February 2009
    Ah well. That changes things slightly. I missed the D on secured.

    bowen on
    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
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    benholiobenholio Registered User regular
    edited February 2009
    Be very careful with your a secured credit card. Make sure you actually read all the fine print in your Terms of Agreement.

    And not to sound like a downer but you might not even be able to use your card once it arrives. You will likely have a very low credit limit and most of it will be used right off the bat for the fees they charge. I don't know what fees the check you sent to them covered, but the fees you will most likely be charged are the secured amount, of course. You will probably also be immediately billed (on the card) for an application fee and an annual membership fee. These will usually take up most of the credit line that has been extended to you.

    If you are still able to cancel the application, I would do it as quickly as possible unless you are really hurting for a credit card. I used to work for a card company called Metris, which operated under the bank name of Direct Merchants Bank and saw so many people get fucked over by secured cards. Just be careful.

    benholio on
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    SeptusSeptus Registered User regular
    edited February 2009
    Well I was warned about that very issue. The only fee I saw was the annual fee of 50 or 60 bucks, and that was listed as being taken out of my deposit right off the bat.

    Any other specific issues? I feel like I really need one, as i've got to start earning credit, and you'd be the first person to recommend against the idea of secured credit cards in general.

    Septus on
    PSN: Kurahoshi1
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    ZeonZeon Registered User regular
    edited February 2009
    How old are you? I had a hell of a time getting a credit card, it literally took me 2 solid years to finally get one. All the banks were telling me to go with a secured card. Honestly, its a rip off. Youre basically paying money to get a line of credit. That money is locked for a long time (the minimum i saw was 2 years) before they even consider extending you a real line of credit. And if you fuck up and dont pay, it still trashes your credit score and you "lose" your deposit and probably your card priviledges.

    My advice would be to wait it out, apply every 3-6 months with a different company. Eventually you will get one of those "Pre-approved!" applications in the mail, fill it out and send it in and youll get a real credit card.

    Oh and stick with a major bank or reputable lender/business.

    Zeon on
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    DmanDman Registered User regular
    edited February 2009
    I just find this odd because I had no trouble getting a credit card as a teenager with only part time work and no credit history....

    Did they stop handing out credit cards like candy because of the recession or something?

    Dman on
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    DjeetDjeet Registered User regular
    edited February 2009
    Have you tried getting a gas card? Just fill up and buy whatever you normally might buy at the gas station and pay off the balance in full every month. This is likely to build your credit as fast or faster than a secured line.

    If the secured line is already a done deal I'd keep that and make sure it's up to date with the minimal activity needed to keep it alive and also get a gas card.

    Dman: Yes they did. I mean I assumed everyone noticed the drastic drop in credit offers in the mail that's occurred over the past 3-6 months.

    Djeet on
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    SeptusSeptus Registered User regular
    edited February 2009
    I haven't received any pre-approved credit card offers ever since I left college(so dumb of me not to get one), and that was 4 years ago. I'm not expecting to get one, and I did apply twice, and both times I was rejected for lack of sufficient credit history. I'm not sure how much longer I can afford to wait, if I want to have decent credit for a new car or house in the next couple of years.

    My impression was that I didn't need to have the bank giving me the secured card, to offer me real credit later. I just build credit with the card, and apply elsewhere at some point, like a year down the road.

    Septus on
    PSN: Kurahoshi1
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    JHunzJHunz Registered User regular
    edited February 2009
    Septus wrote: »
    I haven't received any pre-approved credit card offers ever since I left college(so dumb of me not to get one), and that was 4 years ago. I'm not expecting to get one, and I did apply twice, and both times I was rejected for lack of sufficient credit history. I'm not sure how much longer I can afford to wait, if I want to have decent credit for a new car or house in the next couple of years.

    My impression was that I didn't need to have the bank giving me the secured card, to offer me real credit later. I just build credit with the card, and apply elsewhere at some point, like a year down the road.
    I was in practically the same boat as you six months or so ago. But when they rejected my application, I called them up and explained to them that I had a secure job with a decent household income, and the only reason I didn't have a credit history was that I never needed one before. The agent I spoke to was able to get me approval while I waited.
    There's a reason they put their number on the rejection letter if you have any questions. It's worth a try to see if you can talk them into it. If you have a stable job with a good income, chances are you'll be able to.

    JHunz on
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    TreelootTreeloot Registered User regular
    edited February 2009
    Zeon wrote: »
    How old are you? I had a hell of a time getting a credit card, it literally took me 2 solid years to finally get one. All the banks were telling me to go with a secured card. Honestly, its a rip off. Youre basically paying money to get a line of credit. That money is locked for a long time (the minimum i saw was 2 years) before they even consider extending you a real line of credit. And if you fuck up and dont pay, it still trashes your credit score and you "lose" your deposit and probably your card priviledges.

    My advice would be to wait it out, apply every 3-6 months with a different company. Eventually you will get one of those "Pre-approved!" applications in the mail, fill it out and send it in and youll get a real credit card.

    Oh and stick with a major bank or reputable lender/business.

    Pre-approved does not guarantee you'll be approved. I took credit cards applications for Citibank and people would call up all the time bitching about how they'd received pre-approved applications and been denied.

    Treeloot on
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    tsmvengytsmvengy Registered User regular
    edited February 2009
    Wow, even the bank that you have your bank account with wouldn't give you a card with a $250 limit or something to start building credit?

    tsmvengy on
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    SeptusSeptus Registered User regular
    edited February 2009
    My bank only has a credit card that is offered through another bank, otherwise I probably could have.

    Well I do like the idea of applying for a real credit card and just talking to a CS rep about it, but I never thought about it, because I kept reading how it was common to be unable to get a card with no history.

    I'll think about trying to cancel this if I can, though it makes me ansy with no guarantee of a real credit card.

    Septus on
    PSN: Kurahoshi1
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    ZeonZeon Registered User regular
    edited February 2009
    Septus wrote: »
    I haven't received any pre-approved credit card offers ever since I left college(so dumb of me not to get one), and that was 4 years ago. I'm not expecting to get one, and I did apply twice, and both times I was rejected for lack of sufficient credit history. I'm not sure how much longer I can afford to wait, if I want to have decent credit for a new car or house in the next couple of years.

    My impression was that I didn't need to have the bank giving me the secured card, to offer me real credit later. I just build credit with the card, and apply elsewhere at some point, like a year down the road.

    Well, i was able to get bank loans twice (one for 10,000 dollars and one for 30,000 dollars) while still unable to get a credit card. So i mean, im not sure what the deal is with us but i was in basically the same position as you and eventually it worked out fine. But no, you dont need to wait for the bank you issue you real credit, youre perfectly fine to wait a few months/a year and apply for another real credit card, but what i was saying is the bank is basically going to hold on to your security deposit at least until that card expires, so i mean youve basically just locked away 500/1000 dollars of your own money for most likely a minimum 2 years, from all the "secured" cards ive read about.

    And to the other guy, no, banks havent stopped being generous with credit. My downstairs neighbors at that point had no job, and had 5 credit cards they were living off of (they used to brag all the time how they had about 30,000 worth of debt and were living off their cards for "free"), and at the same time i had a steady job for 2 years, made a decent amount of money AND had a proven credit history. Yet i still was denied for every card i applied for. Some people are just unlucky i guess. I also get fucked over royally on insurance premiums compared to everyone else i know, so maybe my ID is tagged as high risk in some database somewhere.

    Zeon on
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    mcdermottmcdermott Registered User regular
    edited February 2009
    Septus wrote: »
    I haven't received any pre-approved credit card offers ever since I left college(so dumb of me not to get one), and that was 4 years ago. I'm not expecting to get one, and I did apply twice, and both times I was rejected for lack of sufficient credit history. I'm not sure how much longer I can afford to wait, if I want to have decent credit for a new car or house in the next couple of years.

    My impression was that I didn't need to have the bank giving me the secured card, to offer me real credit later. I just build credit with the card, and apply elsewhere at some point, like a year down the road.

    Yeah, getting the first line of credit is always the pain in the ass.

    Out of curiosity, had you tried store cards? Like, a Target card or something. They're more liberal with their approval (at least on the in-store only card, not the Target Visa) than the average "real" CC issuer will be. But it's still a line of credit, and builds credit history.

    I was incredibly lucky on this front, because I was able to get an AAFES card (military exchanges on post, so basically a store card)...they issue those to pretty much any soldier that wants one, because they have direct access to your paychecks if you don't pay. My second card, however, was a Target card. $300 limit, horrible interest, but hey it builds the history. Just don't carry much of a balance (or any balance at all) and you're good to go.

    mcdermott on
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