Secured Credit Card Question

However, would be possible if I were to open a secured credit card by applying at a Wells Fargo with an initial deposit of say $5000 and after receiving the card in the mail, withdraw my initial $5000 deposit?

Any advice is appreciated.

Edited: 06/26/2010 at 06:31AM

Dustin Lyle

Real Estate Investor · Kentucky

123 posts
480 Influence
2 Awards

Icon_minipost Dec 02 '08, 06:17 AM

Withdraw from the card or from your account? If you close the account (ie. withdraw your money) you will have VERY harsh penalties. And if you spend the 5K.. Well, You now owe them 5K plus interest, plus over the limit fees, (because they will have a monthly fee on top of your finance fees), AND a new APR somewhere around 28.9%.

Your best bet for something like this is to get a CD for 5K... Then get a secured loan against the CD.. The finance rate will be between 1and 2% of what you are gaining from the CD.

There are a lot of good things about this, here are a couple.

1. If you set it up on an automatic payment, they cut the finance fees.

2. Most banks report payment on this loan to credit agencies, hence, building credit FAST. This shows possible credit vendors that a) you have something to loan against, and B) you pay on time.

Good Luck,
Dustin

Edited: 06/26/2010 at 06:31AM

Alina Nicol

· Eugene, Oregon

36 posts
1 Award

Icon_minipost Dec 02 '08, 11:10 PM

If you are trying to establish credit try and remember that the size of the limit has little to do with building credit. I can refer you to a couple of unsecured credit cards with low limits that can get you started to re-building your credit. I AM a credit expert. Unsecured is going to help you more. These are not affiliated with the company I work for. I actually used these cards to help re-build my own credit. Everyone gets approved unless they have had these cards before and defaulted on them. The limits are like $175 and $300 and the interest rates are high but that is the price you pay for less than good credit. They will increase your limits over time and remember, the interest rate is irrelevant if you keep a 0 balance on your cards. Use them to pay your bills and pay them off every month. Please let me know if I can post the links. I'm not trying to break any forum rules.

Edited: 06/26/2010 at 06:31AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4293 posts
43789 Influence
15 Awards

Icon_minipost Dec 03 '08, 12:03 AM

If allowed to post, please do. Also, why would ANYONE want to live in Eugene? 30 years ago, I retired to Curtin(30 milese south) Nd the rain drove my family of 8 absolutely wacko. I had moss on my pine trees YEAR ROUND!! That is wet.

Edited: 06/26/2010 at 06:31AM

Alina Nicol

· Eugene, Oregon

36 posts
1 Award

Icon_minipost Dec 03 '08, 12:13 AM

Ha ha actually, I'm 8 months pregnant, and a few months ago I moved off the island of Kauai to Eugene OR to have my baby near family. The medical care on the tiny island was pathetic and I was having to drive 2 hours away to my appointments. Plus the branch in Kauai was up and running so we moved here to open another. We plan to move back to OC around September of 2009. Once the branch is established here will will open yet another down in OC. It's nice here.... I went to college here ;b. My view overlooks the wetlands. No I didnt much care for Kauai.. the island was closing in on me. :)

Edited: 06/26/2010 at 06:31AM