Hello, I am applying for my first credit card ever with the Bank of America Secured Visa credit card and I had some questions on how it works.
First of all, would a positive balance mean that's what I owe? And a negative balance mean thats what they owe me?
I need to make a starting deposit and whatever the amount is will determine my credit limit. So if I make a $300 starting deposit it says my credit limit will be $300.
Therefore, when I make that $300 starting deposit will my beginning balance be -$300 then? So if I had a $300 credit limit does that mean I can spend up to $600 to start? (my negative $300 starting balance to my positive $300 limit would be $600 total is my logic). And then pay off the remaining $300 at the end of the month to bring it back to $0.
My aunt thinks that my $300 starting deposit means I only get to spend that $300. Whats the point then? Why not just use my debit card and avoid the $39 fee? If thats the case then it seems like I'm just losing money. I'm wanting to buy a $600 product now and pay it off at the end of the month when I get my paycheck. I hope that makes sense, because the Bank of America Secured Visa is very confusing. If you need me to clarify I will.
Also, it says there is a $39 annual fee. Is that fee due at the start or after the first year?
Thank you very much for help in advance.