Advice For Bank of America Secured Visa Credit Card

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Goku
 
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Advice For Bank of America Secured Visa Credit Card

Postby Goku » Wed Nov 17, 2010 3:39 pm

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. :)


Parker19904
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Postby Parker19904 » Fri Nov 19, 2010 12:51 am

Goku wrote: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. :)


No, your security deposit is exactly the amount of your credit limit.

If you make a security deposit for $300, then your balance on your card will be $0 with a $300 credit limit. Just exactly like an unsecured card. Keep in mind that if you don't repay your card balance in full during the grace period, you will be charged interests (they will consider that you owe them this balance). Your security deposit is kept separately just in case you default on your payments.

In case you are declined for this service (FIA is the card issuer for BofA, and their criterias are strict), you can also try with Capital One, they offer a secured Mastercard (min. deposit of $200 and max. $3,000) and the annual fee is quite affordable ($24). The Capital One card is very easy to obtain and you have an immediate response when you apply online.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat Nov 20, 2010 3:45 pm

I would choose the Bank of America Visa secured credit card over the debit card despite the $39 annual fee. A debit card won't help your credit history, but a secured card if you use it the right way. On that note if you are a student, you can probably get approved for a credit card without an annual fee.

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