Do I get my deposit back from a Merrick Bank secured credit card?

You can get your secured credit card deposit refunded when you close your credit card account after paying the balance in full. Alternatively, you may also receive your refund back when the issuer upgrades you to one of their unsecured credit cards. Secured credit card issuers will eventually return your security deposit by sending the funds to your bank account, issuing a check, or providing a statement credit.... read full answer

Ways to Get the Deposit Back From a Secured Credit Card

• Refunds for closed accounts: When you close your account, the security deposit will be refunded to you after paying your entire balance. Otherwise, your security deposit is applied to any unpaid balances.
• Refunds for upgraded accounts: Some secured credit cards can graduate to unsecured credit card accounts. If this happens, your security deposit will be refunded to you.
• Refunds for decreased limits: If your credit limit is decreased, the difference will be refunded to you.

Since the refund policy varies from one issuer to another, it is best to call the number you see on the back of your card and ask for more information regarding your deposit.

Closing a secured credit card has the potential to hurt your score. But that’s not because it’s a secured card. You run the risk of a slight drop in your score when closing any credit card because it can make your credit history seem shorter and reduce the total amount of credit you have available. And the impact usually is most significant when you close your oldest account.... read full answer

All else being equal, it’s best to keep unused accounts open. But it’s a slightly different story if you’re paying an annual fee or leaving a deposit in the custody of your card’s issuer. That’s especially true if you don’t need your credit score to be in top shape in the very near future. You don’t want to waste money on something you never use, after all, or give your card’s issuer an indefinite loan. And since secured cards typically don’t pay interest on deposits, there are far better uses for your fee and deposit money in the long run. For example, if you placed a $200 deposit on a secured credit card in 2008 and never closed your account, that $200 would still be $200. But if you invested that money in an S&P 500 index fund, you’d have more than $600 today.

Of course, you’d need to use a secured card for a while to improve your credit score enough to qualify for an unsecured card. And if you consistently pay your secured card’s bill on time, the issuer may offer to refund your security deposit. So it’s important to weigh all the different variables before deciding whether or not to close a secured credit card. And that includes how soon you plan to apply for a mortgage, auto loan or other major financial commitment for which your credit will be checked. A bit of temporary credit score damage won’t cost you if you don’t try to borrow until your score rebounds.

Here’s what you need to know about closing a secured credit card:

• If you close the card, your average account age decreases and your total credit utilization increases. This may lead to a temporary credit score drop.
• If you don’t close the card, it will continue to report positive information to the credit bureaus each month, even if you don’t use it and there’s no balance.
• If your card charges an expensive annual fee, you may want to close it rather than pay every year for a card you’re not using.
• When you close a secured credit card, you’ll get your deposit back minus any outstanding balance.
• Some issuers will let you graduate to an unsecured card after consistent on-time payments. That means you’ll get your deposit back and often receive better benefits on your card.

In all, closing a secured credit card might not be the greatest idea. But most secured card users do it at some point. And you can lessen the impact with good timing.

No, you cannot get a secured credit card with no deposit. In fact, having to place a security deposit is the only thing that’s unique about secured credit cards. Apart from that, there are no other differences between secured and unsecured credit cards. You can, however, get a secured card with a low deposit. Plus, there are some ... read full answercredit cards with no deposit for people with bad credit. But they tend to be more expensive in the long run, thanks to high fees that you don’t get back.

Here are some of the best secured credit cards with low deposits:

Any of these cards will help you rebuild your credit if you use it responsibly. That means paying your credit card bill on time and in full every month, and keeping your credit utilization below 30%.

Finally, it’s worth noting that although you can’t get a secured credit card without a security deposit, you may still get your deposit back after a while without closing the account. After months of responsible use, your card’s issuer may offer to refund your deposit. They may graduate you to a better offer or give you an unsecured line of credit on your existing account.