You can get your secured credit card deposit refunded when closing your credit card or when the issuer upgrades you to one of their unsecured credit cards. Your deposit will generally be refunded to your bank account, or your credit card company can issue a check for it.
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 having paid your entire balance. 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 on the back of your card and ask for specific information about whether your deposit is refundable.
It usually takes 12 to 18 months for a secured card to become an unsecured card, if used responsibly. Exactly how long it takes for a secured card to become unsecured depends on the card issuer, how the account is managed, and whether or not the card even has the capability of graduating in the first place.… read full answer
Credit card graduation is when a secured card’s security deposit is returned to the cardholder and the card, in turn, becomes unsecured. Graduation to an unsecured card could occur in as little as 6 months, but it could also take several years. In addition, some secured credit cards won’t graduate no matter how long you have them or how good your account history is. You can always call the card issuer’s customer service line to see if your secured card is eligible for graduation, though.
Secured card issuers may also review your account once or twice a year to evaluate it for automatic graduation. To maximize your chances of automatic secured card graduation, pay on time each month and keep your credit utilization low. But remember: Graduation is never a guarantee.
To get a Capital One Platinum Secured card security deposit refund, you will either need to close your account and pay your balance in full, or you can earn it back as statement credit by using your card responsibly and graduating to an unsecured card. Capital One Platinum Secured deposit refunds are sent to you as checks in approximately two billing cycles. If you have an unpaid balance or owe any fees, Capital One will deduct the amount owed from your deposit refund. … read full answer
Capital One may also refund a secured card deposit if the card graduates to an unsecured card. Capital One periodically reviews accounts and upgrades select Capital One Platinum Secured accounts to unsecured Capital One Platinum Credit Card accounts. In this case, your deposit refund will be credited directly to the unsecured card account within two billing cycles. You will also receive an email or letter informing you that you have been upgraded to an unsecured Capital One Platinum account.
The annual fees on secured credit cards with no credit check range from $29 to $49 per year. All of the cards require a $200 security deposit. And they all report information to the big 3 credit bureaus each month. So any of them can help you immediately begin rebuilding your credit.
Still, it’s important to note that even a secured credit card with no credit check has some approval requirements. You have to be at least 18 years old, for one thing, and you need enough money for the refundable security deposit as well as monthly bill payments.
Why You Shouldn’t Rule Out Secured Cards With a Credit Check
Before you apply for a secured credit card with no credit check, make sure you actually need it. Even secured cards that require a credit check are pretty easy to get. They’re meant for people with bad credit, and the refundable security deposit you place reduces the risk for issuers.
Individual issuers may have specific requirements that rule some people out. For example, you can’t get most secured cards with a non-discharged bankruptcy on your credit report. But there are plenty of other cards whose main requirement is that you have enough money to fund the security deposit. And while they may do a credit check, most applicants should still get approved.
The hard inquiry that comes with a credit check shouldn’t be too big of a deal, either, if you end up opening an account. The score damage will be temporary. And you won’t be able to qualify for any worthwhile loans until you improve your score anyway. So if you don’t need the best possible score right now, taking a short-term hit to achieve long-term gains is the way to go.
Finally, if you’re nervous about getting rejected, you can check for pre-approval before applying. Pre-approval doesn’t mean you’re guaranteed an account. But it is a sign that your odds of approval are extremely high. If after all that you’re not confident in your ability to get approved, you can always go for a secured credit card with no credit check.
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