The deposit for a secured business credit card is held by the card issuer as collateral, most often in a savings account, until the cardholder either closes the credit card account or “graduates” to an unsecured business credit card. As long as the cardholder pays the balance on the card in full, the deposit will be returned to them. The deposit may or may not earn interest while the card issuer holds it.
Some secured business credit cards will allow you to increase your credit limit anytime by depositing more money into the savings account. However, you can’t withdraw anything from that account. So keep in mind that any deposits you make won’t be available for withdrawal until you close the account.
To get your deposit back, you should first make sure you’ve paid your balance in full. Then, either close the account or ask about “graduating” to an unsecured credit card - though it’s worth noting that not all secured credit cards “graduate” to unsecured cards. After that, the card issuer will most commonly send you a check in the mail, or they may add it as statement credit to your new unsecured credit account or a deposit account of your choice. Some secured business cards will only have one option for a refund.
It’s important to consider that the refund for a secured card deposit may not be as quick as you’d assume. It could take anywhere from 30 days to a few months, depending on the card issuer. If this is concerning, make sure to review your secured business card’s terms - or call customer service to ask how long the refund will take - before you apply for the credit card.
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