101 Credit Cards FAQ
Having credit cards basics understanding and what they can entail allows you to make the best financial decisions for you and your family. It will also make this whole process a lot smoother. When you know what to expect, which documents you need to prepare for your application, or how much a credit card can cost you, there will be no unpleasant surprises down the line for you. So, take a look at some of the Credit Cards FAQ (frequently asked questions) about various card features and fees to learn more.
Persons interested in applying for a credit card must be at least 18 years old. Anyone younger than that can get co-signed to an adult’s credit card, thereby becoming an authorized user.
After you’ve checked your credit score, determined what type of card you need, and chosen a credit card issuer, you need to submit an application for a new credit card. You can do this in a branch, via phone, or online. The issuer will accept or deny your application based on your credit report.
Having a credit card should be able to improve your credit score, under the condition that you are a responsible cardholder. This means that you need to pay your credit card bills in full and on time, as well to keep your monthly spendings well under your pre-set credit card limit.
In order to apply for a credit card, you’ll need to gather the following documentation:
- Identity proof
- Address proof
- Income proof
- Age proof
In order to get your own credit card, you need to meet certain criteria. Persons under 18 can only get co-signed to an adult’s credit card; they cannot owe one by themselves. More importantly, you need to have at least some credit score to be eligible for a credit card.
Different types of credit cards come with different pre-set limits. This amount is determined by your credit card issuer based on different factors such as your income, your debt-to-income ratio, your credit history, and the pre-set limit on your other credit cards (if you have any).
Yes, you can avoid paying interest charges on your credit card for as long as you pay off purchases in full by the time your monthly statement is due and stay away from cash advances. To avoid interest on balance transfers, you should pay off your debt within the introductory 0% APR period.
Credit cards are plastic, electronic payment cards that allow you to buy product and services, get cash advances, and pay off debt on other credit cards by borrowing money from a card issuer under one condition – you need to pay back the issuer at the end of each month.
Being a cardholder doesn’t have to cost you anything at all, but it can also cost you hundreds of dollars on a monthly basis. This depends on the type of credit card and the issuer you choose, but also on how many penalties and additional fees your credit card behavior triggers.
Yes, a credit card limit can be changed. If you are a responsible cardholder, most credit card issuers will increase your limit every 6 to 12 months. In case you can’t wait for that long, you can submit a request in a branch, via phone, or online.
Paying with credit cards is extremely convenient because it’s similar to getting a short-term loan. In addition to being fast and secure, credit cards also come with special perks and benefits such as discounts and cashback. They are especially useful for online shopping.
Few Featured Credit Cards
Balance Transfers Credit Cards FAQ
Balance transfers can help you save a lot of money. You can move your balance from a high-interest credit card to one with a lower interest rate. You can avoid having to deal with the bad terms from your current issuer, or help a family member who’s in debt. However beneficial they may be for you, it’s still good to get as informed about balance transfers as possible. So, check out this Balance Transfer Credit Cards FAQ section that should answer all your questions.
Once the balance transfer is complete, your old accounts will be free of any debt. You might be wondering if it is mandatory to close them once everything has settled. The simple answer is no. There is no credit card company that will ask you to do so after the transfer is complete.
Keeping them open is beneficial, as it will help you improve your credit score. If you intend on using the old accounts, be mindful of the limit and continue to make regular monthly payments on time.
People usually wonder if they can save more by moving a balance from a card where the interest-free period is about to expire to a new card. Paying out debt in the interest-free fashion appears as an attractive idea. The best part is that it is also possible.
To make the most out of it, do your best to pay off as much as you can and then apply for a new card and balance transfer.
The only downside of this is that the new issuers will have insight into your last balance transfer request, and might offer you a significantly shorter interest-free period.
People often get their balance transfer request declined due to the following reasons:
- Poor credit report and credit score – once you apply for a balance transfer, the issuer will look into your credit report and credit score to assess your creditworthiness. If you were late with payments in the past or have collection accounts, the issuer will most likely deny you the balance transfer.
- The balance transfer will exceed your credit line – during the approval process, the issuer will also assess how the balance transfer will affect your credit line. If the balance transfer exceeds your credit line, you will most probably get declined. If your credit line is too small to begin with, you will most likely be declined.
- You have made too many balance transfer requests recently – credit card companies have to trust you to allow you a credit balance. If you go on a balance transfer application spree, you will appear as someone who has no control over their purchasing behavior or is desperate for another credit.
- Your balance cannot be transferred – even though it is advertised as a financial lifeline to help you transfer the balance from virtually any card or loan, in reality, there are some restrictions. If you applied for a balance transfer with a company that doesn’t support transfers from the type of card you own, you will be declined.
Not every balance transfer is bound to save money. Before deciding which credit card company to choose and whether to do a transfer at all, you will have to do calculations on your own.
Start with assessing how much you will have to pay off if nothing changes (don’t forget to include the interest rate on your current card).
Once you have the total amount of your debt, start looking at offers. Assess how much money you can pay monthly. Take the balance fee, 0% APR period, and interest rate that kicks in after it into account.
See how much debt remains after the intro period is over, and calculate the interest rate on the remaining sum to see how much money a balance transfer will help you save.
The balance transfer process is very simple. Most of the paperwork today is done online via forms on the website or email. First, you will have to submit information when opening a new credit card. Secondly, you will have to submit a “Balance Transfer Request Form“.
Additionally, you should consider going through the terms of the card issuer to make sure that they are not restrictive, identify the potential penalties, and if there are any additional fees (Late payment fee, returned payment check fee, annual fee, and so on).
A balance transfer is a financial tool consumers can use to move their balance from one credit card to another. A balance transfer doesn’t come with restrictions in the number of cards and loans a consumer can move the balance from.
The primary purpose of the balance transfer is to simplify the management of finances while saving money for the consumers in the process.
The mechanism behind a balance transfer is very simple. A consumer moves a balance from a high-interest credit card to a new credit card.
This new credit card comes with a 0% APR intro period, and a lower interest rate, thus allowing consumers to pay off their debt faster and save money that would be otherwise wasted on paying high-interest rates.
There are several factors that can affect the time required for a balance to be completed. Generally speaking, it can take between 7 and 10 days for the entire procedure to be completed.
The chances are that the credit card companies handling all things electronically will be able to deliver the service much faster than those that still do things over mail.
Where is the major holdup? Once a consumer applies for a balance transfer, the issuer has to do a background check and customize the offer according to a consumer’s current financial situation.
This phase can last a couple of days. The information submission and signing papers fall right behind the previous phase.
A balance transfer has several uses:
- Move a balance from a card with a high-interest rate – a balance transfer gives consumers the precious opportunity to get rid of the credit card with a high-interest rate. By transferring the balance to a new card with a significantly lower interest rate, consumers can save a lot of money.
- Consolidate debts to make managing finances a straightforward process – making regular payments every month is a daunting task. Especially if a consumer has several credit cards. A balance transfer will help these consumers consolidate debts and pay off just one debt.
- Help a family member in need – a balance transfer is not reserved only for the card user. Consumers can apply for a balance transfer to help family members pay off their debt.
- Avoid bad terms – some credit cards have very restrictive terms. To change the issuer, a consumer has to pay off the entire debt. A balance transfer can speed things up, and help consumer switch to an issuer that offers beneficial terms.
- Transfer loans balance to a new card – balance transfer also works for loans. This is why consumers often use it to pay off loans and just focus on paying off a single debt on a single card.
Once you report a credit card as lost or stolen, a credit card company will most likely open a new account in your name. But this is not a brand new account, as the company will transfer all your data when opening it, including the transaction history and account open date.
Until this process is over, you won’t be able to request a balance transfer. But once it is completed and you get a new credit card, you will be able to apply for a balance transfer.
The balance transfer comes at a price. Most commonly, you will have to pay a balance transfer fee. This fee will be 3 to 5% of the total amount you want to transfer, and it is paid only once.
There are some credit card companies, though, that also includes an annual fee. Make sure to go through their terms to find out if there are any additional fees that you will have to pay.
More Credit Cards FAQ
Yes, as long as you use your card responsibly. It doesn’t matter what kind of credit card you have, all card issuers report your behavior to the major credit bureaus, and if you’re paying off your credit card debts on time, you will improve your credit score.
Once you’ve rebuilt your score with a 100% approval credit card, you might want to consider upgrading to a better card. Guaranteed approval cards come with higher rates and fees and fewer rewards. With a better credit score, you will be able to get a better credit card and enjoy the benefits of various new rewards and bonuses.
If you need a credit card for poor credit, the best 100% approval card alternative would be a secured credit card. This credit card is available to those with poor credit or little/ no credit history, and it comes with much more favorable fees and rewards.
You do need to make a deposit to get this card, however. Typically, the amount that you deposit would be your credit card limit, but this depends on the issuer. The deposit will be used as collateral if you fail to make your credit card payments on time. However, if you pay off all of your credit card debts on time and decide to cancel your secured credit card, you will get your deposit back.
Related Reading: Secured credit cards explained
100% approval credit cards and instant approval credit cards are not the same. Guaranteed approval cards are designed for those with poor credit, and have very light requirements for approval.
Instant approval cards, also known as instant decision cards, are normally (though not exclusively) designed for those with good or excellent credit scores. Applicants will be notified within only a few minutes about the status of their application, hence the name “instant” approval.
To find out about the status of your application for a 100% guaranteed approval card, you will typically have to wait for about 7 to 10 business days depending on the issuer.
Although it isn’t always required for you to notify your bank or credit union about your travels abroad, it is in your best interest to do so. If your credit card is used in a foreign country, and the transactions seem suspicious to your card issuer, they might decide to freeze your account in the fear that your credit card was stolen.
If this happens, you can always contact your issuer and explain the situation. However, unfreezing a credit card can take anywhere from a few seconds to a few days, potentially leaving you with no money in a foreign country for an extended period of time.
To avoid this, you should always notify your credit card issuer about your travels beforehand, make a Travel Notice, even if you have a no foreign transaction fee credit card.
You can make multiple applications for a bad credit credit card, but you shouldn’t. If possible, you should always avoid making multiple credit card applications in a short period of time. When you apply for a credit card, the issuer will perform a full credit check which will leave a trace on your credit report and damage your credit score. Too many applications in a short period of time will make it seem like you’re in a bad financial situation and are in a hurry to get some cash. Many issuers won’t like this.
The full credit check will temporarily lower your credit score, but its effect will fade over time. Within a year, your score will return to normal, and the credit check will be visible on your report for about 24 months. You should wait at least 3 to 6 months before applying for new lines of credit.
Most no annual fee cards do offer some nice rewards to cardholders. However, the rewards might not be as great as those that come with a credit card with annual fees. You can still enjoy all the perks of having a credit card, you can collect points, get cashback credit cards, etc., without paying for the high annual fees.
When choosing your credit card, it’s important to check how beneficial it can be for you. If you’re paying your annual fee, and its cost is higher than the rewards you’re getting on an annual basis, this card isn’t worth it, and you should opt for a no annual fee credit card.
If your total annual rewards are higher than your annual fees, then your card should be beneficial to you, and you might want to consider paying the annual fee for the higher rewards.
You can apply for a bad credit credit card online, it’s simple, fast, and convenient. Online applications are very similar to in-person applications, and you will need to provide the same personal information for both. In most cases, you will need to provide a personal ID, your verifiable address, social security number, employment status, income information, and more.
Online applications are fast and secure but don’t make them while you’re connected to unsecured public networks (such as public Wi-Fi at your favorite coffee shop). To stay on the safe side, you should only make your online applications through your secured home Wi-Fi, and through your own computer.
Depending on your credit card network and issuer, if your card has foreign transaction fees, you can expect to pay around 3% for your purchases that go through a foreign bank. Networks such as Visa and MasterCard charge 1% on such transactions, while most issuers charge an additional 2%.
Most credit card issuers will also charge you an additional 3% to 5% on the market exchange rate, for the currency conversion, so your combined fees can come up to 6% or more. This fee isn’t listed in the Pricing and Information, so you will have to check with your issuer whether they will charge you the currency conversion fee.
If you’ve been approved for a no annual fee credit card with poor credit, or your credit score has been damaged while you were holding this card, you can still build your credit score with it.
As long as the credit card issuer reports to all the major credit bureaus, and as long as you’re paying all your bills and debts on time and incur no late payment fees, your credit score will be improved with a no annual fee credit card.
The process of improving your score might go slightly faster if you were paying the annual fees, but as long as you’re a responsible cardholder, you can and will build credit, regardless of the type of credit card you have.
Even though these cards are designed for poor credit, the issuer will still have to do a full credit check before giving you a 100% approval card. When the issuer does a full credit check, this leaves a trace on your credit report and damages your score.
Applying for multiple guaranteed approval credit cards will damage your credit score, and it might raise red flags for the issuers, making it more difficult for your application to be approved.
You should always avoid making multiple credit card applications. The general rule of thumb is that you should wait at least 3 to 6 months between credit card applications.
The best way to avoid paying a foreign transaction fee is by applying for a no foreign transaction fee credit card. Your credit card network will still charge approximately 1% for the foreign transactions, but with these credit cards, your issuer will pay for those fees in your place. You won’t encounter any additional charges.
Many no foreign transaction fee credit cards offer additional rewards and can help you get reward points, or earn discounts on flights or accommodation during your travels.
Another option is to use Cash.
There are a few ways to improve your credit score, and unfortunately, there are no shortcuts. Improving your score takes time and effort. To improve your credit score, you will first need to pay all of your credit card bills on time. Being late with your credit card payments won’t only affect your credit score, but you will also have to cover the hefty late payment fees that can easily add up.
You should also ensure that you have a credit utilization ratio of less than 30% of your credit limit. A low credit utilization ratio shows that you can manage your money well and are a responsible cardholder. If you want to improve your credit score, you should avoid frequently opening and closing your credit accounts. Closing your accounts increases your credit utilization ratio and lowers your account age. Opening many new accounts will create many hard inquiries on your credit report and damage your score temporarily.
The cost of your annual fees will depend on your credit card issuer. These are the most common fees that can encounter, and they’re the most variable.
You can expect to pay anywhere between $30 and $600. Such high fees typically come with valuable rewards and bonuses, but it’s important to calculate whether they will be worth it to you.
If you opt for a no annual fee credit card, you won’t have to pay a dime for your annual fees. These credit cards don’t charge for account maintenance, but you’ll still be charged for other fees that are specified in your contract. Those can include foreign transaction fees, balance transfer fees, interest rates, etc.
If you have poor credit or little to no credit history, you might not be able to get a no annual fee credit card, or it could be difficult to get approved for one. All this doesn’t mean that it’s impossible to get a no annual fee credit card with poor credit – it simply depends on the credit card issuer.
Before you apply for a no annual fee credit card, make sure you check the issuer’s requirements. If the issuer offers no annual fee credit cards to those with poor credit, this will be emphasized, and the issuer will let you know.
Yes, credit reporting cards fall under the category of credit cards. Even though some issuers require you to pay a safety deposit in order to start using your credit reporting card, this payment method should not be confused for other popular prepaid options such as debit cards.
Credit reporting cards are a special type of credit cards that are intended for people with a poor credit score. They differ from similar payment methods in that they frequently report cardholder behavior back to the three main credit bureaus – TransUnion, Experian, or Equifax, thus helping you build and improve your score.
If your credit card has annual fees, you have no choice but to pay them. Not paying this fee will result in additional charges for late payment, will increase your interest rates, and will damage your credit score.
Certain issuers might allow you to bypass the annual fees by charging a certain amount on the credit card itself once a year. If this seems like a better option, contact your issuer to whether they have this offer.
If you don’t want to pay any annual fees whatsoever, you can apply for a no annual fee credit card. These credit cards don’t have annual surcharges and can be much more beneficial for you. They do come with fewer rewards and bonuses but don’t cost anything to hold.
Unfortunately, no. No issuer can truly guarantee that anyone who applies for a credit card will be approved for it, even when it comes to guaranteed approval credit cards. All issuers have certain requirements for you to meet, and if you don’t meet them, you won’t be able to get a card.
It’s simply much easier to get approved for a guaranteed approval credit card. The issuers will have fewer requirements, and your credit score won’t be considered as very important.
Your application can still be denied if you don’t meet certain income requirements, if you can’t verify your address, or if you already have too many credit cards in your possession.
Just like you aren’t guaranteed to get a 100% guaranteed approval credit card, you aren’t guaranteed to get a pre-approved card either. When you are pre-approved for a card, this means that you meet some of the card issuer’s requirements for the said card. You might fall into the required credit score range, or you might belong to a certain income bracket.
Pre-approved means that you are likely to get a card, but this isn’t certain. This is just an estimate that gives you preliminary results. If you’re not pre-approved for a card, you definitely won’t get it. If you are pre-approved, you might get the card, but you might not. Only once you’ve applied for the card and once the issuer has done a full credit check on you will you know for certain.
In the vast majority of cases, you don’t need to have any registered income in order to qualify for a credit reporting card. However, you should expect from your credit card issuer to demand a safety deposit as a guarantee that you’ll be able to pay back the money you charge.
Some credit reporting card issuers also require their applicants to have a checking account.
There are two reasons why you would encounter foreign transaction fees on your online purchases. Firstly, if the retailer is located outside the United States, you will have to pay the foreign transaction fee. You can usually expect to encounter this fee if your transaction is executed in a currency other than USD.
Secondly, even if your transaction was executed in USD, it might have been routed through a foreign bank. It’s difficult to know whether the transaction will be routed through a foreign bank until it’s completed, as most retailers don’t provide this information.
If you have doubts about the legitimacy of foreign transaction fees included in your purchase, it’s best to contact your credit card issuer to address your concerns.
Unfortunately, you’ll rarely encounter a bad credit credit card with many valuable rewards and bonuses, especially if you’re applying for a guaranteed approval card offers. Bad credit credit cards are primarily designed to help you improve your credit score, and rewards and bonuses are few and far between.
Secured credit cards do come with nice rewards, and you can easily get cash back credit cards, collect points, and earn shopping rewards.
If you’re looking to save money, you might want to apply for a shopping credit card. These cards are often available to those with poor credit, and they can offer you special deals and discounts, their only drawback being that you can usually only use them in a select few stores.
If you currently have a credit card with annual fees, you might be able to downgrade to a no annual fee credit card offer, but this depends entirely on your credit card issuer. If you have this option, it’s much better to downgrade than to close your current account and open a new one.
When you downgrade, this will not have a negative effect on your credit report as your issuer doesn’t have to do a full credit check. Your account age won’t be affected either, as you’ll likely be able to keep your current account.
The only drawback of downgrading to a no annual fee credit card is that all the rewards and benefits of your previous card won’t be transferred to your new card.
If you weren’t required to pay the annual fee in the first 12 months of using your credit card, your issuer most likely had a promotion that offered the card without the annual fee for the first year. These promotions last for a limited period of time, and the annual fee will be charged when the promotion period is over.
If the issuer has made changes to their fees and rates, they are required by law to notify you of any changes at least 45 days before they can take effect. If the issuer has decided to impose annual fees on your current no annual fee credit card, you have the option to decline it. If you decline the new fees, you will need to close your current account, so consider this decision carefully.
Contact your credit card issuer if you have any questions about your credit card fees, as every issuer imposes different fees.
Unfortunately, not all credit cards report your activity to all the credit bureaus. For example, if you have a prepaid credit card, your credit activity is most likely not reported. Some issuers do report to credit bureaus, but they don’t report to all of them, and you should avoid such issuers.
If you want to truly build up your credit score, you need to check whether an issuer reports to all three of the major credit bureaus, Equifax, Experian, and Transunion. If they report to just one or two of them, your credit history will be limited, and you won’t benefit from your card as much as you could.
There is usually no need to be pre-approved for a credit card, as this is only useful if your pre-approval is denied. In the case that your pre-approval is denied, you can know for sure that you are not eligible for a credit card, and you will not get it if you apply for it. Having your pre-approval denied won’t have an effect on your credit score.
On the other hand, if you are pre-approved for a credit card, this isn’t a guarantee that you will get the card. Issuers pre-approve you based on a soft credit check, and once you actually apply for the card and they do a full credit check, you might still get denied.
Unless the issuer offers no foreign transaction fee credit cards, it’s very unlikely they will mention this information to you. You can always ask your issuer upfront, or otherwise, check your credit card’s terms and conditions. Because of the Truth in Lending Act, all issuers must disclose the information about the fees in their terms and conditions.
If your card has FX fees, this information will be included in the “Fees” section, where other fees such as cash advance and balance transfer fees are listed.
You probably wouldn’t be looking at credit reporting cards if your credit score was any higher. They are the best payment option for individuals with bad credit – like many credit cards for an above-average score, they offer features, perks, and rewards that can help you boost your credit.
Paying for your transaction in USD while in a foreign country with a different currency is known as Dynamic Currency Conversion (DCC). This is best avoided, as you will encounter less favorable exchange rates, and might have to pay for additional fees, depending on your credit card issuer.
Paying in local currency is always the best option, as your credit card network will automatically handle all currency exchanges without any biases.
You always have the right to turn down a merchant’s offer for dynamic currency conversion, and it’s in your best interest to do so.
This depends on your credit card issuer, and while most issuers will refund it, it’s still possible that you won’t get a refund on your FX fees. You may be able to contact your issuer and ask for a refund, but it’s not a guarantee that you will get it.
When returning an item, keep in mind the current exchange rates. If a longer amount of time has passed since you’d bought the item, the foreign currency might have gone up or down in value. This will have an effect on the FX fees and will determine how much you’ll be refunded after you return the item.
Bad Credit credit cards normally have higher rates and fees than typical credit cards that are designed for those with a good or excellent credit score.
However, the rates and fees shouldn’t be extremely high, and if you encounter a credit card for bad or limited credit that has an interest rate higher than 30%, for example, you should avoid applying for this card.
Some of the common fees that you can encounter with such cards include annual fees, cash advance fees, up to 30% interest rates, and more. However, even though these credit cards have an abundance of fees, you should avoid those cards that charge processing fees to open the card and those with monthly or sliding annual fees.
You should be very careful when choosing a credit reporting card provider. If the bank doesn’t sound familiar to you, make sure to conduct a thorough background check. Consult Google, but also independent online forums where cardholders share their experiences and opinions.
If you’re interested in obtaining a credit reporting card, you can submit your application directly in a card issuer’s branch, via phone, or through an online form. Given that credit reporting cards are usually “guaranteed approval”, online applications are the easiest and fastest.
Yes, most 100% approval credit cards do come with certain benefits and rewards, such as cashback rewards for example, but since these credit cards are designed for poor/ bad credit, they won’t have many appealing options.
There are many other types of credit cards that can offer you travel rewards, better cashback, discounts, and more. Guaranteed approval credit cards are known for having fewer rewards and higher fees.
This is why it’s recommended to use guaranteed approval credit cards only to rebuild your credit score. After you’ve done this, you can apply for other credit cards that come with lower fees and better rewards.
If you have to pay your annual fees, you will most commonly be charged 12 months after you’ve been approved for your credit card. Certain issuers will charge you immediately upon opening your account, but this is less frequent.
Although the charge is most commonly applied once a year, you might encounter issuers that allow you to pay the fee in monthly installments. You’ll still be paying the full amount of your annual fee, but the cost will be divided into smaller monthly payments.
Not paying the annual fee on time will result in late payment fees, and will affect your credit score, so be sure to always pay your credit card fees and debts on time.
100% approval credit cards are designed for those with a poor credit score, so you’re probably very likely to be approved for this card if your credit score isn’t excellent. But, you do have to keep in mind that different issuers will have different minimum requirements for your credit score.
The lowest FICO score is 300, and if your credit is between 300 and 650, you are considered to have poor credit. However, some issuers will only allow an unsecured guaranteed approval credit card to those whose score is between 550 and 650. If your score is lower than this, you might not get approved.
Always check what the card issuer’s minimum requirements are before you apply for a 100% approval credit card.
Credit reporting cards can be obtained by any interested individual, regardless of their credit score. Most credit card issuers won’t even do credit and employment checks in order to approve your application, which is why these cards are sometimes referred to as “guaranteed approval“.
In order to choose the right reporting card for your needs, you should first define your financial goals, purchasing habits, and lifestyle choices. Then, you can use online credit card review websites to research your options and contrast and compare different credit reporting cards.
Unfortunately, paying your foreign transaction fees will not be counted toward rewards points. As a matter of fact, it can even be possible for them to eat into your rewards. If you’re paying a 3% foreign transaction fee, and your reward rates are at 2%, you’ll actually be left with a 1% net negative.
This is even more problematic if you’re paying a 3% FX fee, and an additional 3% currency conversion fee. This will leave you with a 4% net negative. To avoid this, it’s best to use a no foreign transaction fee credit card. As long as you’re paying your debts on time, your rewards points will be rewarding.
The best credit card for bad credit is generally considered to be a secured credit card. Secured credit cards come with more favorable rates and fees, and they often have some nice rewards as well. The only issue with these cards is that you will need to make a cash deposit to activate it. In most situations, the amount that you deposit will be your credit card limit, but there are some exceptions.
Once you’ve improved your score, you can easily get your deposit back, as long as you’ve been paying off all of your credit card debts on time.
Since secured credit cards have lower card limits, it’s important to be careful with your money. The recommended credit utilization ratio is 30% of your limit, and if you use more than that, you could damage your credit score.