Today’s question is: Why do banks sometimes turn down applications for secured credit cards?
Ask us your credit questions in the comments and learn more about secured cards here: https://www.creditcardinsider.com/credit-cards/secured/
Secured cards are generally targeted to consumers with poor or no credit. The applicant will make a deposit to the bank, and then receive a card with a credit limit based on that deposit. In some cases, however, a person may be denied for a secured credit card even though they fund the deposit. It turns out that these cases are not always very profitable for the card issuer, leading to a surprising number of denials.
Every week, John Ulzheimer answers YOUR credit questions. Email us, give us a call, or ask on live chat, and we may answer your question on YouTube!
To learn about credit scores, credit reports, managing debt, and how credit cards work, check out our learn section at https://www.creditcardinsider.com/learn/
If you’re looking for a credit card, start your search at https://www.creditcardinsider.com/credit-cards/
Join our community!
Tweets by CardInsider