Secured Card Approval Policies

[fontanamanModerator]

Here’s a very interesting article I found today, about why some people get denied for a secured card: “Secured Credit Cards: Not Everyone Qualifies”

Eligibllity depends on each bank’s policies (the following is taken from the previous article):

Citibank: It depends on the individual’s situation. Declined to disclose the factors that it considers when making credit decisions.

HSBC: Applicants who provide a security deposit get approved, unless a background check with the credit bureaus turns up a discrepancy related to the identity of the applicant. Recent bankruptcies do not make you ineligible, and credit scores are not a factor in the company’s decision.

Capital One: If the courts have discharged your debts, an applicant would be immediately eligible for a secured card. Capital One also considers the applicant’s ability to repay. “Our goal is to provide reasonable access to credit with the appropriate guardrails in place,” said Sukhi Sahni, a spokeswoman for Capital One.

Bank of America: Generally speaking, applicants must be out of bankruptcy for a year, and must have another relationship with the bank, like a checking account. Delinquencies on other accounts are also likely to result in a denial. “Over time, we would want to see that they demonstrate the ability to manage their finances responsibly because ultimately the goal is to graduate them to a nonsecured card,” said Betty Riess, a spokeswoman for Bank of America.

Wells Fargo: Applicants must be out of bankruptcy for a year. The bank also looks at a variety of other factors, including FICO credit scores and payment history. Wells Fargo only issues credit cards to current bank customers as a general policy.

[ambersunParticipant]

Interesting, thanks! I really thought everyone qualified for a secured card if they had the money….wow!

[Christie0909Participant]

Anything about certain income requirements?

[Christie0909Participant]

Anything about certain income requirements?

[fontanamanModerator]

Well, judging from the article HSBC (Orchard Bank) could be a good option for you as it says: “Applicants who provide a security deposit get approved, unless a background check with the credit bureaus turns up a discrepancy related to the identity of the applicant.” It doesn’t say anything about income.

Plus, ambersun just mentioned on another thread that they have a pre-approval form to see if you qualify (soft inquiry).

[Christie0909Participant]

okay, sounds great. Thanks

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