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Filmguy34

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Secured Credit Card?
I'm looking into renting a car for a work trip later this year, but I found out I can't rent a car without a credit card. I never use credit cards since defaulting on my student loans and I have a ~575 or 580 credit score or whatever. My research shows that people can get secured cards with $50 deposit and $300 credit line, but I would like to get a credit line for say $1,000 and would be willing to pay a higher deposit. Is this possible? Thank you.

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typically secured cards require the full credit limit as deposit. a 1K secured card will require a 1K deposit. also secured cards typically carry annual fees, which will show as a balance on your first statement. some other things to consider: not all companies require credit cards. call around and ask. also, many companies allow the use of debit cards, again, call around and ask. i'm assuming you have a debit card. 

the plus side of getting a secured card is that you can build your credit with it. even if you have derogatory accounts, if you have good accounts paid as agreed, it will help your scores. also, the way renting a car works is that they put a "hold" on a certain amount from a credit card. say 200-500 depending on how long you're taking the car and type of car and all that. so obvisouly your card will have to have this much available credit otherwise the transaction will be denied. also, secured cards carry medium to high rates, so you might not want to actually charge the amount. you can allow them to place the hold of say 500$ on the card, use the car, and when you return it, just pay them cash. the hold will go away, and then you do't have to worry about if you don't pay it off, then paying interest on the balanace. then, just use your card for like 20 bucks a month, pay it off every month on time, and your scores willget better. hths. 

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Filmguy34

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Thank you for the responses. I do have $1,000 for the deposit and would like to open a $1,000 secured card. I'm just confused because some of the cards recommended on this site say that you have to apply and then they will give you the credit limit they authorize you for....huh? If I'm able to post $1,000 collateral, why should I not receive a $1,000 secured credit line if that's what I ask for? Am I not loaning the card company my money for free? I don't want to ding my credit app by applying for a secured card, only to be told I'm only authorized for a $300 card / $300 deposit. I cannot rent a car with a card like that.

What are the best options? Thanks again.

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Yes, that is possible, but check with the credit card issuer beforehand to see if there are any limitations on how much you can put on a card. you might want to check into Capital One.

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Don't worry it's not like that.  Some banks like BOA will give you more credit then you put down.  Even Cap 1 will increase your limit after 6 months or so.  That is all that means. 

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