Is a security deposit account different than a checking account?

Question

I know it's a stupid question but I need to build up my credit because I don't have any.

I already have a checking and savings account at Bank of America, and their credit card aimed to build up credit says that I have to pay off that card through a security deposit account. Would I really have to have a third account?

Answer 1

never heard of that before.

Answer 2

checking and savings don't do much to you credit rating. Only if you have loan and creditcard that are in good standing can give you better rating.  I think you mean a secured credit card which you have to pay a fee to use and they only give you like a $500 credit limit.  After a certain period, 6 months to 1 yr and you can apply for regular credit card.

Are you trying to get a mortgage loan or something?

Answer 3

1. never herd av "security deposit account"

2. Wen yu rent, landlord oft want a security deposit.

If so, yu shood get it bak aft 1 yeer.

Answer 4

I think that you mean having a secured credit card.  

If you make a deposit of $1000, for example, for the secured card, that $1000 will act as you credit limit.  There may be better deals out there.  Secured credit cards are usually for people with really bad credit.  

A better way to build up your credit is to get a loan from B of A and pledge your savings account as collateral.  Have them put a "hold" on the money that will not allow you to withdraw the funds.  Once you pay that loan off, you will have a good credit reference on your credit report.  Repeat as needed.