Is it possible to get rejected from a secured credit card?

Question

I got sick and accumulated about $4,000 in medical debt. Some of these are in collections and I've been paying them off little by little. Other than this I have no bills in my name or credit cards. The only thing on my credit history are the negative bills. Is a secured credit card my best bet? Am i guaranteed to be approved for one? Do you ever get back the money you put down?

Please help...I need to show I have at least one positive on my credit history.

Answer 1

For the most part you don't get the money back, that is up to the bank itself.  You will get a credit line increase if you deposit more.  There are unsecured credit cards out there but be careful. This is how they work.  You will get most likely a 500.00 credit limit, but you only have about 150 available. The amount already charged to your account are fees and that will lower your limit till you make payments. So in other words, you are paying down the amount already charged to you, the 350.00. Once you pay that down, then you will have a 500.00 limit.  They usually charge a maintenance fee usually about 6.00 per month and the interest rates are upwards of 20%. The only thing good if you can call it that is the fact that if you are responsible and want to clean up your credit in time it may be worth the high interest. They will extend higher limits usually every 3 months for about 25.00 per 100.00 increase in limit, only after paying on time and paying off the original amount.  Some of these are: HSBC, Capitol 1, Orchard banks, First Premier and continental Finance.

Answer 2

Yes, it I have seen people get declined for a secured credit card.  It is not a sure thing.