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Most secured credit cards require a deposit of $200 to $300. The more you deposit, the higher your credit limit will be and the more flexibility you'll have in using your card.
Myth 1: Your credit card security deposit is nonrefundable Reality: The security deposit on your secured credit card is fully refundable ? you can get your security deposit money back if you close your account, so long as you pay your balance in full.
The security deposit is used by the card issuer as collateral if a cardholder defaults on their credit card balance. The deposit is typically equal to the card's credit limit, though this can vary. As a result, you can often increase your credit limit by paying a larger security deposit.
To keep your scores healthy, a rule of thumb is to use no more than 30% of your credit card's limit at all times. On a card with a $200 limit, for example, that would mean keeping your balance below $60. The less of your limit you use, the better.
It is possible to use a credit card to transfer money into a bank account by using a cash advance or balance transfer check, but we can't recommend it. Cash advances are risky because of the high interest rates and costly one-time fees. Balance transfers can lead to more debt if they're not handled correctly.