Why Do Banks Turn Down Applications For Secured Credit Cards? – Credit Card Insider
Today’s question is: Why do banks sometimes turn down applications for secured credit cards?
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Secured cards are generally targeted to consumers with poor or no credit. The applicant will make a deposit to the bank, and then receive a card with a credit limit based on that deposit. In some cases, however, a person may be denied for a secured credit card even though they fund the deposit. It turns out that these cases are not always very profitable for the card issuer, leading to a surprising number of denials.
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