Banks denying secured credit cards

Question

Isn’t the whole point of securing a card that it protects the issuer in the event you don’t make your payments?

In: 3

Answer 1

The hassle of dealing with an almost certain default may just not be worth it.

Spend all the money you deposit, then default. Your deposit covers the initial damage, the cost of chasing you becomes a loss. Banks don’t like probable loss.

Answer 2

The hassle of dealing with an almost certain default may just not be worth it.

Spend all the money you deposit, then default. Your deposit covers the initial damage, the cost of chasing you becomes a loss. Banks don’t like probable loss.