Secured VISAs are NOT prepaid credit cards. They are keyed like regular credit cards in the system, but we secure money in the member's savings account as collateral for the card.

 

(DO NOT key the savings account in the collateral tab on these VISAs because it confuses Forza. Secure the money in the savings in Member Services. Also, make sure to key them in Forza like a normal credit card with the Purpose Code as Line of Credit and Collateral Code as Credit Card.)

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Unlike regular credit cards, proof of income is not required for secured VISAs. We DO need to have an application and a Pledge Agreement included in the loan docs.

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Unless the member has established credit and a credit score, the rate for these cards is the highest rate available: 10% + the Prime Rate. 

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If we do not pull credit, then key the member's credit score on the Credit Score Tab under the Credit Bureau Score as 999 and leave the Credit Union Score side blank.

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When a member has a credit score, the rate is based off of the credit score. If the member wants a lower rate, we can pull their credit to verify their credit score qualifies for a better rate.

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The credit limit must be equal to the amount of money secured in the savings account. If the member wants to raise the limit, new loan docs must be completed, and the limit would be raised on the existing card to match the new amount secured in the savings. 

 

If the member wants to change their Secured VISA to an unsecured credit card, the paperwork would be processed like a regular credit card. If approved, the money previously held for the secured VISA would be released. Unless the member qualifies for a different rate or limit, nothing needs to change on the card in the system. 

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