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wells fargo credit card, how do they work?

hi, well I got a credit card when I opened a savings account at wells fargo. I have $700 that i put in to open it and have not used any of it. I would like to know how credit cards work, I am 19, and i have never had one. PLus i dont spend a lot, but i have been thinking that i should start using it to build my credit. But how does it work? once I finish my $700 which i dont think will be anytime soon, what happens afterwards? am i going to be paying a monthly fee, right away? or once I finish my 700.

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    author

    Alexpaul2
    Posted 3 years ago

    Credit cards are great... what you need to do is use the card instead of money ... every month bank will issue statement showing what you bought ... they give you a date to pay for your purchases, pay complete before that date every month ... this will give the bank confidence in you and will increase credit limit. The 700 that you deposited are like a insurance for them and at the same time your credit limit ... after six months they will release the card and you can receive your money back. and start using the banks money. Once you have good records, you can receive a car that will give you money back, no fees.

      author

      Reena
      Posted 3 years ago

      You have me puzzled.... I am thinking that you opened a savings account with Wells Fargo and that they issued you an ATM/check card for this account so that you can make withdrawals from your account and or pay with your card at the store. This is not a credit card but simply a card that let's you access the money in your account. What happens when you use up the whole $700? Nothing, you will be broke and your ATM card won't work. The idea is to put money back into your account every time you get paid and then use that money by using your card or writing checks. Any fees that are associated with your account are stated on the paperwork you signed and got a copy of. Read it. You may have monthly account fees that are deducted from your account. Get more familiar with using your ATM/Check Card and don't forget to put money in your account. Once you have established a good checking account or savings account history with Wells Fargo and you learned more about Credit Cards and ATM/Check Cards you should be able to apply for a real credit card with Wells Fargo. But do yourself a favor and read as much as you can about Credit Cards either here on Yahoo Answers or go to your Bank and have them explain to you how they work and what the difference is between ATM and real Credit Card.

        author

        Ann S
        Posted 3 years ago

        Wells Fargo is a bad credit card. Watch them like a hawk. Capital One is another one that you give them money and they give you a credit card. Try to get a Bank Of America or HSBC, they are good. America Express are big with tons of fees. It sounds like you open a security credit card. Which means if you go out and blow the $700.00 and never pay the bill Wells Fargo keeps the money and ruins your credit card. So first thing to do is make small purchase (I'm not a parent) lol so pay off the credit card each month. Or at least the minimum plus the interested and watch out for annual fees. But watch out on this credit card. They gave me a card for like $500.00. I start getting bills for like $300.00, overdue and they sent me to collections.. So I called them up and was like what are you doing, I have my bank statements. So I find out that they open two accounts. They took my first card and kept the money for my second account, that they open and put in for a secured account. SCAM ARTIST

          author

          markomib
          Posted 3 years ago

          alexpaul is mostly correct. wells fargo doesn't know who you are and they are not sitting around a fire going - awe, what a good fellow, he's paid in full. Their computer is going to make it's decisions based on your credit score first and foremost. The matrix will look at 'do you only pay the minimum' but it is unlikely it will consider if you pay more than the minimum or the entire balance (I worked on banking computer matrix decision makers for about 7 years) policy will vary from bank to bank, probalby the bank will release your $700 deposit at some point, six months is probably correct, but not necessarily. yours might be 12 months, or rather than a time restriction, the matrix might be set to release when your credit score hits a predetermined number - say 650. generally it is good to pay your credit card off every month - and helpful to either keep a very accurate amount in your head, or keep track on paper so you're not surprised by a bill. that is the step most people get themselves into trouble with followed by "wow, thats too much for one month, i'll pay most of it now, and the rest later" course, then they keep spending and the amount gets too big. being a bad risk now, their rate gets insane and they spiral out of control debt falls into two broad catagories - good debt and bad debt. good debt helps you leverage your assets - mortgage to buy a home, school loans to get an education, loans to build a business. bad debt comes from putting on credit things which you should be saving for to pay cash - vacations, cars, consumables like electronics and clothing. cars you say?? yes. i recommend that people consider buying a cheap, basic car - and set aside the money you would have had to spend on a monthly car payment. take repair expenses out of that fund. you will probalby be surprised how much less you spend on a car when you've had to save for it. so maybe you buy a more basic car than you'd like next time, but step up from last one. keep making payments to your account. eventually, you will be driving the car you want. continue making payments to your investment account so when your dream car becomes your dred car, you're ready to replace it.

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