Abstract: A system and method for configuring, recognizing, and utilizing collateral security and account payments is provided to preserve/improve a borrower's credit history with credit bureaus. Collateral deposit data indicative of collateral deposits is periodically received at a computing device and stored in association with a security account in a first memory device. Line of credit data indicative of a line of credit is generated, the line of credit data comprising an indication of a predetermined credit limit based on the collateral deposit data, the line of credit data stored in association with a secured line of credit account at one or more of the first memory device and a second memory device. Periodic transfers of collateral security data associated with the security account occur to settle any outstanding balance associated with the line of credit.