topic Re: Secured Card CLI in Credit Cards

Secured Card CLI

Freefall — Fri, 13 Apr 2012 15:43:12 GMT

Not sure if this belongs here or in rebuilding, so feel free to move if necessary...

I'm trying to eek out every point possible on my credit score right now. Some of the "simulators" I've played with ask "what is the total available amount of credit on your card" and the choises were; less than $500 - $500 to $1000 - $1000 to $2000 etc . I currenlty have a $750 CL on the secured card.

Would increaseing my CL to $1000 squeeze me any points as far as FICO sees?

Re: Secured Card CLI

Wolf3 — Fri, 13 Apr 2012 16:14:24 GMT

Freefall wrote:
Not sure if this belongs here or in rebuilding, so feel free to move if necessary...

I'm trying to eek out every point possible on my credit score right now. Some of the "simulators" I've played with ask "what is the total available amount of credit on your card" and the choises were; less than $500 - $500 to $1000 - $1000 to $2000 etc . I currenlty have a $750 CL on the secured card.

Would increaseing my CL to $1000 squeeze me any points as far as FICO sees?

Not directly. Utilization is a big factor, so if it reduces your utilization, it will help. But if you can also control your utilization by watching what is reported on each account.

On the other hand, it can help you in the future get larger CL on new applications. I used 3 large CL secured cards to rebuild, ($1000, $1100, $2200).

Re: Secured Card CLI

Freefall — Fri, 13 Apr 2012 18:34:32 GMT

I just wasnt sure if the FICO algorythem had anything in common with any of the simulators I used.

Now that I thinkj about it, I do have a reported high balance that is just slightly higher than the limit (due the annual fee hitting when I wasnt looking). So if I bump up the CL, anyone looking wouldnt notice I was over that limit...

Re: Secured Card CLI

Revelate — Fri, 13 Apr 2012 18:58:45 GMT

Freefall wrote:
I just wasnt sure if the FICO algorythem had anything in common with any of the simulators I used.

Now that I thinkj about it, I do have a reported high balance that is just slightly higher than the limit (due the annual fee hitting when I wasnt looking). So if I bump up the CL, anyone looking wouldnt notice I was over that limit...

I don't think over-limit is quite the problem people make it out to be... especially if that account has since been paid down: that is a responsible use of credit, banks like that.

Secured cards are generally granted CLI's by depositing more money (with very few exceptions): in virtually all cases, mathemetically speaking, that money would be better spent paying down your current balances instead from a pure FICO perspective.

There do seem to be a few breakpoints when it comes to overall CL's, and 1K is absolutely one of them. A reason to consider depositing more money would be to try to game future credit card approvals towards a higher initial CL; however, that's not really going to affect your score much, or at all, unless you regularly carry a balance. It does give some additional flexibility to cover financial difficulties, but that's about it.

Re: Secured Card CLI

Freefall — Fri, 13 Apr 2012 19:17:15 GMT

Ok, thanks for all the input! I appreciate it!

Re: Secured Card CLI

Crashem — Fri, 13 Apr 2012 22:01:55 GMT

Free fall, If you just have one revolving credit line. You might think about how to get 1 or 2 more. I hear 3 is Ideal for building credit. Just don't apply to any unless confident of approval. Also no af is good so you can keep card going down the line. Then best thing for fico is have all cards but one report no balance. The one card should report a tiny balance

Re: Secured Card CLI

Freefall — Mon, 16 Apr 2012 11:29:11 GMT

Well, here's the sticky thing. I will be applying for a mortgge in 1-2 months. I was hoping to sneek a 2nd tradeline in there but from all the reading that I have been doing, it sounds like it's not a good idea at this point.

It lookis like Im stuck with 1 TL and will have to use a letter from my landlord as an alternate TL. Fortunately, I am buying the house they own, so Im sure getting a nice letter from them shouldnt be much of a problem ;)

I went ahead and bumped up the CL to $1000, seems like it couldnt hurt at all and could only help in the future....

Re: Secured Card CLI

Freefall — Mon, 23 Apr 2012 13:08:58 GMT

As I mentioned, I went ahead and bummped it up to $1000. After speaking to the local branch person, and TWO people in the Secured Card Department I was assured that there would be NO HP since I was not graduatng the card or changing product.

Guess what I got an alert for on Friday evening? Yup, HP from US Bank... :smileymad:

Re: Secured Card CLI

rootpooty — Mon, 23 Apr 2012 13:14:26 GMT

adding money to a secured card to increase the limit WITH YOUR OWN MONEY and getting a hard pull is so ridiculous! Ive been through it with bofa so I know how you feel

Re: Secured Card CLI

Wolf3 — Mon, 23 Apr 2012 18:21:00 GMT

rootpooty wrote:
adding money to a secured card to increase the limit WITH YOUR OWN MONEY and getting a hard pull is so ridiculous! Ive been through it with bofa so I know how you feel

Hard Pull for Deposit increase is outrageous. At least Capital One doesn't do that, one of the better cards for increasing deposits, very easy to do. .

Re: Secured Card CLI

rootpooty — Mon, 23 Apr 2012 18:26:23 GMT

Yes its outrageous and bofa does it. NFCU has the best secured card program in my opinion

Re: Secured Card CLI

Revelate — Mon, 23 Apr 2012 18:28:01 GMT

Wolf3 wrote:
rootpooty wrote:
adding money to a secured card to increase the limit WITH YOUR OWN MONEY and getting a hard pull is so ridiculous! Ive been through it with bofa so I know how you feel
Hard Pull for Deposit increase is outrageous. At least Capital One doesn't do that, one of the better cards for increasing deposits, very easy to do. .

Yeah, it's hard for me to put C1 and consumer-friendly in the same sentence with a straight face, but their secured product is a pretty darned good one if this is something you're interested in doing.

I too find it a little ridiculous, but in general if the lender typically HP's for any sort of CLI (and we know BOFA absolutely does currently) it's almost certainly the same for their secured cards as it all runs through the same infrastructure. The card itself is only hazily linked to the underlying savings account or CD in most lenders infrastructure, but C1 is a little new school because they encourage people to increase their deposit over time. BOFA/US Bank are decidely old guard with their practices.