topic Re: WellsFargo Secured Card reports different!!! in Credit Cards

WellsFargo Secured Card reports different!!!

Fresh101 — Mon, 16 Jul 2012 19:51:04 GMT

Hello Everyone, I got a secured credit card from WellsFargo like 2 weeks ago and used it. I thought they would have reported usage after a month or so but they did right away. Today I ran my CR and notice they are already reporting and also under account type they have "Secured Credit Card". My CapOne secured credit card does not report that way, they just put "Credit Card". Now my question is, how do creditor would see me as the account report as "Secured"? Me been a creditor and seen someone with this marking, will not convience me of the person doing any better than before. It does not prove me that the person can manage his credit.

Question:

How does that affect me with future creditor?

THANKS IN ADVANCE

Re: WellsFargo Secured Card reports different!!!

discernment — Mon, 16 Jul 2012 20:00:22 GMT

A creditor is not so much concerned about the "secured" notation as they are with the AMOUNT of your credit limit. As long as you have funded the maximum limit allowed on that card, that is what is going to help you the most with them. They much prefer to see a $5,000 + secured credit card limit.

FICO® scores the same without any judgment.

Re: WellsFargo Secured Card reports different!!!

trumpet-205 — Mon, 16 Jul 2012 20:02:08 GMT

Well, Wells Fargo is right. That is how secured CC supposed to be on CR.

It does not affect credit score. It may have an influence when your CR is reviewed manually.

Lenders care more about payment history than CL or type of CL.

Re: WellsFargo Secured Card reports different!!!

Fresh101 — Mon, 16 Jul 2012 20:23:46 GMT

discernment wrote:
A creditor is not so much concerned about the "secured" notation as they are with the AMOUNT of your credit limit. As long as you have funded the maximum limit allowed on that card, that is what is going to help you the most with them. They much prefer to see a $5,000 + secured credit card limit.

FICO® scores the same without any judgment.

Thanks for the reply Decernment, but this card offers a deposit up to $5000 and I only opened it with $300 as my understanding to credit building, it doesn't matter the amount of the credit account. Does it change in my situation, as I don't have that much on the credit line limit? Thanks again

Re: WellsFargo Secured Card reports different!!!

Fresh101 — Mon, 16 Jul 2012 20:42:59 GMT

trumpet-205 wrote:
Well, Wells Fargo is right. That is how secured CC supposed to be on CR.

It does not affect credit score. It may have an influence when your CR is reviewed manually.

Lenders care more about payment history than CL or type of CL.

Yes, that's what I meant, if it's manually reviewed. I did notice a score drop of 23 points after getting this card. My score on 7-09-2012 was 637 with NO WellsFargo on it and today I ran it again, it is at 604 with WellsFargo on it.

Question:

What do you guys think happened that my score took a dive?

Re: WellsFargo Secured Card reports different!!!

Wolf3 — Mon, 16 Jul 2012 20:48:15 GMT

Fresh101 wrote:
trumpet-205 wrote:
Well, Wells Fargo is right. That is how secured CC supposed to be on CR.

It does not affect credit score. It may have an influence when your CR is reviewed manually.

Lenders care more about payment history than CL or type of CL.
Yes, that's what I meant, if it's manually reviewed. I did notice a score drop of 23 points after getting this card. My score on 7-09-2012 was 637 with NO WellsFargo on it and today I ran it again, it is at 604 with WellsFargo on it.

Question:
What do you guys think happened that my score took a dive?

Inquiries and new account lowers your score for awhile.

Re: WellsFargo Secured Card reports different!!!

Fresh101 — Mon, 16 Jul 2012 20:56:41 GMT

When should I expect increase score? I was already on the 658 in Eq and believe it also went down. I was planing on placing an application with a lender to buy my first house and now this happen. How can I improve my score quickly? I am asking as many people after getting a CL it reflect as a credit jump but not in my case.

Re: WellsFargo Secured Card reports different!!!

rootpooty — Mon, 16 Jul 2012 23:24:31 GMT

There is no quickly or asap when it comes to score increase always remember that. Your gonna have to wait at least 6 mos before you app for a mortgage

Re: WellsFargo Secured Card reports different!!!

cashnocredit — Mon, 16 Jul 2012 23:31:34 GMT

Check your utilization. The best strategy to maximize FICO is to have one card reporting a small balance 1-5% and the rest at zero.

Also, Score Plus scores are not very reliable indicators and can vary a lot from FICO scores.

Re: WellsFargo Secured Card reports different!!!

Crashem — Mon, 16 Jul 2012 23:32:08 GMT

FICO scoring model will ignore the secured designation and treat it the same as unsecured card. In both cases, you are being given credit (for whatever reason) and FICO is measuring your use of that credit. On the other hand, I can imagine under manual review that secured accounts carry less weight.

Re: WellsFargo Secured Card reports different!!!

discernment — Tue, 17 Jul 2012 01:25:12 GMT

Fresh101 wrote:

Thanks for the reply Decernment, but this card offers a deposit up to $5000 and I only opened it with $300 as my understanding to credit building, it doesn't matter the amount of the credit account. Does it change in my situation, as I don't have that much on the credit line limit? Thanks again

It depends on whether you are focusing on your creditors -- OR whether you are focusing on FICO®.

With FICO® -- having your credit cards report as being "secured" doesn't matter. FICO® doesn't make any judgment between secured/unsecured.

But, I found, with creditors -- funding the maximum limit possible on the "secured" credit card helped to diminish whatever stigma there may be for having a credit card that reports as "secured." And, when I applied for unsecured credit cards, the creditors matched the current limit of $5,000 of the secured credit cards for starting limits on the unsecured cards. YMMV but, funding the secured cards with the maximum amount possible HELPED in my situation.

Re: WellsFargo Secured Card reports different!!!

Fresh101 — Tue, 17 Jul 2012 01:38:18 GMT

Ok everyone, completely understood all the response. Thanks

Re: WellsFargo Secured Card reports different!!!

cashnocredit — Tue, 17 Jul 2012 03:31:34 GMT

discernment wrote:
Fresh101 wrote:
Thanks for the reply Decernment, but this card offers a deposit up to $5000 and I only opened it with $300 as my understanding to credit building, it doesn't matter the amount of the credit account. Does it change in my situation, as I don't have that much on the credit line limit? Thanks again

It depends on whether you are focusing on your creditors -- OR whether you are focusing on FICO®.

With FICO® -- having your credit cards report as being "secured" doesn't matter. FICO® doesn't make any judgment between secured/unsecured.

But, I found, with creditors -- funding the maximum limit possible on the "secured" credit card helped to diminish whatever stigma there may be for having a credit card that reports as "secured." And, when I applied for unsecured credit cards, the creditors matched the current limit of $5,000 of the secured credit cards for starting limits on the unsecured cards. YMMV but, funding the secured cards with the maximum amount possible HELPED in my situation.

Helped in my situation as well. I have a 25k WE MC, Amex Plat, and Visa Siggy. 3.5 years ago I only had baddies and no cards.

Oh, ahd the best part of WF is that when they eventually unsecure, they don't do a Hhard pull.

Re: WellsFargo Secured Card reports different!!!

DaveSignal — Tue, 17 Jul 2012 03:38:28 GMT

discernment wrote:
And, when I applied for unsecured credit cards, the creditors matched the current limit of $5,000 of the secured credit cards for starting limits on the unsecured cards. YMMV but, funding the secured cards with the maximum amount possible HELPED in my situation.

+1 I have experienced this too. By starting out with a decent deposit to put a bigger credit lmit on a secured I opened for rebuilding, I was soon after approved for unsecured cards with higher limits.

Re: WellsFargo Secured Card reports different!!!

Dolemite — Tue, 13 Nov 2012 16:48:48 GMT

I know this is an old thread, but I opened a $500 secured credit card with my credit union about a month ago and when I just checked my score and report on EliminateIDtheft, it showed up as "Secured Credit Card" AND wasn't even listed with my two other credit cards under revolving accounts. Instead, it's under a Misc. Category because the CRA is unable to determine what kind of an account it is. When I first signed up, I was told that it'd report as a regular credit card, so as you can imagine, I'm a little pissed off about this. Not really sure what I could do to get it to show under credit cards, but I'll definitely bring this up with the CU.

Re: WellsFargo Secured Card reports different!!!

cashnocredit — Wed, 14 Nov 2012 04:32:38 GMT

Could be just eliminateIDTheft. I've never had any reports, either directly from the CRA or through a thrid party call them anything other than the typical "revolving credit card" type account. That is is secured is usually just in the written comments.

Pull from MyFICO or someone else and see if it reports the same way. You may have an anomoly.

Re: WellsFargo Secured Card reports different!!!

webhopper — Wed, 14 Nov 2012 12:46:49 GMT

Fresh101 wrote:
When should I expect increase score? I was already on the 658 in Eq and believe it also went down. I was planing on placing an application with a lender to buy my first house and now this happen. How can I improve my score quickly? I am asking as many people after getting a CL it reflect as a credit jump but not in my case.

This is why the myfico community rarely recommends for its members to apply for a credit card if they have a mortgage on the horizon... unfortunately a new card can sometimes do more harm than good. I'm afraid you've set yourself back. Keep in mind that increasing the deposit to 1k will help you over time with getting larger limits. Best advice is that you keep the balance low on this card or; don't use it at all. Good luck!

Edit: I just realized that this is an old thread. My apologies. To cashnocredit; give it some time... it may be that the initial report to the bureaus did not contain the right coding to put the account in the right bucket. Besides; you will still be building a relationship with the CU which will help you out in the long run

Re: WellsFargo Secured Card reports different!!!

Dolemite — Wed, 14 Nov 2012 17:20:51 GMT

I looked into it a bit more and realized what happened. But I'm still pissed... So back in September before I applied for the secured card, I had done a change of address. The address on my bank account was updated properly, but the credit card department still had the old address. So they sent the new card to the old address. When I got tired of waiting for it, I called them up and they said they would cancel the card that was sent to the old address and resend a new card to my new address. So what I saw on my credit report was actually the closed ("lost/stolen" as they reported it) credit card. It shows the same way on Equifax's report and on EliminateIDTheft. The replacement card has yet to report to any of the CRAs.

Seeing as the way AAoA is calculated, wouldn't this closed account negatively impact my credit AAoA as it's only a month old? I called my CU to try to get them to remove the line entirely, but they wouldn't budge. They also wouldn't remove the "Secured Credit Card" line from the comments section for future reports (Long shot, but had to try it!).

What threw me off when I first looked at the tradeline was the fact that the first 12 digits of the credit card account number listed on the TL were the exact same as the new card I received in the mail. They obviously XXXX the last for digits, so I was convinced that was my new credit card showing as closed and secured.

Re: WellsFargo Secured Card reports different!!!

Revelate — Wed, 14 Nov 2012 18:34:11 GMT

Actually with the way AAoA is calculated (it *only* goes off the opening date, the closing date is absolutely irrelevant) whether an account is open or closed it makes no difference.

While you may have not gotten the tradeline seasoning benefit (FICO appears to like longer tradelines); the lost/stolen label is so common these days that it's likely the most minor reason for any replacement card. I wouldn't worry about it, 99.9% chance it doesn't even come up if you have to ever do a manual review.

Re: WellsFargo Secured Card reports different!!!

Dolemite — Mon, 19 Nov 2012 19:48:35 GMT

That's what I was hoping for. It would seem ridiculous for every lost/cancelled credit card to completely throw your record off.

Thanks for the replies!