topic Re: Impact on credit score after opening Secured Card in Rebuilding Your Credit

Impact on credit score after opening Secured Card

intherightdirection — Sun, 07 Oct 2012 16:58:43 GMT

Hi All,

I recently received an Open Sky secured CC for $300. I chose that one after learning on this board that they don't check your credit, so there is no inquiry/HP. (yeah!) I can't afford an inquiry right now.

I received credit alerts yesterday re a new account on my credit reports and here is the change in my scores:

EQ: down 9 - from 599 to 591 :(

TU: up 31 - from 550 to 581 :) :)

EX: the same- not reporting yet.

It's interesting how they affect the different CRA's differently. I'm very happy with Trans Union increase, as that score went down and has stayed down, after I disputed items on my credit report.

Anyways, no question. Just sharing for anyone wanting to open a card.

Re: Impact on credit score after opening Secured Card

Shogun — Sun, 07 Oct 2012 17:00:26 GMT

You usually receive a hit for AAoA initially. However give it a bit and it will go up.

Re: Impact on credit score after opening Secured Card

sbeasl11 — Sun, 07 Oct 2012 18:48:09 GMT

Was this your first credit card opened? Just curious about the number of credit cards needed for rebuilding...

Congrats on your score increase!

Re: Impact on credit score after opening Secured Card

intherightdirection — Sun, 07 Oct 2012 19:05:53 GMT

Thank you!! Yes, this is my first one opened so far.... I'm not sure how many are recommended; I've heard a couple are good to have in the rebuild process... I'm debating on another secured or waiting a bit and applying for a non-secured to see if I can get. I just don't want to waste an inquiry, so maybe I'll research the boards some more to see what's best. ;):smileywink:

Re: Impact on credit score after opening Secured Card

novabama — Mon, 08 Oct 2012 03:37:05 GMT

Wow so glad I came across this! Forget capital one and their two HPs on my credit. Do they report as secured or unsecured on your CRs? Congrats on your first rebuild cc!

Re: Impact on credit score after opening Secured Card

Shogun — Mon, 08 Oct 2012 04:08:18 GMT

novabama wrote:
Wow so glad I came across this! Forget capital one and their two HPs on my credit. Do they report as secured or unsecured on your CRs? Congrats on your first rebuild cc!

Sky is a predatory lender. The fees and costs of it are ridiculous. My personal opinion is to stay away from it. Cap1 is bad enough, but Sky is worse.

Re: Impact on credit score after opening Secured Card

novabama — Mon, 08 Oct 2012 14:20:18 GMT

Sky is a predatory lender. The fees and costs of it are ridiculous. My personal opinion is to stay away from it. Cap1 is bad enough, but Sky is worse.

I would love to say that I can wait and get an awesome card... but I just can't! I can't afford ANY more hard pulls on my reports. Cap 1 pulled all THREE twice and so did that stupid credit union, just for a checking account! At this point... if I get any credit card it will help. I have no actual intention to use this card except for a 20 dollar purchase and pay off the next day. The only fees to this I have found is a $50 annual... which, ok whatevs... I'll be cancelling right before one year anyway. And they start charging interest the day that the purchase processes. I only plan to do this because I have been denied for no revolving credit and too many inquiries, catch 22 almost. I have lived with no CC for 6 years... I think I can manage having a low lim one and not using it for the next 11 months haha. I hope anyway because I don't see ANY other option. The other reason is because I don't want my AAoA to be so low bc I couldn't get a credit card until next year either.. when I go to app for a mortgage or car next year I want to have had a CC for a while. After having this for a while I plan to go for another sec cc. but I'd like to have one start reporting in 2012, make sense?

Thanks for looking out as always... I just don't have the time to spare to wait it out for a cc like I wish I could. :( Sometimes I think you have to take the stick even if it is only the short end...?

Re: Impact on credit score after opening Secured Card

intherightdirection — Mon, 08 Oct 2012 16:03:00 GMT

That's the position I'm in too. Once my credit score is where I want it, then I'll be able to shop around for a great card. Until then, unfortunately, fees and high interest rates seem to be the price of rebuilding. But, the payoff of no hard pull and helping build my credit is worth it right now.

novabama, it seems to be reporting as a regular credit card.

Re: Impact on credit score after opening Secured Card

novabama — Mon, 08 Oct 2012 16:37:20 GMT

intherightdirection wrote:
That's the position I'm in too. Once my credit score is where I want it, then I'll be able to shop around for a great card. Until then, unfortunately, fees and high interest rates seem to be the price of rebuilding. But, the payoff of no hard pull and helping build my credit is worth it right now.

novabama, it seems to be reporting as a regular credit card.

:)

awesome, thanks for the info. how long did it take for it to report? seems pretty fast. thanks so much again for posting!

Re: Impact on credit score after opening Secured Card

Shogun — Mon, 08 Oct 2012 16:53:55 GMT

I understand completely. Sometimes you have to do what you have to do. But don't keep it for over a year! They charge you $25 for every deposit you make to boost your credit amount after the first year. They charge $30 to add an AU and have charges for everything! In a year you will be in a better shape and will go for better cards! Now eat your peas and carrots! Good luck!

Re: Impact on credit score after opening Secured Card

novabama — Mon, 08 Oct 2012 16:57:48 GMT

Shogun wrote:
I understand completely. Sometimes you have to do what you have to do. But don't keep it for over a year! They charge you $25 for every deposit you make to boost your credit amount after the first year. They charge $30 to add an AU and have charges for everything! In a year you will be in a better shape and will go for better cards! Now eat your peas and carrots! Good luck!

Yeah... I doubt I'll keep it that long even... really just need a way to better cards. Without a thousand inquiries and denials! I don't have anyone I'll ever want to add as AU and I don't plan to add any funds at all mostly just sit in a sock drawer. If I do though I believe I read that CLIs in the first year aren't charged. But kind of a moot point in my situation. This is the beginning block to AMEX (muahahaha :)))... in a while lol

Re: Impact on credit score after opening Secured Card

Shogun — Mon, 08 Oct 2012 17:00:45 GMT

Sounds like a good plan then. Just keep an eye on that one. A close eye! I want an AMEX Centurion, but the closest I'll ever come to one is a piece of tin and some black spray paint!

Re: Impact on credit score after opening Secured Card

intherightdirection — Mon, 08 Oct 2012 17:03:33 GMT

They started reporting to EQ and TU about a week after I received the card. I thought that was fast too. Not reporting to EX yet.

Good luck! :)

Re: Impact on credit score after opening Secured Card

intherightdirection — Mon, 08 Oct 2012 17:04:20 GMT

Thanks, shogun, for the advice!

Will keep one year and then hopefully on to a better card. Thanks again!

Re: Impact on credit score after opening Secured Card

novabama — Mon, 08 Oct 2012 17:04:31 GMT

thanks you two!

Re: Impact on credit score after opening Secured Card

intherightdirection — Wed, 10 Oct 2012 18:45:26 GMT

Quick update- my Open Sky account just appeard on EX so now it's reporting on all 3- yeah!

My EX jumped 6 pts. I'll take what I can get as it's like pulling teeth to improve that score.

:smileylol:

Re: Impact on credit score after opening Secured Card

Shogun — Wed, 10 Oct 2012 19:10:43 GMT

I'd take the 6 points if you don't want them! Congrats!

Re: Impact on credit score after opening Secured Card

novabama — Wed, 10 Oct 2012 19:15:53 GMT

I am sending in the money in a couple days... after all my removals, over 10!, my fico has DROPPED LIKE 50 POINTS!!!! I was crushed when I saw it. But I think it's partly because what's left is weighted more heavily now and partly because the only positive TLs are a car loan since Jan and deferred school loans. So praying that a revolving TL will help me a lot. Congrats on your increase!

Re: Impact on credit score after opening Secured Card

intherightdirection — Wed, 10 Oct 2012 19:28:37 GMT

Wow, that's disheartening after all the work to get items removed!!! :smileymad: I read of the same thing happening to others, and you're probably right that it has to do with the age of accounts. Makes no sense though...

I hope the new credit helps!!!!

Re: Impact on credit score after opening Secured Card

Johnny_Favorite — Wed, 10 Oct 2012 19:57:51 GMT

I started with a US Bank Secured last month at the beginning of September. It is now reporting to all 3 bureaus (300 limit).

I just opened an Opensky for the same reason you did - no credit check. The fees, while bad, aren't as horrible as some are making it out to be. For me, the fees are worth the impact to my credit.

Though I must say since I opened the US bank secured, my scores in Trans Union and Experian have both dropped about 50 points (from 620 to 570). I'm assuming because of the average age of accounts. I'm fine with the drop, just hope to see a fast recovery as that was a little painful.