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Adding security deposit increase credit limit

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Anonymous
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Adding security deposit increase credit limit

Hey Credit Gurus - I have a secured card with WF and have been tossing around the idea to systematically add several hundred dollars to the deposit monthly so I can bring up the CL and hope for that to reflect positivley on my report. Do you all think this is a good idea? I know that its not the best idea to keep utilization to 0% so I will keep it around 5-8%. Has anyone done this and seen success? Started with 300 CL now at 1k CL waiting for change to reflect in CRAs. I can bring it up to 5k. Thank you in advance. 

5 REPLIES 5
Anonymous
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Re: Adding security deposit increase credit limit

It does not earn any interest… if you have a chunk of cash to throw around I would put it in a CD or something. It takes a while to start getting ok limits with bad marks showing. If that is your only card you should get two more. Try bofa secured, try to get a regular capital one platinum. I would rather employ one Wells Fargo and Bank of America secured over one large Wells Fargo secured. it develops history with two separate Banks and bofa has good growth potential I've read.
Message 2 of 6
Anonymous
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Re: Adding security deposit increase credit limit

TalentMaven did exactly what you asked up to $5K. After 24 months Wells Fargo did not graduate me and they sat on the money after I closed the account for over 45 days. That coupled with a couple of other things they did and I closed out everything and walked. Did finally get my $5K back. My quiet idea was if I had $5K on graduation it would lead to a bigger starting credit limit. In my case that was not to be.
Message 3 of 6
Anonymous
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Re: Adding security deposit increase credit limit

I had a 19 mo secured card (2k) I closed in 2016 because it didn't graduate. I used it monthly between 100-500 each month. After I closed it, i waited for my closing statement to generate, as well as my deposit to be returned.

A few date later I applied for the Rewards card and was approved for the VS Rewards for 8k. Go figure
Message 4 of 6
Anonymous
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Re: Adding security deposit increase credit limit

water88 thanks for the update. Never dawned on me to apply for a card. Truth, I was just plain disappointed.
Message 5 of 6
Anonymous
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Re: Adding security deposit increase credit limit

This whole idea of "forcing" a mirror match of CLs based on 'the other's cards CL is constantly misunderstood and over rated...

Lenders aren't 'that' much of jealous lovers that they are that asleep that the switch....that stuff is
A) Not done as much as ppl 'think' from eras of the PAST.... More lenders have their own criteria and stick to their established internal guidelines, period.
It is very common to see app sprees listed right on this very site...Where for example the exact same profile gets approved for a $1500 CL and a $4000 and $15000 CL all in the same day ...Why wouldn't they all be similar....Because it can be more of a crapshoot than ppl want to wrap their heads around.

B) Tha being said during a rebirth, rebuild or initial credit building the OBJECTIVE is to build DATA the dollar amounts aren't​ really relevant enough to be fretting over.

Why because the scoring model doesn't CARE that the CL is $300 or $3000 it's still only so old, just a few total on time payment history months to judge

You gotta build data points
It better IMO to use the same or eat LESS funds to secure multiple TLs thus thicken the profile with more payment data

Example
Instead of IMO wasting 5k securing ONE account allowing it to be 'pretty' on a profile by itself

A person could put a small secured Loan of $500, then add a $300 Discover, a $400 Visa and $500 MC
After 10 reporting cycles the scoring model reads DATA of 40/40 Paid as Agreed & Great Utilization Management of Debt, over multiple accounts, among a Mix of accounts
THAT file is considered LESS RISKY, which = better score

The trick is Patience to 'play' to LONG game of a few months of Chess vs falling for the Checker game

Ppl have fed this nonsense of send a LOT of spend through the card as the 'key' again NOT really true for an account in credit score build mode.

Keep the utilization absolutely beautiful and feed on time history over TIME, which can not rushed,but it doesn't take THAT long but ppl have ants in their pants and ruin what could have grown beautifully,in about a school year

The way to keep the low CL builder card debt ratios low simple DON'T​ use them, period except for perfectly planned, staged usage there is no need to actually 'use' those cards they are there for SHOW, like your Mom's good China

It's simply an audition, until the profile warrants some 'real' CL when the score and profile get all 'growed-up' down the line, other than it's pomp and circumstances for the scoring model, nothing more.

Need to 'buy' something use your Debit Card don't use Credit, you don't have any yet 'remember' duh
All this smashing a gazillion dollars through a &500 CL cards is silly and doesn't 'show' anybody you 'need' a $5k CL card....Why would a moron 'think' it's ok to extend 5k in unsecured revolving account to a profile you barely gave $500 just a little while ago.
Message 6 of 6
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