BOA Secured Advice

[mathman]

Hi everybody -

I just opened a BOA Secured Card with a $500 deposit.  I'm in the rebuilding process (scores between 625-650).  I just went on a mini-spree and the BOA Secured was part of it.  My highest card is NFCU cashRewards with a 6K limit.  I just got 1-2-3 Rewards added to the card, so it would become my daily driver.

I have access to some funds, and I'm thinking about depositing a large amount into my BOA Secured so I can have a "prime time" card with a higher limit.  Here's what I'm wondering:

1.  Since it's a HP for deposit - how much should I do?  Would 4K be a reasonable number? (to raise total limit to 4500)

2.  The only thing I'm worried about is a CLD if it graduates in a year.  How real is this possibility?  I can tie up some money for a while, but not years ... advice?

Thanks much!

MM

[enharu]

1. It's up to you. A higher CL will allow you to have more spending room. But at the same time u have more money locked up in there.

2. It depends on the risk level that BofA perceives you to be, so it's really hard to tell. That will depend on your spending and paying habits.

[mathman]

I'm intending to use heavily, pay several times a month, and post a 0 balance at statement close.  Would that help?

I should also clarify on my "how much" question.  I'm wanting to get other "prime time" cards in a year's time.  How much of a limit do I need to show others that I'm "serious." That's what I meant.

[enharu]

That will help. Your utilization will be 0%. Some people recommend leaving small balances post from time to time just so other lenders who cannot access your payments history can see that you are using and paying the card...... But I can see how much I spent and used just fine on my ex and eq reports, so I don't see a real need for that. It's up to you though, there's no right or wrong on this.

As for CL, of course the higher the better, but since your card is a secured card, other lenders will see that too and know that your CL is due to the amount of deposit you left. So for now use the BofA card well and hopefully they insecure you ASAP. There's cases of them un-securing it in less than a year.

Some visa sig cards start at 5k CL, and certain banks like to match the CLs you have, rather than to be the guinea pig themselves and offer you a high CL first. Don't worry too much about this for now though. Your BofA card will grow with you over time

[HiLine]

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@mathman wrote:

Hi everybody -

I just opened a BOA Secured Card with a $500 deposit.  I'm in the rebuilding process (scores between 625-650).  I just went on a mini-spree and the BOA Secured was part of it.  My highest card is NFCU cashRewards with a 6K limit.  I just got 1-2-3 Rewards added to the card, so it would become my daily driver.

I have access to some funds, and I'm thinking about depositing a large amount into my BOA Secured so I can have a "prime time" card with a higher limit.  Here's what I'm wondering:

1.  Since it's a HP for deposit - how much should I do?  Would 4K be a reasonable number? (to raise total limit to 4500)

2.  The only thing I'm worried about is a CLD if it graduates in a year.  How real is this possibility?  I can tie up some money for a while, but not years ... advice?

Thanks much!

MM

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1. As much as possible. Like enharu said, your future creditors will likely match the limit on your first card. Had I known this I would have put at least 5k on mine. 4.5k is quite reasonable if you don't mind putting that money aside for a while.

2. It sometimes happens if you increase the credit limit too close to graduation date. If you intend to raise the limit, I would do that the sooner the better. I know of no one whose BofA secured card did not graduate within a year, so don't worry about tying up your money for any longer than that.

[if6was9]

I have a BOA secured card that graduated last Nov. If you pay on time you will not have any problems. Deposit as much as you can as this will help to define your credit limit once it graduates. It's more likely for them to give you the same $5000 CL or more when it graduates, than upping your limit from $500 to 5000. If you can afford it, then do it, it's worth it. 

[hideous]

Not to hijack your thread but....

I have had a $5000 BoA secured card for 3 years and 10 months and it has not unsecured.

What am I doing wrong?

Does it happen automatically?

[enharu]

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@hideous wrote:

Not to hijack your thread but....

I have had a $5000 BoA secured card for 3 years and 10 months and it has not unsecured.

What am I doing wrong?

Does it happen automatically?

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go to a branch and talk to a banker/manager and ask why. they will be more than willing to help you, especially if you have other banking products with them. they have access to all your account info so they can tell you why.

what is your util ratio? do you max out the card a lot?

do you have any baddies on your report (BK, collections, liens, charge offs etc)?

Call the number behind your card as well and ask them if they can unsecure it. the process is automated for some people, but some have to call in.

[hideous]

Yes  I have bad things on report my scores are within 5 points of 600 but thats with a 50% utilization which apparently is considered "very high" and It has been paid off but doesnt report until the 19th I am hoping for a point boost.

I did call the number but they told me with my score they probably wouldnt do it so I didnt want a hard inquery for nothing.

Should I ask them to do it with a 600 scoe?

[RyVision]

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@hideous wrote:

Yes  I have bad things on report my scores are within 5 points of 600 but thats with a 50% utilization which apparently is considered "very high" and It has been paid off but doesnt report until the 19th I am hoping for a point boost.

I did call the number but they told me with my score they probably wouldnt do it so I didnt want a hard inquery for nothing.

Should I ask them to do it with a 600 scoe?

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The 50% UTIL isn't that outrageous, it's high, but it's not "very high" with a clean report.  That is far from "Maxed" as they call it.

When late pays, charge offs, or other serious negatives are on the report as well as somewhat high UTIL, then it becomes becomes a more negative factor during a manual review (as well as scoring methods).  UTIL of 50% alone won't bring your FICO below 600 by itself.  If you can pay it down to below 9% UTIL, you should see a decent bump in your score.  It won't be as high as if your report was spotless, but it will raise it.

You might have to leave it secured for a while yet.  Are any of your serious negatives (baddies) due to drop off any time soon? That will probably help a lot when that happens.  Without knowing a lot more info, it's hard to give a better answer.    It's very unlikely that BOA will unsecure a $5000 CL with a score below 630ish and regular payments at least 3 or so times the minimum (5 or more times the minimum payment would be best if unable to PIF somewhat frequently).

I hope that somewhat answered your question, remember, I'm only going on the limited info you posted in this one thread.