Bank of America lied to me about secured credit card reporting

[skorpyo3]

I was recently declined for BofA 123 Visa and counter offered with 123 secured card. Before I apllied for the secured card, I called and asked some questions. One of my conditions was how the card would report to the bureaus. From what I've read on here, it reports as secured. I asked a rep and confirmed with a manager, and both of them told me it would not indicate secured. I was happy, so I said OK. I applied online while still on the phone, and entered my checking acct info for my $3000 deposit. Then, I called back to ask a few more questions and to confirm how the tradeline would be reported. The rep said it will definitely show as secured! I was so pissed! I told her to cancel the app for the wrong info by two other reps. She said I was already approved and would have to wait to get card, and then close it. I told her that it better not show up as an open then closed tradeline on my credit report, as that will look bad. She said it may, and I could try to get them to remove it. In the meantime, I sent a PM to BofA on Facebook. I also called my bank where the deposit is coming from and inquired about stopping the ACH transfer. There will be a $15 fee and advised BofA may charge me an insuffient fund fee as well. My question is, if I stop the deposit, will the account never be generated and then not report? I didn't really need the card as my scores are 660-680. I have 3 Cap 1 cards $3,000, $5,000 and $15,000, Barclays $3000, and Patelco CU $5000. I just wanted to establish a relationship with the biggest bank in America, but I definitely made a mistake! 

[Anonymous]

Does it really matter that much that it reports to secured? My scores shot up the second my secured card reported. They are great about reporting every month.  3months after being with them I got prequalifed for Chase Freedom. 

[skorpyo3]

@Bananas1, if I didn't already have all unsecured cards, it wouldn't really matter. Just concerned what a potential lender may think. BofA did tell me 3 times that I could call back in 5 months to be considered for graduation. That is good news. What really bothered me was the fact that I was lied to twice. That's awesome with the Chase Freedom. I was approved last week by them, then delined! I called for reconsideration, but no go. I was called by their EO per my request, and will get a final decision tomorrow. The reason for decline was BK in 2012. I have seen others approved on here with BK for that card. Wish me luck! 

[Anonymous]

It is inexcusable how they misled you. I would be so annoyed. 

That being said, it looks like you don't really need a secured card after all. However, if you didn't mind depositing 3K to begin with, the fact that they report as secured shouldn't be the game changer in my opinion. I have never heard of an analyst that looks down upon secured cards. Plus, the card can be unsecured later. 

[Callandra]

^A lot of times CSRs just don't know. (Or they tell you what you want to hear) There are countless stories on here about CSRs saying XX will be a SP and then it's really a HP. I would actually trust the stuff you read here more than the CSRs with certain issues.

Chase might be a hard approval at only a few years out of BK but good luck! 

[skorpyo3]

@LearningFast14, Thank you. I may keep it. I heard that BofA is really good about graduating by 1 year. Hopefully with my 3k deposit, they will raise my CL as well. I was told that they won't waive $39 AF, but I may qualify for a product change or upgrade wtihout fee. 

[Anonymous]

So you just said that you read here that it reports as secured yet you did it anyway. You're going to believe front end CSRs vs real life people that have the card on this site? And as the other person already said, who cares how it reports. It's a great product and it helps you either way. Bottom line is its going to report to the credit  bureaus so you might as well keep it.

[skorpyo3]

@Callandra, Thanks! Yep, I should have known better! Ugh! 

[Anonymous]

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@skorpyo3 wrote:

@Anonymous, if I didn't already have all unsecured cards, it wouldn't really matter. Just concerned what a potential lender may think. BofA did tell me 3 times that I could call back in 5 months to be considered for graduation. That is good news. What really bothered me was the fact that I was lied to twice. That's awesome with the Chase Freedom. I was approved last week by them, then delined! I called for reconsideration, but no go. I was called by their EO per my request, and will get a final decision tomorrow. The reason for decline was BK in 2012. I have seen others approved on here with BK for that card. Wish me luck! 

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Yes, I understand that you were led to believe it would report otherwise. I was on the fence about this as well but after research it seems that it really doesn't hurt you. I've been banking with them for eons. It was my first credit card after almost seven years so I understood the need for a secured card. But at least it was for a strong bank. I was told they would graduate me in less than 12 months. We will see! I don't have a Bk so honestly consider yourself lucky they offered that because I've noticed they don't let many in with BK. I say you go for it and get that foot in the door. You already took the hard pull! 

[FinStar]

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@Anonymous wrote:

Does it really matter that much that it reports to secured? My scores shot up the second my secured card reported. They are great about reporting every month.  3months after being with them I got prequalifed for Chase Freedom. 

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Right.  The real mistake (IMO) was not accepting the offer.  But to each their own and what's done is done.  Honestly, lots of people would like to re-establish a BoA relationship (or begin one), especially with the 99/500 product. 

So, technically the CSR/supervisors were uninformed and provided incorrect information.  However, anecdotal evidence on here (and outside these forums) clearly indicates that BoA secured cards will report as secured on CRAs.  After the initial commitment of having the card for 6-12 months with positive history, the card graduates to unsecured and the secured reporting goes *poof*.

I suppose some people don't want to see it on their report (ego) whereas others don't care.  It's only temporary!