Considering USAA secured AMEX?

[thankfulheart]

Rebuilding, looking for a mortgage in 6 months.  I have 4 open, unsecured CCs: Cap1 Business ($750CL), Cap1 ($500CL, but due to increase next month), my CU Visa ($500CL), and Target RedCard (store card, $200CL).  The Visa/MCs are all less than a year old.

I'm a USAA member and am wondering if I should even bother with a secured AMEX from them? 

If I did, I'd only set it at $250-$500.  I've had insurance with them for almost 30 years, banked for a few years, but closed it out and I'm looking to re-establish that relationship.  Will it set me up for success anymore than I've already got going with my unsecured cards?

Will it report as "secured"?

[frogfan12]

If you're looking to apply for a mortgage within the next 6 months, applying for a CC is not a good idea in my opinion/experience.

[bichonmom]

I agree with Frogfan. Getting a new cc will only sink your AAOA. It won't increase the likelihood of getting a mortgage. If you were looking ahead a year or two, then maybe your relationship would help -- not sure about that tho with mort.

If I were you, I'd open a checking acct with them and work on creating a history that way. They told me that they do take that into acct with cc apps.

I'd also work on getting CLIs with your non-cap one CCs. I don't think another low-limit cc is going to help your credit much. It's true that FICO doesn't take CL into acct, but still, it's really hard to use a cc with such low limits. (at least for me.)

To answer your question, secured CCs and loans generally do report as secured, but that doesn't affect your FICO, either.

Others may have more exp with usaa. I just recently opened a ckg acct with the intent of apping for a cc in the next year.

[thankfulheart]

Thank you both.  This is why I love myFICO, all the smarty pants who share their wisdom!

I think I'll wait until after the house thing is settled and then move forward banking with them.  I really don't have a need for it right now and would rather not complicate finances pre-mortgage app.

[Revelate]

I wouldn't bother with another secured card in your case, you've got several anyway and it's not going to assist you either in a mortgage or otherwise.

Manage the ones you have now, get the mortgage settled (others are correct, don't app before mortgage time in six months in your situation), and just start looking at non-rebuilder cards at tha point or perhaps threeish months post closing, including an unsecured USAA card if you so desire.

[zoe15]

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@Revelate wrote:

I wouldn't bother with another secured card in your case, you've got several anyway and it's not going to assist you either in a mortgage or otherwise.

Manage the ones you have now, get the mortgage settled (others are correct, don't app before mortgage time in six months in your situation), and just start looking at non-rebuilder cards at tha point or perhaps threeish months post closing, including an unsecured USAA card if you so desire.

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+1 Yes, when you finally do apply, I'd appy for an unsecured USAA AMEX since you're a full member with insurance.  I'm a full memebr, and they offered me an unsecured with 3K CL when I considered myself to still be in the rebuilding phase.

[learnin113]

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@frogfan12 wrote:

If you're looking to apply for a mortgage within the next 6 months, applying for a CC is not a good idea in my opinion/experience.

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+1

[Anonymous]

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@thankfulheart wrote:

Will it report as "secured"?

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While I agree with all the other posters advice given thus far, I just wanted to clarify that the secured AMEX from USAA does NOT report as secured. 

[Student_Loans_Kill]

What about their secured cd personal loan?

[Cdnewmanpac]

I agree with others about waiting. But when you are ready, app for the unsecured. When I called in to talk about the app process, the rep strongly advised against apping directly for secured. He said that if you are denied for unsecured, they will counter with a secured offer. One inquiry either way and a chance for an unsecured card. Not true for partial members, but worth a shot for full members. I cannot confirm counter, since I was approved for card I applied for, but I've never been steered wrong by a usaa rep.