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Contributor
BearOSO
Posts: 97
Registered: ‎10-03-2012
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Re: Could beefing up my secured cc backfire?

I had a 5,000 secured CC for two years w/ USAA. May have helped me acquiring a 5,500 CL on the unsecured version when I app'd and closed my secured CC. 

 

I received a lot of preapproved offers from amex, chase and a few others towards the end of my 2 yr secured agreement. 

New Contributor
AQ
Posts: 83
Registered: ‎02-28-2013
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Re: Could beefing up my secured cc backfire?

I'm not asking specifics, but did you also have a moderate to high income when receiving those offers?  I'm a low-income kid, so I wonder how much income relates to CL and cards when compared to credit score and history. 

 

So when you went to unsecured, it was a different card, technically, not simply the unsecuring of the secured card?


Thank you for sharing your experinece!


BearOSO wrote:

I had a 5,000 secured CC for two years w/ USAA. May have helped me acquiring a 5,500 CL on the unsecured version when I app'd and closed my secured CC. 

 

I received a lot of preapproved offers from amex, chase and a few others towards the end of my 2 yr secured agreement. 






Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU663 EQ661
Goal Score: 750 750




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twall06
Posts: 348
Registered: ‎10-25-2012
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Re: Could beefing up my secured cc backfire?

I think having a higher limit would help you get higher limit unsecured cards when you are ready . One of the sites i use also says having low limits hurts but I do not pay it any attention . But im more focused on trying to show a positive payment history to rebuild my credit so I'm not worried about getting cards with higher limits right now .
Contributor
BearOSO
Posts: 97
Registered: ‎10-03-2012
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Re: Could beefing up my secured cc backfire?

Not at all. I was and still am a student and make ~30000 a year with my school benefits. My AAoA at the end of last year was 3 years till I went on an app spree.

There's no way for a secured card to unsecure with USAA so I app'd for their unsecured, rewards AMEX version and was instantly approved...I did it in feb of this year but I waited two years to get to that point, that's probably the "sucky" part. Although a lot of people have had successes in a shorter amount, I just decided to wait.

I'm glad I could help!!
New Contributor
AQ
Posts: 83
Registered: ‎02-28-2013
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Re: Could beefing up my secured cc backfire?

[ Edited ]

 


BearOSO wrote:
Not at all. I was and still am a student and make ~30000 a year with my school benefits. My AAoA at the end of last year was 3 years till I went on an app spree.

There's no way for a secured card to unsecure with USAA so I app'd for their unsecured, rewards AMEX version and was instantly approved...I did it in feb of this year but I waited two years to get to that point, that's probably the "sucky" part. Although a lot of people have had successes in a shorter amount, I just decided to wait.

I'm glad I could help!!

That'sa big help, and an encouragement! 

I am also a student, but right now just squeaking by on my loans.  When I get into graduate school (I'm 34, a late bloomer, and just out of BK), I'll be working more and still have some aid from school coming in, so my income/finances will be more lenient. Like you, my AAoA is around 3 1/2 years, but I think every time a new student loan is taken out, that changes.  As well, in the next few years, old accounts will be dropping off, and that may hurt or it may help, as they were negatives. 

So were your numbers or credit report fairly rough when you started your $5k secured card? 

Waiting is the hardest part, to quote a song.  But it's part of the game.  I just need to keep cultivating patience.  :smileyhappy:



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU663 EQ661
Goal Score: 750 750




Community Leader
Valued Contributor
DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
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Re: Could beefing up my secured cc backfire?


boomhower wrote:

twall06 wrote:
Having a low limit credit card does not hurt your credit score. Limits i dont think matter that much . More about your utilization and on time payments .

Pretty much what I'm thinking.  Saying a low credit limit is hurting your score sounds like they are struggling to find something to say.


It doesn't hurt your FICO score as long as utilization is the same, but it does impact your ability to get higher limit cards in the future, in addition to making utilization much easier to manage.  It also shows creditors looking at your reports that you have the ability to manage a large amount of credit. These reasons are why some FAKO scores give more points for higher limits.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Established Contributor
YahComb
Posts: 599
Registered: ‎03-10-2012
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Re: Could beefing up my secured cc backfire?

One thing about some secured cards-No matter how much you pump into one, when it comes time to unsecure(assuming a particular card does unsecure) some issuers will re-asses your credit limit and actually CLD you. Happened to a few people here with the BOA secured over the years. I'm talking about credit limit being halved or even lower.

EQ-736(08/14) TU-752(09/14)
Newest to Oldest
Barc Sallie Mae 6K | Citi TY Pref 4.5K | US Bank Cash+ 10K | Chase Freedom 11.7K | Disc It 10.5K | Amazon Store 2.5K | BOA Cash Rewards 10.5K |

Closed Cards: 4 Oldest: 3yrs AAOA: 2yrs
Frequent Contributor
7PM789
Posts: 263
Registered: ‎08-20-2012
0

Re: Could beefing up my secured cc backfire?

I started my credit journey with a $500.00 secured card through my credit union which after six months of use I was approved for a Amex gold charge card with no prior credit history. . .

I have since bumped my secured cards limit up twice; once to $2,500.00 then to $5,000.00 each time it reset the 1 year count down to it being unsecured.

I honestly believe that the secured card has played a significant role the development of my credit profile and would recommend that you secure as much as you can afford.

In my case the $5,000.00 is frozen in my savings account incurring interest until the card is eligible to become unsecured at which point I will transfer the funds to an online savings account with a higher interest rate.

I wish you the best of luck with your rebuilding. . .
Amex B.C.E. - $2.5k - N.C.F.C.U.M.C. - $5k - Amex Gold - NPSL/35k P.O.T. - Discover More - $12k - Sam's Club M.C. - $10k -
Walmart M.C. - $7.5k - Citi T.Y.P. - $10k- Chase Freedom - $5k -
W.M.TU-776(Oct/14/) EQ-726(July/12) EX-782(Oct/14)
Audi, Vide, Tace. . .


New Contributor
AQ
Posts: 83
Registered: ‎02-28-2013
0

Re: Could beefing up my secured cc backfire?


YahComb wrote:

One thing about some secured cards-No matter how much you pump into one, when it comes time to unsecure(assuming a particular card does unsecure) some issuers will re-asses your credit limit and actually CLD you. Happened to a few people here with the BOA secured over the years. I'm talking about credit limit being halved or even lower.


Yikes!  See, that's exactly what I was worried about when creating this post.  I don't want a high amount of money tied up indefinitely in a card I cannot unsecure without a CLD, thus a potential drop in my score. 

Sorry to hear that's happened.  I bank with a credit union, so I'd think they are more lenient than BOA, but how much is not something I can determine.



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU663 EQ661
Goal Score: 750 750




New Contributor
AQ
Posts: 83
Registered: ‎02-28-2013
0

Re: Could beefing up my secured cc backfire?


7PM789 wrote:
I started my credit journey with a $500.00 secured card through my credit union which after six months of use I was approved for a Amex gold charge card with no prior credit history. . .

I have since bumped my secured cards limit up twice; once to $2,500.00 then to $5,000.00 each time it reset the 1 year count down to it being unsecured.

I honestly believe that the secured card has played a significant role the development of my credit profile and would recommend that you secure as much as you can afford.

In my case the $5,000.00 is frozen in my savings account incurring interest until the card is eligible to become unsecured at which point I will transfer the funds to an online savings account with a higher interest rate.

I wish you the best of luck with your rebuilding. . .

Thank you!  And that's good information about the resetting of the 1 year mark.  I wondered how that might work if i dropped a good deposit, only to request the unsecured only months later.  That's sensible, and I'll ask my credit union if they have such a policy. I would be surprised now if they didn't.

I'm coming out of BK, so I have credit history...it just ain't pretty!  That and I had to BK a few ccs along with my other debt, so Capital One and GE won't touch me, I figure.  It's going to be a slow and steady climb.  Glad for yours and everyone else's responses, here and elsewhere.  Such a great community!



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU663 EQ661
Goal Score: 750 750





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