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New Member
Mutterz
Posts: 9
Registered: ‎12-25-2012
0

Did I make the right choice with secured cards?

[ Edited ]

So I'm starting to build my credit all I have so far is a Capital One with a $500 limit. I'm 21 years old so I don't have much history at all. I had some money saved up so I decided to open some secured credit cards as I was being declined for non-secured credit cards. Here are the ones I put apps in for. I'm guess they will be approved because it secured credit cards.

 

U.S. Bank Visa $5,000

Bank of America Visa $4,900

Wells Fargo Visa $5,000

 

My credit score was around 580 when I applied for these just today. I don't plan on putting more then $100 on each one per month. I also plan to pay them in full each month. About how long would it take to get to 700 with these? Is that even possible with just these cards?

New Contributor
stormb28
Posts: 104
Registered: ‎12-12-2012
0

Re: Did I make the right choice with secured cards?

Hold up, are you saying you put up $14.9k on secured CC's?
New Member
Mutterz
Posts: 9
Registered: ‎12-25-2012
0

Re: Did I make the right choice with secured cards?

Yes I talked with a banker at each bank and told them what I was doing and was told with what I was doing theres a very very high chance I will get my deposits back in 1 year.

New Contributor
stormb28
Posts: 104
Registered: ‎12-12-2012
0

Re: Did I make the right choice with secured cards?

Impressive, but i wouldve $1,000 on each card and put the rest in a IRA. But, thats just me.
Valued Contributor
kevinjjc
Posts: 1,347
Registered: ‎01-14-2009
0

Re: Did I make the right choice with secured cards?

Higher limits beget higher limits.

Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: Did I make the right choice with secured cards?

Yes. I agree with Kevin. If any of the OP's cards report as revolving credit (and don't specify secured) then future lender analysis will show that the OP has had high limit cards and has managed them well. This will enable OP to receive higher limit cards in the future. Plus, if the cards insecure at their current limits, OP will have $14.9k in unsecured credit.

Good plan, and good luck, Mutterz!

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New Member
Mutterz
Posts: 9
Registered: ‎12-25-2012
0

Re: Did I make the right choice with secured cards?

 

I know for a fact that the BoA and Wells Fargo card will report as non secured cards. That I asked them. All three bankers thought it was a great idea and that I would be getting my deposit back in one year. So it should all work out good. :smileyhappy:


SnackTrader wrote:
Yes. I agree with Kevin. If any of the OP's cards report as revolving credit (and don't specify secured) then future lender analysis will show that the OP has had high limit cards and has managed them well. This will enable OP to receive higher limit cards in the future. Plus, if the cards insecure at their current limits, OP will have $14.9k in unsecured credit.

Good plan, and good luck, Mutterz!



New Member
Mutterz
Posts: 9
Registered: ‎12-25-2012
0

Re: Did I make the right choice with secured cards?

 

Thanks. The reason I did so much is because they told me it's best to have a few credit cards over $3,000.


stormb28 wrote:
Impressive, but i wouldve $1,000 on each card and put the rest in a IRA. But, thats just me.



Valued Contributor
nicholasyud
Posts: 1,737
Registered: ‎08-13-2012
0

Re: Did I make the right choice with secured cards?


Mutterz wrote:

 

I know for a fact that the BoA and Wells Fargo card will report as non secured cards. That I asked them. All three bankers thought it was a great idea and that I would be getting my deposit back in one year. So it should all work out good. :smileyhappy:







I would just put one with 5k and another 1 with 2k.

You already had 1 positive trade line capital one.

I would do some like secured loan on the same day you do your secured credit card. SEcure loan put down about 3k and paid them back every months in 1 years or 6 months up to your choice. You does paid interest on it but not that much since its secured loan.

The rest of your money save up to paid back for those loan.

So you looking at 3 CC and 1 secured loan. Better than 4 CC. just my o.2 cent. :smileyvery-happy: and good luck.


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Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
0

Re: Did I make the right choice with secured cards?

if you have the funds for it, it's a great idea. like said larger limits reporting gets higher limits in the end. a 5k walmart card got my first 5k real card (through my bank) but i also had a 500 card that i got in june and then a 2k card i got in august. 

in june i had no cc that i could use anywhere.  a 2.5k limit at best buy and a 2k limit at macy's technically (bumped to 3.5k in july)

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