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Do I need a Secured CC if I already have regular CC's?

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New Contributor

Do I need a Secured CC if I already have regular CC's?

The wife and I are reading up on rebuilding credit and one tip we've read is for people to obtain a Secured Credit Card and use that as a credit-establishing tool. If we already have low-balance credit cards, do we really need to venture down the Secured route? We have three credit cards, we pay the bills on time and at the end of the month, we're going to pay them down and keep our balances below 25%. Should we really need to do anymore than that when it comes to credit cards? Thanks!
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4 REPLIES
Established Contributor

Re: Do I need a Secured CC if I already have regular CC's?

We generally recommend secured CC route if you cant get anything but they high fee super sub prime cards.  Getting a secured card is also a great way to get in with a prime bank (BofA).  So the only reason you might consider one is if you have cards like credit one, orchard, and want to get in with a more prime lender.
"WTB Access Number"
Message 2 of 5
Valued Contributor

Re: Do I need a Secured CC if I already have regular CC's?


fender wrote:
We generally recommend secured CC route if you cant get anything but they high fee super sub prime cards.  Getting a secured card is also a great way to get in with a prime bank (BofA).  So the only reason you might consider one is if you have cards like credit one, orchard, and want to get in with a more prime lender.

 

definitely agree

 

If you dont have a prime lender cc, b of a secured card is a great way to break in.

Message 3 of 5
New Contributor

Re: Do I need a Secured CC if I already have regular CC's?

What are the advantages of getting a "prime card" and how does that help me? Thanks!!
Message 4 of 5
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Senior Contributor

Re: Do I need a Secured CC if I already have regular CC's?


Mays wrote:
What are the advantages of getting a "prime card" and how does that help me? Thanks!!


-better rates

-better customer service

-less fee driven overall.  (lower or) no fees. 

-(better) perks/ rewards

-may look more solid to other lenders reviewing your history

-higher initial CL and CLI growth potential

-more flexibility to product change

-may have recently received a huge chunk of bailout money to lend (or not, in the case of "zombie banks" )

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
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