@Scupra
Agreed $1000 isn't a CRAZY amount IF one HAS it😃
The poster spoke of waiting till they could SAVE UP $500 and I've been there.... sometimes $500 IS a crazy amount, especially in a country where the average American household doesn't not have a $500 emergency fund, so unfortunately for many YES $500 us a bit steep as a minimum deposit to come up with COMFORTABLY (again this is an extra amoof money, that has to be comfortable NOT needing for at least a year...far too often ppl overburden themselves using money to secure an account only to 'need' that money, then they wind up maxing the card, to basically get at the funds...a dangerous financial move IMO)
The 2nd reason I give ppl an alternative is
A) By waiting till one has a full $500 (again if their saving up) they could have a TL on their credit profile aging and reporting on-time payments 2-3 months earlier... remember the rebuilders goal is to build history and the earlier they start the better, for point scoring purposes the scoring model doesn't care about the SL...it measures on-time payments and % of debt owe / by the CL, period....so waiting till one has saved up $500 is unnecessarily slowing them down.
B) And because the model gives more juice for managing multiple accounts IMO...a person with limited funds is better off (again score manipulation wise) with TWO $250 TLs reporting positive data vs waiting to start just the one.
My point was that by the time a person may have save up half a grand, another might able to build enough history to actually app for an unsecured Navy CC, as NFCU can be an easy approval, if not say a Cap-1 Plat or QS1.
I was just showing how 'if' funds were an issue, it doesn't have to be...many, many vendors have deposit limits way lower than $500 because... let's face it a rebuilder generally may be cash sensitive.
We're talking BoA, Wells, US Bank, Discover a gazillion CUs all have lower deposits than Navy...
As, I mentioned I love NFCU (cashRewards, car & CLOC) however from a strategy POV the $500 deposit IMO knocks them from being a #1 choice
As a Step 1 fund usage for rebuilding...not when one can start showing credit history with a $200 Discover card😂 month 1 then add a $250-$300 from another CU or a major bank a few months later...thus safely saving only $100 a month but building history along the way vs waiting 5 full months to even start a profile.
By using funds at month 2
Then again at month 5
It's possible by month 7-8, in total
a profile may have Three TLs
With one being half a year old
Vs having just one aged three months.
In addition to vetting and building 3 vendor relationships that may come in handy later.
Again, especially considering that the model craves an ideal # of 3-5 open revolvers... I say get them with the least amount of stress possible, w/o denial jeopardy if possible.
Building with Discover in position 1
Wildcard of ones choice in position 2
And NFCU in position 3
Is a winning Long term hand in my book
vs churning bottom feeder companies
Just my 2 cents
