Credit Cards

[randonie]

I'll be opening two secure credit cards very soon. One with USAA for $500 and one at capital 1 for $1500. If I understand correctly having a higher limit but using less then 10% on the card is the best way to build credit. Im just wondering if it would be better to have $1500 on the USAA secure card and $500 on the Capital secure card. Any Suggestions? I mostly wanted to put the $1500 on a secure card that would become unsecured over due course and not require me to close the account and open a new one, but it seems as though that's how most card places work.

[llecs]

While higher limits begat higher limits, per FICO scoring, it doesn't matter if the limits are $200 or $20k. It's how you use those limits that count. If I were to tie up $$$ in a secured CC (great way to start), I'd probably tie up the most within a secured CC that is more likely to unsecure sooner, if that makes sense. I personally wouldn't want to tie up money for longer than is needed. So, I would research each based on others here to see if CapOne or USAA would be more likely to unsecure sooner, assuming they even did.

[randonie]

USAA is a two year deal But they have a 9.9%. Capital one would probably become unsecure in a year.

[trix_r_4_kids]

Capital One will not unsecure.  To get a different card, you'd have to reapply and that would mean a hard pull across all 3 bureaus.  If I were you and in the market for a secured card, I'd put $1000 in USAA.  Yes, it's tied up for 2 years but at least you'd be earning interest.  BTW ... to my knowledge, USAA will also not unsecure.  You'd need to apply for a different USAA card.

[randonie]

Are there any good secure cards to go with that will roll over the account like that? It seems most of them require you to close then reopen a new card. My current score is 518 and I plan on getting these cards next month and not making any late payments and keep it below 10% util with no credit inquires for a year then see how my credit is

[trix_r_4_kids]

I do not have any personal experience with Bank of America (BOA).  However, there are quite a few posts in the forum from those who have had a secured card through BOA that transitions to an unsecured card.

Perhaps others with BOA experience will chime in.  In the meantime, search the boards for unsecuring BOA.

[Swapmeet]

I would research first progress. I have a secured card with them and their program is such that you put down a deposit, in your case it seems like around $1500, and as your account ages you are able to request CLIs that are unsecured. I am not sure if they ever give you your initial deposit back, but they do offer unsecured CLI, which will get you what you're looking for -- an account in which you can keep the same aged account and at least have a large amount of it become unsecured.

[Datx]

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randonie wrote:

Are there any good secure cards to go with that will roll over the account like that? It seems most of them require you to close then reopen a new card. My current score is 518 and I plan on getting these cards next month and not making any late payments and keep it below 10% util with no credit inquires for a year then see how my credit is

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Unfortunately with a score of 518, I don't believe you will be approved for a secured card that will unsecure later on. At least not from the big banks anyways. I know Bank of America, and Wells Fargo unsecures later on. There is always the local CU route, but its hard to say and it really just depends from CU to CU if they unsecure or not.

[sphinx313]

Pretty sure they "have" to give you the money back. Charging a yearly fee and making you wait 11 days to post a payment sounds like enough trouble for me. In their beginnings, I don't think they gave you your deposit back, but earning customers is obviously hard if you say you're not giving anything back. 

[nicholasyud]

1. Credit Union
2. Local Bank.
3. USAA with 1500.
4. Store Card (maybe if they approved )