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SDFCU is now reporting as "SECURED"

Established Contributor

Re: SDFCU is now reporting as "SECURED"

Perhaps it's not a huge big deal, but it definately is the principle.

May 2013 Starting Scores: 540's-570's
July 2016 Scores: 654-705 ...No Lates, CA's or CO's, new car + high Util
Current Cards: SDFCU Secured ($300); Logix Secured ($500); Tobyhanna/Penfed FCU ($5000); NFCU CLOC ( $15,000); NFCU Refi ($18,144) Sony Visa ($3000); Apple PC'd to Rewards MC ($1200); Barclay Rewards MC ($1300); B&N ($500); Discover ($1000); 'Credit Steps' ($2300), QS One ($750);Care Credit ($9000); US Bank Platinum ($5000); Fifth Third SU2C ($3000); Kay's/Jared's ($4700); Target ($2000); Fingerhut/Gettington ($2250); **All my favorite retail cards ($61,000)..Luv'Em..they get heavy use!
Message 11 of 27
Established Member

Re: SDFCU is now reporting as "SECURED"

I agree, Toi.

 

1) You just don't change the way you are reporting and not inform you customers.

 

2) It may not effect your score but you don't know what influance it would have if you were getting it review by a person.  

 

I have been unsuccessful in getting the reporting changed back.  If anyone has any suggestions on how I can get my situation correct, please Inbox me.  

 

Thanks!

 

 

Message 12 of 27
Valued Contributor

Re: SDFCU is now reporting as "SECURED"

I'm of the opinion that FICO scores actually overestimate the risk when a card is secured*.  People think of secured CCs as a red flag that a person has bad credit but the reality may be different. Further, there is other evidence I've seen personally that this is the case. Let's take an example:

 

Imagine two people. both with a 10k CC, one secured one unsecured, with a 4k balance and both with a few CAs, say 5 y/o of say $500 each that have been paid..

 

What is the risk of default within 2 years, which is what credit scores estimate.

 

I maintain that the risk of default of the  person with the 10k secured card is lower than the person with the unsecured card. Would that really surprise anyone? I think not.

 

People look at a secured card as a bad credit flag but the flag is the CAs, not the secured card.

 

*My specific reason for this belief is that I was in a similar position 4 years ago with a couple secured cards. I was able to get a mortgage with that file. Needless to say I have since had the cards unsecured and the mortgage was has been paid off. Another interesting thing is that my VantageScore 2.0 at the time was 900 (roughly similar to a 780 FICO). The only way it could have been that high is if the fact my cards were secured weighed favorably against the CAs. Especially with a fairly thin, short file with smaller older but paid baddies. BTW, after my cards unsecured and all the baddies dropped off my Vantage score dropped to the high 800s. More evidence that secured cards are not a negative factor in credit risk.

 

We don't know the scoring algorithms of VantageScore 2.0 but the 3.0 version has been specifically stated to factor in secured cards and I suspect that such a similar situation would also be weighed favorably.

 

We do know FICO scores don't factor secured status but in the future they may do so as well. But the widespread assumption that a secured card status is a "Bad Thing" is, IMO, highly dubious.  CAs and liens, especially unpaid ones are the bad things.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Message 13 of 27
Highlighted
Established Contributor

Re: SDFCU is now reporting as "SECURED"

I opened my secured account with them in 2012. For me, it's always been reported as "secured" with all 3 CRAs.


Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Current Score (9/3/15): Wally TU 639 | Amex EX 628 | DCU EQ 639
Goals: Homeowner as of 9/27/2013. Last app 8/1/15. TU-5; EX-16; EQ-13. Aiming for ZERO inqs.
Message 14 of 27
Established Contributor

Re: SDFCU is now reporting as "SECURED"

Do you know if they report secured share loans as secured ?

Message 15 of 27
Super Contributor

Re: SDFCU is now reporting as "SECURED"


Refugee47 wrote:

Do you know if they report secured share loans as secured ?


I'm gettin loan secured. I could care less as long as fico recognizes the installment loan. We all know principle. But if they decide to change. No big deal. I would not need manual review since my score hit roof. Anyway. Secured IMO is for rebuilding or building. Once I out grew the secured card I never looked back. No need to micro manage the small stuff. 


Message 16 of 27
Established Contributor

Re: SDFCU is now reporting as "SECURED"

I called today and the representative insists the secured card does not report as secured. Someone who has this card please confirm before I apply.  Thanks!

In the garden as of March 17, 2017.

Amex PRG NPSL | Amex Hilton Surpass $6K l Aviator Red $3.5K | Best Buy $6K | Amazon $6K | Chase $5K | BBVA $6K | UFCU $10K | NFCU $15K
Message 17 of 27
Super Contributor

Re: SDFCU is now reporting as "SECURED"

Does it matter to your fico score. No!!!! Non issue.

Message 18 of 27
Established Contributor

Re: SDFCU is now reporting as "SECURED"

YES it does! ...They started reporting secured about 5 months ago.
May 2013 Starting Scores: 540's-570's
July 2016 Scores: 654-705 ...No Lates, CA's or CO's, new car + high Util
Current Cards: SDFCU Secured ($300); Logix Secured ($500); Tobyhanna/Penfed FCU ($5000); NFCU CLOC ( $15,000); NFCU Refi ($18,144) Sony Visa ($3000); Apple PC'd to Rewards MC ($1200); Barclay Rewards MC ($1300); B&N ($500); Discover ($1000); 'Credit Steps' ($2300), QS One ($750);Care Credit ($9000); US Bank Platinum ($5000); Fifth Third SU2C ($3000); Kay's/Jared's ($4700); Target ($2000); Fingerhut/Gettington ($2250); **All my favorite retail cards ($61,000)..Luv'Em..they get heavy use!
Message 19 of 27
Established Contributor

Re: SDFCU is now reporting as "SECURED"


toi34 wrote:
YES it does! ...They started reporting secured about 5 months ago.

It matters not what they report ..secured vs unsecured... it's the same damn thing for scoring purposes. It's like a card that gets closed at consumer's request vs closed at credit grantor's request - it doesn't really matter unless a loan officer is manually reviewing your report and even then it carries little weight.

AMEX SPG $30K | Citi TY Premier $20k | PenFed PlatRewards $25k | Barclay Arrival+ 40k | Chase Freedom $20k | BofA AMEX $15k | Discover IT $20k | | NASA Platinum-Advantage $20k | CapOne Quicksilver $15k | Amazon Card $10k |

My Journey from Sub-600s:
Message 20 of 27