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Established Contributor
Posts: 583
Registered: ‎01-31-2009
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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 [no credit cards, no inq's, 1 Student Loan 90 day late, CA's and CO's...most PFD'd!]
December 2014 Scores: 654-705 ...Oldest accounts just aged off! :/
Current Cards: SDFCU Secured ($300); Logix Secured ($500); Tobyhanna FCU ($5000); 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); Fingerhut ($1550); **All my favorite retail cards ($42,650)..Luv'Em..they get heavy use!
Established Member
Posts: 13
Registered: ‎01-05-2012
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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!

 

 

Valued Contributor
Posts: 1,141
Registered: ‎07-18-2009
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Re: SDFCU is now reporting as "SECURED"

[ Edited ]

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
Established Contributor
Posts: 569
Registered: ‎11-10-2012
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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
Mortgage Scores:(7/24/13 lender pull) TU 663 | EX 635 | EQ 649
Current Score (11/7/14): TU 664 | EX 605 (no update) | EQ 661
Goals: Removing a $30 30-day late mark on my CR in November 2014 because I was too nice to a friend. Last app 7/16/14 (auto loan)
*** Homeowner 9/27/13*** All but 2 CCs are in the sock drawer!***
Frequent Contributor
Posts: 447
Registered: ‎09-22-2014
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Re: SDFCU is now reporting as "SECURED"

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

Senior Contributor
Posts: 3,382
Registered: ‎07-04-2014
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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. 

Current scores. Eq. 671- 13 inquiries
TU 704-16 inquiries
Ex 708- 9 inquiries.
Regular Contributor
Posts: 217
Registered: ‎09-29-2014
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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!

Starting Score 09/02/14: EQ563 TU543 EX563
Present Score 03/14/15: EQ684 TU679 EX663
Goal: 700 on ALL THREE by Thanksgiving '15
Senior Contributor
Posts: 3,382
Registered: ‎07-04-2014
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Re: SDFCU is now reporting as "SECURED"

Does it matter to your fico score. No!!!! Non issue.
Current scores. Eq. 671- 13 inquiries
TU 704-16 inquiries
Ex 708- 9 inquiries.
Established Contributor
Posts: 583
Registered: ‎01-31-2009
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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 [no credit cards, no inq's, 1 Student Loan 90 day late, CA's and CO's...most PFD'd!]
December 2014 Scores: 654-705 ...Oldest accounts just aged off! :/
Current Cards: SDFCU Secured ($300); Logix Secured ($500); Tobyhanna FCU ($5000); 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); Fingerhut ($1550); **All my favorite retail cards ($42,650)..Luv'Em..they get heavy use!
Established Contributor
Posts: 923
Registered: ‎06-12-2012
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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.

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