Secured Credit Card Flagging

[Anonymous]

Well she said only to leave like $5 in so there would be little interest and that it was better for building credit but gave no sound reasoning, nor did I ask, I was focused on other things at the time.

[Wolf3]

It does not help your credit at all.    Her bonus pay will be better.

[Anonymous]

She wasn't trying to set me up with an account with them though (at least not openly), I had gone in with my Business plan to talk about a loan but my credit stopped me so we got talking about how to fix it. Is there really no valid reason for leaving a small amount in the account every month?

[MarineVietVet]

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@Anonymous wrote:

She wasn't trying to set me up with an account with them though (at least not openly), I had gone in with my Business plan to talk about a loan but my credit stopped me so we got talking about how to fix it. Is there really no valid reason for leaving a small amount in the account every month?

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No reason at all. The CCC's know you've used your card during the month. You never have to leave a balance. That only causes unnecessary interest to be charged.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work

[Anonymous]

Ok, thank you guys very much

[Wolf3]

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@Anonymous wrote:

She wasn't trying to set me up with an account with them though (at least not openly), I had gone in with my Business plan to talk about a loan but my credit stopped me so we got talking about how to fix it. Is there really no valid reason for leaving a small amount in the account every month?

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It is a common myth.   I think the banking industry keeps spreading it to improve their profits.   I suspect a lot of bank employees don't even know it is false.

[LynnBushea]

I have a secured card with navy federal and they do not report the card as secured.

[Datx]

But wouldnt the navy federal secured card require membership with them in order to be approved?

[MarineVietVet]

Let me clarify my previous post.

I said there: You never have to leave a balance.

I should have said that a balance should never be carried forward from month to month. You need to have a small balance show on your monthly statement because FICO does not like to see all zero balances but any balance should be PIF each month before the due date to avoid finance charges.

Hopefully this is a better explanation.  

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772

You can do the same thing with hard work