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Secured Credit Cards

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taylor01
Valued Member

Secured Credit Cards

Its a shame when you know better and don't do better.  I am looking to get a secured credit card to re-re-re-re build my credit. I do have up to $10,000 cash to put down on a secured credit card.  My thinking is the higher the limit, the faster my score will go up.  I plan on keeping it aroung the 10% utl. 

However, i just read that it may be a bad move to tie up that much money on a secured card and  I can get the same amount of point with a $2-3k limit. 

Any suggestions?

FYI I just brought everything current of my credit!!!!!!!!!!!

 

Exquifax: 513

TransUnion : 547

Experian: 537 

Message 1 of 28
27 REPLIES 27
meehan22
Frequent Contributor

Re: Secured Credit Cards

Do you have any unpaid bills still showing current on your reports? I'd tackle that first. 

And it is true, you dont need high limit cards to have higher scores. 

 

Best secured card is the BOA card, after 9-12 months of good history they will unsecure it. Thats the only way i'd ever put down a sizeable chunk on a secured card. Otherwise i'd simply put down what you think you'd use. 10k limit wont bring 700 scores instantly. 


Wallet: Chase $6,000 - Discover $1,500 - Walmart $2,200 - Voyage FCU $1,300 - Zales $2,300 - Elan Fin: $12,500(AU, reporting) - Chase $8,500 (AU, reporting) 1% UTL
Message 2 of 28
Creditaddict
Legendary Contributor

Re: Secured Credit Cards

If you currently have NO open positive tradelines than you would benefit a lot more by having 2-3 cards vs. 1 large card for building score.

Message 3 of 28
user5387
Valued Contributor

Re: Secured Credit Cards

Putting down a higher deposit to get a higher limit may be a wise move, because it will help you get higher limits elsewhere eventually.

 

But higher limits have no direct effect on scores.  The effect they do have is to lower utilization, which will raise scores if the starting utilization is high.

 

Message 4 of 28
haveus33nm3
Contributor

Re: Secured Credit Cards


@Creditaddict wrote:

If you currently have NO open positive tradelines than you would benefit a lot more by having 2-3 cards vs. 1 large card for building score.


I was going to say exactly this. Not that I am an expert or anything. I've just recently started the rebuilding route myself. If you have $10k though, I would open two to three secured cards and use the rest to do PFD's (pay for delete requests) on any collections you may have. The combination of these two things will get you the biggest point boost. Since I've started, I've increased my scores by avg of 40 points for each CRA. You may also want to search for "shopping cart trick" in the forums and see if you can't get a retail card going this route. I got a $250 Victoria Secret card by doing this. If you tackle this by many different angles, you will probably see a lot more progress in a lot less time than just putting all $10k on one card. Good luck with your journey!

EQ 616 TU 638 EX 642 - MyFICO 4/2015

previously: EQ 578 TU 613 EX 614 - MyFICO 2/2015
Message 5 of 28
taylor01
Valued Member

Re: Secured Credit Cards

Thanks! All this is great help.
Message 6 of 28
bk510
Valued Contributor

Re: Secured Credit Cards


@meehan22 wrote:

Do you have any unpaid bills still showing current on your reports? I'd tackle that first. 

And it is true, you dont need high limit cards to have higher scores. 

 

Best secured card is the BOA card, after 9-12 months of good history they will unsecure it. Thats the only way i'd ever put down a sizeable chunk on a secured card. Otherwise i'd simply put down what you think you'd use. 10k limit wont bring 700 scores instantly. 


I apped for bofa cash reward card and got denied last month, but they counter offered me on their 123 fully secured reward card.

 

I have til 6/26 to accept. If u going through bofa route...I would not put no more than 3000. good luck

 photo QS visa_zps7zokw2wl.jpg photo QS visa_zps7zokw2wl.jpg photo Venture One_zpsigvttrlz.jpg photo Sony Visa_zpsxoradr1b.jpg photo USC Reward_zpslcvjfxmq.jpg photo Penfed Promise_zpsdg1y2dw2.png photo NasaFcu_zpswac3zwcu.jpg photo America_zpsuwx8rzdm.jpg photo LA-Kings-card_zpslbkyeqsz.png photo Barclay_zpslqv3i4tl.jpg photo BBVA_zpsqrhh7omh.jpg
 photo nfcu debit card_zpsprkh98jw.png photo nfcu visa siggy_zps0gjgyxje.png/ photo nfcu goReward card_zpsixhh1qcp.jpg photo sdfcu platinum card_zpspilihdiv.png  photo penfed reward cash_zpsyckxjc7y.png photo alliant visa_zpsaf4udfx0.jpg photo Citi Secured_zpsypzxi0jm.png photo fnbo platinum_zpsxfub6esb.png photo marvel-credit-card_zpsfkvc3ux5.png photo golden 1 CU_zpslhgxynjv.pngBurned AECitiChase
Message 7 of 28
bk510
Valued Contributor

Re: Secured Credit Cards


@Creditaddict wrote:

If you currently have NO open positive tradelines than you would benefit a lot more by having 2-3 cards vs. 1 large card for building score.


+1, I would open 1000 secured card with cap1 bofa and us bank. now u have 3 TL reporing, that should get u going.

 photo QS visa_zps7zokw2wl.jpg photo QS visa_zps7zokw2wl.jpg photo Venture One_zpsigvttrlz.jpg photo Sony Visa_zpsxoradr1b.jpg photo USC Reward_zpslcvjfxmq.jpg photo Penfed Promise_zpsdg1y2dw2.png photo NasaFcu_zpswac3zwcu.jpg photo America_zpsuwx8rzdm.jpg photo LA-Kings-card_zpslbkyeqsz.png photo Barclay_zpslqv3i4tl.jpg photo BBVA_zpsqrhh7omh.jpg
 photo nfcu debit card_zpsprkh98jw.png photo nfcu visa siggy_zps0gjgyxje.png/ photo nfcu goReward card_zpsixhh1qcp.jpg photo sdfcu platinum card_zpspilihdiv.png  photo penfed reward cash_zpsyckxjc7y.png photo alliant visa_zpsaf4udfx0.jpg photo Citi Secured_zpsypzxi0jm.png photo fnbo platinum_zpsxfub6esb.png photo marvel-credit-card_zpsfkvc3ux5.png photo golden 1 CU_zpslhgxynjv.pngBurned AECitiChase
Message 8 of 28
taylor01
Valued Member

Re: Secured Credit Cards

Thanks! Think I will open 3 different ones
Message 9 of 28
One7
Valued Contributor

Re: Secured Credit Cards

BofA is definitely the best secured card out there,  but I don't recommend Cap 1. First of all they will pull all three of your CRs giving you an inquiry on each one, and then they will never become unsecured.  If I could change one thing about my rebuilding journey I would have never gotten one of those, it's my oldest TL so I don't want to close it but I no longer need a secured card so I'll probably be cutting it soon. Good luck on everything. 

EX 810 EQ 805 TU 792 Diners WEMC 15k Chase United Club VS 15k | Hyatt VS 25k | Ritz VI 5k | Frdm VS 6k | CSP VS 5k | Mariott VS 6k | Amzn VS 16k Citi ExecAA WEMC 18k | TYP VS 7k | Costco VS 9k | Hilton Reserve VS 6k | Best Buy Visa 5k BofA Travel VS 30k | Cash VS 41k | Merrill+ VS 46k Barclay Rwds WMC 6k | Hawaiin WEMC 10k | JetBlue WEMC 8k | Aviator S WEMC 6k Amex Plat: NPSL | BCP 8k | SPG 3k WF Rwds VS 9k | Propel World Amex 25k | Dillards Amex 2k BBVA NBA Amex 10k Cap1 GM WEMC 8k | QS Visa 3k | Saks WEMC 9k NASA 30k Discover It 7k | US Bank Cash+ VS 15k | Flex Perks VS 20k ||| Total Rwds VS 12k | SG Rwds 11k | Walmrt MC 8k | Lowes 17k | Bowflex 9k | J Deere 15k | TJ Max 4k | Care 15k | HDepot 20k | Amzn 5k | PPal Extras 8k | Chvron 10k | Macys 15k | JCrew 18k | Marvel 8k | Stash VS 8k | Cabelas 10k | Statefarm 12k | Nordstrom Visa 10k \\\\Gardening since January////
Message 10 of 28
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