Short Credit History -- Secured CC Only?

[mAndrew1980]

Hi everyone,

My reports are cleaning up and my scores are improving nicely. However I'm encountering problems getting unsecured CC's due to my short history of open tradelines. My oldest active trade line is a Cap1 (500 CL) from March 2011 (9 months). I have other positive tradelines from the past but they have been closed for a long time. A CU just offered me a secured CC for the first 12 months.

Should I just accept the secured CC from the CU to start developing a relationship with somebody? Or should I hold off for 3 months until I reach the 1-year mark with Cap1 and start trying for unsecured?

[birjest]

Heck yea.  At least with the secured cc, you can add to your credit limit with monthly deposits if you wish.  And they are reported to the CRA like an unsecured card.  Go for it.  What bank is it?

[mAndrew1980]

Its Baxter Credit Union here in Illinois.

[nuggets321]

The secured route has definitely helped me out immensly. I opened 2 secured card accounts in Jan of this year and still have them open..... I just landed discover and amex zync. The will definitely help with building a solid foundation that will lead to lower level CL but with prime lenders.... dont plan on them going "unsecure" on any given timeframe, as they always almost seem to find an excuse why not to convert them .... but hey it will deinitely help your cause.. jme

[mAndrew1980]

Yeah, think I'm going to do it. I could get another unsecured Cap1 rebuilder CC but I want to develop a long term relationship with somebody. With only 9 months of active history with one single trade line, I think secured is probably my best bet.

[nuggets321]

I would agree, that would help you in the long run..... good choice

[farmgirljen]

I started out wiht a $500 scured cc from my CU. I then was approved for a Cap 1 w/$750 CL... My scores are now in the high 600's and I have a couple of store cards as well. My secured card is almost 2yrs old. I am getting ready to app for Discover next month, and if approved will then be trying to upgrade the secured card to an unsecured card. If they do not do that, I will close it out. I also plan on closing the cap 1 if I get the discover. Sorry for rambling...take the secured card, and use it to your advantage.

[Anonymous]

If you have a good history you should be able to get non-secured CCs.  I always though secured CCs were for people with poor credit, not necessarily people with short history.  You probably won't get prime cards with a short history, but that doesn't mean you have to get secured cards.

[mAndrew1980]

Oh, I do have non-secured CC's. Had the Cap1 Platinum since March with a 500CL and good payment history. Tonight I got another Cap1 card (the Cash Back) with a 500CL. So I don't absolutely need the CU secured card, but I'd like to establish a relationship with a legitimate institution. Either way, I expect to qualify for prime cards by May/June 2012 when my reports are fully clean.

[Anonymous]

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@Anonymous wrote:
I always though secured CCs were for people with poor credit, not necessarily people with short history.  You probably won't get prime cards with a short history, but that doesn't mean you have to get secured cards.

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Secured CCs are not just for people with poor credit.  If you try to get "any" kind of CC, prime or otherwise, when you have NO FICO score, you will be declined for just that reason.  So yes, some of us have to get secured CCs. 

And, mAndrew1980, congratulations on your now having 3 CCs to work with.  May all go well with you as you garden your cards into a beautiful harvest.