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New Member
Posts: 8
Registered: ‎09-17-2008
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Should I close my secured credit card and get an unsecured one?

I have took out 2 $1000 secured loans just over 2 years ago.  I paid them both off just fine on time.  I also took out a  $1000 secured credit card through a CU 2 years ago november.  I started with no credit score and currently have around 700.  I want to get my $1000 back.  The CU requires me to apply for a totally new card.  Is this a good idea?  Or will it hurt my score?  On one hand I will possibly have a higher credit limit.  But the age of my accounts will go down.  Any help will be appreciated. 
EQ-727 TU-709 EX-714 9-17-08

EQ-718 TU-717 EX-?? 8-17-09
Valued Contributor
Posts: 2,681
Registered: ‎07-29-2009
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Re: Should I close my secured credit card and get an unsecured one?

At some point you'll have to apply for an unsecured card with someone. Have you been happy with your CU? If so, why not just stay with them? If you are unhappy with them, then think about applying elsewhere. You can get some good ideas here in this forum.

 

As for the age on your accounts going down, that's what happens to each of us when we get a new card. It's OK to take a step back in score in order to take a couple of steps forward. If you can qualify for a card that is not secured, maybe now's the time.

New Member
Posts: 8
Registered: ‎09-17-2008
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Re: Should I close my secured credit card and get an unsecured one?

I am very happy with the CU.  Never had a problem with them at all.  They offer about the same rate as the American Airlines CC and Alaska Airlines CC.  What are some opinions on which is better.  It would be nice to rack up some miles for some free flights. 
EQ-727 TU-709 EX-714 9-17-08

EQ-718 TU-717 EX-?? 8-17-09
Valued Contributor
Posts: 2,681
Registered: ‎07-29-2009
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Re: Should I close my secured credit card and get an unsecured one?


snowmobilelegend wrote:
I am very happy with the CU.  Never had a problem with them at all.  They offer about the same rate as the American Airlines CC and Alaska Airlines CC.  What are some opinions on which is better.  It would be nice to rack up some miles for some free flights. 

I haven't had experience with either of these cards. The best thing might be to go to their websites and see what their partner airlines are. Snoop around and see where you can best use the miles.

 

I have a Delta SkyMiles from AmEx. I love building up my miles. My card has a $95 annual fee. I get a free companion ticket from them each year as well. I'll also earn a couple of free flights each year. I intended to get the card, use the free flight I got for getting the card plus the free companion ticket and then cancel the card. I'm going to keep it now because I can see that I will get much more value than the amount of the annual fee each year.

 

If you are going to apply for a new card, try to have your present card paid off before you do. Remember that you have to pay the balance off before the statement cuts in order to have a zero balance report on your credit report. Get everything in good shape before you apply.

New Member
Posts: 8
Registered: ‎01-30-2008
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Re: Should I close my secured credit card and get an unsecured one?

Also if I pay off my cc entirely, how soon can i apply for new cc?  Is there an easy way to check if they have reported my balance as zero?
EQ-727 TU-709 EX-714 9-17-08

EQ-718 TU-717 EX-?? 8-17-09
New Member
Posts: 8
Registered: ‎01-30-2008
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Re: Should I close my secured credit card and get an unsecured one?

I remembered something else.  I am currently jobless.  Is this going to be a problem? 
EQ-727 TU-709 EX-714 9-17-08

EQ-718 TU-717 EX-?? 8-17-09
Valued Contributor
Posts: 2,681
Registered: ‎07-29-2009
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Re: Should I close my secured credit card and get an unsecured one?

Skull, card balances are normally reported to the credit reporting agencies after the statement cuts. Some cards, however, report at the end of the month. If you pay your balance to zero, you then have to wait for it to report. You won't know whether it has reported unless you pull your own credit report.

 

And yes....not having a job would more than likely get you turned down. They will ask your income on the application.

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