Should I get a Secured Credit card?

[patthefall]

• I was just approved for the Chase Freedom last week with a credit limit of $500. Initially I was declined, and had to recon 3 times in order to get it approved. Which I never would have even known could be done if it wasn't for these awesome forums! Anyway... I was thinking of getting a secured credit card and putting $5k on it, then in six months, apply for another unsecured credit card so that they will hopefully give me a higher starting credit limit. I feel like if I just keep the Freedom, that in 6 months or a year when I apply for more credit cards they will give me low $500 credit limits. So what do you guys think?? Also I'm 20 years old. The only other credit card I have right now other than the Freedom, is a Military Star card which can only be used on military bases and their online Exchange store. I've had that for 1 year 4 months, and have never missed a payment and always pay in full each month. (If any of that even matters) My main question is, will a secured credit card with 5k on it help me get a higher credit limit when I apply for my next credit card? Or is it unnecessary, and should I just stick with the 2 cards I have now?

[simi_go]

Credit history is the thing holding you back. I honestly don't remember if my Star card reported to the CRA or not. In my experience the only bank that really looks at limits very much to determine what they will give you is Chase. Most banks want to see longer credit histories more than they do high limits.

[Laugh]

I think you should open a chase checking account with that 5k. You'll get an annual 10% of all the points that you have accumulated on the freedom in that year.

Use the freedom for everything. Pay off the balance before it goes over your limit of $500. I did that multiple times every month. Let only 1-9% of your balance report on every statement.

On the 4th month, I decided that I had enough of paying multiple times per month and took a hard pull to increase my credit limit. I got a no-hassle increase to $2000. 

[patthefall]

Yeah that's what i figured, plus if i just let my cards age and do really good with my Freedom for a year I can ask for a credit limit increase. I'd be happy with a 2k limit. It would probably be a hard pull, but so would the secured credit card, and I wouldn't be paying an annual fee.

[Laugh]

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@patthefall wrote:

Yeah that's what i figured, plus if i just let my cards age and do really good with my Freedom for a year I can ask for a credit limit increase. I'd be happy with a 2k limit. It would probably be a hard pull, but so would the secured credit card, and I wouldn't be paying an annual fee.

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Haha, right on!

[patthefall]

I already have a chase checking account. Thank you for letting me know that! awesome!