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New Member
SteveMcQueen
Posts: 6
Registered: ‎05-01-2009
0

Should I have accepted this from BoA? (secured card)

So, I have ok credit 730 Ex. No late payments on anything in 5 years next month. I have a Capital One card (2000 limit) and a Lowes card (1000 limit).

 

I had to replace my roof a couple weeks ago and I applied for a BoA card, BoA is my bank and I have had about a 3000 avg balance in savings and 1000+ in checking over the course of the past year.

 

BoA's offer was for a secured card equal to whatever my deposit was.

 

I don't really need the card, as I had enough in my savings to cover the expense of the roof, but I read it was good to have 2 national cards. I just have the 1 national and the department card.

 

I was really ticked off. I know that defaults are up with the economy but my thinking is they see my payment and bank history,

 

So why should I get a secured card, that ties up the deposit and I get charged an annual fee on top of all that?

 

(I hate having to have a CC just to maintain a good score. Legalized extortion if you ask me)

 

Established Contributor
CreditDrama85
Posts: 1,044
Registered: ‎07-03-2007
0

Re: Should I have accepted this from BoA? (secured card)

since your score is good and you were still denied your credit file is probably too thin. i would call for recon and if still denied apply for 1-2 more cards like Chase or Discover

New Member
SteveMcQueen
Posts: 6
Registered: ‎05-01-2009
0

Re: Should I have accepted this from BoA? (secured card)

Well, it wasn't denied, I could have gotten the card and then after a year 'graduated' to an unsecured card.

 

Are you saying Chase and Discover don't have the secured feature?

Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008
0

Re: Should I have accepted this from BoA? (secured card)


SteveMcQueen wrote:

 I read it was good to have 2 national cards. I just have the 1 national and the department card.

 

(I hate having to have a CC just to maintain a good score. Legalized extortion if you ask me)

 


HI Steve,

 

I'm betting you've read that on a FAKO site.  CCT, for example, uses plus scores and spits out this recommendation.  It's important to understand that FAKO advice is as helpful as FAKO scores - zip, zero, nada benefit.  And sometimes those faulty recommendations could encourage people to make faulted choices.  You don't have to worry about having an additional card at this point, especially if it puts you in a position you don't want to be in.

 

FICO likes you to have at least one bank/national card.  One is all it takes.  You're already there.

Just puttin' syrup on something, don't make it pancakes.
Established Contributor
CreditDrama85
Posts: 1,044
Registered: ‎07-03-2007
0

Re: Should I have accepted this from BoA? (secured card)

No chase and discover do not have a secured feature. i understand you wernt totally denied. IMO you score should be good enough for a non secured credit line.
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Should I have accepted this from BoA? (secured card)

If you keep $3k in savings with them in reserve, I probably would have accepted the offer.  You can access your cash through the card, if need be, for the roof or other things and hopefully PIF and just use it debit style.  This would provide a major prime card and graduate with them in a year.  You all ready took the inquiry hit and you bank with them.

 

BoA cares about your derog history for a much longer history, especially if you have BK...they hate BK.  And if you have thin recent credit, they want you to move up slowly...so again, IMO, I would have accepted if you have the reserve cash anyway.  You can always cancel the card and get your cash back.  And the TL would remain on your CR (paid as agreed) for 10 years...so it was a win-win either way.

 

Then with the new major, you will look a little better to other CCC's too.  The fact that you have a hard inquiry from BoA and no resulting new account can sometimes be held against you. 

 

I used secured cards in my credit comeback and don't regret it.  I went through a prime bank (Amalgamated Bank of Chicago) rather than the credit builder banks (Orchard, FP, etc).

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549

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