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LCGirl
Posts: 2
Registered: ‎12-09-2011
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Switching from a secure card to a credit card at the same company? HELP!

Hi,

 

I am interested in switching from my secure card to a normal card with rewards but when I called my CC company they said that I would have to apply for a new card and then if approved I could just close my secured card. I am not worried about being approved as my credit is excellent but what I am worried about is my credit taking a hit when I do this. I know that one of the things that affects your score is the length of time you have accounts open so if I was to open a new card and then close my old secured card the length of time would decrease significantly.  I also dont want to leave my secured card open because your score is also negativly affected when you have to many lines of credit open. has anyone ever had this problem or how to you reccomend switching cards within the same company but keeping the line of credit open? instead of opening a new line and then closing the old? HELP!

Regular Contributor
castlefox
Posts: 227
Registered: ‎12-09-2010
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Re: Switching from a secure card to a credit card at the same company? HELP!

[ Edited ]

I would highly suggest you do no close your secured card until you get other credit cards.  Having two credit cards is not too many.   Closing your secured card will no hurt your credit score if you close it because it will continue to be on your report for ten years.  Only close it if you dont have a balance on it though.

 

How long have you had your secured credit card?

 

Do you have anything else on your credit report?

 

 

I would personnly recommed you getting a credit card  from a credit union first instead of getting a rewards credit card first.  Reward credit cards generally have much higher APR interest rates with lower credit lines and ingeneral credit union credit cards are easier to get and usually have lower APR rate. 

MyFICO score- Equifax - 12.03.11 - 780 Experian 12.03.11 - 763
(FAKO Scores) EXP PLUS Score Dec 2011. 748
Advanced Risk Score 2.0 (NextGen) 793 Dec 2010
Vantage Score (2011) MAR = 771 Jun = 771 Sept= 788 Dec= 773
2012 MAR = 782 JUN=783 Dec = 789
2013 Mar-796 Jun-799 Dec- 797
New Visitor
LCGirl
Posts: 2
Registered: ‎12-09-2011
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Re: Switching from a secure card to a credit card at the same company? HELP!

I have had my secure card for right over a year now.  I also have a CC from my credit union with a limit of $500 dollars but it only reports on one report. My car is paid for, I have $5000 in student loans and I bought a house in august. Currently I put 20% on my cards and pay them off each month. I have NEVER carried a balance. The only reason I want a new card is for rewards and also in case there was ever an emergency.  I just dont understand why the CC Company wouldnt switch me over to a better card when I want to continue to do business with them. The secure card originally had a limit of $200 a month that at the beginning I had to put a deposit down on. Since then they have increased it to $300. 

 

I had to get a secure card to start out because I had no credit history and I was diagnosed with cancer right out of college and had medical bills go to collection by mistake of the physicians office. That has since been taken care of and removed (and yes I know the difference between removed and paid... they are completely off my report) from my credit and my score is now 150 points higher with no negative accounts. I have a 760+ credit score.

Regular Contributor
castlefox
Posts: 227
Registered: ‎12-09-2010
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Re: Switching from a secure card to a credit card at the same company? HELP!

[ Edited ]

Well that is total BS that your CC only reports on one report.   Find a credit union that sucks less?

 

Maybe the specific rewards credit card you were requesting was not option from that company.  They just might require you open a new credit card instead of doing a product change from their secured credit card.    What CC company is it? 

 

20% utilization is good but apparently less is better. 

 

 

*** Sorry to hear about cancer right after college, I hope your doing alright with that.

MyFICO score- Equifax - 12.03.11 - 780 Experian 12.03.11 - 763
(FAKO Scores) EXP PLUS Score Dec 2011. 748
Advanced Risk Score 2.0 (NextGen) 793 Dec 2010
Vantage Score (2011) MAR = 771 Jun = 771 Sept= 788 Dec= 773
2012 MAR = 782 JUN=783 Dec = 789
2013 Mar-796 Jun-799 Dec- 797
Valued Contributor
discernment
Posts: 1,142
Registered: ‎09-01-2011
0

Re: Switching from a secure card to a credit card at the same company? HELP!


LCGirl wrote:
I have a 760+ credit score.

You say that you have a 760+ credit score but, what is your FICO® score? 

 

I understand wanting to transfer from your secured card to enjoying an unsecured rewards card, I can totally idenitfy with you on that!  Have you checked out the pre-approval page for a Discover card?  They have a good rewards card.  Also, Chase Freedom is a great rewards card.  And, lots of people like the Bank of America rewards card.  Do some research and see which rewards card you like the best.

 

I look forward to hearing a good report back from you! 



Husband's Current Score: EX 691 CUSC; EQ 694; TU 687; Mine: EX 773 (AMEX); EQ 720; TU 750
Wallet Contents: SECURED: Capital One Platinum Mastercard, US Bank Harley Davidson Visa, USAA Bank American Express;
UNSECURED: Chase Freedom; USAA Cash Rewards World Mastercard, Discover More, CUSC Platinum Rewards Visa, American Express Zinc, American Express Blue Cash Preferred, Amazon Card, Walmart Discover Card
Valued Contributor
Mustanglvr2006
Posts: 1,971
Registered: ‎02-06-2011
0

Re: Switching from a secure card to a credit card at the same company? HELP!


LCGirl wrote:

Hi,

 

I am interested in switching from my secure card to a normal card with rewards but when I called my CC company they said that I would have to apply for a new card and then if approved I could just close my secured card. I am not worried about being approved as my credit is excellent but what I am worried about is my credit taking a hit when I do this. I know that one of the things that affects your score is the length of time you have accounts open so if I was to open a new card and then close my old secured card the length of time would decrease significantly. it may take a hit initially (because of the inquiry, possibly a hit to your AAoA's and the New Acct) but it will bounce back and then some in 6/12 months, only time will tell that. Another thing, weather your secured card is opened or closed, it will remain on your reports for 10 years, contributing to your AAoA's till it falls off in 10 years, the only way closing a CC can only hurt you if it raises your util, in no other way can closing a CC hurt you. I also dont want to leave my secured card open because your score is also negativly affected when you have to many lines of credit open. this can be true and false, I have 14 open TL's on my TU report and my FICO is 799 and I have 13 open TL's on my EQ report and my FICO is 802, so where you are now, you have nothing to worry about. has anyone ever had this problem not as of yet. or how to you reccomend switching cards within the same company but keeping the line of credit open? instead of opening a new line and then closing the old? HELP! if the CCC you have your secured card with now won't let you graduate the card to an un-secured card, then you will have to apply for a new CC. You do not have to close the secured card, you can if you like, it will not hurt you (again, unless it raises your util to a point that FICO will adversly affect your score) normally FICO likes consumers at 9% util and below, but not 0%, it's always best to allow ONE CC to report a small balance that will keep your overall revolving debt to credit at 9% or less.

 

I hope any of this helps you,

 

Best of Luck!


 


Starting Score: 583
Current Score: 3-03-12-EQ-802 TU-806 EX-798 (EQ Beacon 9: 804 Lender Pull 3-08-12) All FICO's
Goal Score: 800+ across all three

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Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Switching from a secure card to a credit card at the same company? HELP!


LCGirl wrote:

I have had my secure card for right over a year now.  I also have a CC from my credit union with a limit of $500 dollars but it only reports on one report. My car is paid for, I have $5000 in student loans and I bought a house in august. Currently I put 20% on my cards and pay them off each month. I have NEVER carried a balance. The only reason I want a new card is for rewards and also in case there was ever an emergency.  I just dont understand why the CC Company wouldnt switch me over to a better card when I want to continue to do business with them. The secure card originally had a limit of $200 a month that at the beginning I had to put a deposit down on. Since then they have increased it to $300. 

 

I had to get a secure card to start out because I had no credit history and I was diagnosed with cancer right out of college and had medical bills go to collection by mistake of the physicians office. That has since been taken care of and removed (and yes I know the difference between removed and paid... they are completely off my report) from my credit and my score is now 150 points higher with no negative accounts. I have a 760+ credit score.


Your AAofA will go down a little but it is already low so it should not have much effect and it will continue to grow with time.   

 

Now that you have a clean report (very big deal),  I suggest you go ahead and apply for a new rewards card.  And not worry so much about this.

    

Regular Contributor
castlefox
Posts: 227
Registered: ‎12-09-2010
0

Re: Switching from a secure card to a credit card at the same company? HELP!

Your AAoA will not go down if you close it.  That is a myth

MyFICO score- Equifax - 12.03.11 - 780 Experian 12.03.11 - 763
(FAKO Scores) EXP PLUS Score Dec 2011. 748
Advanced Risk Score 2.0 (NextGen) 793 Dec 2010
Vantage Score (2011) MAR = 771 Jun = 771 Sept= 788 Dec= 773
2012 MAR = 782 JUN=783 Dec = 789
2013 Mar-796 Jun-799 Dec- 797
Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Switching from a secure card to a credit card at the same company? HELP!


castlefox wrote:

Your AAoA will not go down if you close it.  That is a myth


The new card will lower the AAoA.   The closed card will keep increasing it for 10 years, then it lowers it.

Valued Contributor
rootpooty
Posts: 1,772
Registered: ‎10-28-2011
0

Re: Switching from a secure card to a credit card at the same company? HELP!

Let me guess its with cap one if so I highly recommend you get with some other company
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