Upgrading US Bank secured to unsecured

[valley_man0505]

For anyone interested, I tried to get my US Bank secured upgraded to unsecured and got declined.  My Fico was 678 when they pulled me.  I talked to someone in underwriting, and, even though she couldn't come out and tell me, it sounded like my score was the ONLY reason for being declined.  If not the only reason, then it was definitely one of the major reasons.

I wish I knew what the "magic number" is so that I could know when I should try again.

[Anonymous]

I have heard they use the score for everything. Don't most banks graduate the secured cards after a specific time though? I didn't know you could have them graduate early.

[creditreformer]

Declined w/a 678?  Wow.  Had you ever been late on the acct or any others?  Seems kind of harsh

[valley_man0505]

They don't necessary graduate them at a specific time.  They will give you an OPPORTUNITY to graduate it after a specified time, though, but that doesn't mean they will actually do it.  For US Bank, you have to have the card for at least 1 year before they will review your account to determine if they are willing to upgrade. 

I was never late with any payments and I never went over the limit with this card.  I have not had late payments on anything in almost 3 years (and, even then, it was a couple months of catching up on my electric bill).  There are some baddies on my report that happened for reasons outside my control about 5 years ago.  I tried explaining why they happened and she said, "Well, it isn't really what is on your report that is holding us back, it is mainly just the score".  She told me that if there was anything I could clean up that would bring my score up, I would be in good shape, but simply cleaning up these old baddies would not help unless they resulted in a score increase.

[creditreformer]

Sorry to hear that valley.  US bank was going to be my ‘fallback’ if BA declined me (fortunately they gave me the BA 99/500).  Seems like BA’s pretty consistent about graduation @ 9-12 mos. unless you’re late, overlimit, etc…none of which I’ve done, so I should be ok in graduating w/BA even though my ficos/reports were less than grand when I obtained them (high 500s- now closer to high 600s). 

Given your situation, I’m not sure US Bank would’ve graduated me @ 1 yr either b/c given some of my remaining baddies (unpaid/disputed tax lien; 2 disputed CAs- all 5-6 yrs old), my ficos can only rise so much.

[valley_man0505]

The only thing I can really say in their defense is that I have been carrying a pretty high balance for the past few months and is has gotten to the point where it is nearly maxed now.  I will be able to pay it back down within the next 2 months, however, now that I have completed a payment plan with a CA that was costing me $400 a month.  Now, if only I could get that CA to actually update their reporting showing "paid"--that is a whole other battle

[Creditaddict]

back in 2000 when i filed bk, i got the usbank card and after a year of perfect history they wouldn't unsecure so i closed it.

I think they want 680 for any of there unsecured products.

[valley_man0505]

I thought 680 was the magic number too, but I was only 2 points away and they told me to wait at least 6 months for my score to improve before trying again.  Makes my wonder if they want 700 out of me.

[Scamp]

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valley_man0505 wrote:

I thought 680 was the magic number too, but I was only 2 points away and they told me to wait at least 6 months for my score to improve before trying again.  Makes my wonder if they want 700 out of me.

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No, they just want that 680.  Hang tight, keep up the good work another 6 months as they recommended, and if you do get your score nudged up to 680 or better, call them.  From what you posted, it did sound to me like you'll be a 'go' for graduation if you get that 680 and no new ickies happen to mess things up. 

Chin up and patience!

[valley_man0505]

Well, this gets more interesting.  I got my official denial letter in the mail yesterday.  The sole reason it listed for denial was "derogatory account, public record, or collection" on my credit report.  When I talked to the lady from underwriting earlier that same day (before I knew the letter was in my mail), she said that I wasn't really denied because of what was on my report but mainly because of my score.  I am getting two different stories now about why I was declined.