Credit Cards

[Fresh101]

Hello Everyone, I got a secured credit card from WellsFargo like 2 weeks ago and used it. I thought they would have reported usage after a month or so but they did right away. Today I ran my CR and notice they are already reporting and also under account type they have "Secured Credit Card". My CapOne secured credit card does not report that way, they just put "Credit Card". Now my question is, how do creditor would see me as the account report as "Secured"? Me been a creditor and seen someone with this marking, will not convience me of the person doing any better than before. It does not prove me that the person can manage his credit. 

Question:

How does that affect me with future creditor?

THANKS IN ADVANCE

[discernment]

A creditor is not so much concerned about the "secured" notation as they are with the AMOUNT of your credit limit.  As long as you have funded the maximum limit allowed on that card, that is what is going to help you the most with them.   They much prefer to see a $5,000 + secured credit card limit.

FICO® scores the same without any judgment. 

[trumpet-205]

Well, Wells Fargo is right. That is how secured CC supposed to be on CR.

It does not affect credit score. It may have an influence when your CR is reviewed manually.

Lenders care more about payment history than CL or type of CL.

[Fresh101]

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discernment wrote:

A creditor is not so much concerned about the "secured" notation as they are with the AMOUNT of your credit limit.  As long as you have funded the maximum limit allowed on that card, that is what is going to help you the most with them.   They much prefer to see a $5,000 + secured credit card limit.

FICO® scores the same without any judgment. 

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Thanks for the reply Decernment, but this card offers a deposit up to $5000 and I only opened it with $300 as my understanding to credit building, it doesn't matter the amount of the credit account. Does it change in my situation, as I don't have that much on the credit line limit? Thanks again

[Fresh101]

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trumpet-205 wrote:

Well, Wells Fargo is right. That is how secured CC supposed to be on CR.

It does not affect credit score. It may have an influence when your CR is reviewed manually.

Lenders care more about payment history than CL or type of CL.

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Yes, that's what I meant, if it's manually reviewed. I did notice a score drop of 23 points after getting this card. My score on 7-09-2012 was 637 with NO WellsFargo on it and today I ran it again, it is at 604 with WellsFargo on it.

Question: 

What do you guys think happened that my score took a dive?

[Wolf3]

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Fresh101 wrote:

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trumpet-205 wrote:

Well, Wells Fargo is right. That is how secured CC supposed to be on CR.

It does not affect credit score. It may have an influence when your CR is reviewed manually.

Lenders care more about payment history than CL or type of CL.

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Yes, that's what I meant, if it's manually reviewed. I did notice a score drop of 23 points after getting this card. My score on 7-09-2012 was 637 with NO WellsFargo on it and today I ran it again, it is at 604 with WellsFargo on it.

Question: 

What do you guys think happened that my score took a dive?

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Inquiries and new account lowers your score for awhile.

[Fresh101]

When should I expect increase score? I was already on the 658 in Eq and believe it also went down. I was planing on placing an application with a lender to buy my first house and now this happen. How can I improve my score quickly? I am asking as many people after getting a CL it reflect as a credit jump but not in my case.

[rootpooty]

There is no quickly or asap when it comes to score increase always remember that. Your gonna have to wait at least 6 mos before you app for a mortgage

[cashnocredit]

Check your utilization. The best strategy to maximize FICO is to have one card reporting a small balance 1-5% and the rest at zero.

Also, Score Plus scores are not very reliable indicators and can vary a lot from FICO scores.

[Crashem]

FICO scoring model will ignore the secured designation and treat it the same as unsecured card.  In both cases, you are being given credit (for whatever reason) and FICO is measuring your use of that credit.  On the other hand, I can imagine under manual review that secured accounts carry less weight.