What's the use of a Cap One Secured Platinum After 6 months

[Anonymous]

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[Anonymous]

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@Anonymous wrote:

 Like others have stated, I would definitely keep it open for at least a year to help with your file/profile.  This helps thicken it up a little bit.

From what you've indicated your scores could be improved upon, and it sounds like you are doing well with staying on top of your current payments so that's great news! ;-)

You might also want to try a secured personal loan with a credit union or something.  That should help you out too as well.  Then you will show some good repayment history as well with the "loan" and just pay it off in the 6 months.  This is always an opion as well.  This will help build your file up some as well.

I know you are trying to get away from "secured" things, but the bank/credit union will give you an attractive percentage rate as they are assuming very low risk because they already have the money.  The secured credit card is good, but typically its percentage rate us much much higher.

Then after those 6 months, you come back from the garden and see how your credit scores have improved, and see what kinds of offers you get now as you totally paid off that loan ;-)

Just my thoughts.

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Thank goodness that they are bringing these new benefits to the secured card! Sounds like a good reason to leave it open. Keeping the card sounds good to me now that I've thought about those benefits coming down the road. Plus the fact that I do need to keep establishing more history.

I mean why hurry to close it, it's not a bad card. I'm just tempted to spend more towards rewards cards, so I'm trying to think of a suitable monthly transaction for the card. Also lets take into account that it's a good card to have simply because it charges zero foreign transaction fees. That's rare. That's a good reason to keep it open. And the fact that it's the only MasterCard I'd have which is essential because Discover still does have some impediments to vendor acceptance.

I was starting to develop the idea that secured cards are to be used for short periods, then closed down asap. But now I'm starting to believe that that's not the case.

Here's a thought: With the new rebuilder program that Capital One is implementing on current secured platinum cardholders and with their new rebuilder platinum cards; how are these cards still considered a secureded cards? I mean you can no longer deposite money to either of these cards yourself, while Capital One provides all of the capital for the credit limit increases.

It makes me think we can start keeping these cards for the long term. I mean I just got $300 added onto my Capital One card. That's unsecured money.

So does it really matter if the cards are secured or not?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

 Like others have stated, I would definitely keep it open for at least a year to help with your file/profile.  This helps thicken it up a little bit.

From what you've indicated your scores could be improved upon, and it sounds like you are doing well with staying on top of your current payments so that's great news! ;-)

You might also want to try a secured personal loan with a credit union or something.  That should help you out too as well.  Then you will show some good repayment history as well with the "loan" and just pay it off in the 6 months.  This is always an opion as well.  This will help build your file up some as well.

I know you are trying to get away from "secured" things, but the bank/credit union will give you an attractive percentage rate as they are assuming very low risk because they already have the money.  The secured credit card is good, but typically its percentage rate us much much higher.

Then after those 6 months, you come back from the garden and see how your credit scores have improved, and see what kinds of offers you get now as you totally paid off that loan ;-)

Just my thoughts.

---

Thank goodness that they are bringing these new benefits to the secured card! Sounds like a good reason to leave it open. Keeping the card sounds good to me now that I've thought about those benefits coming down the road. Plus the fact that I do need to keep establishing more history.

I mean why hurry to close it, it's not a bad card. I'm just tempted to spend more towards rewards cards, so I'm trying to think of a suitable monthly transaction for the card. Also lets take into account that it's a good card to have simply because it charges zero foreign transaction fees. That's rare. That's a good reason to keep it open. And the fact that it's the only MasterCard I'd have which is essential because Discover still does have some impediments to vendor acceptance.

I was starting to develop the idea that secured cards are to be used for short periods, then closed down asap. But now I'm starting to believe that that's not the case.

Here's a thought: With the new rebuilder program that Capital One is implementing on current secured platinum cardholders and with their new rebuilder platinum cards; how are these cards still considered a secureded cards? I mean you can no longer deposite money to either of these cards yourself, while Capital One provides all of the capital for the credit limit increases.

It makes me think we can start keeping these cards for the long term. I mean I just got $300 added onto my Capital One card. That's unsecured money.

So does it really matter if the cards are secured or not?

---

There are typically a few things that matter with the secured credit cards:

• Historically, some lenders do not allow credit line increases and you can only access the money that you have directly deposited into your account.
• The secured credit cards typically have higher interest rates.
• Some also charge annual fees (some regular cards do to, but I am just saying).
• If a lender allows you to graduate the card to a non-secured card, and keep the date you originally obtained the secured card, but on the graduated non-secured card, then that is even better ;-)

I think an even better secured card is one who reports to all 3 credit bureaus... that's a huge plus- especially if your payment history is good!

From a FICO score standpoint, it doesn't matter all that much except when considering the variables- one of which the amount of credit that you have available to you.

I do agree that the shorter the amount of time that one can be on a secured card, the better as you no longer are using your money for the credit line, even though you might get increases.  And besides, when you graduate to a non-secured card you get your money back ^wink^.  Then put that money in a CD or something so that it can earn money for you, or put that money in a secured personal credit line so that it can earn you more good payment history that has been paid in full.  Remember that the good payment history remains on your account for some time as well.  Then you can repeat that exact same cycle again, and you have another paid in full credit line too.

There are so many choices out there, and we have to decide what is best for us and everyone's situation is different.

[myjourney]

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@Anonymous wrote:

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@Anonymous wrote:

---

@Anonymous wrote:

 Like others have stated, I would definitely keep it open for at least a year to help with your file/profile.  This helps thicken it up a little bit.

From what you've indicated your scores could be improved upon, and it sounds like you are doing well with staying on top of your current payments so that's great news! ;-)

You might also want to try a secured personal loan with a credit union or something.  That should help you out too as well.  Then you will show some good repayment history as well with the "loan" and just pay it off in the 6 months.  This is always an opion as well.  This will help build your file up some as well.

I know you are trying to get away from "secured" things, but the bank/credit union will give you an attractive percentage rate as they are assuming very low risk because they already have the money.  The secured credit card is good, but typically its percentage rate us much much higher.

Then after those 6 months, you come back from the garden and see how your credit scores have improved, and see what kinds of offers you get now as you totally paid off that loan ;-)

Just my thoughts.

---

Thank goodness that they are bringing these new benefits to the secured card! Sounds like a good reason to leave it open. Keeping the card sounds good to me now that I've thought about those benefits coming down the road. Plus the fact that I do need to keep establishing more history.

I mean why hurry to close it, it's not a bad card. I'm just tempted to spend more towards rewards cards, so I'm trying to think of a suitable monthly transaction for the card. Also lets take into account that it's a good card to have simply because it charges zero foreign transaction fees. That's rare. That's a good reason to keep it open. And the fact that it's the only MasterCard I'd have which is essential because Discover still does have some impediments to vendor acceptance.

I was starting to develop the idea that secured cards are to be used for short periods, then closed down asap. But now I'm starting to believe that that's not the case.

Here's a thought: With the new rebuilder program that Capital One is implementing on current secured platinum cardholders and with their new rebuilder platinum cards; how are these cards still considered a secureded cards? I mean you can no longer deposite money to either of these cards yourself, while Capital One provides all of the capital for the credit limit increases.

It makes me think we can start keeping these cards for the long term. I mean I just got $300 added onto my Capital One card. That's unsecured money.

So does it really matter if the cards are secured or not?

---

There are typically a few things that matter with the secured credit cards:

• Historically, some lenders do not allow credit line increases and you can only access the money that you have directly deposited into your account.
• The secured credit cards typically have higher interest rates.
• Some also charge annual fees (some regular cards do to, but I am just saying).
• If a lender allows you to graduate the card to a non-secured card, and keep the date you originally obtained the secured card, but on the graduated non-secured card, then that is even better ;-)

I think an even better secured card is one who reports to all 3 credit bureaus... that's a huge plus- especially if your payment history is good!

From a FICO score standpoint, it doesn't matter all that much except when considering the variables- one of which the amount of credit that you have available to you.

I do agree that the shorter the amount of time that one can be on a secured card, the better as you no longer are using your money for the credit line, even though you might get increases.  And besides, when you graduate to a non-secured card you get your money back ^wink^.  Then put that money in a CD or something so that it can earn money for you, or put that money in a secured personal credit line so that it can earn you more good payment history that has been paid in full.  Remember that the good payment history remains on your account for some time as well.  Then you can repeat that exact same cycle again, and you have another paid in full credit line too.

There are so many choices out there, and we have to decide what is best for us and everyone's situation is different.

---

Good info however I need to clear up something in your post (see highlighted)

Fico scores are not influenced by the amount of available credit to you  .....

What Fico scoring does consider is the amount of your available credit used (UTL only) 

[myjourney]

OP,

I also suggest unless you have a need for a secured loan there's no need for it as you have student loans reporting currently which is factored the same way as a personal loan, car loan and mortgage....(installment loan)

So from my point of view no need to lower scores with a HP when you already have what's considered a mix of credit 

[Anonymous]

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@myjourney wrote:

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@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

 Like others have stated, I would definitely keep it open for at least a year to help with your file/profile.  This helps thicken it up a little bit.

From what you've indicated your scores could be improved upon, and it sounds like you are doing well with staying on top of your current payments so that's great news! ;-)

You might also want to try a secured personal loan with a credit union or something.  That should help you out too as well.  Then you will show some good repayment history as well with the "loan" and just pay it off in the 6 months.  This is always an opion as well.  This will help build your file up some as well.

I know you are trying to get away from "secured" things, but the bank/credit union will give you an attractive percentage rate as they are assuming very low risk because they already have the money.  The secured credit card is good, but typically its percentage rate us much much higher.

Then after those 6 months, you come back from the garden and see how your credit scores have improved, and see what kinds of offers you get now as you totally paid off that loan ;-)

Just my thoughts.

---

Thank goodness that they are bringing these new benefits to the secured card! Sounds like a good reason to leave it open. Keeping the card sounds good to me now that I've thought about those benefits coming down the road. Plus the fact that I do need to keep establishing more history.

I mean why hurry to close it, it's not a bad card. I'm just tempted to spend more towards rewards cards, so I'm trying to think of a suitable monthly transaction for the card. Also lets take into account that it's a good card to have simply because it charges zero foreign transaction fees. That's rare. That's a good reason to keep it open. And the fact that it's the only MasterCard I'd have which is essential because Discover still does have some impediments to vendor acceptance.

I was starting to develop the idea that secured cards are to be used for short periods, then closed down asap. But now I'm starting to believe that that's not the case.

Here's a thought: With the new rebuilder program that Capital One is implementing on current secured platinum cardholders and with their new rebuilder platinum cards; how are these cards still considered a secureded cards? I mean you can no longer deposite money to either of these cards yourself, while Capital One provides all of the capital for the credit limit increases.

It makes me think we can start keeping these cards for the long term. I mean I just got $300 added onto my Capital One card. That's unsecured money.

So does it really matter if the cards are secured or not?

---

There are typically a few things that matter with the secured credit cards:

• Historically, some lenders do not allow credit line increases and you can only access the money that you have directly deposited into your account.
• The secured credit cards typically have higher interest rates.
• Some also charge annual fees (some regular cards do to, but I am just saying).
• If a lender allows you to graduate the card to a non-secured card, and keep the date you originally obtained the secured card, but on the graduated non-secured card, then that is even better ;-)

I think an even better secured card is one who reports to all 3 credit bureaus... that's a huge plus- especially if your payment history is good!

From a FICO score standpoint, it doesn't matter all that much except when considering the variables- one of which the amount of credit that you have available to you.

I do agree that the shorter the amount of time that one can be on a secured card, the better as you no longer are using your money for the credit line, even though you might get increases.  And besides, when you graduate to a non-secured card you get your money back ^wink^.  Then put that money in a CD or something so that it can earn money for you, or put that money in a secured personal credit line so that it can earn you more good payment history that has been paid in full.  Remember that the good payment history remains on your account for some time as well.  Then you can repeat that exact same cycle again, and you have another paid in full credit line too.

There are so many choices out there, and we have to decide what is best for us and everyone's situation is different.

---

Good info however I need to clear up something in your post (see highlighted)

Fico scores are not influenced by the amount of available credit to you  .....

What Fico scoring does consider is the amount of your available credit used (UTL only) 

---

That was a typo on my part.  My apologies... I received a phone call during the time I was "typing" and didn't notice I left that out.  You are abosolely correct and I agree 100%.  I should keep my posts to a few sentences and not a book... lol...  thanks for the catch! ;-)

[Anonymous]

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@Officer737 wrote:

I hang onto my secured card and leave it in the glovebox of my car. I use it as a back up/emergency gas card. If it gets stolen out of my car the worse that can happen is they get me for a few hundred dollars at best. Every 3-4 months throw a tank of gas on it and PIF to show some use. Also, Cap 1 is going to be doing some different things with their secured cards in Jan/Feb that I have been told will get us some extra benefits that we don't currently because they are doing away with being able to add additional deposits to bring your CL up. Let it ride for a few months and see what the new changes are going to be or toss it in the glove box as a back up gas card. 

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That's something that I read this. I just dealt with Cap One asking them if they would consider removing my Cap One Secured Platinum Card's AF of $29, since Jan2016 will be 1 full year with the card. They not only dismissed and removed any AF for the card, they refunded and put back $29 on my card yesterday.

When the lady from Richard Fairbank's office called and told me that, she said she will be sending me a letter stating what they did, and that she would also be sending me some new terms and conditions for the Secured Card. Must be the changes you mention in your comment.

[Anonymous]

I have one too. But, keeping it until it has a full year at minimum. Have a QS1, Discover it, Chase Freedom, and Chase Slate, so think that before too long I'll get rid of it since it has served its purpose. Just want that full year + on the credit report. I've went from 520 (11 months ago) to 721 today. It was a great place to start.

[Officer737]

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@Anonymous wrote:

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@Officer737 wrote:

I hang onto my secured card and leave it in the glovebox of my car. I use it as a back up/emergency gas card. If it gets stolen out of my car the worse that can happen is they get me for a few hundred dollars at best. Every 3-4 months throw a tank of gas on it and PIF to show some use. Also, Cap 1 is going to be doing some different things with their secured cards in Jan/Feb that I have been told will get us some extra benefits that we don't currently because they are doing away with being able to add additional deposits to bring your CL up. Let it ride for a few months and see what the new changes are going to be or toss it in the glove box as a back up gas card. 

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That's something that I read this. I just dealt with Cap One asking them if they would consider removing my Cap One Secured Platinum Card's AF of $29, since Jan2016 will be 1 full year with the card. They not only dismissed and removed any AF for the card, they refunded and put back $29 on my card yesterday.

When the lady from Richard Fairbank's office called and told me that, she said she will be sending me a letter stating what they did, and that she would also be sending me some new terms and conditions for the Secured Card. Must be the changes you mention in your comment.

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Congrats! I figure I'm just going to wait it out and see what the new benefits are keep it around as a backup gas card. When I opened I only had to put a $49 deposit down no real big issue if it just sits there. 

[takeshi74]

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@Anonymous wrote:
What's the use of a Cap One Secured Platinum After 6 months

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@Anonymous wrote:
So would it be better to close it sooner than later vs better to close it later than sooner?

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If you have at least 2-3 other cards (for scoring purposes) you can certainly close it if you don't see the need/use.  If not, then close it when you have enough cards remaining open.  You cannot simply rely on a timeframe such as 6 months.  It's not just time itself but your credit profile that matters.