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Which should come first: asking for a CLI or asking for my secured card to be unsecured?

New Contributor

Which should come first: asking for a CLI or asking for my secured card to be unsecured?

In the early, early rebuilding stages and I just made my first month's full payment on my secured $500 limit credit card obtained throught my credit union.  I wouldn't ask for either at this point, but is there a protocol here?  Should I not ask for a CLI until my card is no longer secured, or do banks and CUs give CLI without more money desposited down? 

What's a reasonable amount of time before asking for a CLI?  A reasonable time before asking them to unsecure my card?  I know things vary, and I'm not going to go on just anyone's answer, but some experience and ideas are gratefully received.  I am just out of BK in November.  I have this card and two secured loans, of which one of the loans will be paid off in four more months.  I also tend to have a fair amount in my savings account, if the credit union would even consider this as a positive.

Any thoughts? 



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750




Message 1 of 5
4 REPLIES
Established Contributor

Re: Which should come first: asking for a CLI or asking for my secured card to be unsecured?

CU's are TRUE relationship banking companies. If you have decent savings with them, direct deposit your pay with them, and stay on top of your CC payments, esspecially PIF most of the time, you can expect them to reward you generously.

 

I'd say wait until your second statement cuts, and then call and if they would consider unsecuring your card and or a CLI. Probably best not to allow a HP. If they decline or accept on either, wait 4 more months, then ask for the same again. After that, it would depend on your situation.

 

At that point, you've got 6 months of payment history under your belt, might be time to try for a new unsecured card from Cap1 or another BK friendly CCC. Most will lilely turn you down given how young your BK is, but worth a shot as you're just in the market for credit building cards.

 

Stay away from CreditOne and First Premier and Nexus. Better to get secured cards from somewhere else than deal with those shady companies.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Message 2 of 5
Senior Contributor

Re: Which should come first: asking for a CLI or asking for my secured card to be unsecured?

My general rule of thumb is wait a year before asking for unsecured.   I suggest increasing the deposit for more CL. 

 

CU may be more lenient and if you think they are, wait until account is over 6 months.

Message 3 of 5
New Contributor

Re: Which should come first: asking for a CLI or asking for my secured card to be unsecured?

Thank you for the advice! 

So a CU (or even a bank) can do a CLI without a hard pull?  At least in enough cases that it's not super rare? 

I will ask them about that and if they can consider it without a HP, I'll try for it sooner than later (a couple months instead of six to a year). 

Capital One was in my BK, so I don't know if they would give me an unsecured card even after six months to a year, unless they are forgiving.  Perhaps they are?  Fortunately, my CU suggested they would release the secure after a year, depending, but who knows.

 

Thanks for the comfort about CUs being "true" relationship builders.  My experience with banks is minimal, and less so with CUs.  So far, I have been very happy with my experience with them (both CUs I use).  I hope to get a reasonable car loan next summer, so I'm trying to get my score up and build a good relationship with them in the meantime. 

Thank you again.  Smiley Happy



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750




Message 4 of 5
Highlighted
New Contributor

Re: Which should come first: asking for a CLI or asking for my secured card to be unsecured?


Wolf3 wrote:

My general rule of thumb is wait a year before asking for unsecured.   I suggest increasing the deposit for more CL. 

 

CU may be more lenient and if you think they are, wait until account is over 6 months.


Thank you, Wolf3.  I don't mind waiting a year.  I won't be applying for an auto loan until a bit after a year from now, so I'm not pressed for much.  Money is currently not favorable to put down another $500 until after I pay off one of the current secured loans, but I will look at doing that if they won't do a credit increase on my own merits.  I'm planning on using my card every month--$500 limit utilized at 5% or just under--and paying it before the interest hits.  My CU said I don't need to spend more than less in order to get a CLI, so I'm hoping the lady that said as much was accurate. 

Thanks!



Starting Score: TU 641 2/28/13 EQ 640 3/1/13
Current Score: TU706 EQ???
Goal Score: 750 750




Message 5 of 5