cancel secured CC?

[Anonymous]

Hello! I ama college senior and am working to build a credit history! I have been an authorized user on my parents gas card for a few years, but when trying to see my credit report, it's a "thin file" so I decided it was time to build some credit of my own!

I applied for the Capital One Journey Card, because I read it was a great card for starting out and building credit. I wasn't very hopeful, and wasn't approved instantly. I assumed I would be denied due to my nearly nonexistent credit history, so I signed up for the secured credit card offered by my credit union. I put up a $250 deposit and am expecting the card this week.

However, yesterday I got an email saying my Journey card had been mailed out! I'm thrilled, but now am wishing I hadn't put down that $250 deposit to build my credit when I now have the availability to do this with no deposit!

I'm thinking I will cancel the secured card when it arrives. That way I can focus on JUST the journey card. And it won't hurt my average age of accounts seeing as they were opened within days of one another. Also the secured card cannot graduate to an unsecured, so I'm sure I'd end up cancelling it at some point anyways.

I'm just looking to hear from some of you helpful people as to whether or not you think that is a good plan! I'd had to leave to $250 deposit sitting there when now I don't need it build my credit history. I'm trying to save for a downpayment on a car, and that deposit came from that money!

[Anonymous]

It is fine to cancel the secured card since you have not had it that long.

[credit-hunter]

For FICO scoring purposes you need at least 3 open revolving credit lines leave the secured card open.

[heyarrnold]

Keep the card open and use it. You already took the hit from the inquiry, and the account will show up on your report for the next 10 years. Generate some history of your own and close the card a year or two from now. 

[CH-7-Mission-Accomplished]

I agree with those who say keep the CU card.  Also, most credit unions will give you an unsecured card in 12 to 24 months after you open a secured card.  Even if the card doesn't formally graduate, they will give you an unsecured card with a good track record and sometimes you can keep the acount number and credit history.  it is a win win.  Also, you may want an auto loan or something, so having a good relationship going with a CU comes in very handy.  CU's are great -- no annual fees, low interest rates ... if not great rewards programs.  And if you truly have a thin file, why not add one additional card every six moths or so (planned in advance for which one you want). 

[Anonymous]

thanks so much for the responses! i think i'll keep the card. 

and ch-7-rebuilding, good point about the auto loan. i know my credit union does excellent financing for auto loans so showing good credit history with them could only help me out when i'm ready to jump into that! and yeah, no annual fees for the card. i was already willing to lock up the $250 deposit to work on my credit, so now with the journey i'll just be able to make bigger strides hopefully.

thanks again for the advice!

[Anonymous]

when I first started building credit I had a secured card and the journey card . Within 4 months those two cards took my fico to 720 . That's with 2 old collection on my report . So I think you should keep those two cards for a while . Use the journey card as much as you can but keep the utilization under 9% and they'll give you a nice CLI in 6 months . I went from 300 to a 1000 to 3000 in less than 10 months . Good luck .

[-NewGuy-]

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@heyarrnold wrote:

Keep the card open and use it. You already took the hit from the inquiry, and the account will show up on your report for the next 10 years. Generate some history of your own and close the card a year or two from now. 

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This gets my vote. Two open cards will help your score at this point more than one. Unless you are strapped for cash and really need that deposit back, just keep it open as it will prove beneficial.

Welcome to the forums 

[HiLine]

Glad it's already been decided that you should keep the card

[takeshi74]

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@Anonymous wrote:

And it won't hurt my average age of accounts seeing as they were opened within days of one another. 

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You've already hurt AAoA by opening the accounts.  Might as well make use of the secured card for this and reasons already stated above.