Reply
Valued Member
doctor2be
Posts: 39
Registered: ‎06-30-2009
0

help deciding between unsecured and secured credit card

I recently pulled my credit:   trans union 677

                                         equifax   669

I wanted to get a credit card and went to td bank and they said my scores are ok enough to get an unsecured--I am afraid b/c it wil be a hard inquiry for my report.  I was thinking of just getting a secured  card and then applying fo a unsecured once my credit is a little better------need help---does anyone know how much your credit score drops for a new credit card inquiry

Established Contributor
jaybird201
Posts: 672
Registered: ‎07-05-2008
0

Re: help deciding between unsecured and secured credit card

It varies depending on a bunch of factors, but usually the point drop is negligible, and with a little bit of time is easily recovered (and depending on your current credit utilization, adding to you available credit may improve your utilization enough to actually give you a score bump).

 

I just applied for a CLI and the hard inquiry caused my score to drop by a single point. If you're able to get an unsecured card, go for it.

Valued Member
doctor2be
Posts: 39
Registered: ‎06-30-2009
0

Re: help deciding between unsecured and secured credit card

I am not sure what credit utilization is??? All I have is college loans which totals about 3,800.  Also on my 

report it ssaids that my loans have a debt to ration of 60% with a balnace of 3800 but credit limit of 6250------can they record the amoutn of my loan as a credit limit---confused?????????

Established Contributor
Tons_of_Debt
Posts: 610
Registered: ‎08-01-2008
0

Re: help deciding between unsecured and secured credit card

Unsecured. Make sure you PIF every month.
08/01/2008 - 472 EQ; 523 TU; 454 EX
03/01/2009 - 574 EQ
08/08/2009 - 648 EQ
01/27/2010 - 671 EQ
07/04/2010 - 713 EQ
01/05/2011 - 730 EQ
Established Contributor
jaybird201
Posts: 672
Registered: ‎07-05-2008
0

Re: help deciding between unsecured and secured credit card


doctor2be wrote:

I am not sure what credit utilization is??? All I have is college loans which totals about 3,800.  Also on my 

report it ssaids that my loans have a debt to ration of 60% with a balnace of 3800 but credit limit of 6250------can they record the amoutn of my loan as a credit limit---confused?????????


Don't worry about that right now. As mentioned by the previous poster, just go for the unsecured card and be sure to pay-in-full every month and don't go over your limit (treat the card like a debit card), and you'll be in great shape.

 

Valued Member
jennordy
Posts: 48
Registered: ‎11-21-2007
0

Re: help deciding between unsecured and secured credit card

I got a 3 point drop from a recent inquiry.
FICO® Scores 11/07: TU 531 -- EQ 457 -- EX 464; 08/09: TU 518 -- EQ 597 -- EX ??;
09/09: TU 590 -- EQ 610 -- EX ??; 05/10: TU 610 -- EQ 611 -- EX ??
EQ: 17 to 4 baddies; 3 to 1 public records
EX: 24 to 5 baddies; 2 to 1 public records
TU: 28 to 2 baddies; 3 to 1 public records

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+