cancel
Showing results for 
Search instead for 
Did you mean: 

help deciding between unsecured and secured credit card

Valued Member

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

Message 1 of 6
5 REPLIES
Established Contributor

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.

Message 2 of 6
Valued Member

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?????????

Message 3 of 6
Established Contributor

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
05/14/16 - 762 EX
Message 4 of 6
Established Contributor

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.

 

Message 5 of 6
New Contributor

Re: help deciding between unsecured and secured credit card

I got a 3 point drop from a recent inquiry.
FICO® 8 Scores: 10/16: TU 592 -- EQ 579 -- EX 573; 11/16: TU 626 -- EQ 614 -- EX 605; 12/16: TU 606 -- EQ 589 -- EX 594
FICO® Mortgage Scores: 10/16: TU 588 -- EQ 567 -- EX 566
10/16: Negatives: 10 charge-offs; 7 collections (one "closed"); 1 Ch. 7 BK (filed 12/2008)
Positives: 2 Cap1s; Nordstrom; 4 Comenity store cards; Amazon store card, Care Credit, 76 gas card, and F21 Visa; 2 student loans
Message 6 of 6