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Established Member
Posts: 15
Registered: ‎05-15-2009
0

money in the bank

I have no credit at this time because I recently moved to the United States. However, I just opened a Zion money-market account for 13k. Is that going to make any difference in my ability to get a credit card from them or should I not bother with an inquiry? I don't want to go the secured credit card route if I don't have to.
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Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
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Re: money in the bank

Why did you choose Zion's?  Is this Zion Nation Bank out of Utah?

 

Personally, I would recommend putting your savings into a good Credit Union which offers secured credit cards and loans, in addition to their conventional unsecured products. 

 

The secured card/loan route is actually the fastest way to establish good credit when starting from nothing.  Otherwise you would have to go the "builder" card route which has many cons, though if there is no other option, is a useful tool.

 

You do not lose use of your money with secured credit, per se.  While the original principle will be frozen, the proceeds of the loan equal to your savings are not.

 

My suggestion:  Put your savings into the CU.  Take out a secured loan against your savings.  Put the loan money back into your savings.  Pay off the loan in 3 to 6 months.  Then discuss a credit card with them.  Possibly go the secured route, depending on what they offer or tell you.

 

The secured route allows you to start with the CL you want (if you have the savings) and then to work that card toward "graduating" to unsecured (often this is about 10-12 months).  This allows you to establish savings and credit with the CU, a certain amount of history, positive tradelines on your credit.

 

This is actually a double benefit use of savings.  Normally it just sits there and draws interest (not much these days) and nothing else (except as an emergency fund).  But with the secured route, it also acts as a credit building tool.

 

I would rethink your perspectives on secured credit at this stage.  I re-established my credit with a secured card.  I put $15k into savings for a $15k secured Gold Mastercard.  The next year I was able to get an unsecured $10k card with BoA.

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
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