If I apply for a secured card and immediately put $420 on it, what would happen?

[Blazesian]

It sounds bad, but I have $500 in free money at the moment and $1,000 in money that needs to be used for rent in a couple of weeks. 

If I put $1,000 into my account for my secured card, I'll need to immediately use $420 of it to pay the difference in rent. 

The only reason I am considering it is because I don't think I'll have another $500 in "free money" for quite a while so my limit will be stuck at $500. 

Plus, it seems that Navy Federal restarts the clock on graduation OR you seem to not graduate when you add money to your card at a later date. 

Thoughts? It's risky, I know. I just want to "talk it out" with someone instead of trying to weigh pros and cons in my head. 

Also - I am out of work for two weeks due to foot surgery and I am commissioned sales. With that being said, I won't have a second paycheck which is why I said it'll be a while before I get that money again. The $420 balance would sit there for at least two months (aside from the payments I have to make) before I can clear it. 

[Anonymous]

If you get a credit card from Navy Federal with a $500 limit and put $420 on it then your card is going to be almost fully utilized and that's going to report on your credit and affect your utlization and therefore, drop your score until it's paid off.

You should wait until you have some more money and then do it rather then using your card to pay your rent.

[Blazesian]

I'm sorry if I explained it wrong. The limit would be $1,000 if I went the route of dipping into rent.

I have $500 that is put away already. To increase it to $1,000 I would end up pulling from rent.

[Anonymous]

you would be at 50% of the card. i would pay it down to $300 the next month that would put it at 30%. then pay it down to 9.3% which is $93

[rmduhon]

Just use 500 for the card and pay your ren't with the 1k. Don't use a credit card for rent unless you can pay it immediately. When you get extra money again you can get another secured card if necessary.

[Anonymous]

This forum me to keep my creative juices flowing...

Ya'll heard me say you gotta be thinking Chess, while others are playing Checkers

Check this out OP

The assumption has to be you want to build/rebuild a credit profile, right?

So why not
Take the grand, establish a $1000 SSL
Use the loan proceeds as follows
Put the the $420 where you need
Establish a $200 Discover/Citi secured CC &
a $300 secured MC/Visa (many options)

This adds 3 TLs with Credit Mix
2 CCs + 1 installer

Thus stacking your profile
Paying the $420
The small loan payment for the $1000 SSL has a laughably low amount of % paid over time ( which you get to pay over a period longer than 2 months, which you desire, as to build payment history via your credit report= win/win)
Securing 2 CCs & an installer for 3 TLs worth of positive feeding data vs just one TL

( I love NFCU but $500 in a pinch can go further, when building is the end goal + by going the route of adding TLs 1st, then applying to Navy AFTER the 3 TLs have reported for 6 months... generally works very well because Navy generous, so all things considered, one can save the Navy HP for a Step 2 and have built a nice thicker growing profile than otherwise)

If Navy is important now
One could
Open a $500 SSL ( Use the $420 as needed) again slow pay vs the 2 month rush ( to build kill 2 birds with the same stone...sure pay off the $420 but why not build some credit history on the record, while you're at it)
You still have the 'free' $500 to secure a NFCU CC
Again if it's Navy or nothing

This of course only adds the Navy CC and a SSL, which is 2 TLs vs the 3 above either way it's better than just one.... I like spreading it around but IMO at least get 2 for the money (again the above course of action seeks to have 4 TLs, with the delayed Navy app)

Anyway Best of luck

[Blazesian]

I appreciate the scenarios! I already have one unsecured loan, four retail cards (they're left over from before I had credit issues) and I just needed an unsecured card with a decent CL. Since I couldn't get approved for that after two years of perfect payments - I decided to go with a secured card.

I ended up applying in branch instead of online for the Navy federal secured card and was approved with the $1,000.

The next goal is to unsecure by the 13th statement. 🙏🏽