Reply
Frequent Contributor
SLR72689
Posts: 357
Registered: ‎02-15-2013

Is it pointless to get a secured card (from my bank) if I have 3 unsecured cards I can use?

[ Edited ]

My best friend is a personal banker at 5th 3rd and keeps encouraging me to apply for a secured credit card. I've read how great they help you... but would it be more beneficial to me to use my cards I already have? 


I have:

 

  • a Capital One card ($500 limit, opened 2007) but it's currently not "positive" because I have one 30 day late. **I have sent a GW asking to remove the late payment**
  • an Orchard Bank card ($300 limit, opened 2009) also currently not "positive" because of a few lates.
  • a Best Buy store card ($1,305 limit, opened 2007) which IS positive with no lates.

Also, I was just approved today for a Victorias Secret card with a CL of $350.

 

Do you think opening a secure card and getting another positive TL would be the best thing to do right now or to continue using the current cards I have?

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Is it pointless to get a secured card (from my bank) if I have 3 unsecured cards I can use?

Positive or not they still count toward you utilization and are factored into your score.  The 30 lates will be removed 7 years from their occurence and the account will become in good standing again.

Frequent Contributor
SLR72689
Posts: 357
Registered: ‎02-15-2013

Re: Is it pointless to get a secured card (from my bank) if I have 3 unsecured cards I can use?


guiness56 wrote:

Positive or not they still count toward you utilization and are factored into your score.  The 30 lates will be removed 7 years from their occurence and the account will become in good standing again.



 

Yeah, I think on one of my reports it said Capital One will be in good standing in 6/18 :smileymad:

 

I'm just trying to decide if it's worth it to "spend" $300 on a secured card.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Is it pointless to get a secured card (from my bank) if I have 3 unsecured cards I can use?

[ Edited ]

It really isn't what your overall CL is but, rather, how you use it.  You can have one CC and get the same results as 2 or 3.

 

I have read that FICO likes to see a minimum of 3 and no more than 30 (lol) but I don't how true it is. 

Frequent Contributor
SLR72689
Posts: 357
Registered: ‎02-15-2013

Re: Is it pointless to get a secured card (from my bank) if I have 3 unsecured cards I can use?


guiness56 wrote:

It really isn't what your overall CL is but, rather, how you use it.  You can have one CC and get the same results as 2 or 3.



My reasoning for considering it was to have another account in good standing since of my current 3 cards only 1 is in good standing.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Is it pointless to get a secured card (from my bank) if I have 3 unsecured cards I can use?

I understand that.  So to have another positive reporting TL.  You probably already said that:smileyembarrassed:


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
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+