Secured Card Deposit Max

[CostantinoA]

Hello Everyone:

I was just brain storming on building credit and such.  I have a capital one secured card and they told me that the max deposit is 3000.  I was thinking about depositing the 3k.  I was thinking that when other banks start to offer me unsecured cards, the limits will be above 3k since I managed a secured card under 10% at 3k limit.  If i kep it at lets say the mimium, they would give me a card that is around 500.  Is my way of thinking correct?

[Anonymous]

The general thinking around here seems to be that it is best to have 3 credit cards. Maybe you should get three cards with $1,000 on each instead.

Others could tell you if the limits on your cards factor into the credit limit a new card will have.

[Jeff532003]

+1
I would try for a Bank of America secured card and possibly at U.S. Bank or a local CU as well. 3 positive trade lines will do you so much more good than one with a higher limit.

[Anonymous]

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@CostantinoA wrote:

Hello Everyone:

I was just brain storming on building credit and such.  I have a capital one secured card and they told me that the max deposit is 3000.  I was thinking about depositing the 3k.  I was thinking that when other banks start to offer me unsecured cards, the limits will be above 3k since I managed a secured card under 10% at 3k limit.  If i kep it at lets say the mimium, they would give me a card that is around 500.  Is my way of thinking correct?

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As chasing700 pointed out - you'd be better off getting three secured cards with that 3K, instead of one. Other lenders may or may not take into account your current credit limits. It seems like you are trying to "speed things up" by essentially buying a bigger line to start out with, but it just doesn't work that way.

I would suggest just starting at $500, and get another secured $500 card from another bank. After 60-90 days of those two cards reporting, apply for a Capital One unsecured card.

[2b2rich]

You don't mention what your overall credit picture looks like, but personally, I would go with one secure card and then try for 2 unsecured, even if they're low SL cards, as long as the banks are established names.  (Cap1 platinum and Cap 1 QS are maybe the easiest to get for rebuilding).

I say this because you want a card that you can keep through the years to help maintain your credit history age.   There is going to come a time that you will not need secured cards and if you have some that do not 'graduate' (change to an unsecured and your deposit returned to you), then you're going to start thinking 'hey, I have good credit now and shouldn't have to have 3 grand 'tied up' in a savings account'.    

The problem is, that might be a couple of years from now and you have just received approvals for unsecured credit cards and so you close your secured card(s) out, get your $3K back, and for awhile your score probably drops across the board because your AAoA, just dropped.

Just a thought. Secured cards that report as unsecured are great for rebuilding, but my advice is to get one that will graduate.  (Cap 1s might do that, I don't know, never had their secured card, but I had one with First Progress, and it did not)

[CostantinoA]

Sorry for not giving a full picture! I am new to the group.

I have 8 credit cards and 1 authorized user card so a total of 9 reporting.

$300 US Bank Secured

$350 First Savings Not Secured

$400 Walmart Not Secured

$500 Open Sky Secured

$500 Capital One Authorized User Secured

$500 Mid America Bank Not secured

$1000 Discover Secured

$1500 Capital One Secured

I also have a auto loan and student loan.