Why All The Hate Towards Secured Cards?

smitty1 · ‎11-10-2015

I don't understand the hate towards secured CC's. I see people all the time who can't get unsecured cards, saying they don't want a secured card. Why? If your rebuilding, or just starting out, or trying to get in with a bank, what is the problem? If your in an open bankruptcy, like a chapter 13, secured cards are even hard to get. Capital One denied me a secured card because my 13 is open. I went with Discover and OpenSky. Both good cards, fee wise, and the Discover can graduate to unsecured in time. Anyways, just a few thoughts I had after seeing so many people bad mouth secured cards, they are much better than Credit One or Premier, imho.

Anonymous · ‎11-10-2015

I don't have a problem with them - but sometimes the money is better spent paying off an old collection to improve your score rather than sitting in an account backing a secured card.

Also - sometimes people don't realize they can get an unsecured card - or assume they can't and just go the secured route.

I had a secured card a few years back - sadly the thing never graduated and I gave up on it - I needed that $300 to pay off an old debt more than I needed the card. Now I have several unsecured cards.

My husband is having trouble getting unsecured cards - Finally just got his first one. We need to money to pay off child supprt from when he wasn't working - I'm not going to tie up funds that could be better used. We added him as AU to my cards - and we'll get him his own in a few months after things are showing up on his reports.

Sometimes you have to go the secured route - I just don't think it should be your FIRST line of action. If you take care of baddies, and/or have the funds to lock up for a secured card - go for it.

Anonymous · ‎11-10-2015

I think for some people, it's having to give up the deposit. If the cash flow is tight, it's hard to cough up $200. And some people are worried it won't show as well in scoring. My credit was so bad when I started, I knew the only way was a secured card. Now, 5 months later, I have about $2000 in unsecured credit plus my $350 secured. I considered it an investment into my future self. I'm just glad I have any credit at all! Did I mention my credit was bad? Like reeeeeaaallly bad. So, I threw down a deposit that I saved up, tightened my belt, and it's paying off. I wish more people would go secured, rather than the predatory lenders. Just my .02

Anonymous · ‎11-10-2015

@Anonymous wrote:
I think for some people, it's having to give up the deposit. If the cash flow is tight, it's hard to cough up $200. And some people are worried it won't show as well in scoring. My credit was so bad when I started, I knew the only way was a secured card. Now, 5 months later, I have about $2000 in unsecured credit plus my $350 secured. I considered it an investment into my future self. I'm just glad I have any credit at all! Did I mention my credit was bad? Like reeeeeaaallly bad. So, I threw down a deposit that I saved up, tightened my belt, and it's paying off. I wish more people would go secured, rather than the predatory lenders. Just my .02

Crazed - I think that was just the parking fee to get out of the lot at the Crappy Credit Pub!

Anonymous · ‎11-10-2015

I know, right? Thank goodness we don't have to meet there anymore!

Anonymous · ‎11-10-2015

@Anonymous wrote:
I know, right? Thank goodness we don't have to meet there anymore!

AGREED - you know - that was one of the BEST threads ever!!!! I laughed at the updates for weeks!

Anonymous · ‎11-10-2015

We need asbinjax to give us directions to that mediocre credit bar he was talking about. I may be hanging there for a while until I finish my credit clean up. At least I won't need a biohazard suit to do that lol!

Anonymous · ‎11-10-2015

Sorry smitty1 didn't mean to hijack your thread. Back to the topic at hand now...

Anonymous · ‎11-10-2015

Theres a place called the Almost Marginal Credit Pub right around the corner from where I live. Only a two drink minimum and no cover charge on weeknights! Draft beer is a bit pricey at $9 a pop though...

Anonymous · ‎11-10-2015

@smitty1 wrote:
I don't understand the hate towards secured CC's. I see people all the time who can't get unsecured cards, saying they don't want a secured card. Why? If your rebuilding, or just starting out, or trying to get in with a bank, what is the problem? If your in an open bankruptcy, like a chapter 13, secured cards are even hard to get. Capital One denied me a secured card because my 13 is open. I went with Discover and OpenSky. Both good cards, fee wise, and the Discover can graduate to unsecured in time. Anyways, just a few thoughts I had after seeing so many people bad mouth secured cards, they are much better than Credit One or Premier, imho.

I think its mainly because most people are under the false assumption that if it is a "secured" card then it really doesn't count as far as credit scoring goes.