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Secured Card CL

Established Member

Secured Card CL

Does the amount deposited on a secured credit card account make any difference with your FICO score?
Message 1 of 5
4 REPLIES
Moderator

Re: Secured Card CL

No
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Message 2 of 5
Super Contributor

Re: Secured Card CL

The amount deposited is not reported   The credit shows up just like any other credit card in the scoring algorithms, no reference to it being secured. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Message 3 of 5
Community Leader
Senior Contributor

Re: Secured Card CL


NRB525 wrote:

The amount deposited is not reported   The credit shows up just like any other credit card in the scoring algorithms, no reference to it being secured


Are you sure that there is no reference in a credit report to a card being secured?  I always thought some (perhaps many cards) are listed on one's report as secured (if indeed they are).

 

http://ficoforums.myfico.com/t5/Credit-Cards/Discover-it-secured-card-now-reports-as-SECURED/td-p/42...

 

That's a different question of course from whether FICO takes that data field (secured card vs. unsecured) and uses it to affect a person's score.  In that I think everyone is agreed: secured cards are treated the same as unsecured.

Message 4 of 5
Super Contributor

Re: Secured Card CL


CreditGuyInDixie wrote:

NRB525 wrote:

The amount deposited is not reported   The credit shows up just like any other credit card in the scoring algorithms, no reference to it being secured


Are you sure that there is no reference in a credit report to a card being secured?  I always thought some (perhaps many cards) are listed on one's report as secured (if indeed they are).

 

http://ficoforums.myfico.com/t5/Credit-Cards/Discover-it-secured-card-now-reports-as-SECURED/td-p/42...

 

That's a different question of course from whether FICO takes that data field (secured card vs. unsecured) and uses it to affect a person's score.  In that I think everyone is agreed: secured cards are treated the same as unsecured.


I got my printed Experian report today.

The PenFed Secured card that I had reports as a credit card.

The State Department FCU Secured card that I have reports as a Secured Card.

 

Both of them on my latest MyFICO 3B report do not indicate Secured Card, but Experian shows Line of Credit, on the 3B, when the same card on Experian printed shows Secured Card.

 

So it depends on many factors, does the lender send the info? Is it interpreted the same  way by each bureau? Does the type of output change the interpretation?

 

My main point was, the security limit itself is not a factor in the scoring, and all a manual underwriter cares about is whether the payments have been made on time. After all, a Secured Card is credit with training wheels. That we can agree on.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Message 5 of 5