topic Room to grow in Credit Card Applications

Room to grow

Anonymous — Wed, 17 Jun 2015 21:52:04 GMT

Ive had a cap1 secured card for about 6 months now and i really dont feel like adding anymore money to increase it. Since ive got it my scores are 610,617,572. Im wanting to apply for a card with rewards maybe a qs1. Should i get it and keep the secured card or clode it?

Re: Room to grow

Anonymous — Wed, 17 Jun 2015 22:56:20 GMT

It's totally up to you and whether you really need the money back. Most will advise to close it, and it's your choice. I have 3 secured cards (Wells Fargo 2K, US Bank 1K, and USAA 1K) and have since been approved for Cap One QS 5K, Venture 20K, Chase Slate 5500., SDFCU 1K, Wells Fargo Propel Amex 2500., Amex PRG, Delta PLAT 1500., and BCP 1K. Obviously I could close out all 3 secured cards, but I took HP's for each one, they're only 5 month's old, and I'm hoping to get cards from both US Bank and USAA. Wells Fargo wouldn't graduate me as they stated 5 month's was too soon, but they did approve me for the Amex. So my plan is to wait around 1 year. At that point if US Bank and USAA don't graduate, I'll close them out.
I will say, I believe secured cards are a double edge sword: while they are great for rebuilding credit and building initial credit, I believe they also hold you back somewhat when you finally do start receiving approvals from lenders. I believe the "secured" scares some lenders, especially if your scores are 700+, and leads to lower CL's. It leaves them wondering why you're secured. I believe this happened with several of my apps, including SDFCU and Amex. While I was approved they gave me small CL's. They pulled my EX which shows zero derogs, no public records, and is 790, but those secured cards were listed with low CL's, and these two lender's followed with similar CL's. I should've waited until Cap One and Chase showed up on my CR's. I'm sure I would've started much higher. Good luck !!!!

Re: Room to grow

Zorasmiles — Thu, 18 Jun 2015 01:11:43 GMT

@Anonymous wrote:
Ive had a cap1 secured card for about 6 months now and i really dont feel like adding anymore money to increase it. Since ive got it my scores are 610,617,572. Im wanting to apply for a card with rewards maybe a qs1. Should i get it and keep the secured card or clode it?

With those scores you're better off keeping that secured card until you're able to increase your clean up your credit report and increase your scores. Perhaps keep the card around open for 2 years unless your credit scores dreastically improve before that time. If you're able to acquire a QS1 it will affect your average age of accounts being a new card---this is not knowing your complete credit profile. Only you will know what will be the best options for you long term.

Re: Room to grow

Anonymous — Thu, 18 Jun 2015 01:44:22 GMT

i would say garden for the time being