topic Re: Secured cards - my experience in Credit Cards

Secured cards - my experience-update for graduation info

Anonymous — Sat, 05 Sep 2015 00:57:03 GMT

I began making a trip from horrible credit to...well mediocre credit this year. With some help from my credit union I got going on a path to better things. I have learned quite a bit from lots of excellent tour guides here, and figured I would try to help someone else just getting started out. I have used 5 (yes 5) secured cards to help build up my file. As most people don't do silly things like this, I figured I could post a bit about each of my cards so others can have a bit more knowledge about the plusses and minuses of each of these cards.

I will give each an overall grade, and then describe what my experiences have been dealing with each company. If anybody has questions, feel free to ask away.

First Progress- 8/10 Annual fee 29 rate 19.9

This card gets beat up on in many places. I opted for the lowest annual fee/highest interest rate version as I PIF every month. Opened the account and funded with no problems. Card did take almost 2 weeks to arrive, but no problems activating or using. Website is a bit clunky, and even says that information is from yesterday. Apparently the squirrels powering the thing are too tired to run very fast.

You are not able to make a payment directly from their website,you have to use online bill pay from your own financial institution. No problem for me, and in fact I kinda prefer it that way after reading some of the horror stories on CK and other forums. They specifically say payments MAY take up to 10 days to post. Mine have all posted within 1 day of the day my CU said it would be delivered and thecredit was made available as soon as it posted.

Customer service was excellent the 2 times I called them. The first time, I had used the bill pay address that I had used to send mu deposit in to. Their payment address is different!

The transaction showed up, but didnt post as a payment. I called and the phone was answered quickly and the lady I spoke with was friendly. I took less than 5 minutes (she went and whipped the squirrels) and she came back. She told me it had been fixed, would show up the next day. Having read the terror tales,I was skeptical, but promptly at the crack of noon the next day it was there.

The other call was because I make payments throughout the month (gotta keep that utilization down) and the minimum payment due seems to add the midmonth payments. As of right now I have a balance of 63.00 but my minimum payment shows 93.00. I get worried that something strange was being charged to me (again the horror stories). The lady I spoke to told me that yes, that number doesn't seem to update correctly and there was nothing they could do. Not exactly a resolution but something to know and not freak out about.

You CAN add funds to up your limit after the initial deposit, but it needs to be done via snail mail, with a money order. I have not made use of this.

I dont use this card much since getting others, but all in all I have had no issues, and would actually prefer this card to the cap 1 card, with the exception of the fact that cap 1 at least has other cards I could apply for down the road. They report promptly to all 3 CRAs (my card was showing on CK before I recieved it) and I have personally had only a positive experience. HP on TU

NO option to ever unsecure, minimum 300 maximum 4900 I will pay 2 annual fees, cancel before the 3rd.

Closed 7-10-2015 called in, took roughly 2 minutes. They also say 2 billing cycles for deposit to be returned.-appears my check was sent out today, 8-28-15

Cap 1 8/10 secured platinum 29 AF 22.99 APR

The cap 1 secured has been fine. Easy app process, funded quickly. Card took approximately 10 days to arrive. Cap 1 gets pretty much meh reviews everywhere you look. It serves a purpose but would never be my first choice.

Website and apps are user friendly, balances reflect correctly, and offers all the features you would expect of one of the largest CC issuers in 2014. No problems making payments, checking balances etc.

Cap 1 customer service is definitely the downside of their operation. In my first statement period I wanted to change my payment due date. This appears as an option on the website. I clicked it and put in a the day I wanted it to happen. It told me it would occur within 2 statement periods.

It did update, though I never saw anything telling me my date had changed.

I sent a secure message when my statement did not close the following month. I also initiated an online chat, with clearly not US based customer service. His answers were scripted and he was unable to answer my question. He kept telling me that despite the change I still had to make my normal payment, which I replied repeatedly that I had mad 4 payments that month. I'm pretty sure he had no idea what I was asking about.

The next day my secure message was answered, giving me the correct information. I have added funds to my cap1 card twice, through a simple process on the website. New CL appeared within a week both times.

I have had no real problems with Cap 1, but there is no real incentive to use their card either. On the plus side, they have already (6 months in) begun sending me pre approvals for better cards. The terms are not yet what I want (QS with 39 dollar AF) so I won't accept until they offer me a better deal.

Currently no option to unsecure cap1 does offer some 49/99 dollar partially secured minimum 200 max 300 I will pay 2 annual fees and cancel before the 3rd. Hopefully they give me a decent offer before then, but if not no big loss, there are certainly better cards than Cap 1 out there for me. Also CAP 1 hard pulled all 3 CRA on me.

CLOSED 7-10-15. Called in and closed via automated system. The said could take 2 statement cycles to get deposit back, but you could request it sooner. Spoke to a representative, and got that taken care of. She said 5 days to process and 7-10 days in the mail. recieved my check 15 days after closing the account

Discover IT 9.5/10 NO AF 19.99 apr

This is about as good as it comes in a secured card. No annual fee, rewards (1% on everything, rotating 5% catagories) and absolutely fantastic customer service. I have raved about this card to people to the point where they ask if I work for discover. But no,there's no way I could be as happy as these people seem to be.

The number one problem with this card is there is no way to directly apply for it. You have to apply for a discover and then get rejected, they counter with an emailed secured card offer. I obviously accepted, funding was quick, card arrived in 4 days. Yes 4 days. Discover elves work quickly apparently. Also, the process is a bit convoluted, I had the card in hand, activated before discover actually emailed me that I was approved.

Discovers website is the best of all of them, tracks spending, free fico TU08 score all sorts of lovely discover deals and the best interface. Their android app isn't perfect but quick and intuitive to use.

If you have to call discover, a real person answers the phone quickly and they are certainly knowledgeable and seemingly bend over backwards to help. Answers are not scripted, and they will gladly explain anything you need.

Discover currenty has no way to add funds to your security deposit, but they will allow you to request a CLI after 6 months. After 12 months (11 statements I was told) they will review to unsecure.Can't remember minimum or max deposit, though I believe it was 400/3000

Discover sent me an email in early november offering 5 retailers to get an extra 5% back on for a month as well as the usual catagories, and tossed me a 5 dollar starbucks GC in december.

This is a card I will keep. The seem eager to please customers, even poor lil ol me with the 600 dollar secured card.HP EQ

as of 5/13/2015 you will be able to add funds to increase your security deposit and limit.

I added 1400 to my card a couple days ago, as my card should be graduating in the next 2 months (probably actually less). Painless call in, took a couple minutes. Pulled the money from checking account a day later. Told me it could take up to 8 days to increase the limit. I figured i would rather give them 1400 now to have a higher limit than wait on the mercy of the CLI gods, especially since i did a larger than planned app spree after closing on my house. Notified today that my card has graduated (8-28-15) email says 7-10 business days to recieve the check by mail. My card graduated 362 days after the hard pull on my report, 355 days after activating the card.

US BANK Harley Davidson Secured 9/10 NO AF 20.99 apr

US Bank has been great for me. App process was quick, funding easy, card arrived in a week. I feel a bit silly whippingout my HD card as I don't ride a harley, but it is better than paying an annual fee for US Bank's regular secured card. (DUH!) I use the card a good amount because I put 800 on it rather than the 400 or 600 I started the other cards with. You do get rewards (1%) of purchases in HD gift cards once you spend at least 2500. Minimum redemtion is 25.00. You are also entered into a drawing for a harley each month, 1 entry per dollar spent.

US banks website is realtively easy to navigate if a bit stodgy (kinda the way I think of US Bank anyway). Payments do not show as pending if you used today as the payment date, but do update promptly. USbank customer service is quick to answer, give reliable info and were resonably pleasant.

USBank has a bitof a convoluted method to increase your limit, I have not used it, but it is there as an option.

No problems with the card or the company whatsoever, and if the rewards were as good as discover this would probably be a 10. Another plus is you can pay the card in cash in person at any bank branch, which is nice for me as a good portion of my income is cash. Going into the bank is a plus as well as they will try to get you into other products and have offered me bonuses for checking accounts etc.

US Bank HP TU on me. I don't remember minimum or max deposit but I believe max was 4900.

They say they review accounts periodically after 12 months to unsecure, I was told to churn the card a bit and it should be automatic.

I may not keep this card, but I will attempt to PC into something that suits my needs better. I will keep the relationship with US bank even if they won't PC this card.Update- graduation on 9-4-2015

BOA 1-2-3 rewards secured (Originally BankAmericard) 9.25/10 39 AF 20.99 Apr

BOA has been a very good card for me. While the 39 dollar AF is a bit steep, I have covered it in rewards easily. I churn this card a fair amount (monthly spend 1.5x CL) because of the gas and groceries rewards. Card gives 3 percent on gas, 2% on groceries and 1% on everything else. Gas and groceries do have a quarterly cap.

BOA does not have the best website, as it seems they really want to sell you on other products so navigating can be a bit of a pain. The android app is functional but not ideal, this and the AF are where they lose points.

Calling in has been a breeze, the day I got the card, 10 days after applying and funding, I called and asked to add the rewards. The woman I spoke towas friendly (and said hello to the fico forumsafter chuckling when I told her thats where I found out about adding the rewards) Thanks Hi-Line.... She added them for me, but did have to send out a new card, which took 2 weeks.

This card also offers pay in cash at the branch. Payments post quickly and other than the AF there is nothing relatively negative to say about how BOA has treated me. Other people have said their card has unsecured 9 months after opening, they specifically say 11 statements if you call to ask.

BOA HP EX on me. This is a card I will keep because ithas useful rewards, ease of use and BOA is worth having a relationship with.

I will update this as time goes by to let people know about unsecuring getting AFs removed etc. Any questions please feel free to ask.

Thanks to all on the forums whose posts have helped me, I hope I have done a little to pay it back with this.

Pfarro

Re: Secured cards - my experience

Anonymous — Thu, 08 Jan 2015 02:20:08 GMT

Very useful to me. Well put evaluations

Re: Secured cards - my experience

Anonymous — Thu, 08 Jan 2015 04:58:36 GMT

Great post and very useful for the ton of new people who come to this forum every year. If moderators here did they jobs, instead of their "insignificant power" trips, they would flag this thread for future reference, for those newcommers, Good luck to you and keep this thread updated!

Re: Secured cards - my experience

chalupaman — Thu, 08 Jan 2015 05:03:29 GMT

That's quite a really insightful post you made there and there's a lot of valuable information that could be helpful to a lot of others as they build/rebuild their credit. My dad was approved for the secured version of the Discover card and he's been trying to rebuild and it's a relief to know that they are just as good with that card as they are with their regular cards rewards wise.

Re: Secured cards - my experience

Anonymous — Thu, 08 Jan 2015 10:04:09 GMT

@chalupaman wrote:
That's quite a really insightful post you made there and there's a lot of valuable information that could be helpful to a lot of others as they build/rebuild their credit. My dad was approved for the secured version of the Discover card and he's been trying to rebuild and it's a relief to know that they are just as good with that card as they are with their regular cards rewards wise.

I honestly think there must be prozac in the water coolers at Discovers offices. Sometimes I want to call them just to say hi.

Re: Secured cards - my experience

Anonymous — Thu, 08 Jan 2015 18:24:30 GMT

Thanks for sharing! Its quite insightful, especially for people like myself rebuilding.

Re: Secured cards - my experience

Anonymous — Tue, 03 Mar 2015 23:16:59 GMT

Just an update if anyone is following... I recieved an unsecured CAP1 CLI of 300 dollars. My 9th statement had posted a week earlier. Also recieved a 500 dollar CLI from Discover, just had my 6th statement post. My scores have improved greatly,all well over 700 now. Neither increase was requested, both just popped up. My discover I use a considerable amount,my CAP1 is sock drawered with 2 auto pays on it totalling about 40 bucks a month.

Re: Secured cards - my experience

Anonymous — Wed, 04 Mar 2015 22:55:41 GMT

What were your scores starting out? How long have you been on this journey? Wonderful and informative reviews btw

Re: Secured cards - my experience

Anonymous — Wed, 04 Mar 2015 23:06:30 GMT

@Anonymous wrote:
Just an update if anyone is following... I recieved an unsecured CAP1 CLI of 300 dollars. My 9th statement had posted a week earlier. Also recieved a 500 dollar CLI from Discover, just had my 6th statement post. My scores have improved greatly,all well over 700 now. Neither increase was requested, both just popped up. My discover I use a considerable amount,my CAP1 is sock drawered with 2 auto pays on it totalling about 40 bucks a month.

Wait, wait, wait...

Did you get an unsecured CLI on the secured Discover or have you graduated?

Re: Secured cards - my experience

Anonymous — Mon, 09 Mar 2015 15:19:12 GMT

@Anonymous wrote:
@Anonymous wrote:
Just an update if anyone is following... I recieved an unsecured CAP1 CLI of 300 dollars. My 9th statement had posted a week earlier. Also recieved a 500 dollar CLI from Discover, just had my 6th statement post. My scores have improved greatly,all well over 700 now. Neither increase was requested, both just popped up. My discover I use a considerable amount,my CAP1 is sock drawered with 2 auto pays on it totalling about 40 bucks a month.
Wait, wait, wait...

Did you get an unsecured CLI on the secured Discover or have you graduated?

Yes, unsecured CLI on secured discover. I was quite suprised to see it myself... I had called a couple times to see if I could add funds to increase my limit, they said no each time. After 6th statement plus a week or so got the CLI. As far as I know it has not unsecured.

Re: Secured cards - my experience

Anonymous — Mon, 09 Mar 2015 15:24:33 GMT

Dont know my actual starting scores other than TU 04 was 513. My first actual pull here scores were in the 540-560 range. I had 7 collections, all but 1 medical. 0 positive accounts. Currently no negatives current scores are 726 TU 738 EQ, 744 EX. 8 inqs on each (6 in last year) and 7 positive accouts 5 cc and 2 secured loans. Started in may of 2014. I did some work to get PFDs and had a couple items close to falling off that I was able to get early exclusions from TU and EX.

@Anonymous wrote:
What were your scores starting out? How long have you been on this journey? Wonderful and informative reviews btw

Re: Secured cards - my experience

tiger_uppercut — Mon, 09 Mar 2015 17:10:29 GMT

If I can add one:

Merrick Bank Secured Visa - 9/10

Annual fee: $36 upfront for the first year, $3/month after

APR: 17.45%

This card was a really great rebuilder for me. They provide free FICO scores, you can pay online or via their app, and customer service was fine the one time I had to use it. I used the iphone app a lot, and it was easy to make payments right from my mobile and they posted very quickly. The application process was simple and straightforward. I deposited $500 on my card to start and after 11 months or so they bumped my CL to $700 without me asking (not much, but it was nice). I never carried a balance but the APR is very competitive for a secured card.

After having it and gardening for a year, I was approved for two unsecured cards with Capital One.

Nothing but good things to say about Merrick. I closed my card a couple of weeks ago so hopefully I get my deposit back in a timely manner.

Re: Secured cards - my experience

Anonymous — Mon, 09 Mar 2015 18:20:59 GMT

Knowing what I know now, I would have passed on first progress and cap1 altogether. SDFCU would be my first choice, followed closely by discover and BOA. If discover hada direct app process it would be first without question. Free fico score, no AF, quality customer service, ability to graduate plus rewards make it about as good as it gets. The silliness of having to apply for a card you know you cant get approved for and hoping they offer the secured card is kind of absurd. I will stand by the fact that if i were todo it all over I would pick first progress over cap1 tho. There are a few horror stories out there, but my experience has been positive. Neither card will be in my portfolio for much longer. I will add, like SDFCU, i have not used the MB secured card but that also looks very promising. Rewards, low AF a quality bank that pays interest on your funds. Citi also offers a secured card (apparently only available in branch) secured with an 18 month CD.

Re: Secured cards - my experience

Anonymous — Mon, 09 Mar 2015 18:22:53 GMT

@tiger_uppercut wrote:
If I can add one:

Merrick Bank Secured Visa - 9/10
Annual fee: $36 upfront for the first year, $3/month after
APR: 17.45%

This card was a really great rebuilder for me. They provide free FICO scores, you can pay online or via their app, and customer service was fine the one time I had to use it. I used the iphone app a lot, and it was easy to make payments right from my mobile and they posted very quickly. The application process was simple and straightforward. I deposited $500 on my card to start and after 11 months or so they bumped my CL to $700 without me asking (not much, but it was nice). I never carried a balance but the APR is very competitive for a secured card.

After having it and gardening for a year, I was approved for two unsecured cards with Capital One.

Nothing but good things to say about Merrick. I closed my card a couple of weeks ago so hopefully I get my deposit back in a timely manner.

The biggest problem with merrick is the terms can vary wildly. They started sending me offers about 2 months into my rebuilding, I would get 1 for the same terms you have, followed by one with 70 plus dollars in fees.

Re: Secured cards - my experience-update for graduation info

Anonymous — Sat, 05 Sep 2015 00:59:30 GMT

update to original post-

My discover and US Bank cards have graduated First progress and Cap1 have been closed. BOA was a later addition, its at about 9 months now. Discover returned my security deposit within a week of the graduation email. Cap1 roughly 15 days. First progress is walking it to me from georgia I think. Us Bank graduated today, will update on when I recieve my funds.

Re: Secured cards - my experience-update for graduation info

Anonymous — Sun, 11 Sep 2016 21:05:36 GMT

You can now apply directly for the Discovercard secured card. Discover is a great company.

Re: Secured cards - my experience-update for graduation info

Anonymous — Mon, 12 Sep 2016 03:05:01 GMT

Threads like these make me really want a Discover card. They sound super willing to please and succeed in doing so. But the 5% It categories just don't appeal to me that much...and I really don't want another cash back card lol. But did help a friend recently app for a Discover! His first card, so exciting. Other CCCs (US BANK I'M LOOKING AT YOU) could learn from them...word of mouth customer acquisition is a real thing.

Also yes, seconded, Discover secured now has its own app unlike previously mentioned above.