topic Moving from Secured to Unsecured...advice in Credit Cards

Moving from Secured to Unsecured...advice

CluelessCredit — Fri, 30 Jul 2010 01:07:14 GMT

A bit about myself:

Transunion Score: 697 (pulled 07/28/2010)

Equifax Score: 694 (pulled 07/28/2010)

Oldest revolving account: BoA Unsecured CC (CL: $1,000) / 7 months old

2 possible negative accounts (2 payments on school loan 30 days late in Nov 2007 - it was the first payment after 6 month grace period and due to e-mail mix up, I never knew about it)

Average age of accounts: 3 years

Recent Inquiries: Wfb Card (November 12, 2009)

So those are the particulars of my credit / score history. I was one of those people that stayed away from credit cards like the plague until more enlightened minds told me I needed to build a credit history. So my extent of credit knowledge extends approximately 7 months as of this posting. Oddly enough the saving grace is my student loan debt as it is an installment account I've been paying on since Nov 2007. (in terms of establishing a history)

So on to the issue. I've been reading and trying to see how I'm going to make the transition from secured to unsecured. Currently I use my BOA unsecured and try to keep the utilization to 25% or less each month and I always PIF. I've been googling and reading the myfico forum and I still don't know what my next step should be. After December I will have had the BoA secured CC for 1 year with excellent credit report / history.

Do I call in January to ask to be moved from secured to unsecured? (assuming good credit report etc)

Do I need to raise the credit limit of the secured card to something higher to have a decent CL when and if I switch?

If and when I switch to the BoA secured card, do I also need to try to open up another revolving account to take credit inquiry hits at the same time? (think I read that on the forums)

In making the switch from secured to unsecured can I designate whether I want a rewards card, as I like buying gas and groceries with the credit card?

Re: Moving from Secured to Unsecured...advice

llecs — Fri, 30 Jul 2010 06:03:26 GMT

Tread very carefully with BofA. Some in here requested for their card to be unsecured, only to result in its closure. If you request anything, make sure your EX CR is much better looking than it did when you first app'd.

If you do ask, IMO, wait until your 12th payment clears and your 13th statement cuts.

I had their 99/500 back in the day and it automatically unsecured. I didn't call at all. About 6 months after that, I asked for a CLI and they gave me $1000 taking the card to $1500. When it unsecured, I didn't want a product change (already rewards based and not the Platinum Plus like others had).

Re: Moving from Secured to Unsecured...advice

Anonymous — Fri, 30 Jul 2010 08:21:29 GMT

...

Do I need to raise the credit limit of the secured card to something higher to have a decent CL when and if I switch?

Yes, raise the limit and wait for them to switch.

Re: Moving from Secured to Unsecured...advice

CluelessCredit — Fri, 30 Jul 2010 11:04:37 GMT

Thanks for the information. I'll increase the credit limit and wait it out.