topic Re: Secured Cards with Low Deposit in Credit Cards

Secured Cards with Low Deposit

bruiseviolet — Tue, 25 Oct 2011 13:17:58 GMT

I am looking to get 2 or 3 secured cards- but will need them with a lower deposit. I don't care if the CL is the low deposit amount- that doesn't matter to me. I'm not planning on spending anymore than 5 bucks a month on each anyways. but since I need 2 or 3- I cannot afford $200 deposit on each card either. Just wondering if anyone can direct to me to secured cards with a lower (like 50 bucks or less) deposit.

I am looking for:

LOW deposit (even if CL is low- fine with me for me now)
Reports to all 3 agencies- or at least reports to TU
Prefer no yearly fee- but realize I can't have everything LOL

Re: Secured Cards with Low Deposit

Anonymous — Tue, 25 Oct 2011 14:26:29 GMT

@bruiseviolet wrote:
I am looking to get 2 or 3 secured cards- but will need them with a lower deposit. I don't care if the CL is the low deposit amount- that doesn't matter to me. I'm not planning on spending anymore than 5 bucks a month on each anyways. but since I need 2 or 3- I cannot afford $200 deposit on each card either. Just wondering if anyone can direct to me to secured cards with a lower (like 50 bucks or less) deposit.

I am looking for:
LOW deposit (even if CL is low- fine with me for me now)
Reports to all 3 agencies- or at least reports to TU
Prefer no yearly fee- but realize I can't have everything LOL

I could be wrong, but I don't think you'll be able to find something like that. The lowest deposit for a secured card I remember seeing is with Cap 1, and that depends on the credit check - but you can get a $200 CL for $49. But you could end up having to pay more. The other banks I looked at had lower minimums. Orchard was 200, BofA is 300, NFCU is 500, don't remember what US Bank and USAA had, but it was at least $300 if I'm not mistaken.

As far as no annual fee.. good luck. If you're looking for a secured card, they know you're not in a position to bargain so they're going to charge you an annual fee to make some money off of you. Orchard waives the AF the first year, but then you have a fee. Navy Federal has to fee, but you have to deposit at least $500 and be eligible for membership. Everyone else, you're most likely going to be paying something in the $30-40 range.

Depending on what your credit report looks like, your best choice might be Capital One. I don't like recommending them, but it comes closest to what you're looking for. You might be able to get the cards for a $49 or $99 deposit each, and the annual fee is only $29. But of course, you'll end up with a hard pull on all 3. Also, they might do a separate pull for each card, so you might end up taking a LOT of inquiries from it.

The only other choice I could recommend is talking to a local credit union, but I'm not sure you'll be able to get anything for a less than $200 deposit from them.

Re: Secured Cards with Low Deposit

Anonymous — Tue, 25 Oct 2011 15:04:03 GMT

@bruiseviolet wrote:
I am looking to get 2 or 3 secured cards- but will need them with a lower deposit. I don't care if the CL is the low deposit amount- that doesn't matter to me. I'm not planning on spending anymore than 5 bucks a month on each anyways. but since I need 2 or 3- I cannot afford $200 deposit on each card either. Just wondering if anyone can direct to me to secured cards with a lower (like 50 bucks or less) deposit.

I am looking for:
LOW deposit (even if CL is low- fine with me for me now)
Reports to all 3 agencies- or at least reports to TU
Prefer no yearly fee- but realize I can't have everything LOL

Are you building new or rebuilding bad credit?

Why do you want 3 low limt cards? I would suggest one higher limit card is often better, maybe 2.

Re: Secured Cards with Low Deposit

bruiseviolet — Tue, 25 Oct 2011 15:41:45 GMT

Are you building new or rebuilding bad credit?

Why do you want 3 low limt cards? I would suggest one higher limit card is often better, maybe 2.

Rebuilding bad credit (see my credit score in signature LOL).

I am applying for a mortgage in February- and in order to get a lower interest rate/down payment they are recommending I have 3 tradelines of credit showing good payments. (Please refrain from the negative comments about not getting a mortgage with 6 months blah blah- i've ALREADY been approved with the company- just trying to get a lower interest rate and down payment). From the credit simulators it showed the best credit increase was with 2 or 3 new lines of credit.

I'm not apposed to one card with a higher limit- just trying to get the biggest score increase I can. I realize I will have to pay a yearly fee- like I said previously, "realize I can't have everything". I just figured I was better off to get two cards with 100 dollar deposits- vs. 1 card with a 200 dollar deposit. I could be wrong. I'm not opposed to either.

I am stretching my monthly budget this month if I have to come up with 200- so was trying keep it lower. I realize it won't impact more score as miuch with a lower limit- but they just want to see the good tradeline- at this point in the game- for my goals right now- the limit doesn't mean much to me. Plus I know based on bad habits from the past- the lower the limit- the less likely I am to be stupid with it.

Also- on a side note- I pay cash for everything. I haven't had a credit card in YEARS. I have trouble managing them- so for me the best option was to go CASH only. (I dont even have checks for my checking account.) Because money is tight and I am a single mother- I am somewhat scared of falling into the old trap that got me into this mess- ie big life changing event happens, and living off credit cards. Can I get my cards- use them to purchase a pack of gum or something less than 20 bucks? and then go home and shred them so I don't use them?

Re: Secured Cards with Low Deposit

Walt_K — Tue, 25 Oct 2011 15:53:35 GMT

@bruiseviolet wrote:
Are you building new or rebuilding bad credit?

Why do you want 3 low limt cards?   I would suggest one higher limit card is often better, maybe 2.

Rebuilding bad credit (see my credit score in signature LOL).

I am applying for a mortgage in February- and in order to get a lower interest rate/down payment they are recommending I have 3 tradelines of credit showing good payments. (Please refrain from the negative comments about not getting a mortgage with 6 months blah blah- i've ALREADY been approved with the company- just trying to get a lower interest rate and down payment). From the credit simulators it showed the best credit increase was with 2 or 3 new lines of credit.

I'm not apposed to one card with a higher limit- just trying to get the biggest score increase I can. I realize I will have to pay a yearly fee- like I said previously, "realize I can't have everything". I just figured I was better off to get two cards with 100 dollar deposits- vs. 1 card with a 200 dollar deposit. I could be wrong. I'm not opposed to either.

I am stretching my monthly budget this month if I have to come up with 200- so was trying keep it lower. I realize it won't impact more score as miuch with a lower limit- but they just want to see the good tradeline- at this point in the game- for my goals right now- the limit doesn't mean much to me. Plus I know based on bad habits from the past- the lower the limit- the less likely I am to be stupid with it.

Also- on a side note- I pay cash for everything. I haven't had a credit card in YEARS. I have trouble managing them- so for me the best option was to go CASH only. (I dont even have checks for my checking account.) Because money is tight and I am a single mother- I am somewhat scared of falling into the old trap that got me into this mess- ie big life changing event happens, and living off credit cards.  Can I get my cards- use them to purchase a pack of gum or something less than 20 bucks? and then go home and shred them so I don't use them?

Charging a stick of gum every once in a while will work. But do you have any recurring monthly bills that you can set up on the card. I have a CapOne card that I don't care to use anymore but am not quite ready to cancel. I have it set up to pay my TU Quarterly monitoring which is $3.71/month. I have an auto bill payment set up with my checking account to pay the $3.71 to CapOne the next day. I don't have to carry the CapOne card at all and I never have to log on to make payments. I also set up an account alert to e-mail me if the balance goes above $5. That way I don't even have to log on to monitor against fraud. The only thing I have to do is remember to either cancel before the annual fee comes due or remember that I'll have to make a payment that month, but the account alert would let me know if the AF came due, and I have an alert set up in my calendar to let me know beforehand in any event.

Re: Secured Cards with Low Deposit

haulingthescoreup — Tue, 25 Oct 2011 15:54:15 GMT

@bruiseviolet wrote:

...Also- on a side note- I pay cash for everything. I haven't had a credit card in YEARS. I have trouble managing them- so for me the best option was to go CASH only. (I dont even have checks for my checking account.) Because money is tight and I am a single mother- I am somewhat scared of falling into the old trap that got me into this mess- ie big life changing event happens, and living off credit cards. Can I get my cards- use them to purchase a pack of gum or something less than 20 bucks? and then go home and shred them so I don't use them?

Sure, you can buy a Slurpee, pay off the card, and stop using it --for a while.

But I would strongly advise not shredding it or stopping entirely. You want the cards to be showing as actively and properly used.

Do you have a utility bill or something that you already pay that you could put on a card? Or anything recurring that you have to pay cash for anyway --gas, bus/ subway pass, monthly prescription. You can put something like this on a card. Check your CC account daily, and the moment that the balance pops up, boom! pay it off online, then and there.

Frankly, I've never heard of a secured card with uber-low limits like what you're describing. I understand that you're in a cash crunch, but I think that you'll need to somehow come up with more.

And I do hope that you can swing the house OK, but I have to ask: if cash is this tight now, how will you handle the various crises that come with owning a hou$e? Because all of us who've had a house can tell you, you have to be able to pull out the checkbook on a regular basis.

Not being unsympathetic here, but I have to say, I'm a little worried.

eta: Walt_K beat me!

Re: Secured Cards with Low Deposit

Anonymous — Tue, 25 Oct 2011 16:04:15 GMT

I wouldn't say pay off the balance as soon as it shows up on your card. If you're paying the balance off as soon as it posts, you're not going to have any utilization at the end of the month, after all.

Like previously suggested, set up a recurring bill on the card and auto-pay for it. I had renter's insurance (like $15/mo) getting charged on one card and I'd let the balance post and then pay it off, so it would show the small utilization % every month.

Then I decided I hate Orchard Bank and stopped using the card entirely.

Re: Secured Cards with Low Deposit

haulingthescoreup — Tue, 25 Oct 2011 16:10:51 GMT

@Anonymous wrote:
I wouldn't say pay off the balance as soon as it shows up on your card. If you're paying the balance off as soon as it posts, you're not going to have any utilization at the end of the month, after all.

Like previously suggested, set up a recurring bill on the card and auto-pay for it. I had renter's insurance (like $15/mo) getting charged on one card and I'd let the balance post and then pay it off, so it would show the small utilization % every month.

Then I decided I hate Orchard Bank and stopped using the card entirely.

Good point. OP is worried about getting tempted into running up her balance, and I was focusing on that, but it's true that one card ought to report something anyway.

Re: Secured Cards with Low Deposit

CreditCrusader — Tue, 25 Oct 2011 16:24:41 GMT

@haulingthescoreup wrote:
@bruiseviolet wrote:

...Also- on a side note- I pay cash for everything. I haven't had a credit card in YEARS. I have trouble managing them- so for me the best option was to go CASH only. (I dont even have checks for my checking account.) Because money is tight and I am a single mother- I am somewhat scared of falling into the old trap that got me into this mess- ie big life changing event happens, and living off credit cards. Can I get my cards- use them to purchase a pack of gum or something less than 20 bucks? and then go home and shred them so I don't use them?
Sure, you can buy a Slurpee, pay off the card, and stop using it --for a while.

But I would strongly advise not shredding it or stopping entirely. You want the cards to be showing as actively and properly used.

Do you have a utility bill or something that you already pay that you could put on a card? Or anything recurring that you have to pay cash for anyway --gas, bus/ subway pass, monthly prescription. You can put something like this on a card. Check your CC account daily, and the moment that the balance pops up, boom! pay it off online, then and there.

Frankly, I've never heard of a secured card with uber-low limits like what you're describing. I understand that you're in a cash crunch, but I think that you'll need to somehow come up with more.

And I do hope that you can swing the house OK, but I have to ask: if cash is this tight now, how will you handle the various crises that come with owning a hou$e? Because all of us who've had a house can tell you, you have to be able to pull out the checkbook on a regular basis.

Not being unsympathetic here, but I have to say, I'm a little worried.

eta: Walt_K beat me!

Have to concur with the growing consensus here regarding that house idea. You are biting off quite a bite buying a house - and if you're having difficulty putting together $200 to open a secured card, you're most likely setting yourself up for disaster buying a house.

I would urge you to wait...grow your credit and bank account a bit...then move in for the house when you're in a better position to do so. Just one man's opinion...

Re: Secured Cards with Low Deposit

bruiseviolet — Tue, 25 Oct 2011 16:33:22 GMT

This is why I shouldn't have given any details. The mortgage payments is 1/2 of what I am currently paying in rent for me and my 3 kids. So I disagree- without knowing all of my financial details- it's nobody's business to tell me to 'wait on getting a house'. I will have more money left over than I do now currently renting. Also I said THIS MONTH I don't have the extra 200- I didn't say that's every single month- just happens to be this month I don't.

My credit is sh** because of bad choices I made BEFORE I had children- when I was just out of high school. The only reason I am even giving two craps to clean up my credit is simply to get the mortgage- I do very well just paying cash for everything (including my vehicle which I PAID IN FULL with Cash) and if it wasn't for a mortgage- I wouldn't even bother with my credit.

Re: Secured Cards with Low Deposit

Anonymous — Tue, 25 Oct 2011 16:30:50 GMT

haulingthescoreup wrote:

Good point. OP is worried about getting tempted into running up her balance, and I was focusing on that, but it's true that one card ought to report something anyway.

Yeah, I understood what you were getting at, just wanted to point out that at least something should be left until the statement cuts. Otherwise she's not really going to benefit the same way anyway.

On the plus side, getting the lowest possible credit limit on a secured card means you can't rack up that much credit card debt. I was worried about being irresponsible with my cards when I originally go them, but as long as you remember it's not 'free money' or supplemental income and you HAVE TO pay it back, it gets easier to handle it responsibly.

Re: Secured Cards with Low Deposit

CreditCrusader — Tue, 25 Oct 2011 16:34:40 GMT

@bruiseviolet wrote:
it's nobody's business to tell me to 'wait on getting a house'.

No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.

Re: Secured Cards with Low Deposit

bruiseviolet — Tue, 25 Oct 2011 16:35:05 GMT

@Anonymous wrote:
@haulingthescoreup wrote:
Good point. OP is worried about getting tempted into running up her balance, and I was focusing on that, but it's true that one card ought to report something anyway.

Yeah, I understood what you were getting at, just wanted to point out that at least something should be left until the statement cuts. Otherwise she's not really going to benefit the same way anyway.

On the plus side, getting the lowest possible credit limit on a secured card means you can't rack up that much credit card debt. I was worried about being irresponsible with my cards when I originally go them, but as long as you remember it's not 'free money' or supplemental income and you HAVE TO pay it back, it gets easier to handle it responsibly.

Thank you AndyK- that was my fear. I am so used to paying cash and have become VERY responsible with paying cash for everything- I was/am afraid of messing it all up again.

Re: Secured Cards with Low Deposit

gijoe4500 — Tue, 25 Oct 2011 16:35:26 GMT

@CreditCrusader wrote:
Have to concur with the growing consensus here regarding that house idea. You are biting off quite a bite buying a house - and if you're having difficulty putting together $200 to open a secured card, you're most likely setting yourself up for disaster buying a house.

I would urge you to wait...grow your credit and bank account a bit...then move in for the house when you're in a better position to do so. Just one man's opinion...

Also, taking the time before you buy the house will give you time to improve your credit score situation. Start cleaning up all the baddies on your report, and you will get a better interest rate on the home loan and pay MUCH less overall on the purchase of said home.

Re: Secured Cards with Low Deposit

bruiseviolet — Tue, 25 Oct 2011 16:37:32 GMT

@CreditCrusader wrote:
@bruiseviolet wrote:
it's nobody's business to tell me to 'wait on getting a house'.
No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.

I realize this, and I am not offended, I was just a little annoyed. My current rent is around 1400 a MONTH. I realize having a host has extra expenses- however the mortgage / price of house is about 700 a month- giving me 700 I DO NOT HAVE NOW to pay for repairs etc..... I also have a 3 moth emergency fund/savings set up- so I really am not worried. Like I said, this is a better decision for me vs. renting in the area I currently live in with the prices of rentals. I have to be out of my rental by February (they are selling the house) so- renewing this outragous lease isn't an option.

Re: Secured Cards with Low Deposit

CreditCrusader — Tue, 25 Oct 2011 16:37:46 GMT

@gijoe4500 wrote:
@CreditCrusader wrote:
Have to concur with the growing consensus here regarding that house idea. You are biting off quite a bite buying a house - and if you're having difficulty putting together $200 to open a secured card, you're most likely setting yourself up for disaster buying a house.

I would urge you to wait...grow your credit and bank account a bit...then move in for the house when you're in a better position to do so. Just one man's opinion...

Also, taking the time before you buy the house will give you time to improve your credit score situation. Start cleaning up all the baddies on your report, and you will get a better interest rate on the home loan and pay MUCH less overall on the purchase of said home.

My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

Re: Secured Cards with Low Deposit

Anonymous — Tue, 25 Oct 2011 16:44:02 GMT

@bruiseviolet wrote:
Thank you AndyK- that was my fear. I am so used to paying cash and have become VERY responsible with paying cash for everything- I was/am afraid of messing it all up again.

What you could do is set up another checking/savings account with your bank (assuming you can do it for free) and put the credit limit's worth of money there. So if you get the bare minimum $200 credit line, put $200 into a checking account, and make sure you always have the money there to pay off the credit card bill at the end of the month once the statement cuts. That way you don't put yourself in a bad spot.

My problem is that now that I'm self-employed, I get paid once every 2-3 months, so my utilization keeps creeping up.. then I pay it all off. Then it all creeps back up again, etc. But if you remember that you absolutely HAVE TO pay off the balance, you won't be as tempted to be irresponsible with credit.

If you think you're gonna be a bit short on cash this month, just wait another month before opening the account. I think Cap 1 gives you 45 days to make your initial deposit (don't take my word on it, just going based on memory here), so even if you don't get the lowest $49 deposit and you end up having to pay $99 or $200, at least you have a month to get the money for it. But the account won't open until they have the deposit.

Re: Secured Cards with Low Deposit

Anonymous — Tue, 25 Oct 2011 16:48:14 GMT

@CreditCrusader wrote:
My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

Is it that low? I haven't seriously looked into a mortage loan yet (keep moving too much to want to buy a house anyway), but the loan officer at my bank said you should have at least a 680 before applying for a loan. And I remember USAA said something similar, that you should have 720+ to qualify for a decent mortgage rate.

Re: Secured Cards with Low Deposit

haulingthescoreup — Tue, 25 Oct 2011 16:51:45 GMT

@bruiseviolet wrote:
@CreditCrusader wrote:
@bruiseviolet wrote:
it's nobody's business to tell me to 'wait on getting a house'.
No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.
I realize this, and I am not offended, I was just a little annoyed. My current rent is around 1400 a MONTH. I realize having a host has extra expenses- however the mortgage / price of house is about 700 a month- giving me 700 I DO NOT HAVE NOW to pay for repairs etc..... I also have a 3 moth emergency fund/savings set up- so I really am not worried. Like I said, this is a better decision for me vs. renting in the area I currently live in with the prices of rentals. I have to be out of my rental by February (they are selling the house) so- renewing this outragous lease isn't an option.

That does sound like a much better deal, and thumbs up for the emergency fund.

Many posters here haven't thought through this stuff as well, and since I wasn't aware of these details (which is fine), I commented. When someone posts on a public forum like this, information and advice do come along, desired or not.

Any chance that your lender would be OK with just one or two cards (open tradelines)? Maybe you could get one now, and another next month.

Re: Secured Cards with Low Deposit

CreditCrusader — Tue, 25 Oct 2011 17:01:46 GMT

@Anonymous wrote:
@CreditCrusader wrote:
My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

Is it that low? I haven't seriously looked into a mortage loan yet (keep moving too much to want to buy a house anyway), but the loan officer at my bank said you should have at least a 680 before applying for a loan. And I remember USAA said something similar, that you should have 720+ to qualify for a decent mortgage rate.

It is for USDA home loans, but there are some restrictions as to which houses qualify...and the home price can't exceed a certain limit. There are also income limitations. However, middle FICO needs only be 620 or above to secure approval in nearly every case according to my loan officer.