topic Re: when is it time to dump secured cards in Credit Cards

when is it time to dump secured cards

mongstradamus — Wed, 02 Oct 2013 04:57:50 GMT

I am wondering what is the consensus for when its time to dump your secured cards. When you get an few prime cards like discover and amex, is it safe to cancel the secured cards and get your deposit back, or would it be better served to just hold on to secured card ?

Re: when is it time to dump secured cards

Anonymous — Wed, 02 Oct 2013 05:16:49 GMT

Treat it like a savings account or rainy day fund.

Question to ask yourself: Do you need the money right now?

Re: when is it time to dump secured cards

mongstradamus — Wed, 02 Oct 2013 05:18:29 GMT

@Anonymous wrote:
Treat it like a savings account or rainy day fund.

Question to ask yourself: Do you need the money right now?

I don't need it right now , but i was thinking I just had succesful app spree, so wanted to throw the money from secured cards into my MMA. Its not much but its at least something.

Re: when is it time to dump secured cards

JamesKnox — Wed, 02 Oct 2013 05:19:10 GMT

Are you talking about ALL secured cards or only secured cards that don't grauduate to unsecured?

If they graduate to unsecured; such as BofA ---- just keep it until it unsecures. You will get your deposit back and can have the card grow with you.

Now if you are talking about a card that doesn't graduate then it would depend on what your goals are which will determine when you will let them go. For instance if your goal was to get prime cards...then yes...once you get those prime cards, it's safe to cancel and begin to garden your prime cards. Just know that you will take a dip in score when you cancel the secured cards but no worries; your score will work it's way back up with proper gardening.

Re: when is it time to dump secured cards

Anonymous — Wed, 02 Oct 2013 05:22:45 GMT

@mongstradamus wrote:
@Anonymous wrote:
Treat it like a savings account or rainy day fund.

Question to ask yourself: Do you need the money right now?
I don't need it right now , but i was thinking I just had succesful app spree, so wanted to throw the money from secured cards into my MMA. Its not much but its at least something.

I have a $350 Cap one secured and I may keep it open solely for the purpose of adding $2,500 to it to total 3K prior to apping for CLI's and a new AMEX line (this time next year) after the 3K posts to my CR. But in your case you want your deposit back I say do what you feel. How long has the account been open?

Re: when is it time to dump secured cards

mongstradamus — Wed, 02 Oct 2013 15:11:11 GMT

It was an cap one and first progress secured card i was thinking of closing. Neither of them graduate from what i have read. The CL on both of them are under 1k. I think i will let them sit there till the AF for next year shows up. For CL and CLI do ccc look more favorably at AU account or secured cc account?

Re: when is it time to dump secured cards

missjae — Wed, 02 Oct 2013 21:09:23 GMT

If you have met some of your goals, I would close the secured ones shortly before the next AF hits. If you want your money back to earn more interest, go ahead and close them now.

Re: when is it time to dump secured cards

JamesKnox — Wed, 02 Oct 2013 21:13:34 GMT

For CL and CLI do ccc look more favorably at AU account or secured cc account?

Whichever one has the longest history with no derogs and highest CL is which would be looked at more favorably.

Chase though....doesn't even count AU's. But overall...I don't think it matters. Of course it's great for the card to be your own but listen....everyone doesn't have that luxury.

Re: when is it time to dump secured cards

IaBoy62 — Wed, 02 Oct 2013 22:00:05 GMT

I faxed a request to US Bank yesterday to close my secured account. I have been approved for Sony Visa card, Capital One Platinum MasterCard, Barclay's Rewards MasterCard, and a great MasterCard from my local credit union since opening my secured card account with US Bank. The information I received from US Bank stated that it would take two statements after my last transaction to get my deposit back. I spoke to two different CS reps at US Bank and they didn't ask why I was closing my account or tell me they were sorry to see me go.

Re: when is it time to dump secured cards

IaBoy62 — Wed, 02 Oct 2013 22:03:33 GMT

I also closed a Capital One secured card last year because it would never graduate and it took less than 2 weeks to get my deposit back.

Re: when is it time to dump secured cards

SunriseEarth — Wed, 02 Oct 2013 22:17:29 GMT

@mongstradamus wrote:
I am wondering what is the consensus for when its time to dump your secured cards. When you get an few prime cards like discover and amex, is it safe to cancel the secured cards and get your deposit back, or would it be better served to just hold on to secured card ?

Would closing them cause much harm to your UTIL? That'd be the only reason I would see keeping them open.

IMHO, if you can use that money for a purpose that makes more financial sense (paying other debt, gaining better interest/dividends, etc.), then do so.

Re: when is it time to dump secured cards

mongstradamus — Wed, 02 Oct 2013 22:26:20 GMT

Right now it doesn't effect util that much,since I am au on few accounts that have around 10k CL. I am just wondering how many non AU accounts does fico like you to have for optimal scoring?that is pretty much only reason I would keep those 2 secured cards open if they can still help me with fico scoring

Re: when is it time to dump secured cards

SunriseEarth — Wed, 02 Oct 2013 23:05:54 GMT

@mongstradamus wrote:
Right now it doesn't effect util that much,since I am au on few accounts that have around 10k CL. I am just wondering how many non AU accounts does fico like you to have for optimal scoring?that is pretty much only reason I would keep those 2 secured cards open if they can still help me with fico scoring

Your number of accounts won't change. Closed accounts will remain on your CRs for 10 years. AFAIK, number of accounts has a relatively low impact on FICO scoring, anyway.

Re: when is it time to dump secured cards

mongstradamus — Wed, 02 Oct 2013 23:10:15 GMT

The reason I was asking was every time I pull an fico score I always get message about not having enough accounts in good standing. I may just let it sit there and report it can't hurt I would assume

Re: when is it time to dump secured cards

Anonymous — Thu, 03 Oct 2013 02:02:38 GMT

I have a secured card I'd love to dump but it's my oldest account and I'd rather pay the AF and keep it SD for another year or so...

At the least keep it until the AF is coming up

Re: when is it time to dump secured cards

Anonymous — Thu, 03 Oct 2013 02:05:31 GMT

@mongstradamus wrote:
The reason I was asking was every time I pull an fico score I always get message about not having enough accounts in good standing. I may just let it sit there and report it can't hurt I would assume

Someone will correct me if I'm wrong, but I think this statement has more to do with the length of time an account(s) has been open and not the number of accounts. I may be wrong though.

Re: when is it time to dump secured cards

mongstradamus — Thu, 03 Oct 2013 03:29:37 GMT

@Anonymous wrote:
@mongstradamus wrote:
The reason I was asking was every time I pull an fico score I always get message about not having enough accounts in good standing. I may just let it sit there and report it can't hurt I would assume
Someone will correct me if I'm wrong, but I think this statement has more to do with the length of time an account(s) has been open and not the number of accounts. I may be wrong though.

Well let's see how this plays out. I am an au on an cap one from 2001. Also hopefully amex will backdate the bcp I just got back to 1995,when I first got an amex charge as an au with my father .

Re: when is it time to dump secured cards

Revelate — Thu, 03 Oct 2013 12:44:46 GMT

@SunriseEarth wrote:
@mongstradamus wrote:
Right now it doesn't effect util that much,since I am au on few accounts that have around 10k CL. I am just wondering how many non AU accounts does fico like you to have for optimal scoring?that is pretty much only reason I would keep those 2 secured cards open if they can still help me with fico scoring
Your number of accounts won't change. Closed accounts will remain on your CRs for 10 years. AFAIK, number of accounts has a relatively low impact on FICO scoring, anyway.

It's possible that FICO also measures open accounts of individual types; there's been reports of needing two installment loans open and active, presumably if it exists there it would for revolving tradelines as well.

That's not a given, though personally it's something I subscribe to, and oddly enough 2+2 equals 4 tradelines, which is the historical number as I understand it for not being a thick file. As always, YMMV.

Personally I still have a secured DCU card which I don't pay an AF on which I may keep around for a while even though I have no use for it except as a payment history farming tradeline.

Re: when is it time to dump secured cards

mongstradamus — Thu, 03 Oct 2013 12:53:45 GMT

@Revelate wrote:
@SunriseEarth wrote:
@mongstradamus wrote:
Right now it doesn't effect util that much,since I am au on few accounts that have around 10k CL. I am just wondering how many non AU accounts does fico like you to have for optimal scoring?that is pretty much only reason I would keep those 2 secured cards open if they can still help me with fico scoring
Your number of accounts won't change. Closed accounts will remain on your CRs for 10 years. AFAIK, number of accounts has a relatively low impact on FICO scoring, anyway.
It's possible that FICO also measures open accounts of individual types; there's been reports of needing two installment loans open and active, presumably if it exists there it would for revolving tradelines as well.

That's not a given, though personally it's something I subscribe to, and oddly enough 2+2 equals 4 tradelines, which is the historical number as I understand it for not being a thick file. As always, YMMV.

Personally I still have a secured DCU card which I don't pay an AF on which I may keep around for a while even though I have no use for it except as a payment history farming tradeline.

It sounds like safer route would just be to keep the two secured card till at least when the AF rolls around next year. The whole thing with not enough Accounts in good standing is confusing term to me. According to my latest CR pull about an week ago it shows 10 accounts in good standing. I do have one thats an C/O, is the one account thats an c/o causing fico to say i don't have enought accounts in good standing? I have an few amex accounts that are closed now but are in good standing dating back into the 80s, so i am pretty confused what they mean.

Re: when is it time to dump secured cards

Revelate — Thu, 03 Oct 2013 12:59:49 GMT

@mongstradamus wrote:
@Revelate wrote:
@SunriseEarth wrote:
@mongstradamus wrote:
Right now it doesn't effect util that much,since I am au on few accounts that have around 10k CL. I am just wondering how many non AU accounts does fico like you to have for optimal scoring?that is pretty much only reason I would keep those 2 secured cards open if they can still help me with fico scoring
Your number of accounts won't change. Closed accounts will remain on your CRs for 10 years. AFAIK, number of accounts has a relatively low impact on FICO scoring, anyway.
It's possible that FICO also measures open accounts of individual types; there's been reports of needing two installment loans open and active, presumably if it exists there it would for revolving tradelines as well.

That's not a given, though personally it's something I subscribe to, and oddly enough 2+2 equals 4 tradelines, which is the historical number as I understand it for not being a thick file. As always, YMMV.

Personally I still have a secured DCU card which I don't pay an AF on which I may keep around for a while even though I have no use for it except as a payment history farming tradeline.

It sounds like safer route would just be to keep the two secured card till at least when the AF rolls around next year. The whole thing with not enough Accounts in good standing is confusing term to me. According to my latest CR pull about an week ago it shows 10 accounts in good standing. I do have one thats an C/O, is the one account thats an c/o causing fico to say i don't have enought accounts in good standing? I have an few amex accounts that are closed now but are in good standing dating back into the 80s, so i am pretty confused what they mean.

I wouldn't close any card out until roughly a month before an AF hits: might as well take the additional payment history and not start the 10 year clock early.

Take the information listed on the CR's with a grain of salt: I'm not certain they have much more value than the creditor denial reports where they are required to tell you something, but sometimes it's pretty non-sensical. From reading this forum and a few other places, plus my own experience and talking to someone who really should know, the miimums are around 2 revolving / 2 installment. If you have that Noah's Ark of credit building, I wouldn't worry about anything else, assuming those tradelines are in your name. AU accounts are a bit wonky, while they can help, always have your own tradelines as well.