topic Re: Revolving Credit in Understanding FICO® Scoring

Revolving Credit

Anonymous — Wed, 18 Apr 2007 12:11:59 GMT

Hello

I am trying to raise my credit score...currently I have an average of about 620. Not so great. One of the things that I have heard could help is a revolving credit account. Currently I do not have any revolving credit. A friend suggested getting a secured credit card from Bank of America where you deposit $300-$10,000 as a retainer and get a credit line of the corresponding amount. Is this a good idea? If not, does anyone have a suggestion along these lines?

Regards,

SDL

Re: Revolving Credit

Anonymous — Wed, 18 Apr 2007 15:26:43 GMT

SDL wrote:
Hello

I am trying to raise my credit score...currently I have an average of about 620. Not so great. One of the things that I have heard could help is a revolving credit account. Currently I do not have any revolving credit. A friend suggested getting a secured credit card from Bank of America where you deposit $300-$10,000 as a retainer and get a credit line of the corresponding amount. Is this a good idea? If not, does anyone have a suggestion along these lines?

Regards,
SDL

A secured is a good thing. I would apply for one of their unsecured cards, usually if they decline they will offer secured as a second chance. I understand they will unsecure and return deposits in as little as 9 mos.

Re: Revolving Credit

Anonymous — Wed, 18 Apr 2007 17:27:09 GMT

@Anonymous wrote:
I would apply for one of their unsecured cards, usually if they decline they will offer secured as a second chance. I understand they will unsecure and return deposits in as little as 9 mos.

The key is "as little as." I have a BofA secured card, and I'm 11 months in with no graduation to unsecured status in sight. This in spite of being on time with all payments.

Still, if they offer you the $99 in collateral for $500 limit, take it. It is reported to the credit agencies, and it does help your credit. Just don't expect to ever get your money back unless you cancel the card.

Re: Revolving Credit

Anonymous — Wed, 18 Apr 2007 18:00:58 GMT

@Anonymous wrote:
@Anonymous wrote:
I would apply for one of their unsecured cards, usually if they decline they will offer secured as a second chance. I understand they will unsecure and return deposits in as little as 9 mos.

The key is "as little as." I have a BofA secured card, and I'm 11 months in with no graduation to unsecured status in sight. This in spite of being on time with all payments.

Still, if they offer you the $99 in collateral for $500 limit, take it. It is reported to the credit agencies, and it does help your credit. Just don't expect to ever get your money back unless you cancel the card.

That unsecured status also depends on your credit performance over the time you have the card. BOFA is just like any other bank and wants to make money, the higher the limits the higher they take in in interestbut just like other lenders they do cover their behinds.

Re: Revolving Credit

fused — Fri, 18 May 2007 21:31:16 GMT

I concur!

Re: Revolving Credit

Anonymous — Sat, 19 May 2007 07:47:28 GMT

For the record, BofA finally graduated me AND gave me a $1000 credit line.

So the moral of the story is even secured cards DO help your credit score, and graduations/CLIs do happen...they just take time and persistence. It took three phone calls with two escalations to supervisors to get my 99/500 card graduated to an unsecured $1000 CC, as well as diligence on may part maintaining a spotless record for a year.