topic Re: Best Secured Cards that Graduate in Rebuilding Your Credit

Best Secured Cards that Graduate

Anonymous — Sat, 10 Jun 2017 12:17:48 GMT

The concept of getting a secured credit card is to help rebuilders establish revolving credit history with reputable cards. Many of us want to know that we will be rewarded for our responsible actions be having our security deposits returned and our cards converted to regular cards after a certain period of time.

This is an ongoing list of secured cards that graduate to unsecured after certain criteria are met (with the exception of SDFCU which does not graduate but may be worth it to you nonetheless based upon its other qualities). The methodology behind this stack rank is based upon consistency of reviews on this forum and other sources. We look at speed and ease of graduation as well as post-graduation benefits.

Here's what we've learned so far:

Best

1) Discover: (may graduate at 7 months - highly recommended by many MyFICO members - rewards card - limit up to $2500)

2) NFCU nRewards: (may graduate at 5 months,plus gets you in the door with NFCU - rewards card - limit up to $50,000)

3) BOA: (may graduate at 12 months or as early as 5 months with a hard pull and 7 months with soft pull - limit up to $4900)

4) Capital One: (new secured cards may graduate at 11 months and have CLIs)

5) AHCU: (anyone can join with a donation to the Kids-N-Hope Foundation through the application, or as a member of the foundation - rewards card)

6) FNBO Kickstart: (may graduate at 11 months and can start getting unsecured CLIs at 7 months)

7) FTDCU: (anyone can join through membership at the Financial Fitness Association OR the Computer History Museum)

Good

1) SDFCU: (anyone can join through membership to American Consumer Council for $15 - card does NOT graduate but is noted for other nice benefits)

2) US Bank Harley-Davidson Visa: (must call to get unsecured and take a hard pull)

3) Citi: (Unsecured after 18 months - limit up to $2500)

4) Wells Fargo: (mixed results unsecuring - limit up to $10,000)

5) USAA AMEX: (2-year CD means potentially long wait to unsecure but reports say they will offer separate unsecured cards during this time)

Avoid

1) First Premier Bank: (generally considered awful)

2) Open Sky: (no credit check but never graduates)

3) Primor Visa Classic: ("guaranteed" approval if income exceeds debt)

4) Credit One: (not recommended for the unsecured card, let alone the secured version)

Please help me with more data. I'd like to stackrank them based upon quality, graduation time, and needs. Comment and I'll update the list.

Re: Best Secured Cards that Graduate

SecretAzure — Fri, 07 Apr 2017 13:53:33 GMT

Capital One Secured...avoid. It can graduate...some really miniscule percentage of the populations' cards actually does. Most people end up just cancelling and closing.

Re: Best Secured Cards that Graduate

baller4life — Fri, 07 Apr 2017 16:20:25 GMT

BOA can graduate as early as 5 months with a hp.

Re: Best Secured Cards that Graduate

newhis — Fri, 07 Apr 2017 22:25:34 GMT

@baller4life wrote:
BOA can graduate as early as 5 months with a hp.

Hey baller, I read some reports that say that early graduation at around 7 months is sp now. If you ask for CLI then there is hp.

It was hp when I asked a couple of years ago, even without a CLI.

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 00:49:24 GMT

US BANK Harley-Davidson Visa Secured Card

It graduates, but you have to call them and ask.
I called after 28 months. Got all of my money back. They did hard pull when I requested to unsecure the card.

Also the card does not have an annual fee...

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 01:28:15 GMT

Citi have a secured card that Unsecures after 18 months.

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 12:49:11 GMT

@Anonymous wrote:
Is there an updated list? There are so many threads for "secured" that I couldn't find one. If not, I'll edit this one as data comes in. Here's what I've learned so far:

Best
1) Discover: May graduate at 7 months - (highly recommended)
2) NFCU nRewards: May graduate at 5 months - (plus gets you in the door with NFCU)
3) BOA: May graduate at 12 months (as early as 5 months with a hard pull)

Good
1) US BANK Harley-Davidson Visa (Must call to get unsecured and take a hard pull)
2) Citi (Unsecured after 18 months)
3) Wells Fargo (mixed results unsecuring)

Avoid
1) First Premier Bank
2) Capital One (though they are working on graduating, it seems to be few and far between)

Good for Really Bad Credit
1) Open Sky (no credit check but never graduates)
2) Primor Visa Classic ("guaranteed" approval if income exceeds debt)

Please help me with more data. I'd like to stackrank them based upon quality, graduation time, and needs. Comment and I'll update the list.

Capital One should be in the best category. At 5th statement cut with 100% on time payments, you receive an automatic CLI, usually for $300.

New Capital One secured accounts ALL GRADUATE at 11th statement cut with 100% on time payments. Deposit is returned as a statement credit, but if that gives you a positive balance, you can write a request for a refund and it will be returned within 7-10 days.

BoA will graduate as early as 5 months with HP, 7 months with a SP.

I'm not sure I'd have 'good for really bad credit' as a listing. To me, those should be in the avoid category. Most people who can only get approved for those cards are currently in a lot of debt (util, collections, charge offs) and should be working first on those, and then get a secured card from the good/best categories once they have managed their debt.

The only type of credit I recommend for people who have bad credit is a self-lender loan, as it also teaches those people to save money, and they can send a small amount per month, that wouldn't really take away from paying down their debts.

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 12:47:37 GMT

My experience is with Bank of America and Capital One.... the info still seems to be correct..

Re: Best Secured Cards that Graduate

Anonymous — Sun, 09 Apr 2017 00:14:21 GMT

State Department Federal Credit Union (SDFCU) (anyone can join through membership to American Consumer Council for $15) --- best

First Tech Digital Credit Union (anyone can join through membership at the Financial Fitness Association OR the Computer History Museum) -- Best

American Heritage Credit Union (anyone can join with a donation to the Kids-N-Hope Foundation through the application, or as a member of the foundation) -- BEST. This is a REWARDS card.

Need feedback for:

USAA

~~Wells Fargo~~

SunTrust Bank

5/3 Bank

Digital Credit Union (DCU)

NASA Federal Credit Union (anyone can join through membership to National Space Society)

Connexus Credit Union (anyone can join)

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 13:39:30 GMT

Pretty sure SDFCU doesn't graduate their secured card unfortunately... otherwise great card

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 13:59:18 GMT

@Anonymous wrote:
Pretty sure SDFCU doesn't graduate their secured card unfortunately... otherwise great card

They don't, but all reviews/comments I read confirmed that they were all approved for an unsecured card after a year of good use and positive credit building.

Deposits on the card earn interest, and their secured card utilizes their reward system.

Since you apply for new credit after a year anyway, I think it's a great card, and we should tell our readers about it. Everyone seems to think their only options are Disco, Citi, BoA, Cap1, and then the predatory lenders.

While graduation is obviously the preferred outcome, I think there are plenty of positives that can outweigh that factor, and I don't think it really warrants a new thread.

Re: Best Secured Cards that Graduate

Anonymous — Sat, 08 Apr 2017 20:36:05 GMT

@Anonymous wrote:
@Anonymous wrote:
Is there an updated list? There are so many threads for "secured" that I couldn't find one. If not, I'll edit this one as data comes in. Here's what I've learned so far:

Best
1) Discover: May graduate at 7 months - (highly recommended)
2) NFCU nRewards: May graduate at 5 months - (plus gets you in the door with NFCU)
3) BOA: May graduate at 12 months (as early as 5 months with a hard pull)

Good
1) US BANK Harley-Davidson Visa (Must call to get unsecured and take a hard pull)
2) Citi (Unsecured after 18 months)
3) Wells Fargo (mixed results unsecuring)

Avoid
1) First Premier Bank
2) Capital One (though they are working on graduating, it seems to be few and far between)

Good for Really Bad Credit
1) Open Sky (no credit check but never graduates)
2) Primor Visa Classic ("guaranteed" approval if income exceeds debt)

Please help me with more data. I'd like to stackrank them based upon quality, graduation time, and needs. Comment and I'll update the list.
Capital One should be in the best category. At 5th statement cut with 100% on time payments, you receive an automatic CLI, usually for $300.

New Capital One secured accounts ALL GRADUATE at 11th statement cut with 100% on time payments. Deposit is returned as a statement credit, but if that gives you a positive balance, you can write a request for a refund and it will be returned within 7-10 days.

BoA will graduate as early as 5 months with HP, 7 months with a SP.

I'm not sure I'd have 'good for really bad credit' as a listing. To me, those should be in the avoid category. Most people who can only get approved for those cards are currently in a lot of debt (util, collections, charge offs) and should be working first on those, and then get a secured card from the good/best categories once they have managed their debt.

The only type of credit I recommend for people who have bad credit is a self-lender loan, as it also teaches those people to save money, and they can send a small amount per month, that wouldn't really take away from paying down their debts.

All that makes great sense. Fixed.

Re: Best Secured Cards that Graduate

DaveInAZ — Sat, 08 Apr 2017 22:48:29 GMT

I can vouch for BoA secured card as an excellent choice for rebuilding. I did the minimnum $300 deposit in May 2015. I was already 4+ years post BK7 discharge and had several CCs by them, but I had moved my banking to them and wanted to get back in with them, one BoA CC for $8k was included in BK.

I got it unsecured at 7 months, no HP, but when I asked for a CLI I was told that would be a HP so I passed. With only $300 CL & no rewards it was my least used card, I'd toss them only $50 or so per month. But in early March I got an auto CLI to $1800, so I called to see if I could get rewards and was told I qualified for the card to be converted to a Cash Rewards Visa with no HP! So now it will be used more often, hopefully with some more auto CLIs coming my way.

Re: Best Secured Cards that Graduate

Cherekas — Tue, 11 Apr 2017 19:05:27 GMT

Thank you for this valuable information. I was certainly searching for information like this as I am considering an NFCU secured card. I have an account with them and will be applying for the secured card soon. I also had the BOA secured many years ago and it graduated after 12 months and my deposit was return. I also received a CLI on it once it graduated. So your information is correct there.

Re: Best Secured Cards that Graduate

Anonymous — Tue, 11 Apr 2017 19:25:27 GMT

And here I am, still wondering when or if my own Cap 1 secured card (issued at the end of 2015/beginning of 2016) will graduate. I'd love to get that card, once graduated, combined with my unsecured Cap 1 Platinum and the original deposit credited to my balance - that'd cut a nice chunk off my total debt and make my overall utilization drop like the proverbial rock.

Re: Best Secured Cards that Graduate

Anonymous — Tue, 11 Apr 2017 21:00:41 GMT

This is absolutely not true: I've had my card for over a year and a half and everytime I contact customer support they tell me

"Unsecuring is a relatively new feature, and we are assessing opportunities to increase eligibility in the future. Please keep your account in good standing as we periodically review accounts for eligibility."

EVEN WORSE:

While chatting with support last week I was told:

Selena 03:37 PM: We are rewarding your good payment history by returning your Secured Card deposit. Congratulations, your card has been upgraded

to an unsecured Platinum card.

You 03:38 PM: Thank you!

You 03:39 PM: So my account has been upgraded now?

Selena 03:42 PM: I will be right with you.

Selena 03:42 PM: I apologize current there is no offer available for unsecured card however if there is any offer available we'll surely verify you.

ARE YOU KIDDING ME?!?!

My Capital One Secured card (after the first initial credit line increase) is stagnant! No foreseeable graduation, no available credit line increase, no deposit back ... at this point I'm not even sure it's worth having. SO FRUSTRATED!

Luckily I kept all the chat transcripts in case i ever do get an executive resoltuions person on the phone (3-5 business days for a return phone call)

Re: Best Secured Cards that Graduate

Anonymous — Tue, 11 Apr 2017 23:48:37 GMT

I'm with you

@Anonymous wrote:
New Capital One secured accounts ALL GRADUATE at 11th statement cut with 100% on time payments. Deposit is returned as a statement credit, but if that gives you a positive balance, you can write a request for a refund and it will be returned within 7-10 days.

This is absolutely not true: I've had my card for over a year and a half and everytime I contact customer support they tell me

"Unsecuring is a relatively new feature, and we are assessing opportunities to increase eligibility in the future. Please keep your account in good standing as we periodically review accounts for eligibility."

EVEN WORSE:

While chatting with support last week I was told:

Selena 03:37 PM: We are rewarding your good payment history by returning your Secured Card deposit. Congratulations, your card has been upgraded
to an unsecured Platinum card.

You 03:38 PM: Thank you!

You 03:39 PM: So my account has been upgraded now?

Selena 03:42 PM: I will be right with you.

Selena 03:42 PM: I apologize current there is no offer available for unsecured card however if there is any offer available we'll surely verify you.

ARE YOU KIDDING ME?!?!

My Capital One Secured card (after the first initial credit line increase) is stagnant! No foreseeable graduation, no available credit line increase, no deposit back ... at this point I'm not even sure it's worth having. SO FRUSTRATED!

Luckily I kept all the chat transcripts in case i ever do get an executive resoltuions person on the phone (3-5 business days for a return phone call)

I'm with you on your frustration. My wife's secured card is 7 years old and they won't graduate it. I discussed closing it with her today. Since we just started the rebuild this year and she had a 30-day late (her second in 7 years) in December we decided to allow it to hit the six-month mark before pulling the trigger. When we call, it'll be to graduate or close the account, their choice.

With that said, reports on the forum of graduation seem to be numerous and also seem to be tied to newness. Those with cards a little over a year old are the ones reporting it and since Capital One has other benefits for rebuilders, it's on the "best" list. This makes for a good debate, though. Anyone else with newer cards (1-1.5 years) having trouble graduating?

Re: Best Secured Cards that Graduate

Anonymous — Wed, 12 Apr 2017 13:18:05 GMT

@Anonymous wrote:
I'm with you
@Anonymous wrote:
New Capital One secured accounts ALL GRADUATE at 11th statement cut with 100% on time payments. Deposit is returned as a statement credit, but if that gives you a positive balance, you can write a request for a refund and it will be returned within 7-10 days.

This is absolutely not true: I've had my card for over a year and a half and everytime I contact customer support they tell me

"Unsecuring is a relatively new feature, and we are assessing opportunities to increase eligibility in the future. Please keep your account in good standing as we periodically review accounts for eligibility."

EVEN WORSE:

While chatting with support last week I was told:

Selena 03:37 PM: We are rewarding your good payment history by returning your Secured Card deposit. Congratulations, your card has been upgraded
to an unsecured Platinum card.

You 03:38 PM: Thank you!

You 03:39 PM: So my account has been upgraded now?

Selena 03:42 PM: I will be right with you.

Selena 03:42 PM: I apologize current there is no offer available for unsecured card however if there is any offer available we'll surely verify you.

ARE YOU KIDDING ME?!?!

My Capital One Secured card (after the first initial credit line increase) is stagnant! No foreseeable graduation, no available credit line increase, no deposit back ... at this point I'm not even sure it's worth having. SO FRUSTRATED!

Luckily I kept all the chat transcripts in case i ever do get an executive resoltuions person on the phone (3-5 business days for a return phone call)

I'm with you on your frustration. My wife's secured card is 7 years old and they won't graduate it. I discussed closing it with her today. Since we just started the rebuild this year and she had a 30-day late (her second in 7 years) in December we decided to allow it to hit the six-month mark before pulling the trigger. When we call, it'll be to graduate or close the account, their choice.

With that said, reports on the forum of graduation seem to be numerous and also seem to be tied to newness. Those with cards a little over a year old are the ones reporting it and since Capital One has other benefits for rebuilders, it's on the "best" list. This makes for a good debate, though. Anyone else with newer cards (1-1.5 years) having trouble graduating?

As I discussed earlier, I've had a secured Platinum since the beginning of last year (applied 12/28/15, received and activated around 1/6/16), so I'd say a bit over 15 months now, and opened an unsecured Platinum in February. Not a peep from Cap 1 about graduating to date. As I'm gardening right now, my plan is to let things more or less take their course over the next few months as I work to pay down the current balance on that card and keep it active with the occasional purchase per month. If the secured card is still stagnant by its 2-year anniversary, I'll take another look and see if it's worthwhile to keep it open.

Re: Best Secured Cards that Graduate

joltdude — Wed, 12 Apr 2017 13:32:17 GMT

@Anonymous wrote:
New Capital One secured accounts ALL GRADUATE at 11th statement cut with 100% on time payments. Deposit is returned as a statement credit, but if that gives you a positive balance, you can write a request for a refund and it will be returned within 7-10 days.

This is absolutely not true: I've had my card for over a year and a half and everytime I contact customer support they tell me

"Unsecuring is a relatively new feature, and we are assessing opportunities to increase eligibility in the future. Please keep your account in good standing as we periodically review accounts for eligibility."

EVEN WORSE:

While chatting with support last week I was told:

Selena 03:37 PM: We are rewarding your good payment history by returning your Secured Card deposit. Congratulations, your card has been upgraded
to an unsecured Platinum card.

You 03:38 PM: Thank you!

You 03:39 PM: So my account has been upgraded now?

Selena 03:42 PM: I will be right with you.

Selena 03:42 PM: I apologize current there is no offer available for unsecured card however if there is any offer available we'll surely verify you.

ARE YOU KIDDING ME?!?!

My Capital One Secured card (after the first initial credit line increase) is stagnant! No foreseeable graduation, no available credit line increase, no deposit back ... at this point I'm not even sure it's worth having. SO FRUSTRATED!

Luckily I kept all the chat transcripts in case i ever do get an executive resoltuions person on the phone (3-5 business days for a return phone call)

I got into an argument with Lowkeyorca about this awhile back...

Still disagree with the statement re: new CapOne cards all graduating.....

Cap One is still newish at graduating secured cards..

Newer CapOne cards can graduate, and more are graduating, but its still not the numbers we see with other card issuers...

There are other issuers that have better odds

-J

Re: Best Secured Cards that Graduate

Anonymous — Wed, 12 Apr 2017 13:40:59 GMT

If Capital One Secured card doesn't unsecure why not just apply for Capital One Platinum unsecured card directly. They approved me for that with a 527 FICO 8 score and 7 charge-offs including 7k one with Capital One.

Also I was turned down for Discover secured card but was approved for 6500 dollar limit NFCU card as well as a couple of other unsecured Visa cards. These secured cards seem pretty pointless to me.