topic Re: New credit building and starting secured card limit? in Rebuilding Your Credit

New credit building and starting secured card limit?

Archangels — Sun, 24 Feb 2019 01:13:46 GMT

I will be helping my mom start building her credit. She has no credit history. I will be making her a member of Navy Federal Credit Union, and opening the nRewards secured mastercard. Does it make a difference how large of initial credit line she starts with? I was planning on starting her with the minimun of $200.00. If I make the starting line $500-$1000+, will that make her FICO scores higher in the long run? Or is that irrelevant due to the fact that after 6 months, the card will be reviewed to graduate to non-secured? How will the initial credit line affect the card graduating aswell?

Thanks!

Re: New credit building and starting secured card limit?

Anonymous — Sun, 24 Feb 2019 03:13:48 GMT

Navy Federal starting limit on the secured card is $500.

Re: New credit building and starting secured card limit?

Archangels — Sun, 24 Feb 2019 04:41:28 GMT

@Anonymous wrote:
Navy Federal starting limit on the secured card is $500.

They must have changed it, it's telling me $200.00.

Re: New credit building and starting secured card limit?

DIYcredit — Sun, 24 Feb 2019 06:46:08 GMT

First of all as long as the cc utilization is kept way below 10% of the credit line amount then that's all the matters as far as cc utilization within the Fico scoring model.Most important is to remain derogatory free on cr's and monthly on time payments.Make sure the cc is reporting to all three credit bureaus.Only open credit accts that are actually needed.When she graduates up to a unsecured cc keep it open to make it your oldest cc account.If she follows these steps her Fico score will improve over time.GOOD LUCK...

Re: New credit building and starting secured card limit?

Anonymous — Sun, 24 Feb 2019 05:00:33 GMT

NFCU changed the deposit requirements to $200 back in 12/2018.

Re: New credit building and starting secured card limit?

Anonymous — Sun, 24 Feb 2019 05:44:47 GMT

With a credit limit of $200 10-30% is only $20-60. Unless she is paying the card down before the statement posts, she will not be maximizing the benefit to her credit score. If you have the ability, I would get the highest amount that you are comfortable securing the card with. If it is $200, it is still making a start.

I just opened my nRewards a couple of days ago, after I took out a secured loan and paid it down. I'll post an update next month after my scores are updated. Hopefully, I will see some positive movement.

Re: New credit building and starting secured card limit?

DIYcredit — Sun, 24 Feb 2019 06:57:01 GMT

At minimum charge something between $10-$20 and either way the cc utilization reported will rounded up to or will be 1% if the cc credit line limit is $200.