Should I apply for a secured card from U.S. Bank or Bank of America?

[stewart504]

I'm in the process of attempting to rebuild my credit after past problems.  The only thing I have a chance at are going to be secured credit cards.  I recently opened a new checking account with U.S. Bank and I would like to ask some experts if it would be better to get a secured card from U.S. Bank or Bank of America.

I made the mistake of getting a card from Crapital One with a lousy $200 limit.  My first month I missed paying by one day before my card reported and it reported maxed out.  The advice I was given was to charge it up and pay it off weekly which was terrible advice because then you are playing the dangerous game of getting it paid off before it reports.  Now my second month with the card it was comprimised and a bunch of charges were put on the card I didn't make.  Now they had to cancel the card and send me a new card.  Customer service was the worst, I had to wait on hold over a half hour to talk to a representitive then I get someone who can barely speak english.  I'm cancelling this card and getting my money back as soon as I can open something else.  

I need to put at least $500 on a card because I need to place a $420 order every month that requires a credit card.   

[JoeRockhead]

Many people use secured cards when rebuilding or starting out. There's nothing wrong with a secured card from either USB, or BoA... USB I believe has a 12 month wait before it's eligible to become unsecured. BoA can graduate in as little as 6 months.

Neither of those time frames are guaranteed as it's all going to depend on your usage and payment history, as well as what the rest of your profile looks like. 

No need to make multiple payments a month to pay down the card unless you're trying to make room for more purchases. You can pay down balances once a month (don't pay it to zero if it's your only card), but obviously you want to do it before the statement cut date which will help show low reported utilization and will help your scores. Once the statement cuts, pay the remaining balance before the due date.  

[stewart504]

I only have $200 credit on the card but several thousand in the checking account and was told I should max the card out and pay it off every few days.  The advice was to put at least 15 transactions on the card every month to show Capital One that I will use the card, then hope they give me more than a $100 CLI in 6 months.  What happed was I charged the card up, payed it off several times then the 4th time I charged it up, the statement cut and the card reported with $185 charged on a $200 card.  I was wrong on the date the statement cut so paying it off the next day didn't mean jack, everyone is having a total fit because my utilization is way too high.  

Getting on to my question, I opened a checking accout at US Bank and it was suggested I open a secured card with US Bank to build a relationship with them.  Somebody else told me I should be looking at Bank of America because they will give a higher limit when the card graduates where US Bank will graduate your card but make you request a CLI then pull your credit.  I just don't want to be stuck with another card that has a $500 limit 2 years from now.

[GrandBaker]

My preference is U.S. Bank as I've received way better service from them than I did when I used to have all my accounts at Bank of America. But go with what works for you in terms of proximity of available branches, your desire for a long-term relationship with them and other perks. 

[FicoMike0]

I have two regular usb cards, a connect, $2000 cl and a shoppers, $7000 cl. I recently requested a cli on each at 6 months, denied. During the same time period I've requested and gotten $9000 to $27000 on bce and $1000 to $3000 on hilton, both amex, and an auto cli, $4000 to $6000, from commerce bank. Also got $2900 to $3200 (better than nothing) on qs from capone.

So, I find usb to be even tighter than capone!

I do have a checking with usb as well. I guess I wouldn't expect big limits from usb.

[denverguy67]

I think secured credit cards are a great way for someone starting out or rebuilding their credit to get started. 4 years ago, I had a FICO score of 550, and I got multiple secured credit cards:  OpenSky, AcademyBank, Merrick, Self.Inc (credit builder) and two local credit unions.  Also Fingerhut and a Firestone card for tires, which I never used.  And then I was able to get in with the lower tier cards with fees - CreditOne and FirstSavings.  Within a year and a half, my score went up to 690.  So don't complain about a CapitalOne secured card.  Nobody cares which secured card you have. A US Bank secured card isn't any more "prestigious".  What you should do in my opinion is join a local credit union in your area and get a secured card for $1000 or $2000 and then keep a balance on it but under 9%.  In 6 months you will be able to get an unsecured card, although it may be with CreditOne.  

[stewart504]

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@denverguy67 wrote:

I think secured credit cards are a great way for someone starting out or rebuilding their credit to get started. 4 years ago, I had a FICO score of 550, and I got multiple secured credit cards:  OpenSky, AcademyBank, Merrick, Self.Inc (credit builder) and two local credit unions.  Also Fingerhut and a Firestone card for tires, which I never used.  And then I was able to get in with the lower tier cards with fees - CreditOne and FirstSavings.  Within a year and a half, my score went up to 690.  So don't complain about a CapitalOne secured card.  Nobody cares which secured card you have. A US Bank secured card isn't any more "prestigious".  What you should do in my opinion is join a local credit union in your area and get a secured card for $1000 or $2000 and then keep a balance on it but under 9%.  In 6 months you will be able to get an unsecured card, although it may be with CreditOne.  

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My mistake was, I only put $200 on the Capital One card, now I'm stuck with a $200 limit.  I can't add more funds to the security deposit and I can't get another Capital One card for 6 months.  I thought about getting a second secured card from US Bank since I have a checking account with them.  I just need to put enough on the card to make it somewhat usable this time.