USAA - drop secured then app for World MC strategy

[Anonymous]

I have a 250 secured USAA Platinum card that I have had for more than 3 years, no, they arent kidding, it does not graduate.

I plan to app for an unsecured USAA World MC within the next few weeks.

My scores have dramatically increased since I got the unsecured card and I hate the 39 AF.  I rarely use it.  Original scores were in the 470 range and now are in the 690 range.  I have several other cards and one of my visa cards has a CL of 4500, almost all are over 1000.  I did have a 30 and a 60 day late on mortgage last July and August because of unemployment, now current, not with USAA.  I have one inq on each CR.  Income is about 41k.

I think the 250 secured limit holds me back when I app for other cards.  My plan is to cancel the secured card, wait at least three weeks for the CRAs to notice it, and then make a new app for the World MC.

Sound like a reasonable plan to get an approval for the WMC with a high SL, like 7 to 10k?

thanks

[msbia]

OP like you I started with a secured Amex in January 2014. My score was 622 at the time. Three months later I applied for unsecured MC and was approved for $7k. My score then on EQ was maybe 645-650. A week later I applied for the rewards Amex and was approved for $4.5k. I still had my secured card. Last May 2014, I applied for another MC and was approved for $500 lol. In November 2014 I received CLI on all three: $12k, $10k and $1500. In January 2015 I closed my secured card and received my $500 back with no issue. Just one year. My EQ still hovered around 675 at the time. I also closed the $1500 MC. In May this year I requested CLI on my two remaining cards which now sit at $21k and $18k. I think you're good to go, good luck! 

[empiror22]

I used a similar technique to msbia and it worked great for me.  I had two secured cards, they were at about 5k each.  I applied for two USAA cards to replace them and after they were approved for 7k each I canceled the secure cards.  USAA does not care if you have low limits with them if you were good to them, they will be good to you.  The only problem I see is the Lates from a year or so ago.  USAA may hold that against you, NOT POSITIVE on that tho.

[Anonymous]

Thanks for the replies - much appreciated.

I am thinking I should wait until August when my lates will be 1 yr old.

I didnt mention it earlier, but we had a huge credit crash in 2008 and 09 because of a severe medical issue (DW is doing fine now) and we had 6 COs with major CCCs, one each.  They were all settled and a couple were with the OCs and some with CAs, and one auto Repo, also settled with OC.  We also got a mortgage modification.  Many COs and baddies have dropped off my CRs with only 3 or 4 left, and the auto that comes off in 02/2016.  I did not have insurance or any relationship with USAA until 2010 and they were not involved with our credit crash at all.

Every month my CRs improve with baddies rolling off and I am thinking September would be ideal for me. 

My patience bucket has a huge leak in it and I doubt I can wait that long to app with USAA.

[empiror22]

My advice wait at least until August, let the lates be a year. That may help, I had a bunch of baddies when I got my two cards (9 or so baddies, including one large 20k collection showing even tho I settled it, all others were paid). When I applied the CSR said they do take into consideration the persons history with USAA, I took this with a grain of salt. Full disclosure, I have full account status, I have used a bunch of their products to include auto insurance, renter/home insurance, all the banking accounts and credit.
In a side note I love the way they have the banking setup, I use them as my primary back.

[Anonymous]

I agree, I will sit on my hands and wait until after August when my lates would be 1 year in the past.

Not quite sure about dropping the secured card now, since @msbia still had the card when apped for new USAA card.  I want to demonstrate the long term relationship with them but I just have the auto insurance otherwise.  I was going to switch my homeowners policy but I just had a major claim for a new roof in 2012 when a 40 foot tree fell on my roof during a storm while I was watching tv under where it hit, kind of scary.  Also, I need to ask them how it would work when I switch because I pay it thru escrow and it was just renewed in May.  Tough for me to come up with a full years premium in advance, I live in Florida and the rates are very high due to hurricane and storm risks.

I have never received a pre-qual letter from them and it is never on the offers page, which makes me think the 250 secured card prevents me from getting that.

My DW got a prequal letter for the World MC and she apped and got a 7k SL.  I am an AU on that account too.

I will place some tape over my monitor so I dont see where the link for CCs on their site is located so I can make it till early September.

Thanks for all the advice.

[Anonymous]

Good luck and congrats on your progress!

[empiror22]

Lol I love the tape idea. I had both secured cards when I applied. Scores around 690

[Anonymous]

I have that same card, probably got it about 4 years ago.  I was looking for something, besides the Star card I had but credit score wasn't very good.  USAA had just created their secured card program, hadn't even announced it yet, and the rep suggested that.  250 limit, but got me going.  About a year later I applied for an unsecured MC from USAA and was approved with a decent limit, it's now up to 21,800.  Since then I've gotten 9k on a KoreanAir card, 5k on Arr+, 10k on CSP, Star is up to 8.2k, and 3.5k on Freedom.  I don't think that low limit is causing problems, and they will not graduate it so time to kill it off for me.

[msbia]

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@Anonymous wrote:

I agree, I will sit on my hands and wait until after August when my lates would be 1 year in the past.

@Not quite sure about dropping the secured card now, since @msbia still had the card when apped for new USAA card.  I want to demonstrate the long term relationship with them but I just have the auto insurance otherwise.  I was going to switch my homeowners policy but I just had a major claim for a new roof in 2012 when a 40 foot tree fell on my roof during a storm while I was watching tv under where it hit, kind of scary.  Also, I need to ask them how it would work when I switch because I pay it thru escrow and it was just renewed in May.  Tough for me to come up with a full years premium in advance, I live in Florida and the rates are very high due to hurricane and storm risks.

I have never received a pre-qual letter from them and it is never on the offers page, which makes me think the 250 secured card prevents me from getting that.

My DW got a prequal letter for the World MC and she apped and got a 7k SL.  I am an AU on that account too.

I will place some tape over my monitor so I dont see where the link for CCs on their site is located so I can make it till early September.

Thanks for all the advice.

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I really don't think it matters how long you've had the secured card. What matter is usage and payments. I did not wait for a prequal, I just cold applied for the MC and was approved. I only kept my secured card until the one year mark because it's what started my credit rebuild. For reference, I am a full USAA member (veteran) with checking, savings, life insurance and car insurance. I also refinanced a vehicle through them last year, and obtained a personal loan, so I'm all in lol. Since my first $250 secured with them I've rebuilt and obtained more than $250k in credit with several lenders. USAA pulls EQ so you may want to consider that when applying. Much success to you!