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@Wolf3 wrote:
@cl5776 wrote:I know this topic has probably been beaten to death but I will ask this question anyway...
I am going to get a secured card and there are two choices that I believe will be in my best interest:
- BankAmericard Visa Fully Secured Card
OR
- Applied Bank Platinum Secured Card
The main differences between the two cards are:
- BoA:
20.24% APR
$39 Annual Fee
Bank of America Secured Card Terms and Conditions
-Applied Bank
0% APR for the life of the card
No Annual Fee
$10 Monthly Maintenance Fee
Applied Bank Platinum Secured Card Terms and Conditions
Both cards report to all credit bureaus and both offer the option to go unsecured after 12 months. Besides the obvious name recognition, would anyone chose the BoA secured card over the Applied Bank secured card? If so, why?
I would choose Applied Bank if I wanted to put down a large deposit and charge it up to the limit and let it ride at 0%.
I would choose BofA if I planned to PIF every month.
Normally I would choose BofA to develop relationship to get prime cards in the future.
Thank you for your information...
If I may ask a stupid question, would there be any positive financial benefit for maintaining a large balance at 0%?
There is no stupid question in an educational forum such as this one. But the short answer is I can think of no positive effect FICO wise of carrying a large balance @0% or 29% or any other %. Now, financially, if you must carry a balance for a while it is obviously best to have it on the lowest % card available to you. In the case of the cards you are discussing, the Applied Bank fee of $10 / month would be the same as paying interest on a 0 fee card.
FICO scores accounts w/ balances and total credit utilization as a part of your score. Evidence seems to indicate that a 0 utilization is not looked at as favorably as a 1-9% utilization, and 1 card w/ a balance (or at least less than 50% of all accounts) is more favorable than a balance on all open accounts.
Keep reading the forums and your credit education will amaze you in a short time. I've learned more here in a few short years than I ever learned by "common knowledge" which often was detrimental to my credit without even realizing it.
You can also consider Public Saving Bank secured card. Their interest is no that high, the annual fee is $50, no credit check and report to all three CB. I have their card and have helped me a lot.
@cl5776 wrote:
@Wolf3 wrote:
@cl5776 wrote:I know this topic has probably been beaten to death but I will ask this question anyway...
I am going to get a secured card and there are two choices that I believe will be in my best interest:
- BankAmericard Visa Fully Secured Card
OR
- Applied Bank Platinum Secured Card
The main differences between the two cards are:
- BoA:
20.24% APR
$39 Annual Fee
Bank of America Secured Card Terms and Conditions
-Applied Bank
0% APR for the life of the card
No Annual Fee
$10 Monthly Maintenance Fee
Applied Bank Platinum Secured Card Terms and Conditions
Both cards report to all credit bureaus and both offer the option to go unsecured after 12 months. Besides the obvious name recognition, would anyone chose the BoA secured card over the Applied Bank secured card? If so, why?
I would choose Applied Bank if I wanted to put down a large deposit and charge it up to the limit and let it ride at 0%.
I would choose BofA if I planned to PIF every month.
Normally I would choose BofA to develop relationship to get prime cards in the future.
Thank you for your information...
If I may ask a stupid question, would there be any positive financial benefit for maintaining a large balance at 0%?
The advantage is in builidng a history with a much higher CL than you would normally get. Higher CL is an advantage in getting higher CL in the future.
So if you open a card for say $2K and then use say $1800 in charges, and let it ride. You have only $200 actually invested. Then you can let it ride, go up and down without any interest. Only charge is the $10 a month. Gives you a lot of cash flow flexibility.
When it is time to try for more credit., you would want to pay it down to zero or close Then you should have good utilization, good payment history and a good CL on your report.
Of course, utilization will be high in the mean time, and the FiCO score will be low. But FICO score is meaningless until you apply for credit.
Thanks to all for all of your information.