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Best secured cards (was: which to graduate first)

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KJinNC
Valued Contributor

Best secured cards (was: which to graduate first)

I have four secured credit cards:

- Citi, opened last month, $200 deposit, $200 line of credit

- Capital One, opened this month, $199 deposit, $300 line of credit

- Discover, opened this month (awaiting card in mail), $500 deposit, $500 line of credit

- Primor, opened this month (awaiting card in mail), $300 deposit, $300 line of credit

 

I only opened the Primor because I got denied twice for Discover, and wanted to go ahead and open three cards for credit-building purposes. If I could do it again, I wouldn't have gotten it. Actually, if I could do it again, I think I'd have waited for the Citi card to hit my accounts, and then try for Discover secured and Quicksilver. I've thought about canceling the Primor. I don't see any longterm value in it, but, I guess I'll keep it open and sock-drawer it. The other three are ones that I do see possible longterm value in. I would like them to graduate.

 

So:

1 - Which card can be graduated most rapidly, or alternately, is one so much better than the others that I should focus my efforts there?

2 - Whatever card I pick, how can I maximize my odds of that card graduating rapidly?

 

Should I, for example, keep them at or near zero utilization, except whichever card I am focusing on, and try to run a lot of charges through that card with a lot of payments to keep utilization under 9%? Or does it even matter, and as long as I make normal use of them (like with a Hulu or Netflix bill + autopay), they will all graduate whenever it's time?

 

Thanks!



FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan
Message 1 of 21
20 REPLIES 20
Anonymous
Not applicable

Re: Best secured card to graduate first?

My two cents:

 

  • Discover is known to graduate after 7 months, and may grow your CL fast if you have usage.
  • Capital One might graduate after 11 months for new cards, but growing your CLI might be difficult. Long-term value is dubious because of this bucketing.
  • Citi is known to take longer, sometimes as long as 18 months.
  • I would not expect anything about primor (I would put it in the "avoid" category in the first place).

To graduate, besides the basics (pay on time, use your card responsibly), I would say that Discover likes to see some usage on the card.

Message 2 of 21
calyx
Super Contributor

Re: Best secured card to graduate first?

Disco is most likely to graduate first.   They do like to see some use.
Citi could graduate after 18 months.  There have been some stories of graduation as soon as 12 months.   Citi is just more conservative.  The upside is that it graduates to the Diamond Preferred, which is a legacy card and can be product changed.
I thought I read around here that Cap1 has removed graduation from their secured cards lately, recent reviews seem to support that.

I don't know anything about Primor.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 3 of 21
KJinNC
Valued Contributor

Re: Best secured card to graduate first?

Sounds good - I will run a few hundred dollars a month through Discover - with multiple payments to keep utilization low. I will just use the others for one recurring monthly charge around $10 to $20 with autopay. And yeah, I wish now that I hadn't gotten the Primor, but if I cancel it now, I think that might look weird, so I guess I'll sock-drawer it for a year and then cancel.



FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan
Message 4 of 21
jaxstraw
Valued Contributor

Re: Best secured card to graduate first?

TD Bank Cash Secured CC is supposed to graduate at the 8 month mark

Jax

*************************************************************************************
Then you are a fool. Be thankful that when God gave you a face, he gave you a fool's face
Message 5 of 21
KJinNC
Valued Contributor

Re: Best secured card to graduate first?

I had never heard of or looked into that card before. It looks pretty impressive, with 3/2/1 cashback rewards. I wonder why it isn't talked about more here?

 

Does it graduate to the same type of card (3/2/1) but unsecured? Or does it graduate to some other product?

 

Thanks! This makes me even moreso kick myself for getting the Primor! Smiley Happy



FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan
Message 6 of 21
Anonymous
Not applicable

Re: Best secured card to graduate first?

You can also get the BofA Cash Rewards as a secured card, with 3/2/1 rewards if you ask nicely -- they offered it to me after I have been denied the unsecured version of this card. It graduates as unsecure after a year, but the AF is impossible to waive without closing the card.

 

In your situation, I would refrain from applying for more cards though, and wait a bit for your plastic to age. Rewards are nice, but do not make much sense with a credit limit of merely a few hundred dollars.

Message 7 of 21
Anonymous
Not applicable

Re: Best secured card to graduate first?

Cap One usually graduate on 7th month and you will get CLI on 9th month. Then afterwards, you can request to upgrade to QS or V1 card. If it was denied, I will suggest to apply for 2nd card while keep the secured card for year or so then close it and it will have postive report on your CR for 10 years.

 

For Discover, I heard they gradaute you faster if you have high usage and pay in full, all the times.

 

For Citi, I cant say because I dont have them.

Message 8 of 21
KJinNC
Valued Contributor

Re: Best secured card to graduate first?

Yeah ... although, grumble grumble, if I got a rewards secured card that graduates to unsecured, in the long run, that can be an account that ends up 5, 10, 15 years old. But there will be other opportunities in a year!



FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan
Message 9 of 21
jaxstraw
Valued Contributor

Re: Best secured card to graduate first?


@KJinNC wrote:

I had never heard of or looked into that card before. It looks pretty impressive, with 3/2/1 cashback rewards. I wonder why it isn't talked about more here?

 

Does it graduate to the same type of card (3/2/1) but unsecured? Or does it graduate to some other product?

 

Thanks! This makes me even moreso kick myself for getting the Primor! Smiley Happy


It graduates as the same card......and I believe the reason it isn't talked about more is TD Bank isn't nationwide......and you have to apply in a branch for it....no online app..

Jax

*************************************************************************************
Then you are a fool. Be thankful that when God gave you a face, he gave you a fool's face
Message 10 of 21
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