Question about Secured Cards vs Unsecured Cards

[Anonymous]

I currently have 2 secured cards with local bank one is personal and one is business I also have 2 unsecured cards one with Barclay and one with Capitol One. My question is really a two part question so here it goes.

1. Would it make sense to increase the secured card limits monthly on both accounts (personal and business). Example would be 100.00 per mint per account that way the cards continuously show a higher limit and I would have a bigger return when they convert to unsecured down the line?

OR

2. Would it make better sense to use the unsecured cards more and just keep paying them off all the time? That way when it is time for a CLI they see a stronger payment history.

[Anonymous]

Hi Jmmybrdn, from what I've read here on the forums heavy usage and PIFs (secured or unsecured) shows creditors that you can handle your limit & have no problem making on-time payments. People that have done this have reported CLIs (requested or automated) of very nice amounts. I would also think that increasing your limit on the secured cards & showing them heavy usage & PIF every month would work in your favor as well. 😊

I'm sure others with lots more knowledge than I have will chim in.

Good luck!

[happypill]

Capital One most certainly recognizes and rewards high usage, both in terms of CLI and when you open new accounts.  I don't know if the same is true of Barclay's.  I think a lot of CU's do as well, as they value "relationship banking", but with the cards you have now, focusing spend & PIF your Capital One unsecured card would be the best strategy.  In 3-6 months, hit them up for a CLI or apply for a new card that offers higher limits.