Secured Card (US Bank) turning into unsecured?

[Anonymous]

Hope someone might know the answer to this one, as my bank seems unable to give me a definitive response!

I moved to the US a little over a year ago, and knowing the importance of having a decent credit score/history here, one of the first things I did after opening a bank account was to apply for a secured credit card so I could start gradually building my credit scores. (The VERY first thing I did, credit-wise, was to get a Macy's card the day after I moved here - I only went in there to buy some kitchen stuff, and despite my protestations that I hadn't even got my SSN yet and most definitely had NO credit history/score whatsoever, was persuaded to fill out the application - I was amazed when it was accepted, so that turned out to be a pretty good move as they've upped the limit several times since then!)

Back to the secured card... it's with US Bank, has a $500 limit, and they're holding my $500 in a 'savings' account which pays about 0.00000000001% interest. When it reaches its one-year anniversary, I'm allowed to switch to a regular credit card with them, and presumably get a decent limit, etc. What I DON'T know, and what everyone at US Bank seems strangely uncertain about, is whether that entails closing the existing account and opening a new one, or if they'll just give me back my $500 and give me a decent credit limit, while keeping the same card number, etc.

We're in the process of buying a house right now, and there's no way I want to 'unsecure' my card until (fingers crossed) that's all sorted out, but I'm very interested to know how exactly they handle the switch from secured to unsecured. Obviously the whole purpose of the secured card is to build up credit, so surely it would make no sense to close the account (the second oldest one I have), because of the detrimental effect that would have credit-score wise. Everyone I've spoken to at the bank understands my point completely, but nobody seems to know the answer!

So... does anyone HERE know the answer? Do they close the account and open a new one, or do you keep the existing account but just get your 'deposit' back and a decent credit line...?

(Sorry for the needlessly long post!)

[Red1Blue]

I remember reading one of the posts. US Bank makes the card unsecure after 12 months if you keep good payment history with them. Search the posts you would find that info.

[Anonymous]

Thanks, Concorduser. I've done a pretty thorough read of all the posts I can find, and am not 100% certain - whether this would involve technically keeping the same account, or having them close it and open a new one. US Bank certainly can't seem to tell me, which I find bizarre - but I'm definitely going to wait until we've closed on our house to find out for sure. I know it wouldn't/shouldn't make a huge difference either way, but I can wait a few more weeks for that $500! I'll be sure to report back as to whether it's just a straight switch (keeping the same account, and thus the age of account) or involves closing out one account and opening a new one. As US Bank ASSURED me the card would not report as secured - and yet it does ($5 'goodwill' payment to me for their mistake when I pointed this out), I'd rather not go by what anyone in their card services dept 'thinks' will happen...!

[MrStrode]

I know this is an old post but Im am currently going through the same thing with US Bank, and was wondering how it turned out? Did you keep the same account with the age or did they close it and open a new account for the unsecured? Also what kind of credit limit did they give you?

[MarineVietVet]

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@MrStrode wrote:

I know this is an old post but Im am currently going through the same thing with US Bank, and was wondering how it turned out? Did you keep the same account with the age or did they close it and open a new account for the unsecured? Also what kind of credit limit did they give you?

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I hope you get your answer but the OP hasn't been online for about 2 years. Just wanted you to be aware of that.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MrStrode]

Thanks Marine. it was worth a try.

[Anonymous]

Don't get too excited about a good CL.  I've had a US Bank card for close to 18 months now and my limit has stayed at $500 (It's a college student card, so that may have al ot to do with it).