Secured Cards with Low Deposit

[Anonymous]

---

haulingthescoreup wrote:

Good point. OP is worried about getting tempted into running up her balance, and I was focusing on that, but it's true that one card ought to report something anyway.

---

Yeah, I understood what you were getting at, just wanted to point out that at least something should be left until the statement cuts. Otherwise she's not really going to benefit the same way anyway.

On the plus side, getting the lowest possible credit limit on a secured card means you can't rack up that much credit card debt. I was worried about being irresponsible with my cards when I originally go them, but as long as you remember it's not 'free money' or supplemental income and you HAVE TO pay it back, it gets easier to handle it responsibly.

[CreditCrusader]

---

@bruiseviolet wrote:

it's nobody's business to tell me to 'wait on getting a house'.

---

No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.

[bruiseviolet]

---

@Anonymous wrote:

---

@haulingthescoreup wrote:

Good point. OP is worried about getting tempted into running up her balance, and I was focusing on that, but it's true that one card ought to report something anyway.

---

Yeah, I understood what you were getting at, just wanted to point out that at least something should be left until the statement cuts. Otherwise she's not really going to benefit the same way anyway.

On the plus side, getting the lowest possible credit limit on a secured card means you can't rack up that much credit card debt. I was worried about being irresponsible with my cards when I originally go them, but as long as you remember it's not 'free money' or supplemental income and you HAVE TO pay it back, it gets easier to handle it responsibly.

---

Thank you AndyK- that was my fear.  I am so used to paying cash and have become VERY responsible with paying cash for everything- I was/am afraid of messing it all up again.  

[gijoe4500]

---

@CreditCrusader wrote:

Have to concur with the growing consensus here regarding that house idea. You are biting off quite a bite buying a house - and if you're having difficulty putting together $200 to open a secured card, you're most likely setting yourself up for disaster buying a house.

I would urge you to wait...grow your credit and bank account a bit...then move in for the house when you're in a better position to do so. Just one man's opinion...

---

Also, taking the time before you buy the house will give you time to improve your credit score situation.  Start cleaning up all the baddies on your report, and you will get a better interest rate on the home loan and pay MUCH less overall on the purchase of said home.

[bruiseviolet]

---

@CreditCrusader wrote:

---

@bruiseviolet wrote:

it's nobody's business to tell me to 'wait on getting a house'.

---

No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.

---

I realize this, and I am not offended, I was just a little annoyed.  My current rent is around 1400 a MONTH.  I realize having a host has extra expenses- however the mortgage / price of house is about 700 a month- giving me 700 I DO NOT HAVE NOW to pay for repairs etc.....  I also have a 3 moth emergency fund/savings set up- so I really am not worried.  Like I said, this is a better decision for me vs. renting in the area I currently live in with the prices of rentals.  I have to be out of my rental by February (they are selling the house) so- renewing this outragous lease isn't an option.  

[CreditCrusader]

---

@gijoe4500 wrote:

---

@CreditCrusader wrote:

Have to concur with the growing consensus here regarding that house idea. You are biting off quite a bite buying a house - and if you're having difficulty putting together $200 to open a secured card, you're most likely setting yourself up for disaster buying a house.

I would urge you to wait...grow your credit and bank account a bit...then move in for the house when you're in a better position to do so. Just one man's opinion...

---

Also, taking the time before you buy the house will give you time to improve your credit score situation.  Start cleaning up all the baddies on your report, and you will get a better interest rate on the home loan and pay MUCH less overall on the purchase of said home.

---

My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

[Anonymous]

---

@bruiseviolet wrote:

Thank you AndyK- that was my fear.  I am so used to paying cash and have become VERY responsible with paying cash for everything- I was/am afraid of messing it all up again.  

---

What you could do is set up another checking/savings account with your bank (assuming you can do it for free) and put the credit limit's worth of money there. So if you get the bare minimum $200 credit line, put $200 into a checking account, and make sure you always have the money there to pay off the credit card bill at the end of the month once the statement cuts. That way you don't put yourself in a bad spot.

My problem is that now that I'm self-employed, I get paid once every 2-3 months, so my utilization keeps creeping up.. then I pay it all off. Then it all creeps back up again, etc. But if you remember that you absolutely HAVE TO pay off the balance, you won't be as tempted to be irresponsible with credit.

If you think you're gonna be a bit short on cash this month, just wait another month before opening the account. I think Cap 1 gives you 45 days to make your initial deposit (don't take my word on it, just going based on memory here), so even if you don't get the lowest $49 deposit and you end up having to pay $99 or $200, at least you have a month to get the money for it. But the account won't open until they have the deposit.

[Anonymous]

---

@CreditCrusader wrote:

My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

---

Is it that low? I haven't seriously looked into a mortage loan yet (keep moving too much to want to buy a house anyway), but the loan officer at my bank said you should have at least a 680 before applying for a loan. And I remember USAA said something similar, that you should have 720+ to qualify for a decent mortgage rate.

[haulingthescoreup]

---

@bruiseviolet wrote:

---

@CreditCrusader wrote:

---

@bruiseviolet wrote:

it's nobody's business to tell me to 'wait on getting a house'.

---

No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.

---

I realize this, and I am not offended, I was just a little annoyed.  My current rent is around 1400 a MONTH.  I realize having a host has extra expenses- however the mortgage / price of house is about 700 a month- giving me 700 I DO NOT HAVE NOW to pay for repairs etc.....  I also have a 3 moth emergency fund/savings set up- so I really am not worried.  Like I said, this is a better decision for me vs. renting in the area I currently live in with the prices of rentals.  I have to be out of my rental by February (they are selling the house) so- renewing this outragous lease isn't an option.  

---

That does sound like a much better deal, and thumbs up for the emergency fund.

Many posters here haven't thought through this stuff as well, and since I wasn't aware of these details (which is fine), I commented. When someone posts on a public forum like this, information and advice do come along, desired or not.

Any chance that your lender would be OK with just one or two cards (open tradelines)? Maybe you could get one now, and another next month.

[CreditCrusader]

---

@Anonymous wrote:

---

@CreditCrusader wrote:

My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

---

Is it that low? I haven't seriously looked into a mortage loan yet (keep moving too much to want to buy a house anyway), but the loan officer at my bank said you should have at least a 680 before applying for a loan. And I remember USAA said something similar, that you should have 720+ to qualify for a decent mortgage rate.

---

It is for USDA home loans, but there are some restrictions as to which houses qualify...and the home price can't exceed a certain limit. There are also income limitations. However, middle FICO needs only be 620 or above to secure approval in nearly every case according to my loan officer.