Person A has a secured CC(200$ limit) Person B has an unsecured CC(2000$ limit). They both use the card in the exact same manner as far as keeping the UTL under 10% and paying on time. Do these different types of CCs impact your credit report and score differently?
Starting Score: 534
@mademan0890 wrote:Person A has a secured CC(200$ limit) Person B has an unsecured CC(2000$ limit). They both use the card in the exact same manner as far as keeping the UTL under 10% and paying on time. Do these different types of CCs impact your credit report and score differently?
My experience says both yes and no; low limit secured versus mid-sized limit unsecured makes no difference as both impact your credit rating and credit reports equally, however, your credit worthiness is an entirely different matter. When applying for new credit, say after having had your card for some number of months, there is lots of anecdotal evidence to suggest a new lender would look much more favorably on someone correctly managing a card with a $2,000 limit versus a $200 limit, and that in turn will most likely mean a higher starting limit on the new approval.
FWIW, I started with a low limit CapOne secured card and found it to be basically unusable due to the low limit; I closed it after less than 7 weeks and opened up a secured card with a high(ish) limit of $5,000; that second card turned out to be the springboard for all of the cards I've received since.
