Short version. I am rebuilding from bankruptcy. Currently have a secured Amex from USAA. $35 annual fee and it will not graduate. Ever. I've had it since June, and it's reporting $108/$500 this month. Actual balance on it now is $0/$500.
My local credit union where my primary savings is has offered me a pre-approval on their credit builder MasterCard. It's secured, but has a lower annual fee of $25 and will graduate after 12 months of on-time payments. Should I just close the USAA account and keep that positive history for ten years and open the credit union account or is it not really worthwhile just to save $10 on the annual fee. The only reason I'm thinking about it is because it does graduate. My score are all in the low 600's at this point, and the preapproval was a soft pull offer when I logged onto their site.
My local credit union where my primary savings is has offered me a pre-approval on their credit builder MasterCard. It's secured, but has a lower annual fee of $25 and will graduate after 12 months of on-time payments. Should I just close the USAA account and keep that positive history for ten years and open the credit union account or is it not really worthwhile just to save $10 on the annual fee. The only reason I'm thinking about it is because it does graduate. My score are all in the low 600's at this point, and the preapproval was a soft pull offer when I logged onto their site.
I don't think you should close it so soon after opening it. Yes, it will cost you $35 for the first year, but having two active tradelines in good standing and reporting each month is more beneficial that one.
After one year of good, on-time payments and util, you should be able to get a non-secured card from CapOne fairly easily.
@jason0618 wrote:
Short version. I am rebuilding from bankruptcy. Currently have a secured Amex from USAA. $35 annual fee and it will not graduate. Ever. I've had it since June, and it's reporting $108/$500 this month. Actual balance on it now is $0/$500.
My local credit union where my primary savings is has offered me a pre-approval on their credit builder MasterCard. It's secured, but has a lower annual fee of $25 and will graduate after 12 months of on-time payments. Should I just close the USAA account and keep that positive history for ten years and open the credit union account or is it not really worthwhile just to save $10 on the annual fee. The only reason I'm thinking about it is because it does graduate. My score are all in the low 600's at this point, and the preapproval was a soft pull offer when I logged onto their site.
Ok joke 1st then serious answer...
Are you CRAZY...of course not!!!!
Ok...in all seriousness sometimes we humans tend to want to HURRY UP to slice off our noses to spit our faces.
THINK of it the USAA (more on them in a minute) gave you a shot and has been reporting FOR you since June and WALLA!
Ever think the VALUE of having that open good standing account actually ENHANCED your profile enough to getthat pre-approve?
So now after 3-4 WHOLE months there ants are in your pants to KILL the only postive TL you have aging building your credit REPUTATION
(I'm jk...around here to get you to HEAR yourself) so let me get this straight you are even CONSIDERING closing a positive account this a
SOLID vendor like USAA....that gives out great rates big CLs (once your ready) low auto rates NATIONWIDE a lender that gave me 3 CCs on
1 HP is a federal bank that acts like a CU and you want to cut them short for $10......$10
$10 money you've already spent for the year anyway...again just ribbing but this sort of decision making leads to.....well Bk
We tend fret over nonsense....NOW $10 means so much.....how pennies were pinched prior to Bk (c'mon just playing with you
)
but you get my point.
Ok seriously though....
To be fair had you asked BEFORE you got the USAA (as ppl who have read me before know) No...I would NOT have recommened the USAA product
as I'm not an AF fan nor am I thrilled with the CD aspect...there are too many no AF options for ANY secured card IMO (again depending on how recent the Bk can hinder some of those options) but in GENERAL ....no to AF cards....
However, once a person has taken a step...we deal with WHERE we are ...we pivot from where you are
Things could be worse but you can ninny over split milk...your profile is up and running, run WITH it
The scoring model wants to see 3 revolvering TL's anyway...ya got one that's a quarter of a year old already
Move on to your NEXT move....don't hem n haw over this nonsense
Again to be faiir IF
AF's and graduation were important ...why did you not vet that info PRIOR to apping....lesson learned
Use that type attitude of looking and researching BEFORE you leap and it'l keep you out of future BK's
Again no worries .,...just saying the time to FRET and witch and complain about the 'girl' you chose is BEFORE you
ASK her out
You got her now...she'll get you where you need to go
Look you didn't KILL yourself bro, if you choose to pay another AF with this local CU and say grab another (hopefully unsecured)
account by say early spring.....the aging issue isn't a big deal if you kill the USAA
AFTER the 1 year (normally if you kill the card month 13 allowing the 12 month to post most will rebate back the 2 AF if it were charged)
so you may as well let her ride for the year
but remember she needs two friends in the car with her anyway...so one of her friends will take over as the 'aged' account anyway...a few month difference in age is no biggie
+ as you build USAA will want to stay in your wallet in a BIG limit way after having a FRONT ROW seat to your recovery...
Again, if you were speaking a spit vendor ...that's one thing but this 'chick' is NOT a bridge to burn ...she can take care of you through old age
insurance, auto refis, home loans etc
spit in the face of a 25 billion dollar FRIEND in the family over $10 from the how big local CU ?
c'mon man
*Also, while we're here...
do you have a installer reporting on your report for the credit mix bump to go with your revolvers?
If not IMO before giving up another $500 towards another secured CC
The most prudent move again IMO is to see what secure LOANS that local CU has (if the stink use one recc'd on this forum like Alliant)
Take the $500 secure loan to add a intaller account on your CR then since it's a 'loan' it means they give you $500 in cash,
of which you turn around and grab you your NEXT revolver thus using the same cash twice
Or better yet IMO grab a $200 secured Discover card (that will graduate btw and no AF) + a $250-$300 Visa/Mc from one of several choices
thuis using the same $500 to add THICKNESS to your file with everything aging together (yes the secured loan 'cost' about $20-$40 bucks in %
over the time but the value add is MONSTER)
Yes there will be a small payment towards the 'loan' but really it's a 'video game' being played for te sake of the 'credit camera' remember you'll get back the secured funds just the same yoiu lose NOTHING (save the $20-$40)
The upside is you have 3 revolvers (including the 1 you have now) + 1 install TL making beautiful LOVE on your CR by this time next year you won't be worrying about $10
toward an AF ...that's for sure.
See some of my past post if you're confused but really it just
$500 loan use $500 loan proceeds to fund $200 Disco and $300 Visa = 2 new revolvers = 1 installer using same funds
pay down 'loan' using CC to show 'spend' on CC
The kicker is if you put an extra $50 bucks in the savings account and use the savings account as the CC payment source
the loan pays for itself as the prinicipal gets release with each payment you never have to add any new funds but as the video game
plays out month you get on-time payment love and low debt ratio love as you aren';t using the card for ANYTHING other than the small loan
payment....that's crushing it, son!
Long-winded response, but you're right. I've been with USAA a long time, and they've always done right by me. Insurance, banking, and now this credit card.
I do have an installment loan on my car. Cheap car, cheap payment. Eventually I'll refinance it, or just pay it off entirely in a year or two.
I did apply for discover. Declined. Same with cap one, but cap one was IIB, so I'm not surprised. I also have two shopping cart trick cards (Victoria secret and express) as well as a kohls card. My wife shops at Victoria's Secret and I buy socks at express. Kohls is shopped at all the time. We have that card just for the discounts. Never carry a balance. I actually just paid it off this morning for the third time this month.
I do have an installment loan on my car. Cheap car, cheap payment. Eventually I'll refinance it, or just pay it off entirely in a year or two.
I did apply for discover. Declined. Same with cap one, but cap one was IIB, so I'm not surprised. I also have two shopping cart trick cards (Victoria secret and express) as well as a kohls card. My wife shops at Victoria's Secret and I buy socks at express. Kohls is shopped at all the time. We have that card just for the discounts. Never carry a balance. I actually just paid it off this morning for the third time this month.