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Should i up my original Secured card deposit amount?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Valued Member

Should i up my original Secured card deposit amount?

Hello everyone,

 

So im trying to rebuild my credit and recently got 2 secured card. One through Navy Federal and one through Discover. I paid the minimum 200$ Deposit on both of these cards to open them. What im wondering is if i should up the deposit amount in the future and if i do will this help me get a bigger SL once the cards graduate? 

 

My credit score is around 580 on all 3 bureaus. I have late payments on my student loans about a year n a half ago. I also have one student loan in collections but im working on doing the rehabilitation right now. Not sure if any of this information is neccisairy to answer my question but im also open to any hints or tips anyone has to rebuild my credit quicker. I also have a unsecured Capital One Card with a 300$ limit. 

 

Thanks for your help!

Message 1 of 7
6 REPLIES 6
Established Contributor

Re: Should i up my original Secured card deposit amount?

A larger deposit won't matter much. $200 or $2,000 no matter. Wht matters is how you use the cards. Always pay on time and keep the balances below 9%.

Let the cards mature while fixing your credit trouble spots. Use the money that you would put toward larger securities to paying toward getting your student loans current.

All the best!
Starting Score: EX 641 TU 631 EQ 669
Current Score: EX 714 TU 718 EQ 713 (EQ9 735)
Goal Scores: 750


Take the myFICO Fitness Challenge




Message 2 of 7
New Contributor

Re: Should i up my original Secured card deposit amount?

Hi ,

 

I would recommend you up the Discover to as much as you can . I am never a fan of the 200$ cards because it limits you on your purchases. It will get you cashback for the first year and Discover will match it . Definitley keep your utilization low and Discover will take care of you . I do not have any information about the NFCU secured but I do know that my wife increased her limit and it was another inquiry so I would say not . Discover will tell you before if they need to make a hard inquiry .

 

You can try to see if the collectors will offer a pay for delete and if you can afford it . GO FOR IT! Some will say that paying it is bad but I paid all of my collections and ones that would not delete , I would do a dispute some time later and the company never replies and it was removed .  

 

There will be no quick tips to rebuilding it quicker . Try for the settlements for delete or pay in full after your own research . Keeping a very low utilization and paying on time will help you ALOT! You need just plain old time right now , I know it sucks but you need to garden for atleast a year or more. IGNORE ALL FIRST PREMEIR AND INDIGO CARDS LOL . Dont be tricked into applying for credit as your score improves .

 

Later

Message 3 of 7
Frequent Contributor

Re: Should i up my original Secured card deposit amount?


@dschill wrote:

Hello everyone,

 

So im trying to rebuild my credit and recently got 2 secured card. One through Navy Federal and one through Discover. I paid the minimum 200$ Deposit on both of these cards to open them. What im wondering is if i should up the deposit amount in the future and if i do will this help me get a bigger SL once the cards graduate? 

 

My credit score is around 580 on all 3 bureaus. I have late payments on my student loans about a year n a half ago. I also have one student loan in collections but im working on doing the rehabilitation right now. Not sure if any of this information is neccisairy to answer my question but im also open to any hints or tips anyone has to rebuild my credit quicker. I also have a unsecured Capital One Card with a 300$ limit. 

 

Thanks for your help!


Give that NFCU card a bit of history and go for an unsecured card with them.  It has been my personal experience  ( and DW's) that a larger deposit might delay graduation.  Your NFCU card will graduate at some point if you build history, PIF etc. and will come with a CLI (on lower deposit amounts).  My Wife who has had an nRewards card for 27  months just applied for and was approved for a NFCU Amex for $15k with a 600 TU FICO and her nRewards card has still not graduated.  My bet, with continued positive history and low UTI, is that you get an unsecured card before graduation of your nRewards card.  In my case, my nRewards graduated at $5k  (took 26 months) but was approved for an $8k Flagship 20 days later.  That with a 597 TU FICO 9.

 

Building NFCU payment history will matter.

 

PS:  Yes, any additional deposit on your nRewards WILL be an EQ hard pull.


Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = Very Low 400's
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Message 4 of 7
Valued Member

Re: Should i up my original Secured card deposit amount?

Thanks for the replies! One other question i have is should i let any of my balance report or should i just pay in full every billing cycle? 

Message 5 of 7
Community Leader
Super Contributor

Re: Should i up my original Secured card deposit amount?

Yes, let the balance on at least one card report.
EX 753 EQ 769 TU 755
Message 6 of 7
Established Contributor

Re: Should i up my original Secured card deposit amount?

But try to stay under 10%
Starting Score: EX 641 TU 631 EQ 669
Current Score: EX 714 TU 718 EQ 713 (EQ9 735)
Goal Scores: 750


Take the myFICO Fitness Challenge




Message 7 of 7