Stupid or maybe Not - Citi Secured.

[voidman]

I was pondering over this for a while, I thought I could get some experts Idea over here.


I was denied for Citi CashBack due to low credit History and they would not reconsider it either, and so they offered me a secured card.

I was wondering if that is a good idea or not over these points.

1. I get a secured card for $5000, as this puts me on a 2k plus category probably viewed better?

2 It will help me with the Util, My normal monthly expenses is around $500-700. (I pay in full all the time)

3. Build credit history with a prime company.

4. The deposit would earn Interest as it is a CD with 4% APY, So I earn more money if I put there rather than ~0.30 in the savings account.

5. I will get into good books of Citi quicker then it normally takes? (not sure about this)

6. It is easy to do product change with Citi, good Customer Service, blah blah.

7. The interest earned on CD is as good as earning cash back

What do you guys think?

Message Edited by voidman on 06-25-2008 08:28 PM

[aftermath]

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@voidman wrote:
I was pondering over this for a while, I thought I could get some experts Idea over here.


I was denied for Citi CashBack due to low credit History and they would not reconsider it either, and so they offered me a secured card.

I was wondering if that is a good idea or not over these points.

1. I get a secured card for $5000, as this puts me on a 2k plus category probably viewed better?

2 It will help me with the Util, My normal monthly expenses is around $500-700. (I pay in full all the time)

3. Build credit history with a prime company.

4. The deposit would earn Interest as it is a CD, So I earn more money if I put there rather than ~0.30 in the savings account.

5. I will get into good books of Citi quicker then it normally takes? (not sure about this)

6. It is easy to do product change with Citi, good Customer Service, blah blah.

7. The interest earned on CD is as good as earning cash back

What do you guys think?

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Sounds like everything works out in your favor in the long run. I say go for it. But before you do, make sure and verify that this is a card that DOES in fact graduate. I know that there are some secured cards that don't change over to an unsecured.

[voidman]

It says that the secured card *may* become unsecured after 18 months, I assume that it will if I stay within the bounds of credit-card agreement.

[voidman]

BUMP

Hello guys, does any one see any problem in this, thanks

[MsKiwi]

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voidman wrote:
It says that the secured card *may* become unsecured after 18 months, I assume that it will if I stay within the bounds of credit-card agreement.

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BOA unsecures faster if that is a concern. I don't see why the citi card would be a problem (becoming unsecured) considering your plan for usage. Good luck.

[voidman]

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@MsKiwi wrote:

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@voidman wrote:
It says that the secured card *may* become unsecured after 18 months, I assume that it will if I stay within the bounds of credit-card agreement.

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BOA unsecures faster if that is a concern. I don't see why the citi card would be a problem (becoming unsecured) considering your plan for usage. Good luck.

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I am not too concerned of getting a citi card per-say, since I already have a inquiry from citi for the card I applied for, I am thinking if I can make it a productive inquiry.

The term for secured card is not a big deal as long as it earns interest. BOA security deposit does not earn interest.