What are the benefits of a secured Card?

[JMills]

I open a credit union 3 months ago, based on the advise I received from here. I am building a relationship with them. I wanted to know if I got a secured card with them putting $1500 on the card what will it do for me? My issue right now is all my CCs are a measly $320 with Cap1. If I received a secured card will it be on my Credit file as a secured CC or will it just look like a CC. What does having a CL of $1500 will do for me with potential creditors, is it even worth me to do it. I am in the garden now, lol but while waiting I want to know. I just want to start have CCs with higher limits, also I have been helping my friend with their credit and lo behold they running with great cards They just got the Discover IT for $1500 and will add me as a AU, they scores are 720 all from my help thanks to you guys I still have a mountain to climb but the goal is defiantly reachable, what should  I do? Just sit and wait in the garden until time has pass on my negative marks? I am promising myself to not apply for any cards for two years, however will that help me get a CC with a higher limit. 

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Starting Score: EQ 499, TU 516, EX 501,
Current Score: EQ 600, TU 610, EX 605
Goal Score: 720 for all three (12-31-2014)

Take the myFICO Fitness Challenge

Score Seeding

[CreditExpressNJ]

Theres plenty of benefits to a secured card... Most usually report as regular trade lines , you can increase the limit to the max it can go and have most look at your history has if you had a higher limit for sometime ... imo i wish i did that but i didnt think about that so it looked like i controled a higher limit for a long time... i still can do it but i dont like First Progress enough to give them 2.7K so it makes it look as if i had a 3K limit over a years time..... because FP actually once u close the card to get your money back make you wait 3 months for them to mail you a check... which is totally BS in my opinion..

[myjourney]

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@JMills wrote:

I open a credit union 3 months ago, based on the advise I received from here. I am building a relationship with them. I wanted to know if I got a secured card with them putting $1500 on the card what will it do for me? My issue right now is all my CCs are a measly $320 with Cap1. If I received a secured card will it be on my Credit file as a secured CC or will it just look like a CC. What does having a CL of $1500 will do for me with potential creditors, is it even worth me to do it. I am in the garden now, lol but while waiting I want to know. I just want to start have CCs with higher limits, also I have been helping my friend with their credit and lo behold they running with great cards They just got the Discover IT for $1500 and will add me as a AU, they scores are 720 all from my help thanks to you guys I still have a mountain to climb but the goal is defiantly reachable, what should  I do? Just sit and wait in the garden until time has pass on my negative marks? I am promising myself to not apply for any cards for two years, however will that help me get a CC with a higher limit. 

---

Starting Score: EQ 499, TU 516, EX 501,
Current Score: EQ 600, TU 610, EX 605
Goal Score: 720 for all three (12-31-2014)

Take the myFICO Fitness Challenge

Score Seeding

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Since your friends have added you as AU it will help

It would be even better if someone adds you to a old account and you'll have no need for a secured card

[JMills]

@Myjourney I have establish credit with FP for 7 years, however I will be closing that card because its $250 never grew with me, it really not serving me any good by keeping it, my Cap1 CCs are going on 6 years, but I did get Victoria Secret with shopping cart so I know that lowers my AAOA, so  should I not even go down the secured card route? Just sit and stay put? Also if you do a secured card with my CU, is that a hard pull? Soft Pull? 

[myjourney]

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@JMills wrote:

@myjourney I have establish credit with FP for 7 years, however I will be closing that card because its $250 never grew with me, it really not serving me any good by keeping it, my Cap1 CCs are going on 6 years, but I did get Victoria Secret with shopping cart so I know that lowers my AAOA, so  should I not even go down the secured card route? Just sit and stay put? Also if you do a secured card with my CU, is that a hard pull? Soft Pull? 

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IMHO sit tight 

Each CU is different ask them before you make any decision if they HP or SP

Do me a quick favor list all TL's let me see what you have and the limits?

Everything auto school  home 

[JMills]

1. Cap 1 $300  Opened in 2007

2. Cap1 $320  Opened in 2007

3. Orchard Bank but it has now been converted to Cap1$300 Opened in 2007

4. VS $350  Opened 2013

5. Jessica London $250   Opened 2013

6. CFNA Firestone $1200  Opened 2011

7. Fingerhut $1200  Opened 2012

8. First Premier $250 Opened 2007

 I really want to get rid of FP

[myjourney]

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@JMills wrote:

1. Cap 1 $300  Opened in 2007

2. Cap1 $320  Opened in 2007

3. Orchard Bank but it has now been converted to Cap1$300 Opened in 2007

4. VS $350  Opened 2013

5. Jessica London $250   Opened 2013

6. CFNA Firestone $1200  Opened 2011

7. Fingerhut $1200  Opened 2012

8. First Premier $250 Opened 2007

 I really want to get rid of FP

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If you want to dump FP go for it ....The AU will help and should put you over the hump with some time ....did you do CAP1 EO yet?

[JMills]

No I havent, wow you remembered? I am almost  done paying all my cards down, as soon as I am I will 

[myjourney]

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@JMills wrote:

No I havent, wow you remembered? I am almost  done paying all my cards down, as soon as I am I will 

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That is a key element in your next stage AU, CLI .........get those raised if possible and boom prime land here you come.

I try and remember I see so many its hard sometimes in others I do remember 

[Anonymous]

Secured cards are good under two different circumstances primarily:

1) Instead of other beginner cards

2) Getting better credit lines

Your situation is that you have a bunch of crappy low limit cards.  Using a secured card can definitely help you get over that hump since creditors like to follow each other.
  But unless you are rolling in cash, usually not worth putting a ton of cash into secured card for a long time.

But there is kind of a trick which really demonstrates the snapshot nature of credit reports.

Step 1) Find a secured card where you can add money to it without any kind of credit inquiry and hopefully has higher limit.  Also, hopefully has no AF as well.

Step 2) Get card with minimum cash needed

Step 3) Wait till credit score recovers enough to get decent cards

Step 4) Add as much as you can do to Secured card

Step 5) Wait till new limit report and then app to 2-3 unsecured cards.   New potential creditors will see the high CL on the secured card and hopefully follow suit somewhat or beat it.  They have no idea that this CL was just recently increased.

Step 6) Once you have 2-3 unsecured cards with limits comparable to secured card, then close secured card and get money back.

Basically used this method for a bunch of people.  Works really well for those who get transfered to US for job and have no credit file.  We have them at 10k+ limits within a year.