The concepts below are the ones I used to go from secured credit cards, to regular credit cards, to American Express credit cards in 13 months.
The higher your original CL, the higher they can be raised to new higher CLs. I remember using Open Sky secured card and the $200 CL never went up in a 6 months. I got a CreditOne card with a $300 CL and was increased to $500 within 3 months. Not surprisingly, when I applied for Capital One nonsecured cards, I started at $500 (the highest CL of my two secured cards). Your available credit is a factor in your score so the more money you can put into these cards, the better - bc your score will be higher and will give you a better foundation of starting CL in the future.
Keep in mind, there are of many fees associated with SCCs and make sure to take that into account from the get go. This can range to annual fees from monthly charges to even transactiom costs when you swipe. Read the fine print and find a reasonable card without outrageous fees. I beleive I used CreditOne bc they didn't cost as much as others.
When starting out, an upfront fee may kill your utilization the first month. For instance, if you have a $49 CL and upfront annual fee is $27, you're already at 54% utilization. And if you pay that immediately, it won't matter bc your remaining available credit will still be $22 and your first month reported to the bureaus will show high utilization (or in any lenders eye's - high risk). So find out what upfront fees will hit the first month and depsit enough money to stay under 30% UTIL. Build a healthy habit of not using more than 30% of your total limit. Also, be sure to pay your cards off 10 days before they're due the first time around bc some companies take up to a week post your payment and you never want to be late. This way you know how to time your payments.
The amount of credit accounts also is a factor in your score (6-21 is a healthy range) so if you can afford to, get two or more. The best way to do this is apply for one, make your first charge and pay it off immediately to see how long it takes to post. This will typically include your upfront annual fee. Wait for that payment to clear, then apply for another card. Lenders will see your payments and will often grant you new credit cards when you apply with signs you pay your balances. After you get get your new card, make a charge and pay it off right away again, see how long it takes to post, wash, rinse, repeat. This healthy process of applying for CCs can be used with the regular CCs you will be eligible for, usually in 6 months time. Payments usually post much much sooner with regular CCs though.
Keep in mind that your reporting date is usually 3 days after your statement date and timing is key. Let's say you have a $300 card. You've used $75 to stay under 30% and you know your due date is the 20th of the month. You make a payment on the 16th for $75 and it posts on the 19th returning your balance to $0. The next day, your due date, the day closes in good standing. Within a 3-10 days the balance will reflect your credit report. Try to use 1-9% (or 29% max) of your CL in this window bc having 1-9% UTIL reporting is better $0 reporting. You don't have to carry a balance past your due date and pay interest. Just pay it off by the due date and make a charge a day or two after the due date. These rebuilder cards prey on those who cannot manage their cards. But that's not you bc you know the game and are here to beat the system.
You want move to $0 annual fee CCs asap so feel free to apply for unsecured CCs within 6 months. Capital One is known grant cards and forgive for past mistakes so apply there after 6 months if you're not aware of better options. The Journey and Quicksilver One cards worked well for me when I had a poor credit score and was approved, even though there was a judgement against me from Capital One from when I was ignorant of managing finances.
It also would be a good idea to make a deposit as a CD with your bank and use that as collateral for a secured credit card. Its the same concept as a secured card but you get interest back with your original deposit.
Hope this helps someone.
Wish you the best,
Romulus
