I have been rebuilding from suppressed credit scores since the beginning of this year due to charge offs, collections, lates, and hight balances on installment loans (student loans). Each month I set a goal to tackle, in regards to improving my credit.
I know that being in the garden (no hard pulls or new accounts) for an extented period of time is important. I’ve noticed that I was re-bucketed which is good thing letting me know that I’m making progress.
Here’s the situation…. When I set out to rebuild my credit and got serious about it, I made it a point to build credit relationships with creditors that 1) would benefit me in the long run and 2) did not have annual fees, etc.
Should I open this new account or not….
I recently became a member to a credit union that’s open to everyone. They have a secured credit card that does not require a credit check AT ALL, but will NEVER un-secure. (I’m okay with that). The reason I’m okay with that is because their membership savings account requires a $200 min. to earn dividends and avoid a $1 maintenance fee…. So why not lock it up into a secured card that will benefit me on the credit side of things, right? Plus, I’m in no position right now to apply for anything un-secured.
The downside will be the new account penalty and resetting my AAoYA, if I obtain this card. What are your thoughts on this move/option?
Below are my current cards and plan with listed cards:
Citi $0/$200 - Will take FOREVER to graduate I’m sure. I’m prepared for that and will endure the waiting game. Almost two years old now.
NFCU $9/$500 - Has not unsecured at 6 months as many others have experienced, but I am prepared to wait.
US Bank $0/$500 (Standard Secured Card no rewards or benefits) - Will wait until I’m inquiry free and BK falls off. Once unsecured then PC to Altitude Go. Will be two years old Oct 2022.
US Bank Cash+ $0/$300 - Just got the card recently to have Cashback benefits of some sort and will attempt unsecured when I’m inquiry free and bk falls off.
This months goal was AZEO and I’m on schedule. Goals and Discipline. 
To be frank I would not get that CU card, no chance to unsecure and you already have more than the 3 cards required to help boost your score. What I would do is just deposit the 200 or more bucks, collect the interest then in 6 months to a year ask that CU for an unsecured card as you will have then established credit with your other secured cards.
@gdale6 wrote:
To be frank I would not get that CU card, no chance to unsecure and you already have more than the 3 cards required to help boost your score. What I would do is just deposit the 200 or more bucks, collect the interest then in 6 months to a year ask that CU for an unsecured card as you will have then established credit with your other secured cards.
Agreed. OP, you have more than enough cards. Why lock up those funds and take another AAoA hit for no real good reason?
@gdale6 wrote:
To be frank I would not get that CU card, no chance to unsecure and you already have more than the 3 cards required to help boost your score. What I would do is just deposit the 200 or more bucks, collect the interest then in 6 months to a year ask that CU for an unsecured card as you will have then established credit with your other secured cards.
Thank you @gdale6 Understood. I'll just stay in the garden and wait.