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Secure Tradeline impact on FICO Scores

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Valued Contributor

Secure Tradeline impact on FICO Scores

I am advising a co-worker who is in the process of rebuilding his credit post bankruptcy discharge. He has been paying cash for about the past year and has no open positive reporting tradelines. 

 

FICO Scores are in the 580s and 590s. I have suggested that he open secured CC with Disco, BoA, and Cap1 as these CCC were not IIB. He is hesitating to open secured lines of credit as he thinks they are frowned upon by other creditors and can negatively affect FICO scores.

 

As his FICO scores are in the high 500s and he has no open positive tradelines, any secured tradeline whether revolving or installment, should not affect his FICO scores negatively other than the accompanying hard inquiry. 

 

My thoughts are any negativity associated with a positively reporting secure tradeline is offset over time. Any words of wisdom the myFICOers can offer so I can reassure my co-worker and get his rebuild started are appreciated.

















Your FICO credit scores are not just numbers, it’s a skill.

Message 1 of 12
11 REPLIES 11
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Community Leader
Super Contributor

Re: Secure Tradeline impact on FICO Scores

It has absolutely 0 impact unless there's a manual review, and even then, there's only a handful of creditors that it will matter to. None of the major banks care.







Message 2 of 12
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Regular Contributor

Re: Secure Tradeline impact on FICO Scores


@Medic981 wrote:

I am advising a co-worker who is in the process of rebuilding his credit post bankruptcy discharge. He has been paying cash for about the past year and has no open positive reporting tradelines. 

 

FICO Scores are in the 580s and 590s. I have suggested that he open secured CC with Disco, BoA, and Cap1 as these CCC were not IIB. He is hesitating to open secured lines of credit as he thinks they are frowned upon by other creditors and can negatively affect FICO scores.

 

As his FICO scores are in the high 500s and he has no open positive tradelines, any secured tradeline whether revolving or installment, should not affect his FICO scores negatively other than the accompanying hard inquiry. 

 

My thoughts are any negativity associated with a positively reporting secure tradeline is offset over time. Any words of wisdom the myFICOers can offer so I can reassure my co-worker and get his rebuild started are appreciated.


Your co-worker can check their pre-qualify sites for a non-secured card.  The CapOne site will let him know if he's good for their credit steps card.


Message 3 of 12
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Valued Contributor

Re: Secure Tradeline impact on FICO Scores


@Brian_Earl_Spilner wrote:

It has absolutely 0 impact unless there's a manual review, and even then, there's only a handful of creditors that it will matter to. None of the major banks care.


Thanks, this is what I am telling him.

















Your FICO credit scores are not just numbers, it’s a skill.

Message 4 of 12
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Valued Contributor

Re: Secure Tradeline impact on FICO Scores


@Streetervillelady wrote:

@Medic981 wrote:

I am advising a co-worker who is in the process of rebuilding his credit post bankruptcy discharge. He has been paying cash for about the past year and has no open positive reporting tradelines. 

 

FICO Scores are in the 580s and 590s. I have suggested that he open secured CC with Disco, BoA, and Cap1 as these CCC were not IIB. He is hesitating to open secured lines of credit as he thinks they are frowned upon by other creditors and can negatively affect FICO scores.

 

As his FICO scores are in the high 500s and he has no open positive tradelines, any secured tradeline whether revolving or installment, should not affect his FICO scores negatively other than the accompanying hard inquiry. 

 

My thoughts are any negativity associated with a positively reporting secure tradeline is offset over time. Any words of wisdom the myFICOers can offer so I can reassure my co-worker and get his rebuild started are appreciated.


Your co-worker can check their pre-qualify sites for a non-secured card.  The CapOne site will let him know if he's good for their credit steps card.


Unfortunately, he does not prequalify for any non-secured CCs. Nothing about credit steps when checking Cap1.

















Your FICO credit scores are not just numbers, it’s a skill.

Message 5 of 12
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Valued Contributor

Re: Secure Tradeline impact on FICO Scores

If he insists on unsecured, get him a few First Premiers and Credit Ones and tell him it's Capital One.
Message 6 of 12
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Valued Contributor

Re: Secure Tradeline impact on FICO Scores


@oldman87 wrote:
If he insists on unsecured, get him a few First Premiers and Credit Ones and tell him it's Capital One.

Aaaand we all know that is the last option that he should consider. I know I would much rather have a secured Disco or Cap1 that an unsecured Premier First or CreditOne. He can afford the $200 for the better cards.

















Your FICO credit scores are not just numbers, it’s a skill.

Message 7 of 12
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Community Leader
Super Contributor

Re: Secure Tradeline impact on FICO Scores


@oldman87 wrote:
If he insists on unsecured, get him a few First Premiers and Credit Ones and tell him it's Capital One.

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Message 8 of 12
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Valued Contributor

Re: Secure Tradeline impact on FICO Scores


@Medic981 wrote:

@oldman87 wrote:
If he insists on unsecured, get him a few First Premiers and Credit Ones and tell him it's Capital One.

Aaaand we all know that is the last option that he should consider. I know I would much rather have a secured Disco or Cap1 that an unsecured Premier First or CreditOne. He can afford the $200 for the better cards.


I was just playing, I would never recommend going the predatory route, there are always better options, like the secured route. Get a few secures that are known to graduate easily, an SSL if he has no other installment, then sit on them until score reaches 700 (750 for Brian).
Message 9 of 12
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Community Leader
Super Contributor

Re: Secure Tradeline impact on FICO Scores


@oldman87 wrote:

@Medic981 wrote:

@oldman87 wrote:
If he insists on unsecured, get him a few First Premiers and Credit Ones and tell him it's Capital One.

Aaaand we all know that is the last option that he should consider. I know I would much rather have a secured Disco or Cap1 that an unsecured Premier First or CreditOne. He can afford the $200 for the better cards.


I was just playing, I would never recommend going the predatory route, there are always better options, like the secured route. Get a few secures that are known to graduate easily, an SSL if he has no other installment, then sit on them until score reaches 700 (750 for Brian).

😑







Message 10 of 12
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