Secured Credit Cards

[Madsid]

I currently only  have two credit cards, both with $300 limits and 0 balance.  If I added a $4000 secured card, would I see a initial impact on my credit score?

[MarineVietVet]

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@Madsid wrote:

I currently only  have two credit cards, both with $300 limits and 0 balance.  If I added a $4000 secured card, would I see a initial impact on my credit score?

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Yes because of the new inquiry, a new credit account reporting and lowering of your AAoA (Average Age of Accounts).

But you would recover from all this pretty quickly in my opinion.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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[happy0510]

Is this for score purposes only?  How long have you had the others?  It doesn't matter to your score how much your CL's are but your overall utilization.

[OptimalFICO]

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@MarineVietVet wrote:
Yes because of the new inquiry, a new credit account reporting and lowering of your AAoA (Average Age of Accounts).

But you would recover from all this pretty quickly in my opinion.

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I agree. $600 in available credit is not much to work with and $4,600 will be much better! My boyfriend had one credit card with a $2,500 limit and was told by creditors that he needed more available credit to improve his credit position.  Note the inquiry won't count after one year and the AAoA will improve over time. Just make sure the creditor offering the secured card reports to all three credit bureaus and will convert the card to an unsecured account after a year of responsible usage (with no annual fee). Also, make sure it's a secured card that will allow a $4,000 credit limit. You'd think they wouldn't care since it's secured, but it can be a factor.

[OptimalFICO]

You may wish to check into Digital Credit Union or Addison Avenue Federal Credit Union - both have secured cards with no AF and you get all benefits extended to regular cards. Ask questions below though... and also if they are just for building credit history or rebuilding...

Also here's an interesting article I just found:

http://www.bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.asp...

10 questions to ask about secured credit cards:

1. What is a secured credit card?
2. Where can I get a secured credit card?
3. What kind of charges will there be?
4. How much money do I have to deposit?
5. Do all banks offer secured credit cards?
6. Are there any problems to watch out for?
7. Do you report to all three major credit bureaus?
8. How long does it take to qualify for an unsecured card?
9. How much interest will my deposit earn?
10. How can I make the best use of a secured card to build my credit rating?