Should I cancel my newly acquired secured card?

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retiredat21
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Should I cancel my newly acquired secured card?

Postby retiredat21 » Thu Mar 13, 2014 6:12 am

Please help me i have no idea what to do, first time credit card owner... Last week i applied for the bank of america secured card and got appproved but while reading i found out that this is not a good card. Now i applied for the capital one secured card and also got approved. . . After about two days, i tried my luck and applied for an unsecured card which is discover it.. and i just found out that i have been approved.. is it wise to cancel both of the secured card ive been approved of now?


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nismoZtuner
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Postby nismoZtuner » Thu Mar 13, 2014 2:07 pm

i would say keep it. I know BOA secure card are not that great but heey they are helping you build some credit.

Just store it in your closet or something and don't use it. I also have a BOA card which i haven't used in the past year- I don't think BOA has annual fees with their secure cards. You already have an inquiry from BOA so like i said keep it. Closing a card may hurt your AAOA (Average Age of Accounts).

I wonder if BOA closes inactive accounts after sometime..
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

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nismoZtuner
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Postby nismoZtuner » Thu Mar 13, 2014 2:10 pm

by what i have read here Capital one (aka CRAPital one) is just as bad as BOA or worst.. so im staying away from it.
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22

retiredat21
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Postby retiredat21 » Thu Mar 13, 2014 2:43 pm

Actually, both of the secured cards have annual fees.. 39$ for boa and 29$ for cap one... So should i just cancel both?

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otter
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Postby otter » Thu Mar 13, 2014 4:43 pm

My thoughts having had both secured cards; the cap one(years ago) and BoA secured (up until a month ago)...

The Cap One card will NEVER graduate to a secured card, so I would definitely ditch that one. The BoA one will secure within a year if you treat it right. I would call them and ask them to do a product change to the Cash rewards secured card so that you can recoup the annual fee money back in rewards.

One thing is.. if you were able to get DIscover IT, you're probably not that far away from other prime cards. You might not need to keep either secured card very long anyway. Once I started getting multiple credit limits over $5000, I began to question why I had two secured cards. Don't feel you have to let it graduate if you start getting prime cards, close the secured cards.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

retiredat21
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Postby retiredat21 » Thu Mar 13, 2014 7:05 pm

I figured i wont be using the secured cards anymore now that i have an unsecured one.. i was thinking of cancelling both so i could get my 300$ deposit from the boa card and just apply for a another card (maybe chase freedom?) .. do you think this is a good idea?

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Postby CC Deville » Thu Mar 13, 2014 10:12 pm

retiredat21 wrote:I figured i wont be using the secured cards anymore now that i have an unsecured one.. i was thinking of cancelling both so i could get my 300$ deposit from the boa card and just apply for a another card (maybe chase freedom?) .. do you think this is a good idea?


I would keep the BofA card until you can get approved for an unsecured Visa/MasterCard so that you have one for when Discover is not accepted. I am not completely sure why Discover decided to give you a chance when all you have are two recently opened secured cards but that does not mean that other banks will. Are you an authorized user on other peoples cards? Have loans? If you plan on applying for Chase I would suggest going to their website and using the pre-approval feature there to see what they come up with. If they recommend a product there is a good chance you may be approved for something....

Closing either card won't hurt your average age of account (AAoA)...that was already damaged by opening them and nothing but time will fix that. Closing one or both of these cards will hurt your debt to credit ratio as their credit lines will no longer be factored into available credit.

Also not sure where you heard that the BofA secured card was terrible. It is actually one of the best secured cards around because it becomes unsecured for most people within a year and can be product changed to a better card like Cash Rewards. Keep the BofA...

retiredat21
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Postby retiredat21 » Fri Mar 14, 2014 2:12 am

CC Deville wrote:I would keep the BofA card until you can get approved for an unsecured Visa/MasterCard so that you have one for when Discover is not accepted. I am not completely sure why Discover decided to give you a chance when all you have are two recently opened secured cards but that does not mean that other banks will. Are you an authorized user on other peoples cards? Have loans? If you plan on applying for Chase I would suggest going to their website and using the pre-approval feature there to see what they come up with. If they recommend a product there is a good chance you may be approved for something....


I dont use any other credit card.. all i've been using for 3 years is a BofA Debit card..
i really have no idea how i got accepted because before i tried for capital one quicksilver and got rejected as well the amazon reward card... ok i guess i'm keeping the BofA then.. thanks for the advice!

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Postby CC Deville » Fri Mar 14, 2014 3:33 pm

retiredat21 wrote:I dont use any other credit card.. all i've been using for 3 years is a BofA Debit card..
i really have no idea how i got accepted because before i tried for capital one quicksilver and got rejected as well the amazon reward card... ok i guess i'm keeping the BofA then.. thanks for the advice!


Well we won't look a gift horse in the mouth. Take that Discover and run with it. Make sure after your BofA becomes unsecured that you product change it. I would recommend the Cash Reward card and use that for everything to earn cash back. Since you have a BofA checking account, every time you cash in your reward you get a 10% bonus if the reward goes into a BofA checking or savings account.

Let us know when that happens, it will probably be sooner than you think.

retiredat21
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Postby retiredat21 » Sat Mar 15, 2014 7:21 pm

CC Deville wrote:Well we won't look a gift horse in the mouth. Take that Discover and run with it. Make sure after your BofA becomes unsecured that you product change it. I would recommend the Cash Reward card and use that for everything to earn cash back. Since you have a BofA checking account, every time you cash in your reward you get a 10% bonus if the reward goes into a BofA checking or savings account.

Let us know when that happens, it will probably be sooner than you think.


So i just received my discover it card.. and my credit score is L2C: 715. .. is this good? Kinda strange because its my first unsecured card and i havent used any credit card before other than my debit card... Also, if will i get a significant hit ib my credit score if i cancel the capital one secured now?



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