help new...

For just about anything you want to get off your chest about credit cards.
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newborn559
 
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help new...

Postby newborn559 » Sat Mar 07, 2015 9:59 am

I have some questions, what secured credit cards are there available with no credit history that gives you up to $2000 in credit and report as unsecured??

Also.is it better for me to have one secured credit card for $2000 that I use up and pay off the whole balance monthly or have two $1000 secured credit card that I use and pay off the entire balance monthly?


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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Mar 07, 2015 1:41 pm

1. I'm not sure that there are any that report as unsecured. I don't think it will matter much, though. It's better to have no history than to have a bad history, so you should be able to get unsecured cards before long.

2. I'd just get one for simplicity.

You could try a credit union for a low/no fee secured card. I've heard good things about SDFCU. You might be able to get an unsecured card at a bank where you already have a checking account. The limit would probably be under $2k, though.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
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otter
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Postby otter » Sat Mar 07, 2015 3:28 pm

Welcome to the forum newborn559! CarefulBuilder touched on most of the points I would have made... But I wanted to add a few things about what to do with no credit history, especially secured cards.

For some reason, a lot of people hesitate about applying for a secured card which reports as secured. I'm not really sure why unless they've been getting bad information. In reality, FICO scoring doesn't really factor it into the equation that much (if at all) and I think most underwriters tend to look at someone with no credit with a secured card more favorably than they would people who establish credit using other routes (such as through First Premier or other cards for "damaged" credit). Most of the secured cards which don't report as secured tend to be dead end cards. You're much better off with a secured card from Bank of America which will graduate to unsecured status within a year.

So don't worry about a card which shows "secured" on your credit report. That's not really a negative. Pay attention to what really matters like paying EVERY payment on time and utilization and you'll get prime cards with or without a secured card showing on your report.
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:
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  • 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]
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newborn559
 
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Postby newborn559 » Sat Mar 07, 2015 4:25 pm

thanks a lot!

another question is if i where to get a $2000 secured credit card with wells fargo or with anyone for that matter is it good or bad to use the entire amount monthly while paying off the full balance monthly?

Crashburn
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BoA and Capital One

Postby Crashburn » Tue Mar 10, 2015 2:25 pm

I have a secured Bank of America card that reports as unsecured. Started with a limit of 1500$ (because I couldn't pay in more as a deposit) and now increased it to 7500$. As long as you have the funds to pay it in I think the limit can go as high as 10k or maybe more. You do not get any interest on that money though.

Since last month I also have a secured Capital one card that reports as unsecured. Here I paid 49$ deposit for a 250$ credit limit. If I want more I have to pay in more, which I'm not willing to do with Capital one because I heard it can be difficult to get your money back.

I only did the Capital One card to have an additional credit card on my report.

Crashburn
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Postby Crashburn » Tue Mar 10, 2015 2:27 pm

newborn559 wrote:thanks a lot!

another question is if i where to get a $2000 secured credit card with wells fargo or with anyone for that matter is it good or bad to use the entire amount monthly while paying off the full balance monthly?


From what I've gathered from Creditkarma it is better to keep utilization low. Below 20% of the credit limit or even better between 1-9% and then pay off in full. On my Capital One card with the 250$ limit I only use it to pay for 1 lunch a month. That keeps it in the 1-9% range.

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Postby takeshi » Wed Mar 11, 2015 9:06 am

newborn559 wrote:Also.is it better for me to have one secured credit card for $2000 that I use up and pay off the whole balance monthly or have two $1000 secured credit card that I use and pay off the entire balance monthly?

Generally speaking lower utilization and fewer reported balances are better. You can't take advantage of the "allow only one balance to report" advice if you only have one card.

newborn559 wrote:another question is if i where to get a $2000 secured credit card with wells fargo or with anyone for that matter is it good or bad to use the entire amount monthly while paying off the full balance monthly?

Neither. All that matters is the reported balance. You can charge all you want as long as you're adjusting the balance prior to report date -- just pay the remaining statement balance by the due date to avoid interest. If you're paying in full after it reports then you'll end with high utilization reporting.



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