Tubpbs wrote:What about focusing on eliminating your debt instead of the designation of one of your credit cards? It's much more important...
Of course. I am working on that and I will continue regardless of how US Bank deals with this. I am not naive - I realize I have some work to do on my part.
And I am trying to be fair a realistic - I just feel like US Bank doesn't have a good reason to deny the upgrade here other than they just want to hold onto the deposit. I've vastly improved my report from when they opened the card. I have reduced my overall debt vastly since I opened the card. I have payed them at least the minimum, often more, on time every month.
Maybe I just have to wait until I have a $0 balance - but I just think that after a year and a half and improving scores, I should be able to go unsecured at this point.
But I do appreciate all the feedback.
Directly speaking, having $4,000 out of a $4,500 limit on your card (whether it is secured or not - and ignoring all other accounts) is an indication of a very high likelihood of default. That is why they won't make the card unsecured. Your behavior (whether you have the cash in the bank, under the mattress or otherwise) indicates that they're lending your $4,000 that you spent and do not have at the moment.
While they are making good money off of you in interest payments, it is always a weighing of preference of risk vs. reward. They are not comfortable exposing themselves to any additional risk for maybe more reward. WHY exactly 100%, only they know, but it is likely what I cited above.
Take some time and lay out your monthly expenditures, your debt, interest rate on all different debt balances, etc etc and figure out your net pay and make a plan to eliminate your debt.
After you've done that, if you behave responsibly with the credit you have, all else will fall right into place.