Should I cancel my US Bank Secured?

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DogDadNY518
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Re: Should I cancel my US Bank Secured?

Postby DogDadNY518 » Sun Apr 03, 2016 9:22 am

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.
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Tubpbs
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Re: Should I cancel my US Bank Secured?

Postby Tubpbs » Sun Apr 03, 2016 9:50 am

DogDadNY518 wrote:
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.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
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DogDadNY518
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Re: Should I cancel my US Bank Secured?

Postby DogDadNY518 » Sun Apr 03, 2016 10:04 am

Tubpbs wrote:
DogDadNY518 wrote:
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.


TY, much appreciated.
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Tubpbs
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Re: Should I cancel my US Bank Secured?

Postby Tubpbs » Sun Apr 03, 2016 1:05 pm

Good luck. Let the group know if other questions pop up.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

DogDadNY518
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Re: Should I cancel my US Bank Secured?

Postby DogDadNY518 » Thu Apr 14, 2016 9:18 am

Just an update.

I called US Bank and asked if they would use the secured deposit to pay off the balance and close the card. They said yes absolutely. All I have to do is put the request in writing with my account number and signature and mail them the letter.

They didn't even ask why, nor did they even try to look at the account and see if they could try to keep my business.

Again, from the earlier posts - I do have high CC debt and I am working on it. But I am still so surprised that after being with them this long and having the history of on time payments that I do with them they are not even trying to keep my business.

In the end I felt like closing the account is best. I lose the account yes which impacts my overall CL and my AAoA, but essentially I am wiping out $4k of debt from my credit report, and ridding myself of a trade line that was at about 100% utilization. I would not otherwise be in a position to just make a $4k payment in full at this point, so I am also saving money in interest fees going forward. Because at best, I maybe could get this paid off in a year probably longer.

Now I am (will be) down to 4 CapOne cards with approx 30-40% utilization. Two store cards at 0 balances. And my Amex PRG. I can focus on the CapOnes and get those drawn down over the next year with the money that I would have otherwise been sending to US Bank. I have talked to CapOne and they will combine the 4 cards and CLs, once there are zero balances, which I intend to do at that point.

But in the end, I just wanted to update everyone that US Bank will let you use the secured deposit to pay the balance and close the card. You just have to put it in writing.
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Tubpbs
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Re: Should I cancel my US Bank Secured?

Postby Tubpbs » Thu Apr 14, 2016 8:04 pm

Good luck.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It



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