Should I cancel my US Bank Secured?

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DogDadNY518
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Should I cancel my US Bank Secured?

Postby DogDadNY518 » Sat Apr 02, 2016 1:21 pm

Hi all,

So I am wondering if I should cancel my US Bank Secured card.

So years back I ran up some cards, left them for collections along with medical collections etc. You know, a standard story of a young person being irresponsible. Nevertheless over the last several years I have cleaned things up generally. There are no more active accounts in collections at all. All of my current accounts are in good standing and I haven't had a single missed payment on any of them in, well I can't remember when.

My biggest hurdle right now is high utilization.

I have a Walmart card, Target card, and a BoA Visa, all with about $500 cl's - all with $0 on them. (Only opened them up to help increase the available credit. They are hidden in the SD.)
I have 4 CapOne cards. Through CapOne buying out some other cards I wound up with 4. All of them WERE at around 80-90% util, until this week, when I did online CLIs for all four and all four were given about $750-$1000 additions to their CLs, bringing my utilization on those four cards to 60% ish give or take. (The CapOnes are all at least 4 years old, one is probably 8 years old. Maybe older.)

Now, two years ago I got married and we had $4,500 in cash that we wanted to sock away. So, in an effort to boost my CS, I put that $4,500 behind a US Bank Secured card. Its approaching 2 years, and never missed a payment. BUT - I do have about $4,000 on that card at the moment.

Then also last week I was approved for the Amex PRG.

No car loan currently. No BK ever. Scores around 640 currently.

I called US Bank and asked to go to unsecured, so I could get my $4,500 deposit back.

They denied me in a letter saying it was due to: "Delinquent Credit History on File" with Equifax.

There are OLD delinquents on file yes, but all were PIF and cleared.

So I have half a mind to just say F it, call them and say "Take $4k from my deposit, send me back $500 and close the card."
Loosing the $4,500 cl, but also losing the $4k debt would probably be a wash in terms of impacting my score no?

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

Postby Tubpbs » Sat Apr 02, 2016 2:05 pm

I have no personal experience with this, but in case it's a factor, I assume that US Bank will require you to pay the $4000, wait for everything to clear etc etc. Then you close the account and then some time later they will send you back the $4,500.

Applying the security deposit to a balance is likely something they only do in the event of a default.

Again, this is mostly speculation, but I do think it's likely what they would require you to do to close the account.

If I were you, step 1 would be to check on that.

I suppose the next thing is...why do you have so much CC debt and what is your plan for disposing of it with haste? How much are you paying each month in interest? These are very important questions and very important concerns for someone with so much CC debt.

In terms of closing the account being a wash...I don't think anyone could say without a ton of additional information. Also, in terms of the collections showing on your report, even if they are paid, these things will stay on your report and show for 7 years plus depending on what it was.

That's my take on most of your questions.
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Elijahmex
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Re: Should I cancel my US Bank Secured?

Postby Elijahmex » Sat Apr 02, 2016 3:05 pm

I'd suggest you call all three CB and ask them to remove the baddies on file. I did that and within 2 weeks they were all removed. It could also work for you
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Tubpbs
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Re: Should I cancel my US Bank Secured?

Postby Tubpbs » Sat Apr 02, 2016 3:23 pm

Elijahmex wrote:I'd suggest you call all three CB and ask them to remove the baddies on file. I did that and within 2 weeks they were all removed. It could also work for you


How old were they and in what status when you got them removed?
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Citi - DC, Prestige
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Elijahmex
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Re: Should I cancel my US Bank Secured?

Postby Elijahmex » Sat Apr 02, 2016 3:55 pm

Tubpbs wrote:
Elijahmex wrote:I'd suggest you call all three CB and ask them to remove the baddies on file. I did that and within 2 weeks they were all removed. It could also work for you


How old were they and in what status when you got them removed?


They were 4 -5 years old. It was ID theft. "I" owed Chase a little less than 1500$ in credit card debt. It obviously was not me. I was in Europe at the time. I reported it and it was removed. I didn't think it would be that easy but it was and I'm glad it's now history.
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DogDadNY518
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Re: Should I cancel my US Bank Secured?

Postby DogDadNY518 » Sat Apr 02, 2016 7:33 pm

The last two that were showing was an old dental bill that was paid a long time ago. Like 2011. It was only showing on Transunion. I called the collection agency and they were like "We reported that paid a long time ago, TU just hasnt fixed your file. Nothing we can do." So I opened a dispute, and like two weeks later I got an alert that it was removed.

So that is no longer showing at all.

The only other one that is showing is also an old medical bill. I did owe that. I paid it like 3 months ago. And they reported it closed paid in full.

So if you look at my reports now, all you see is that one collections that was PIF and closed three months ago.
Then you see 9 current and active credit cards all with on time monthly payments for at least 3 years. Maybe longer since the last time I was ever late on a payment.
Two past car payments now closed paid in full, all with on time payments - over the last 10 years.
Of those credit cards, the utilization is high, as I mentioned before. But all in good standing and most are old accounts.

So that is why I am hung up on the fact that US Bank hasn't upgraded me to unsecured at this point. I have had the card with them since October 2014. Never missed a payment. Yes there is a high balance. But why at this point do they still cite the one PIF closed baddie as a reason not to unsecure? My score when I opened the card was in the 580 range with open collections. Now all closed collections, and an 18 month history with them.

Do I just accept that they have my deposit, focus on paying that one off over the coming few months, and then ask again?
Do I call and ask to have the decision reconsidered?
Do I threaten to close in order to make them reconsider?
Do I actually close - if - they will use my deposit to pay the balance for the close?
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Elijahmex
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Re: Should I cancel my US Bank Secured?

Postby Elijahmex » Sat Apr 02, 2016 8:01 pm

It's my understanding that you still have collections showing on your report however they are PIF & closed right?

Let's try not to be biased here. If you were the bank, would be you reassured if the customer's report showed any collections, paid or unpaid? I know I wouldnt as it would put doubts in my mind thinking "Hey, it happened once it could happen again". So I do understand why they denied you the unsecured card.

My advice remains the same as my previous post, since all those collections have been paid, you need to get rid of them or at least the one remaining. The only way you're going to get an unsecured card is if your report looks clean! Based on the info that you received in the letter that's what it comes down to.
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Tubpbs
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Re: Should I cancel my US Bank Secured?

Postby Tubpbs » Sun Apr 03, 2016 6:32 am

DogDadNY518 wrote:The last two that were showing was an old dental bill that was paid a long time ago. Like 2011. It was only showing on Transunion. I called the collection agency and they were like "We reported that paid a long time ago, TU just hasnt fixed your file. Nothing we can do." So I opened a dispute, and like two weeks later I got an alert that it was removed.

So that is no longer showing at all.

The only other one that is showing is also an old medical bill. I did owe that. I paid it like 3 months ago. And they reported it closed paid in full.

So if you look at my reports now, all you see is that one collections that was PIF and closed three months ago.
Then you see 9 current and active credit cards all with on time monthly payments for at least 3 years. Maybe longer since the last time I was ever late on a payment.
Two past car payments now closed paid in full, all with on time payments - over the last 10 years.
Of those credit cards, the utilization is high, as I mentioned before. But all in good standing and most are old accounts.

So that is why I am hung up on the fact that US Bank hasn't upgraded me to unsecured at this point. I have had the card with them since October 2014. Never missed a payment. Yes there is a high balance. But why at this point do they still cite the one PIF closed baddie as a reason not to unsecure? My score when I opened the card was in the 580 range with open collections. Now all closed collections, and an 18 month history with them.

Do I just accept that they have my deposit, focus on paying that one off over the coming few months, and then ask again?
Do I call and ask to have the decision reconsidered?
Do I threaten to close in order to make them reconsider?
Do I actually close - if - they will use my deposit to pay the balance for the close?



Do you have late payments showing on your reports as well? They will stay for some time as well regardless of whether or not you're currently paying on time.

Also, not to be a negative person, but it is possible they are just finding an excuse to say no... I don't think the high utilization is appealing to them, but I'm sure they'd also rather keep your money and keep charging you interest than not... I think if you had no balance and could call them up and say "hey, I like the product, but I don't use it anymore because it's my only secured card. The rest of my cards are rewards cards. If I could get it converted to one, I would be using it much more" etc etc. I think that would increase your chances, but obviously don't know for sure...

Those are my thoughts.
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Citi - DC, Prestige
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Tubpbs
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Re: Should I cancel my US Bank Secured?

Postby Tubpbs » Sun Apr 03, 2016 6:33 am

What about focusing on eliminating your debt instead of the designation of one of your credit cards? It's much more important...
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

Elijahmex
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Re: Should I cancel my US Bank Secured?

Postby Elijahmex » Sun Apr 03, 2016 9:18 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...


Agree
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