Credit limits when converting secured to unsecured?

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3 posts
FED-Shakls
 
Posts: 2
Joined: Sun Jul 22, 2012 4:17 pm
Location: America

Credit limits when converting secured to unsecured?

Postby FED-Shakls » Sun Jul 22, 2012 4:56 pm

I've been working on cleaning up my credit report as well as increasing my score over the past year or so in preparation for buying my first home. I've never owned a credit card and have [color="darkred"]ZERO[/color] available credit. The only forms of debts that are currently on my report are student loans and a car loan.

Once I had consolidated my student loans, I applied for a credit card through my bank (Wells Fargo). I was denied for an unsecured card but was approved for a [color="green"]$500[/color] Secured Credit Card. *bummer*

I was unhappy with the puny line of credit, so I began to inquire with customer service about how I can increase said limit. After speaking with them for a few minutes, I was informed that the bank will typically review my card after 1 year and decide weather or not they will transfer the card over to an unsecured card. I had also learned how the "Secured Credit Increase" system works.

"[color="navy"]Wells Fargo Secured Credit Increase System"[/color]

[color="navy"]- At any given time, I can call the bank and request an increase (so long as I have the funds available in my checking account).The bank will transfer the funds to the card as "credit".

- It is 100% guaranteed that my limit will be increased!

- There are no limits on how many times I can do this

- There is no maximum credit limit you can reach.

- It takes approximately 3-5 days for it to be applied to your card.[/color]



I'm currently at a [color="green"]$2,000[/color] limit after 5 months and plan to have it up to [color="green"]$8,000[/color] by the end of my 1 year mark. My reasoning is simple. I'm increasing the available credit on my report and keeping my balance below 15% in order to boost my credit score. If I can get a lower interest rate on my mortgage, (hopefully by a few percent) I could save myself over $100,000 with a 30 year period.


My question is this...

I know they will return the funds I had fronted as collateral when I reach my 1 year mark and I am granted the unsecured card. Will they however, keep the current line of credit on the card or will they reduce it to the original [color="green"]$500[/color] line of credit?


FED-Shakls
 
Posts: 2
Joined: Sun Jul 22, 2012 4:17 pm
Location: America

Postby FED-Shakls » Mon Aug 06, 2012 6:49 pm

.... *bump* ....

kashmac123
Gold Member
Gold Member
 
Posts: 32
Joined: Thu Aug 09, 2012 3:26 am
Location: Los Angeles, Ca

Postby kashmac123 » Thu Aug 09, 2012 4:22 am

That is a very good idea. Thanks for the post. Call Wells and ask them and report back to us.



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