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