Secured cards not reporting as "secured" with no hard pull?

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cs70
 
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Secured cards not reporting as "secured" with no hard pull?

Postby cs70 » Sun Jan 06, 2013 6:47 pm

I am wanting to buy a house later this year, to help raise my score I am looking for a secured credit card with the following;

1) one that will not pull a hard inquiry (soft at best)
2) one that reports to all three credit bureaus as a regular credit card (not putting "secured" in the description).

I know the 'secured' issues will not effect my credit but could cause raise an eyebrow if my report is hand reviewed.

If anyone has first hand knowledge of one that fits, please post.


Robrus1
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Postby Robrus1 » Tue Jan 08, 2013 9:25 am

I'm pretty sure the card you want doesn't exist. Your credit score will be the biggest factor in applying for a mortgage, as well as any delinquent accounts. If you're having trouble getting an unsecured credit card, you may want to improve your credit score to get a better rate when you apply for a mortgage.
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namvet
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Postby namvet » Wed Jan 09, 2013 5:23 pm

There is a secured card out there that does not pull creditand reports to all 3 bureaus asa regularcredit card. Not the best card but it does fit what you are looking for. http://www.opensky.com

CCGuy88
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Postby CCGuy88 » Wed Jan 09, 2013 5:26 pm

I wanted to know about this as well. Do secured credit cards pull a hard credit check, and if so, how long would it be wise to keep one active and open before you apply for a unsecured credit card?

s.jessica
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Postby s.jessica » Wed Jan 09, 2013 11:39 pm

Most of the secured cards from the better issuers, Cap1, WF, BofA, U.S. Bank, etc. will do a hard pull, this is mostly to see that you haven't had a recent bankruptcy. If I were to guess, I would say you have fairly decent credit but want to give it a bump for lower interest rates and you don't want inquiries on your credit report. The bad part about lenders like Applied Bank or First Progress, they don't look good on a credit report. When an account from a place like Open Sky comes up on your report, potential lenders may look at that like you had to do business with a high risk lender. Also, if you read the fine print, these cards are riddled with fees, open Sky charges 22% interest and there is no grace period for purchases, so you pay interest from day 1.

I have a couple of friends who have been through this, here's what their local banker to them. For best results, have credit in your name. You can apply for 1 or 2 cards, just make sure you apply for something you qualify for, Cap1 has a cash rewards card for fair credit. Having 2 recent cards on your report doesn't hurt as bad as opening 15 when you've never used credit before. It's mostly when you apply for a home loan, they want to know that you won't go on a spending spree and get yourself $20,000 in debt after getting your loan. One card with say a $1,200 credit limit that you've had for 6 months won't hurt like if you went and applied for a store card from every store you shop at in the same day.

I've been doing some reading on secured cards and the best advice I've found is to get something from places like US Bank or BofA that will unsecure after a period of paying on time. These places will notify you that you can get your deposit back and have a regular card. With places like Cap1, wait a year or so check your credit score then try to apply for something else. What I've been told, if you've had a secured card for about a year, it's time to see if you qualify for something else.

From what I looked into, you might want to consider a small personal loan before applying for a credit card. Some banks would even let you do a secured loan for building credit, but the idea is to borrow $1,000 to $2,000 but don't spend the money, open a new account or even a CD at another bank. You want to hang onto this money in case you need it to pay back the loan, but keep it in a safe place. Now make monthly payments for a year then pay off the loan. By now your credit should have seen a huge boost and you'll look good to the bank that loaned you the money.

CCGuy88
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Postby CCGuy88 » Thu Jan 10, 2013 8:13 am

So would it be wise to get a secured credit card a credit union, or apply for a small personal loan? Would the interest rate on the loan be quite expensive though? And what about the interest if you put $1000 in a CD? Would I be basically paying in debt to establish the credit?

Thanks if you can clear this up, and any recommendations you have for any cards would be greatly appreciated.

jupiter
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Postby jupiter » Thu Jan 10, 2013 6:41 pm

CCGuy88 wrote:So would it be wise to get a secured credit card a credit union, or apply for a small personal loan? Would the interest rate on the loan be quite expensive though? And what about the interest if you put $1000 in a CD? Would I be basically paying in debt to establish the credit?

Thanks if you can clear this up, and any recommendations you have for any cards would be greatly appreciated.


I would say a credit union's card would be your best bet. My own secured card is issued by a credit union (Golden1 in CA), and it fits your criteria of not having a hard pull, and reporting monthly. Only thing is you need to deposit 1.5x the limit you want into a savings account to secure the line. Also, this particular secured card works in a much different way than others do. You don't have a grace period, so to avoid interest you have to pay the balance before the cycle ends. But with online payments, that shouldn't be too hard. To be a Golden1 member though and get the card, you have to either be a CA state worker, be related to a member, live in an area with a branch, or become a member of the FFA (for $5/ year). More details are here: https://www.golden1.com/Membership/default



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