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  1. #1
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    Default Getting US Bank to increase the credit limit on a secured card

    I was wondering if anyone has a US Bank secured card and if they've tried to add to their security deposit to up their credit limit. I just got the card with a $300 limit but found out today I somehow need a much higher limit.

    Explanation: I just started a new job and will need about $2000 monthly to cover expenses while on the road. I know this sounds stupid, but a friend of mine got me this job and by all rights, I really shouldn't have got it. I haven't had a decent job for almost 2 years so while my first instinct was to tell the guy to go stick it, I don't want to go back to no job. I was told that while I would normally be issued a company credit card, due to my poor credit score, I would have to wait at least 6 months and prove myself. It's easier to understand when you hear the story of how the guy I replaced burned them big time, he went out of his way to stay at the most expensive hotel and had prime rib sent to his room.

    For now what they want is for me to have a record of my spending with proof of expenses. They don't want to mess with a shoebox full of receipts and I can't just write my expenses down, it needs to be like a credit or debit card statement. It's preferred that it's something only used for that purpose so they don't have lots of personal expenses to sort through. What they wanted to do it get me a prepaid Amex because it doesn't have any monthly fee and they won't be responsible for fees the card charges, but after looking things over and reading reviews, I told them I didn't want any prepaid card.

    When I got to thinking about it, I have a secured Capital One Mastercard with an $800 credit limit that I can use for personal things and if I could raise the secured US Bank Visa card from $300 to $2,000 it would work for the job expenses. Now before someone gets on me about maxing out the card every month, it's so I can have a job and it can't be helped.

    Now before someone starts in on prepaid cards, the answer is NO! I know about the US Bank Convenient Cash, Chase Liquid, Capital One prepaid etc. I tried a bunch, several I never could figure out how to get money on, I managed to get money on a couple others, used them once and threw them away. Bank checking account debit cards won't work because I may need to spend $600 to $800 in one day and the bank I use limits their debit card to $200 per day.

    What US Bank says is that I need to write a letter requesting a credit limit increase and include a check for the amount of the requested increase. My first plan was to try to add say $300 every few months, but now I'm looking at adding $1,700 now. What are my chances of getting it approved?
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  2. #2
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    Not much information is avaialble for the US Bank secured cards. I have not heard anything about simply being able to add to the deposit to obtain a higher credit line but I have also not heard anything about not being able to. My only concern with adding to the deposit is that lets say you do get your limit to $2000 but after a year they decide that you do not qualify for that limit unsecured. So the card has to be secured longer than the normal 12 months or they reduce the credit line.

    Also, why would you want to have to write a letter and apply for the increase every few months in $300 increments? Capital One on the other hand, accepts additional deposits to boost your credit line. I understand that this is a very easy process. So I would simply increase the limit of Cap One and forget about dealing with US Bank on this front.

    What God awful bank do you bank with that only allows $200 daily debit card transactions? Does Nebraska even have any decent banks? I think you all have Wells Fargo. No Chase? I see that Lincoln and Omaha at least have US Bank. If you have a secured card with them, why not move your checking and savings to them. I would be switching banks if my bank capped my debit card purchases (not cash withdrawals) per diam. That is just ghetto.
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  3. #3
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    Well, does anyone know of any banks that would say let you spend $800 with a checking account debit card? They've been trying to push a US Bank Convenient Cash card on me, I have a local branch where I can load cash for free, but I doubt if they would cash a check there for me unless I open a checking account. From what I was told, the convenient cash card would be cheaper unless I can keep a $1,500 balance in a checking account. I still would need 2 checking accounts for this because I have to turn in my monthly statements and I don't want my employer seeing all of my personal business. The worst part is my monthly expense check comes in the form of a paper check from my employer, I need to get the check cashed and then take the cash and run across town to US Bank to load the cash on my prepaid card. We do have a local Wells Fargo if that's better, but no we don't have Chase.

    I've had reservations about Capital One because I was advised not to send them the additional $600 to boost my credit limit, because the card will never unsecure. They way it sounds they make you cancel the secured card, THEN you can apply for I think is a platinum card with something like a $750 limit and it never improves from there. Also if I send them more money and later decide I don't need that much credit, I can't just get part of my security deposit back, I have to cancel the card and get it all back. I seriously thought about seeing if Wells Fargo would open me a secured card with a $2,000 limit and I could always cancel it and get my money back in 6 months. I really got these cards for building credit, not for seeing how much I could charge so I haven't been worried about the credit limit until now. From what I understand US Bank has to approve the credit limit increase even for their secured cards so my financial advisor said I should wait several months and increase the limit by small amounts or I'm likely to be denied. It sounds like if you wait very long, they pull your credit again to make a decision.

    Also, I should add expenses we encounter are like gas, food and motels when travelling on the road within several hundred miles of home a couple times a month. They said in the unlikely event that air travel becomes necessary, they make the travel arrangements for you so I would never have to be concerned about charging such items.
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  4. Centurion Member
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    I'm 99% sure PNC allows me to withdraw $500 a day at an ATM, $5,000 per day credit, and $3,000 per day debit. I'll double check on this though.

    Active Cards:
    Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
    Chase Sapphire Preferred ($10k Limit - 2/2013)
    Chase Ink Plus ($7k Limit - 2/2013)
    Discover IT ($9.5k Limit - 10/2012)
    AMEX Zync (No Pre-set Limit - 1/2010)
    AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)
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  5. #5
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    You are correct, the Capital One secured card (at least currently) does not become unsecured. I still recommend; however, going this route. Send in the additional deposits so that you can have a higher credit line to temporarily allow for greater spending. Then in a year or two when your credit improves you can obtain better credit cards with higher limits. At that point you would want to kick Capital One to the curb anyway. Capital One is a great company and has helped loads of people with scandalous credit with a second chance. But Capital One's business model is odd in that they really don't seem to care about building a long term relationship with rebuilders. And that's fine. They have a sell-by date. Once you've obtained better cards, cancel the Cap 1 and get your deposit back.

    I would not recommend obtaining additional secured cards at this point. Two is enough. The easiest solution to your problem right now seems to be to send additional deposits to Cap 1. They make it easy and painless.

    I honestly have never heard of a daily cap on debit card purchases as I never really use mine. I know most banks have a daily limit of cash withdrawals. Bank of America sets daily cash withdrawals at $1,000 for regular accounts and $1,500 for private wealth and Merrill Lynch accounts. But, even if a bank does set caps on daily PURCHASES, it sure as heck should be more than $200 per diam. It isn't 1982; in 2012 most people spend more than that a day especially when traveling. I stand by what I said about shopping for a better bank or having a conversation with your current bank and see if you can get that daily purchase limit increased.
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  6. #6
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    To show how bad it is, my bank said I could always call in to have my daily limit lifted. I tried calling on a Saturday only to learn that in order to get this approved, I have to call during regular business hours Monday through Friday. I called back Monday morning and told them what I wanted to do and they said fine, they would raise my limit and I could go ahead and purchase what I needed. I got held up on my way to the store but didn't think much of it. I had 2 purchases to make and gave them the amount of each one plus I asked if they could make it a little higher to give me some breathing room in case I wanted to use the card for lunch or something. I made my first purchase then proceeded to the next store to make the second purchase - guess what, my card was declined. I thought there was a mistake so I called in. Turns out when you call in like that they only raise your limit for an hour then put it back down again as they feel that's long enough to make your purchase. I made my first purchase 15 minutes after they put my balance back down so I went over my daily limit by $7 and got charged a $35 fee for being over my daily limit. Over $6,000 in my account and I was charged a fee for spending $207 in one day. When I called back they said when it went past one hour I should have called back again, now there was nothing they could do, I would have to pay the stupid fee and I couldn't use my card again until tomorrow. I then went to the nearest branch and pulled out $500 cash to make my next purchase.

    I then tried to apply for an account with Ally Bank, but to my shock I was declined. I didn't know it at the time because I was applying for an online checking account, NOT a credit card, but they did a hard pull on my credit and my low score took another ding. My Mom wants me to switch over to Wells Fargo because she uses them. She wants to take me there to open a savings account then she said she's going to have me use the funds to open a secured card with a respectable credit line and then finally move my checking account. Once we get that done she's going to have a friend help me get the US Bank card cancelled before it reports and she said that should fix everything that I got screwed up.
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  7. #7
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    For you to get declined on Ally checking account, it usually means something bad is on your Chexsystem report (not TU/EX/EQ). Have you ever bounced a check?

    Getting back to topic, Capital One Secured CC IS the best secured CC. WF secured CC has low graduation rate (few people managed to get it unsecured). WF secured CC requires no BK in previous year.

    I don't understand why you are having problems with prepaid card. Right now I am using Serve from AMEX just fine.

    My recommendation: Get a PayPal debit card and link it to your checking account. PayPal debit card has daily spending limit of $3,000.
    In My Wallet:
    Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
    Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
    BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
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  8. Platinum Member
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    I just talked to someone who thinks it has more to do with my address than anything. For some reason some of these places see my mom's address as my address even though I don't live there.

    Amex just sent me the following message:


    Dear

    Thank you for choosing the Card.

    Unfortunately, we could not complete your order for the following reason:

    We could not verify your order information and cannot approve your order at this time.

    If you feel that this was caused in error, please call us toll-free at 1-866-207-7970.

    If you would like to attempt to order the Card again, please visit us online.


    Sincerely,
    American Express Customer Service

    Reordered using my mom's address and the order went right through. I thought about giving Ally another try using my mom's address as well. I asked my bank if I could open another account and get a debit card with say a $1,000 daily spend limit and they said they didn't have that available. Debit cards on all accounts are limited to $200 daily as a safeguard against overspending. What? I can write a check for $1,000 but only use my debit card for $200? I don't get it. I've never been an Amex fan because it's too hard to use it in small towns, so I will likely just cut it up when it gets here.

    For now I will either have to get the credit line increased on the Capital One card or use the US Bank prepaid convenient cash card.
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  9. #9
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    Bank imposes spending limit on debit card because,

    * Considerably less profit from debit card than credit card. Even a written check yields more profit than a debit card.
    * Virtually no protection against fraud. If a fraud occurred, you are pretty much liable for the full amount.

    For AMEX Prepaid card, you just need to fax over a utility bill with your address on it.
    In My Wallet:
    Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
    Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
    BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
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  10. #10
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    Quote Originally Posted by shoptalk01 View Post
    Turns out when you call in like that they only raise your limit for an hour then put it back down again as they feel that's long enough to make your purchase. I made my first purchase 15 minutes after they put my balance back down so I went over my daily limit by $7 and got charged a $35 fee for being over my daily limit. Over $6,000 in my account and I was charged a fee for spending $207 in one day. When I called back they said when it went past one hour I should have called back again, now there was nothing they could do, I would have to pay the stupid fee and I couldn't use my card again until tomorrow. I then went to the nearest branch and pulled out $500 cash to make my next purchase.
    Yeah, I'd be dropping that ghetto fabulous bank like 1st period gym class. I can understand wanting to hedge against possible debit card fraud, but they should be working for their customers not the other way around. Meaning, you should be allowed to make purchases above $500 daily and if they detect fraud it is their responsibility to monitor the account for possible account takeover and put a block on it until they can contact you to confirm the activity. I could even understand limits in Los Angeles, NYC, Miami, Phoenix etc. But Nebraska? NOTHING happens in Nebraska. One of the more boring states with very little fraud. I can't stand Wells Fargo but I say take your moms advice and run to the branch to open an account. What bank do you bank with? Cornholler First Bank and Trust? Geez.
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