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"Secured" credit card in Credit Report


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Hello All:

I read in this site that having a "Secured" credit card is not considered a positive thing. The writer says, to choose one that wouldn't mention "Secured". Why is that?

I have a Wells Fargo secured Visa, for the past 8 months; it is reported as "Credit Line Secured, Revolving". I am hoping that they make it unsecured once it is a year old and in good standing.

DonDoc is great!

Sincerely,

Michael

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The reason that secured accounts suck is because of their very nature.

Unsecured accounts, like installments or revolving, are based just on your signature. The creditor feels that you are worthy enough to pay back this loan based solely on your word.

But if your word isn't good enough, then there are the secured accounts.

Secured accounts will not generate the kind of positive good credit history that an unsecured account will. It is like one notch above zero.

There is a lot of confusion about who should get them. If you have slow credit, like you are 18 years old or have virtually no credit, then you are not in a bad situation. I know of plenty of people who hard have been in this country and are able to drive off the lot with a brand new car and obtain lots of cards.

Slow credit is fine. You can find lots of places that will give you unsecured cards. They will be crummy rates but they are available. Mostly gas stations and department stores.

If you have bad credit, then nobody will touch you, even with a ten foot credit card.

Unpaid chargeoffs, unpaid judgements, etc...

That is about the only type of situations where secured cards would come in. Still, some are better than others. There are a few outfits that will give you a secured card but report it as UNSECURED. I had two cards that were just like that when my credit sucked big green donkey [EXPLETIVE DELETED].

Secured cards will help you but at a snails pace...

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