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Whats the point of a secured credit card?


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When I started rebuilding my credit the first thing I did was go get a couple secured credit cards. One of them being Orchard Bank for 500.00. I've kept the account in good standing never being late. I've had the card for 3 years. They sent my another card for 300.00 which I've kept in good standing and now have no balance on. I've asked every year to make the one secured credit card unsecured but they won't. Why I have no idea. Anybody had this same isssue?

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I've asked every year to make the one secured credit card unsecured but they won't. Why I have no idea. Anybody had this same isssue?

Yes. Right after BK, my first card was an American Pacific $300 secured card (now became Elan Financial). Numerous requests to make it unsecured were denied. But I kept it open long enough to help my score rise enough to start opening better unsecured tradelines. Then I closed the AmPac card and received my $300 back plus interest. Two years after BK, I have multiple unsecured platinum cards with decent limits.

So it can be frustrating, but secured cards themselves are tools to be used to leap up to the next credit tier. The secured card itself really isn't useful by itself imo. And some cards will not even consider conversion to unsecured.

Good luck

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Either the particular cards you hold are not convertible (some are, some aren't) or Orchard doesn't trust you with unsecured credit yet. You may have better luck applying for a card with another lender than hoping for these to convert.

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I got a secured credit card through Merrick Bank after asking for it to become unsecured time and time again with no luck I closed the account. Which made my credit score go down:cry: After 4 months they sent back my 500.00 back and no interest why? aren't they required to send me interest on my money? I was thinking about closing my other secured credit cards but cant afford my score to go down anymore than it is.

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If you know your FICO scores (not your FAKO scores that the CRAs give out), you could try this CC recommender from MyFico.

http://www.myfico.com/LoanCenter/Offers/CreditCards.aspx

My Tribute MC is the only one listed for those with poor rated credit, but it's got a hefty $150 annual fee.

https://www.mytributecard.com/apply/app1.jsp?MEMBER_ID=mr644777536

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