matthewscott Posted January 13, 2008 Report Share Posted January 13, 2008 I figure this has been asked before. I tried searching but I didn't see anything out there. Please forgive me, if this is already been discussed.Ok, here is my thought process, let me know if you think this will help me. I opened a secured credit card with US Bank in March 2007. I suspect that it will become unsecured in March of this year. The limit is only $300. That is my initial deposit and I never added to it. Recently, I got a personal loan. It looks like I'll have a few extra bucks from that. I'm thinking of adding to the secured savings account that is backing my card. I hope that it will make the account look good to the bank and on my credit report. Then if it does indeed unsecure itself then I could use the money to pay down other debts.I think my reasoning is that I would want to increase the credit limit and look good to the bank. It would also help to have that extra cash locked down. Ok, what do you guys think? What are the pros and cons? Link to comment Share on other sites More sharing options...
jq26 Posted January 13, 2008 Report Share Posted January 13, 2008 Pro#1: probably will boost your limit to the size of your secured deposit. If they unsecure it, they may allow you to withdraw funds but keep the higher current limit on the card.Pro#2: It is cashed squirreled away and saved for another day.Con#1: This additional saved money is borrowed money (you stated it is from a personal loan). That is non-deductible high %apr expensive money. Then you are receiving a nominal % savings rate that is fully taxable, reducing the gain further. From a financial standpoint, you'd be better off paying down the balance of the personal loan with that money. You have to decide if the 'credit' benefit outweighs the 'financial' cost of what you plan to do. It all depends on your situation. Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 13, 2008 Report Share Posted January 13, 2008 I've had my secured US Bank Visa for 2 years - they won't unsecure it. in other words - don't carry a high balance percentage and don't dare go over limit Link to comment Share on other sites More sharing options...
matthewscott Posted January 14, 2008 Author Report Share Posted January 14, 2008 I've had my secured US Bank Visa for 2 years - they won't unsecure it. in other words - don't carry a high balance percentage and don't dare go over limitNow that you mention it. I think I remember reading about your US Bank card. Can you expound on your experience?The low limit it what scares me. $300 is not a very large limit. According to their site, I understood it as if they would unsecure the savings account and move the credit card account to a different type of credit card. Here is the link. http://www.usbank.com/cgi_w/cfm/creditcards/secured/usb_secured_card.cfmAs far as the loan, I don't have any problems making the payments and I should be able to pay if off in full before it's totally due. I thought I might could use the extra financial cushion to help my credit. Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 16, 2008 Report Share Posted January 16, 2008 I was overlimit and late (though only 2 days or so) with payments, that's why they won't do it for me. My bad behaviours with them a year or so ago...But overall it's a great idea....so long as you can be a good consumer nad not go over or be late Link to comment Share on other sites More sharing options...
matthewscott Posted January 16, 2008 Author Report Share Posted January 16, 2008 I was overlimit and late (though only 2 days or so) with payments, that's why they won't do it for me. My bad behaviours with them a year or so ago...But overall it's a great idea....so long as you can be a good consumer nad not go over or be late Oh, ok. That makes sense now. I wasn't totally sure that you were talking about your personal experience or the terms of the card. Hopefully, they will unsecure it for you someday. I'll probably send then some money. I just don't know how much would be best. I really want to keep a good relationship with them. Hopefully, they would move me to a really good card once it unsecures. Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 16, 2008 Report Share Posted January 16, 2008 I'm a fan of BofA.Prime lender, great rates. I've got the 99/500 card. Link to comment Share on other sites More sharing options...
AboveAverage Posted January 16, 2008 Report Share Posted January 16, 2008 I'm a fan of BofA.Prime lender, great rates. I've got the 99/500 card.Usually I get these, but I'm clueless...can someone tell me what 99/500 is? Link to comment Share on other sites More sharing options...
lovebug5 Posted January 16, 2008 Report Share Posted January 16, 2008 Usually I get these, but I'm clueless...can someone tell me what 99/500 is?Isn't this the card where you put down $99 and they give you a CL of $500? Link to comment Share on other sites More sharing options...
MaxedOut Posted January 16, 2008 Report Share Posted January 16, 2008 I wouldn't bother increasing the limit. Pay your bills on time, keep a clean credit report (or continue to clean it up if needed) and the bank should unsecure the card and give you a decent limit. If they do not, forget them then. There are pleny of other banks out there that would LOVE your business. The money is better paying down the loan a bit, or putting away for a rainy day. Link to comment Share on other sites More sharing options...
Amerikaner83 Posted January 17, 2008 Report Share Posted January 17, 2008 Isn't this the card where you put down $99 and they give you a CL of $500?Yes it is.But you won't find it advertised anywhere. One has to apply for (and get denied for) a Platinum Plus VISA account with BofA, then if you're credit is OK they'll counter offer with the 99/500 secured either online or snail mail (mine was snail mail).It is like any other secured card, except your CL is higher than the amount you deposited. Link to comment Share on other sites More sharing options...
matthewscott Posted January 17, 2008 Author Report Share Posted January 17, 2008 Pro#1: probably will boost your limit to the size of your secured deposit. If they unsecure it, they may allow you to withdraw funds but keep the higher current limit on the card.Pro#2: It is cashed squirreled away and saved for another day.Con#1: This additional saved money is borrowed money (you stated it is from a personal loan). That is non-deductible high %apr expensive money. Then you are receiving a nominal % savings rate that is fully taxable, reducing the gain further. From a financial standpoint, you'd be better off paying down the balance of the personal loan with that money. You have to decide if the 'credit' benefit outweighs the 'financial' cost of what you plan to do. It all depends on your situation.I was overlimit and late (though only 2 days or so) with payments, that's why they won't do it for me. My bad behaviours with them a year or so ago...But overall it's a great idea....so long as you can be a good consumer nad not go over or be late I wouldn't bother increasing the limit. Pay your bills on time, keep a clean credit report (or continue to clean it up if needed) and the bank should unsecure the card and give you a decent limit. If they do not, forget them then. There are pleny of other banks out there that would LOVE your business. The money is better paying down the loan a bit, or putting away for a rainy day.Ok, I really appreciate the advice. I *really* want to improve my situation and I'm hoping to clean up my credit well enough to qualify for a prime card pretty soon. I'm looking at the American Express Clear Card. I think I should qualify for it in a short time. I sure would be proud to have that card. I guess the Wal-Mart discover might be consider prime by some people but it's still a store card to me.So, I decided to kind of go against the advice and make a compromise. I had a limit of $300. I sent them another $300. I really don't want to go over the limit or get too high on utilization. I still have a good chunk of money in the bank for a rainy day so I'm not too worried about that. I just didn't want to tie up too much money so I stuck with $300.I guess we'll see if it really helps or not. I hope it isn't a mistake. Link to comment Share on other sites More sharing options...
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