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Which secured Credit Card to apply for?

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Probably as an investment in his credit?
Sorry, no. That's pure big bank advertising. Giving them money, that they can hang onto, and charge you a fee for doing so is a golden goose for them. They not only get your fee, but they get a "processing" fee from wherever you use the card.

The claim that secured cards in some way help your credit scores is pure horse pucky. FICO, in effect, ignores secured CCs when calculating your FICO Bank Card or Mortgage scores, and they have no effect whatsoever on your FICo new car score.

Secured cards are a scam...

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The banks that issue these cards want you to believe that they help your score, but they do not.

Why on earth you deposit money into an account that turns around and charges you fees on that money. It a freebe for the issuers of these types of cards.

It is another scam that is allowed to be purported due to the shear fact that the people that run the scam have money.

We all know who make the laws in this country and why they make the laws.

Those whom have(the haves) make the laws to keep those whom do not have(the have nots) where the haves want them, at the bottom of the ladder.

Those whom have things have a different social life then those whom do not have. So the haves make laws to keep the have nots from becomming a have. Its called capitalism.

In the years of the Kings the have nots were called peasants.

Edited by BTO429
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I have both the apllied bank gold and capital one. I only had to deposit 49 dollars for the capital one. I don't know if it helps your credit all I can say is my Ficos went up after getting them. But there are reasons to get them, my main reason was I travel alot and without a credit card you can not rent a car. I found this out the hard way in Feb when we were stuck at the airport because even though I had already paid for the rental they wanted a major credit card. I only had a debit and they pulled my credit and it was a no go. Luckly my brother in law came to the rescue. So regardless of weather it helps your credit it is very useful to have.

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They might not help your credit, but they will do the same as a regular cc. Also after some time, the cc company will make it unsecured. My first ever cc was a BOA secure card that my mom put the deposit, so looooong ago, after some time but less than 1 yeat they made it unsecure and send me the check of the deposit, and the fact that you got a card with capital one for example, makes them more likely to issue you a regular card later on.

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Info and activity of secured cards is definitely transmitted and recorded by the credit bureaus. How it's translated is up for debate. The fact that the credit limit (based on your deposit) is usuallly low probably is a big reason for secured cards having a lower impact than a "normal" card. But it will undoubtedly show activity on your report.

And as kutuzov mentioned, issuers will often upgrade the secured card to a better unsecured offer after a certain amount of time (usually 1 year). So this will help further improve your credit score over time...

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Secured cards don't help credit?

Funny, as soon as I was approved for mine and it was reported I got a score jump. Now, just as with any other CC if I run it up score goes down. Pay it off score goes up. Pay most of it off but leave a small balance and get the biggest boost.

And cap one does not report it as a secured card, just as a CC.

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@ BTO249 & Willingtocope

 

So what is your suggestion for a person with no tradelines a good paying job and absolutely positively no credit card and would get denied for an auto loan repeatedly for not having any tradelines or credit?

I am describing someone i know who has been here since 2004 and never had a need for a credit card until now. There isnt exactly enough $$$ in the bank to pay for an auto in cash. Neither jewelry or airline tickets to foreign countries.

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Secured cards do help your credit history, if they didn't why would banks graduate people from a secured card to an unsecured card? Why would creditors approve consumers with a secured card Vs denied a consumer with no credit history?

 

There are plenty of dodgy secured cards on the market, but there are plenty that don't charge application fees, annual fees and give interest on the secured deposit as well. Try DCU, Navy Federal or the Harley Davidson card. 

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Check out USAA's secured credit card - they have the best APR rate and you're putting that money into a cd.

 

So...lets think about this.  You give them money...however much you give is your credit limit.

 

Your money is tied up in a CD...for TWO years!  They pay a variable rate (currently 0.54%) on the CD, but charge you 9.90% on the CC balance.  And, you only get to keep that whopping big 1/2% if you don't default on your payments.

 

Hmmm...wouldn't it be a better idea to simply have your money in an interest bearing checking account...with a debit card?  For that matter, even if the checking account isn't interest bearing, you're still ahead.

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So...lets think about this.  You give them money...however much you give is your credit limit.

 

Your money is tied up in a CD...for TWO years!  They pay a variable rate (currently 0.54%) on the CD, but charge you 9.90% on the CC balance.  And, you only get to keep that whopping big 1/2% if you don't default on your payments.

 

Hmmm...wouldn't it be a better idea to simply have your money in an interest bearing checking account...with a debit card?  For that matter, even if the checking account isn't interest bearing, you're still ahead.

Opening a checking account and getting a debit card will do absolutely NOTHING to improve your credit.

 

I got a Open Sky Secured Credit Card.  Annual fee was only $29.00 and APR is lower than most secured cards.

 

They report to all 3 bureaus.  Also, NO CREDIT CHECK/INQUIRY.

 

I had my Open Sky for 2.5 months and my FICO went up 18 points.

 

I pay off the balances EVERY month.  Open Sky has only made $29.00 off of me.  That was the annual fee..  

 

The only drawback about Open Sky is it does NOT graduate to unsecured at a later date.

 

I can live with that.

 

I don't understand why you keep telling people that secured cards do not help credit repair, THEY DO !!!

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I'm not 100% against secured credit cards...all I'm saying is read the fine print, and think it thru.  Here's an excellent article:  http://www.bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.aspx

 

Pay particular attention to item 7. Not all secured cards report.  And, it can take a year or two before the reputable ones will convert to unsecured.

 

As far as Open Sky is concerned, read http://ficoforums.myfico.com/t5/Credit-Cards/OpenSky-SCC-the-worst-secured-credit-card/td-p/1695114

 

...now, suppposedly they have cleaned up their act recently...but...

 

And, as far as an 18pt jump in your ACTUAL FICO sucker score goes, you can get an 18pt jump by just not doing anything bad for 2-1/2 months.  I would not attribute that to having the secured card.

 

IMO, if you have bad credit ...CO's, BK's, repos, etc. on your reports...secured cards will bump your sucker score because other secured card companies will want a piece of the action.  Secured cards will not help your FICO Mortgage Score.

 

Now, if you have no credit history and need to start gathering some, go to a local credit union and open an account.  In general, their fees are lower and you still have access to your deposit if you need it.

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