Credit Union/Secured CC

[DeputyJ]

I just obtained a membership application for the credit union the Sheriff Office, that i work for, uses. Going to set up a savings account with the deductions coming out of my paycheck. Figured it be a extra way to put money off to the side. Just don't know how it will or even if it will help me in regards to anything related to my credit. Worse case, ill just have extra money stored.

 

Another thing I've been looking into. Secured CC's.

 

I was told since I'm on the road to credit recovery, I should look to get a secured CC to have a positive TL reporting while cleaning up the bad ones. I just don't know which is better as compared to another. I know most have annual fees, lump sum down-payment to use as your credit limit. Any suggestions on which would be good to look into? I know some things I should be looking for is roughly how long it will graduate to unsecured (if it ever does) and how it reports to CRAs (if it does).

 

Thanks

[funkiehouse]

A graduating card is ideal. They usually take 12-18 months although there may be some that do in 6-12. If that CU doesn't do it I recommend finding one that does because it's really nice to keep that card going instead of eventually closing it to get your money back from the deposit. Most will put the funds in a CD. I've never had a secured card but I'm sure other will come with more advice. How are your reports and scores right now?

[RedHairedLady]

Capital One has a secured card that, depending on your credit scores, can be had with a $49 or $99 deposit, and gives a $200 limit. From what I've read though, it won't ever graduate to an unsecured card. Although Capital One states that they may (may, not guaranteed) give credit line increases to some secured card holders.

Edited March 13, 2014 by RedHairedLady

[DeputyJ]

I was checking out the CU website and I don't think they do secured cc's but I just glanced it over. I'll be working a 18 hour shift tonight so I'll be looking into it.

 

Reports right now are not good, but I just started the process.

 

2 CAs reporting. 3 OC charge-off's with balances. 2 OC CO's with $0, sold to the 2 CAs.

 

Sent 2 dv letters to CAs. Settled one OC charge-off wth CA (before I started learning what to do) waiting for it to update. 1 student loan in default, just started rehabilitation this month. 1 auto loan reporting current, paying on time.

 

Experian 565

Equifax 567

TU 577

[DeputyJ]

Just applied for the Capital one secured MasterCard. Approved for $99 deposit. Paid and now going to wait for it to come in.

[RedHairedLady]

Just applied for the Capital one secured MasterCard. Approved for $99 deposit. Paid and now going to wait for it to come in.

 

Just applied for the Capital one secured MasterCard. Approved for $99 deposit. Paid and now going to wait for it to come in.

Great! I'm waiting on mine, too. Just paid the deposit today as well.

[funkiehouse]

Congrats. I wish I knew you were going to app for the Cap One card because I would have recommended US Bank over the one you got. One of these for example:

 

https://www.usbank.com/credit-cards/secured-card.html

 

https://www.usbank.com/credit-cards/lanpass-visa-secured-credit-card.html?ics_src=93602

[DeputyJ]

Congrats. I wish I knew you were going to app for the Cap One card because I would have recommended US Bank over the one you got. One of these for example:

 

https://www.usbank.com/credit-cards/secured-card.html

 

https://www.usbank.com/credit-cards/lanpass-visa-secured-credit-card.html?ics_src=93602

 

 

I like the first one. Maybe if I decide to get another depending on how the OCs do, Ill get another.

[DeputyJ]

Just applied for the Capital one secured MasterCard. Approved for $99 deposit. Paid and now going to wait for it to come in.

 

 

I've been reading a bunch in regards to utl % and other stuff. I'm just wondering for best case scenario sake.

 

I get my Cap1 Secured CC in with a $200.00 limit. (Soon)

 

I will be strictly using this card to build my credit, I don't need it to purchase anything, etc. What is the best way to use this card to my advantage to build the best, or as much, credit with it?

 

And.... how's the best way to pay it in regards to making sure it reports on the CRAs then paying it off prior to any interest?

 

When I get the bill, it has been reported?

 

Just trying to maximize the potential of this secured CC.

[SmellyMonkey]

If you want to show activity, consider amazon gift cards (https://www.amazon.com/gp/product/B004LLIKVU) to yourself; this shoudl put you in a very low utilization ratio, but still non-zero . I do that to my Cabelas and sportmans guide cards.

 

Or buy something just before the cycle ends and then return it after that. I've never done that but it sure makes me think.

 

Or just use it as if it was cash you already had budgeted for groceries and whatnot, paying it in the end of the week. FYI, I have been doing this last one to my Delta AmEx since I want to reach the $1K utilization for the first 3 months, so I can get the skymiles. In fact, I have been using it to pay the recurring monthly bills (phone, cable, etc) I have; they are known quantities. April should be the last month I will be doing that. I will then decide how much I really want to use that card until the end of the year.

[DeputyJ]

Congrats. I wish I knew you were going to app for the Cap One card because I would have recommended US Bank over the one you got. One of these for example:

 

https://www.usbank.com/credit-cards/secured-card.html

 

https://www.usbank.com/credit-cards/lanpass-visa-secured-credit-card.html?ics_src=93602

 

I have my Cap1 Secured CC w/ $200 CL on the way.

 

Should I also get the USBank or BOA Secured CC also?

 

2 better than 1? or roll 1 for awhile then get another?

[haydeno]

Bofa is more picky about approval, I would go with us bank(plus no fee)

 

Sent from my SPH-L900 using Tapatalk

[funkiehouse]

 

Congrats. I wish I knew you were going to app for the Cap One card because I would have recommended US Bank over the one you got. One of these for example:

 

https://www.usbank.com/credit-cards/secured-card.html

 

https://www.usbank.com/credit-cards/lanpass-visa-secured-credit-card.html?ics_src=93602

 

I have my Cap1 Secured CC w/ $200 CL on the way.

 

Should I also get the USBank or BOA Secured CC also?

 

2 better than 1? or roll 1 for awhile then get another?

 

 

It's good to have at least 2, if not 3, just in case something happens to the Cap One and it gets closed. If your doing secure I would just do 2 and let them build some history.

[DeputyJ]

 

 

Congrats. I wish I knew you were going to app for the Cap One card because I would have recommended US Bank over the one you got. One of these for example:

 

https://www.usbank.com/credit-cards/secured-card.html

 

https://www.usbank.com/credit-cards/lanpass-visa-secured-credit-card.html?ics_src=93602

 

I have my Cap1 Secured CC w/ $200 CL on the way.

 

Should I also get the USBank or BOA Secured CC also?

 

2 better than 1? or roll 1 for awhile then get another?

 

 

It's good to have at least 2, if not 3, just in case something happens to the Cap One and it gets closed. If your doing secure I would just do 2 and let them build some history.

 

 

Does the USBank Secured CC graduate to unsecured eventually?

[funkiehouse]

This is their statement on that. It's pretty much the same as what you read with all other secured cards that might graduate.

 

When you've managed all of your credit obligations responsibly and consistently for 12 months, you'll be well on your way to a stronger credit standing, and we may be able to move you to an unsecured credit card product.

 

https://www.usbank.com/credit-cards/secured-card.html

 

​It's under the "How secured credit cards work" drop down.

 

The thing I like about US Bank is that it doesn't scream sub-prime like Capital One, although this has no direct effect on your credit reports or scores, just in UW and in your own head.

Edited March 20, 2014 by funkiehouse

[DeputyJ]

Yea I was thinking the same. Think I'm going to pull the trigger in the usbank secured in 2 weeks. Cycle both cards, the cap1 and this one, to get them both reporting.

[funkiehouse]

Yea I was thinking the same. Think I'm going to pull the trigger in the usbank secured in 2 weeks. Cycle both cards, the cap1 and this one, to get them both reporting.

 

Sounds like a good plan. Cap One is one of the better rebuilder cards. I just have bad history with them, even though I still have 2 of their cards.