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Limit to amount secured card will graduate?


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I'm wondering if there is a limit to the amount I should put in a secured card that has the potential to graduate. I could put the maximum of $25k in, however I'm worried if I have too high of a limit whether that would stop it from graduating. In about a year's time I expect I'll have a credit score of 660-700. But this would be my only high limit card, as my other card would be a stupid Capital One of $300.

I'm wondering if it makes more sense to keep my limit closer to $3-5k and hope that makes more sense for them to graduate. My reasoning is it's one thing to unsecure $3k and a totally different thing to unsecure $25k. It's with my local credit union, so not sure if it makes a difference how much money I have in different accounts.
What is the most that people have seen graduate? I would guess they couldn't do a partial graduation, so they have to bite off the whole chunk or none of it.
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I did see someone on another board that had a Citibank secured with 25K and it was graduated with the full 25K limit.

 

I think it would be highly dependent on your usage. If secured limit is 25K and you only use a few hundered of the limit each month, its unlikely they will graduate with the same limit. If your putting through 50 to 100K in charges each year then I would think you have a good chance at graduating with the full limit.

 

Either way, In my opinion it doesnt really make sense to do more than 5K secured. Thats more than enough to rebuild and wil give you a high enough limit to get unsecured cards with higher limits down the road.

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My Citi and WF both graduated with a CL at the max they allowed. At the time that was 25k and 10k, respectively. I believe Citi now has a max secured CL of 5k. Also, I still had CAs and a lien reporting at the time they graduated though they were paid and about 5-6 years old by then.

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My high limit secured cards unsecured with no problem. In my opinion it was starting with these higher limits that's enabled me to get the unsecured limits I have now. Two accounts are better than one... Maybe do a $10 and a $15k?

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Interesting. Ok, that's good to know. I believe I'll max it out. I can definitely use the card pretty well over the year it takes to graduate. My ultimate goal would be to maximize my credit limits. So it might make sense to have two secureds that graduate at or above $20k. I'll have to ask the other credit union that I'm a member of what their limit is.

 

Thanks for your input, that was very helpful.

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Interesting. Ok, that's good to know. I believe I'll max it out. I can definitely use the card pretty well over the year it takes to graduate. My ultimate goal would be to maximize my credit limits. So it might make sense to have two secureds that graduate at or above $20k. I'll have to ask the other credit union that I'm a member of what their limit is.

 

Thanks for your input, that was very helpful.

If your goal is to maximize CLs, any potential delays in graduation should be of secondary concern.

 

You definitely want that 25k limit as bait for any new credit providers. If that means keeping it secured, you will probably want to keep it secured until you get high limits on a couple of new unsecured accounts.

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IMO, if you have the cash, getting the highest possible secured, but graduating, CLs under 40k (Fico doesn't score extremely high CL cards) is the best credit ramp up strategy. I've also never seen anyone comment that they had a secured card graduate but with a lower CL and I was quite concerned about that with my Citi card back in 2011.

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Thanks again for everyone's input. It sounds like the amount isn't as much of an issue as it is being "credit worthy". I was concerned that they would take into account the amount. I agree that it makes sense as my credit starts to get cured and I get offered new credit it's less likely I'll get offered at $300-500 limit card when I already have a $25k in my file. So hopefully my first unsecured will be a $5-10k+.

 

Thanks again.

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