Suggestions for a secured card that is not "subprime"?

[harryfpotter]

I'm helping a friend start to build his credit history. He's got one baddie that I'm hoping will go away soon. If it does or it doesn't, I'm wondering what would be a good first card? I'm thinking the FNBO Kickstart because it has a free EX 08 FICO, and apparently it graduates. The AF is $29, which is bad, but might be worth it for the FICO.

 

However, I've read that this is a "subprime" card and might not be good for building credit, it might look bad on his credit report. I've not really read anything good about FNBO on the web. Is "subprime" credit card a real thing? I know that Open Sky is terrible and I know why.

 

Is FNBO Kickstart not worth the free FICO? Is there a Credit Board Preferred Secure Visa/Master that does all the right things? The right things being, pulls only EQ or TU, reports on all three bureaus, graduates, and doesn't cost much so you won't hate to keep the trade line.

[Demonico]

Subprime cards don't offer anything in the way of rewards or worse have high fees and the like.

 

A $29 AF isn't bad when you add in the free FICO, even better if it graduates.

[BDK]

DCU

[cv91915]

Secured card = subprime

[CG in TX]

Secured card = subprime

You beat me to it, CV...

[harryfpotter]

@cv91915, @CG Okay. A secured card is a subprime card, of course.

 

Would an FNBO TL on a CR hurt your credit? Are they a junk name like Open Sky?

 

@BDK DCU. Thank you. I'll look harder at DCU.

[mendelssohn]

Just FYI, DCU secured CCs do not report as secured.

[cv91915]

Just FYI, DCU secured CCs do not report as secured.

 

This is the key.

 

I got some bad advice from a local CU (go figure... @#^% amateurs), and opened a secured credit card and a secured personal loan. They told me neither would report as secured, but the personal loan did.

 

With an otherwise pristine credit report, I hate that I have this TL with the word "Secured" stinking up the place. I'm sure it only really matters to me, but someone doing a manual review may pause for a moment and wonder.

 

[BobWang]

[cv91915]

 

That looks more like there's some internal bleeding... maybe even a UTI.

Edited June 12, 2014 by cv91915

[cashnocredit]

 

Just FYI, DCU secured CCs do not report as secured.

 

This is the key.

 

I got some bad advice from a local CU (go figure... @#^% amateurs), and opened a secured credit card and a secured personal loan. They told me neither would report as secured, but the personal loan did.

 

With an otherwise pristine credit report, I hate that I have this TL with the word "Secured" stinking up the place. I'm sure it only really matters to me, but someone doing a manual review may pause for a moment and wonder.

 

 

 

I'm of two minds about whether "secured" is harmful or not on manual review. It may depend on the reviewer's quirks if it isn't a defined part of their company protocol.

 

A high secured CL says two positive things. That you are more likely to have a positive net worth (assuming the security exceeds balances) and that you probably don't have any current creditors actively hunting you down or looking to garnish if you have a judgment.

 

On the negative side, it also says your credit, at the time you added the secured line, was not sufficient for a unsecured credit. So its existence, after one has established some credit history, could be a kind of legal negative indicator of past problems that no longer show due to reporting SOLs.

 

I wound up going with two secured CCs initially, Citi and WF, because they offered the highest CLs. That they unsecured and left my credit files sparkling with not a hint of past problems other than at 65+ one shouldn't have just a 5 y/o record was a nice, but unplanned, result.

[mendelssohn]

 

 

That look more like there's some internal bleeding... maybe even a UTI.

[cashnocredit]

 

 

That look more like there's some internal bleeding... maybe even a UTI.

 

 

Utl approaching 100%, Danger Will Robertson, Danger.

[cv91915]

 

 

 

That look more like there's some internal bleeding... maybe even a UTI.

 

 

Utl approaching 100%, Danger Will Robertson, Danger.

 

 

[BobWang]

[Guest]

 

That looks more like there's some internal bleeding... maybe even a UTI.

"Why you walking so funny" lol

 

Sent from my SAMSUNG-SGH-I527 using Tapatalk

[mendelssohn]

BTW OP, there is no AF on the secured DCU CC.

 

Have your friend put as large of a deposit as possible towards the card. One of my regrets when I started rebuilding was only putting $500 towards DCU and $250 towards SDFCU when I could have opened both with at least $5K. I've had to fight to get out of low limit approvals, and I'm sure the higher limits would have made it easier.

[cv91915]

BTW OP, there is no AF on the secured DCU CC.

 

Have your friend put as large of a deposit as possible towards the card. One of my regrets when I started rebuilding was only putting $500 towards DCU and $250 towards SDFCU when I could have opened both with at least $5K. I've had to fight to get out of low limit approvals, and I'm sure the higher limits would have made it easier.

 

Great advice.

[MommaE]

The Discover It secured card does not report as secured.

 

It MAY unsecure after one year.

 

No AF.

 

1% rewards on everyday purchases and 5% categories quarterly.

 

Free TU FICO with the secured version, also.

 

APR is high but if you PIF that shouldn't be an issue. 22.99%, BTs have a 3% fee and 10.99% APR for 6 months, 24.99% APR and 5% fee for cash advances.

 

Although, you can't just app for the secured version, you have to app for the regular Discover and MAY get countered with the secured option, if not approved.

[almostanonymous]

Cap One secured reports as a regular CC. It does have an AF but it's pretty easy to get it waived.

[ChrisAZ]

 

 

Just FYI, DCU secured CCs do not report as secured.

 

This is the key.

 

I got some bad advice from a local CU (go figure... @#^% amateurs), and opened a secured credit card and a secured personal loan. They told me neither would report as secured, but the personal loan did.

 

With an otherwise pristine credit report, I hate that I have this TL with the word "Secured" stinking up the place. I'm sure it only really matters to me, but someone doing a manual review may pause for a moment and wonder.

 

 

 

I'm of two minds about whether "secured" is harmful or not on manual review. It may depend on the reviewer's quirks if it isn't a defined part of their company protocol.

 

A high secured CL says two positive things. That you are more likely to have a positive net worth (assuming the security exceeds balances) and that you probably don't have any current creditors actively hunting you down or looking to garnish if you have a judgment.

 

On the negative side, it also says your credit, at the time you added the secured line, was not sufficient for a unsecured credit. So its existence, after one has established some credit history, could be a kind of legal negative indicator of past problems that no longer show due to reporting SOLs.

 

I wound up going with two secured CCs initially, Citi and WF, because they offered the highest CLs. That they unsecured and left my credit files sparkling with not a hint of past problems other than at 65+ one shouldn't have just a 5 y/o record was a nice, but unplanned, result.

 

Cash,

 

good information. Never thought of this situation, the ways you have.

[parisamour]

@cv91915, @CG Okay. A secured card is a subprime card, of course.

 

Would an FNBO TL on a CR hurt your credit? Are they a junk name like Open Sky?

 

@BDK DCU. Thank you. I'll look harder at DCU.

My JUNK name Open Sky only reports as Capital Bank , also it does not report that it is secured!!

[harryfpotter]

To the top!

 

I'm helping a friend to get his credit history going. He's the one with the $95 baddie. The baddies have dropped now. His report has no derogs. He has an installment loan (student loan) of $1,022. He has lots of hard inquiries. EX 6, EQ 2, TU 3. He's been doing SC B*.

 

I like the DCU secured card idea. Is it possible to start out with $1,000 then add $1,000 a month to get to the suggested $5,000.

 

Or should he take a different route with no baddies?

[cv91915]

To the top!

 

I'm helping a friend to get his credit history going. He's the one with the $95 baddie. The baddies have dropped now. His report has no derogs. He has an installment loan (student loan) of $1,022. He has lots of hard inquiries. EX 6, EQ 2, TU 3. He's been doing SC B*.

 

I like the DCU secured card idea. Is it possible to start out with $1,000 then add $1,000 a month to get to the suggested $5,000.

 

Or should he take a different route with no baddies?

 

I would take a different route with clean reports.

[mendelssohn]

If his report is completely clean, try and add him as an AU to 5-6 good accounts and see if he can get an unsecured approval on his own.