What are your guy's 3 favorite secured cards and why?

[mendelssohn]

I like how Discover is looking! Those 5% categories make a difference. Also the fact that if you redeem your cash back for gift card's nets you more than the cash back value is cool too.

I know Discover is not the most popular issuer here, but now that we know that the secured card graduates, it's going to be one of the top secured cards.

 

I have also seen many people with no open CCs get approved for an unsecured Discover, so it's a good chance to take if your credit is bad but not horrible.

[tweak]

 

I like how Discover is looking! Those 5% categories make a difference. Also the fact that if you redeem your cash back for gift card's nets you more than the cash back value is cool too.

I know Discover is not the most popular issuer here, but now that we know that the secured card graduates, it's going to be one of the top secured cards.

 

I have also seen many people with no open CCs get approved for an unsecured Discover, so it's a good chance to take if your credit is bad but not horrible.

 

 

I agree about Discover it being one the best secured cards.

(And I'm one example of getting approved for the unsecured version with no open cards - when I was expecting denial and hoping to be offered secured.)

 

 

pwd847,

 

Congr Thanks for running the poll and updating the secured card list.

You helped me a lot personally as well - much appreciated!

[Konrad2012]

I voted BofA, Citi and NFCU.

 

1. Bank of America was good to me. They gave me a $3K secured card in Dec 2012 when I had like a 500 EX (yes it was an EX pull on initiation). I had a long time banking relationship with BofA, never bounced a check or anything stupid even through my financial issues, and I think that played a crucial role in their decision. I might have one of the lower EX scores for a BofA secured card approval that I have seen.

 

They unsecured it Aug 2014 when I had a 620EX, and they raised the CL to $6K. Today it sits at $20K.

 

I think that got lost on BJ, a lot of these issuers will take into account your actual banking relationship with them because they want to be your full service financial institution. I actually think that gets lost on a lot of CB members. In my experience and opinion, having a banking relationship with the issuer helps in the initial rebuilding stage. Give BofA your checking, a direct deposit, you might be better off. If your current FINANCIAL INSTITUTION will not give you the FINANCIAL PRODUCTS you are seeking, maybe take that as a hint and go elsewhere.

 

BofA has a rewards secured card. Might as well get something for the usage. Counters the AF, puts some change in your pocket.

 

The BofA card graduates into something fairly useful, a 3-2-1 rewards. Is it the best rewards card, no. But many people do not even give 2 sh!ts about their rewards, so getting 3% on gas and 2% on groceries up to $1,500/Q is appx $140 in their pocket every year (assuming $500 gas and $1000 groceries / Q)

 

2. I voted Citi even though I didn't know the card existed. Again, it graduates and can be PC'd into a good card.

 

3. I voted NavyFed. Not sure about this one because of its limited membership. Maybe should have even voted Wells Fargo since it graduates, and put NavyFed as an asterisk point with the disclaimer "If Eligible"

Edited February 7, 2015 by Konrad2012

[BobWang]

^

[pwd847]

If you are eligible for NFCU then GET IN AND GET THEIR SECURED CARD, nuff said. They are hands down THE BEST SECURED CARD AVAILABLE.

 

 

 

Here are my votes:

 

1) Bank of America secured.

The BofA card stands out in many ways. For one, you can freeze EX and call the UW to have them pull any bureau you want. Later, after the regular secured card has been printed, you can call and request a 1-2-3 cash rewards version. 3% on gas, 2% on groceries, and 1% on everything. For those of us that have access to the money, they go up to a deposit of $10,000. Some of you may have noticed my $10,000 BofA card in my signature. I am trying to use this as a prybar. I will give updates on this experiment in a few months when ALL of my reports are 100% clean. Also, when your cash back is deposited into a BofA account, they kick you an extra 10% cash back.

 

2) Discover IT secured.

The Discover IT secured is a great addition for a "Just starting out and rebuilding credit" type of person, EVEN IF YOU HAVE THE BofA REWARDS CARD. You may wonder, "Hmmmm...but why do I need 2 different rewards cards?" It is quite simple. The Discover IT secured card has 5% rotating categories. So far I have had the Discover IT just under a year and I have really taken advantage of the 5% categories. Home Improvement, Online shopping and department stores, and gas and ground transportation. Also Discover recently changed their requirements to use your cash back. You now don't have to wait to accumulate $50 in cash back to do anything with it. They will let you cash out for any amount (Or something like that, I don't remember exactly). In my opinion, THE ONLY WAY to use your cash back, is to redeem for gift cards. I recently used $20 cash back to get a $40 rental car credit! There are several other gift card options where you redeem $45 in cash back for a $50 gift card.

 

Citi secured

I have done quite a bit of research on Citi's secured card. It can graduate, has a low AF for being a graduating card, and I am pretty sure it can later be PC'd to another Citi card. I was going to use this to get in with Citi early on but their max deposit was only $5000. I needed $10,000.

 

Honorable mention - Open Sky secured.

When I first stepped into the world of credit (I have been a cash man for about 12 years), My first app was for a Cap1 secured. Approved! So Cap1 set the bar for me. Now I start to look for more cards based off of what Cap 1 offers. 1) $29 AF. 2)Ability to up your deposit. I later get approved for Discover IT. $0 AF (Wooohooo!). I run into Open Sky. At that time the annual fee sucked. I think around $50. There were also some other fees I think. Anyway just yesterday I went onto the Open Sky webpage to do some research, and much to my surprise, the AF is now only $29. In the cardholder agreement it says that there is a $25 fee for CLI/CLD, however, a member of CB has informed us that they will waive the $25 CLI/CLD fee for the first year. Just make sure you read through the cardholder agreement before you app for this card. This card is kind of like Spirit airlines. If you know what you're getting yourself into, it is a great deal. If not, well then you probably will get hit with unneeded fees. Oh yes, I almost forgot, did I mention that there is NO CREDIT PULL AT ALL FOR THIS CARD??? I'm not sure if they soft you but there is no requirement to be approved other then verify your identity, put down a deposit, and prove that you can pay what you charge back. I'm assuming this means showing your paystubs. This card is great for people with horrible credit.

 

 

 

Here is a APR table provided by Open sky: https://www.openskycc.com/Popup/SavingsChart.aspx

 

 

These cards are what I would stay away from.

 

Wells Fargo - I would NEVER get a WF card unless it is the last resort for a card that unsecures. An example would be you IIB Citi, BofA, U.S. Bank, and and Discover so this is your last choice available.

 

U.S. Bank - I have heard and experienced so much crap about U.S. Bank. Please just stay away. Also their AF is high. I think about $45

 

DCU - Doesn't unsecure, reports midcycle with a large purchase, and the rewards suck. Leave it alone.

 

USAA - You don't need to necessarily stay away from this card, but why bother with it when there are so many better choices out there??? This card does not unsecure, and it does not have rewards. It is not a bad card by any means but look to the picks I have above first.

Edited February 7, 2015 by pwd847

[mendelssohn]

What do you think about a Q&A flow chart that would direct people to the correct group of cards?

[pwd847]

That's interesting. It could be a really long flowchart because if prime banks decline them, and they get an open sky, after the open sky reports they may be eligible for prime banks. I feel that more info is needed before a flowchart can be made.

 

The issue is, where do we get the info? I'm not sure if a flowchart can be made for this due to some UW's are "Easier" than others. This is a tough topic to write instructions for.

 

 

 

I know what Q&A means, but how do you want to implement it into a flowchart?

Edited February 7, 2015 by pwd847

[BobWang]

That's why BI's get paid

 

the big bucks

[JayB27]

[mendelssohn]

You'd have help with it. The first step is completing the ranking and grouping of cards.

 

Questions like this:

 

1. Are you eligible for NFCU? If the answer is yes, IMO they should get NFCU and only NFCU because once it unsecures or before, they can also add the CLOC and have 2 high limit revolving accounts before moving forward.

 

2. Are you in Chex? This rules out DCU and SDFCU and possibly others. I know you don't like DCU, but it is a no AF secured card and YMMV on graduation. I think I told you I forced mine to graduate.

 

3. Are your FICOs above 600? That would be an indicator to go for the top tier secured cards that graduate.

 

Etc.

[BobWang]

[pwd847]

I know you don't like DCU, but it is a no AF secured card and YMMV on graduation. I think I told you I forced mine to graduate.

 

 

I have a hunch that the text you used from the cardholder agreement to force graduation doesn't exist anymore. I believe you got the DCU card when they DID graduate, and then while you still were a cardholder they changed the rules and you were observant enough to find a crack in the foundation to wedge your way in. Now that they do not graduate the cardholder agreement probably reflects that.

 

I went on their website to find the fine print and was unable to locate anything.

Edited February 7, 2015 by pwd847

[cinammonkisses]

My only secured card was First Progress. I went that route believing I wouldn't be approved anywhere else. If I could go back in time, that would've been my last option. I think everyone needing a secured card should only do business with an insurer who can make the secured card an unsecured card.

[BobWang]

[pwd847]

My only secured card was First Progress. I went that route believing I wouldn't be approved anywhere else. If I could go back in time, that would've been my last option. I think everyone needing a secured card should only do business with an insurer who can make the secured card an unsecured card.

Not necessarily. Cap1 is a great card to fill in for one of your first three cards to maximize FICO score. I'm glad I have my Cap 1. They are the only ones to graduate me to a partially secured card too. Obviously my Cap1 will be closed eventually but it will have done its job quite well when that time comes.

[pwd847]

Can the people who are voting OTHER please share their experiences with us?

[BobWang]

Other is beating 6 other cards

[pwd847]

Other is beating 6 other cards

I know. I also find it interesting that almost nobody realizes that Citi has a secured card. In all my research I think 100% of the people I spoke with told me it doesn't exist anymore.

[mendelssohn]

I think everyone needing a secured card should only do business with an insurer who can make the secured card an unsecured card.

If people followed that advice, many would not be able to open even a secured card for quite some time.

 

While it is ideal to get secured cards that graduate, it is more important at the beginning of the rebuilding process to get positive revolving accounts reporting.

 

Edit: BJ, I think we agree on this!

Edited February 8, 2015 by mendelssohn

[Bannister]

I haven't voted in the poll, but if I did I would have voted for my local credit union secured card (Buffalo Metropolitan Federal Credit Union).

 

Benefits: There is no annual fee. It does not report as secured. They will convert to unsecured on request with a hard pull and approx 650 fico. It doesn't look subprime when I pull it out of my wallet. It just looks 'local'. They approved me when I was in the midst of a credit disaster. I don't know my ficos from then, but I had at least 6 recent charge-offs at the time that were within the last year. It may have helped that I applied face to face with an account manager and that I had a long established banking relationship with them (over 10 years).

 

Drawbacks: It only reports to 2 of the 3 credit bureaus.

[pwd847]

I haven't voted in the poll, but if I did I would have voted for my local credit union secured card (Buffalo Metropolitan Federal Credit Union).

 

Benefits: There is no annual fee. It does not report as secured. They will convert to unsecured on request with a hard pull and approx 650 fico. It doesn't look subprime when I pull it out of my wallet. It just looks 'local'. They approved me when I was in the midst of a credit disaster. I don't know my ficos from then, but I had at least 6 recent charge-offs at the time that were within the last year. It may have helped that I applied face to face with an account manager and that I had a long established banking relationship with them (over 10 years).

 

Drawbacks: It only reports to 2 of the 3 credit bureaus.

 

I got all excited and then read they only report to 2 of the big 3.

 

Which 2 do they report to?

[Bannister]

Which 2 do they report to?

 

 

 

Experian and Equifax. (And they pull Experian on application)

[BobWang]

[delta]

Your list is very incomplete!

 

FNBO offers a secured card that gets your Experian Fico score!

I am in the Seattle area and two credit unions offer secure cards that graduate with no fee. One is Unitus, which even gives one their Equifax Fico score.

 

So whatever city you are in look up the credit unions to see which one's offer graduating cards.

[BobWang]

That's why we're asking for

 

details for voting "Other"