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

[Konrad2012]

 

 

 

 

 

All the secured cards that graduate have limitations/restrictions.

 

BOA/WF/US Bank - may not be approved due to credit profile

Discover - must be invited after unsecured denial

Secured or not secured, these banks are not interested in customers they believe will default.

Do you think any bank is interested in customers they believe will default? Most people on this board have defaulted in some way on credit -- that's why we are here.

Yes,.Capital One and other banks have no problem implementing a penalty APR and fees. That's why they will give you a card one year after you burn them. Loss is in their business model. It's the DEFINITION of sub-prime.

 

Well I doubt that loss is in their business plan, but maybe default is, but don't Discover and BofA charge default interest rates near 30% if you default?

 

Well. you just keep that little secret to yourself. You obviously think sub-prime is a phrase that was invented on CB. And a loss they get to charge off.

 

What is the risk in issuing a credit card secured with cash? The max exposure is one month's worth of interest if they close it down after 30 days. Two months if they wait 60 days.

 

Like I said, they do not want to default. Because they are prime issuers. You're still not understanding the difference.

 

All lenders are about profit. Those that take higher risk do charge higher rates for sure. But the best rates are credit unions charging 6% to 10% typically and many of them do not charge any penalty rates of interest, balance transfer fees, etc., and even their late payment fees are much less than the big banks. And credit unions are among the easiest to get a secured card from.

 

Credit Unions have lower interest rates because of tax differences. You are aware of that right? You know what a credit union is right?

 

Credit Unions also participate in what is called cross-collateralization. So your "unsecured debt" might not be so unsecured if you have other assets in their institution.

 

The idea of a graduating card is overblown. Get a secured credit card with a credit union. In 12 to 24 months they will give you a new unsecured card. Yes your AAofA may take the hit of one new card, but most people on here are opening at least one new card per year.

 

You are obviously smarter than all the people who think having a card graduate is beneficial. And I guess all the UW's that talk about my long payment history on a BofA card that was once a secured product and now sits at $20K and has been one of the instrumental building blocks are all salamanders also.

 

UW's care not only about the oldest account on your reports. They care more about the longest OPEN account.

 

If you want to argue better rewards programs with the big lenders, that is very true.

 

That has nothing to do with the discussion of loss in business models and why prime lenders don't just give everyone secured cards.

 

[JennyAZ]

 

 

 

 

 

 

All the secured cards that graduate have limitations/restrictions.

 

BOA/WF/US Bank - may not be approved due to credit profile

Discover - must be invited after unsecured denial

Secured or not secured, these banks are not interested in customers they believe will default.

Do you think any bank is interested in customers they believe will default? Most people on this board have defaulted in some way on credit -- that's why we are here.

Yes,.Capital One and other banks have no problem implementing a penalty APR and fees. That's why they will give you a card one year after you burn them. Loss is in their business model. It's the DEFINITION of sub-prime.

 

Well I doubt that loss is in their business plan, but maybe default is, but don't Discover and BofA charge default interest rates near 30% if you default?

 

Well. you just keep that little secret to yourself. You obviously think sub-prime is a phrase that was invented on CB. And a loss they get to charge off.

 

What is the risk in issuing a credit card secured with cash? The max exposure is one month's worth of interest if they close it down after 30 days. Two months if they wait 60 days.

 

Like I said, they do not want to default. Because they are prime issuers. You're still not understanding the difference.

 

All lenders are about profit. Those that take higher risk do charge higher rates for sure. But the best rates are credit unions charging 6% to 10% typically and many of them do not charge any penalty rates of interest, balance transfer fees, etc., and even their late payment fees are much less than the big banks. And credit unions are among the easiest to get a secured card from.

 

Credit Unions have lower interest rates because of tax differences. You are aware of that right? You know what a credit union is right?

 

Credit Unions also participate in what is called cross-collateralization. So your "unsecured debt" might not be so unsecured if you have other assets in their institution.

 

The idea of a graduating card is overblown. Get a secured credit card with a credit union. In 12 to 24 months they will give you a new unsecured card. Yes your AAofA may take the hit of one new card, but most people on here are opening at least one new card per year.

 

You are obviously smarter than all the people who think having a card graduate is beneficial. And I guess all the UW's that talk about my long payment history on a BofA card that was once a secured product and now sits at $20K and has been one of the instrumental building blocks are all salamanders also.

 

UW's care not only about the oldest account on your reports. They care more about the longest OPEN account.

 

If you want to argue better rewards programs with the big lenders, that is very true.

 

That has nothing to do with the discussion of loss in business models and why prime lenders don't just give everyone secured cards.

 

No businesses set out to take losses. If you believe this I have some investment ideas I'd like you to invest in.

 

Why are you always so harsh and bombastic on CB? You are entitled to your own opinions but so are others. It seems no whenever people disagree with you they are salamanders and you know everything. Not sure what your deal is.

Edited March 15, 2015 by JennyAZ

[Konrad2012]

No businesses set out to take losses. If you believe this I have some investment ideas I'd like you to invest in.

 

Why are you always so harsh and bombastic on CB? You are entitled to your own opinions but so are others. It seems no whenever people disagree with you they are salamanders and you know everything. Not sure what your deal is.

 

Everyone is entitled to their opinion. And I never called you an salamander. I've never called anyone an salamander (CB member that is)

 

What I said is loss is built into Cap 1's business model heavily, as it is with all sub-prime lenders.

 

That is why BofA, Chase, WF and Disco are selective in their secured offerings...they don't want defaults on their books even if the amount is 100% secured.

[kls0654]

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.

 

 

The best program - and the eaziest - to use for a flow chart will be:

workflowy.com

 

Edited March 15, 2015 by kls0654

[mrjuggalo9er]

 

 

Discover is way behind Cap1 now...... I think it's because Cap1 has a better marketing department. C'mon who doesn't like Alec Baldwin?

That's batshit crazy to me. The secured Discover it is a no-annual fee rewards card that can graduate to unsecured. It also offers a monthly TU 08 FICO when statements generate.

 

I applied for discover for my wife. .she had one four year old judgement and a 645...they would not Even consider it..what's the point

[tweak]

I applied for discover for my wife. .she had one four year old judgement and a 645...they would not Even consider it..what's the point

 

I thought you were firmly in the Disco-hater camp, with cv and few others.

 

So why - if you hate them so?

 

FWIW, Discover gave me an unsecured $1300 line in Jan 2015

with 3 unpaid COs (5yo) and EQ'08 = 620.

[mrjuggalo9er]

 

 

I applied for discover for my wife. .she had one four year old judgement and a 645...they would not Even consider it..what's the point

I thought you were firmly in the Disco-hater camp, with cv and few others.

 

So why - if you hate them so?

 

FWIW, Discover gave me an unsecured $1300 line in Jan 2015

with 3 unpaid COs (5yo) and EQ'08 = 620.

It was my wife's desire

Apparently she did not learn from my experience

[tweak]

 

 

I applied for discover for my wife. .she had one four year old judgement and a 645...they would not Even consider it..what's the point

I thought you were firmly in the Disco-hater camp, with cv and few others.

 

So why - if you hate them so?

 

FWIW, Discover gave me an unsecured $1300 line in Jan 2015

with 3 unpaid COs (5yo) and EQ'08 = 620.

It was my wife's desire

Apparently she did not learn from my experience

 

 

I guess moral [sic] did not improve.

[soundtraxx]

I can't seem to find anyway to get into NFCU; my great grandfather was a merchant marine, but he died 8 years ago. A buddy of my fathers was a marine.

 

It seems like NFCU is the best.

Edited March 16, 2015 by soundtraxx

[tweak]

The Master Am I Eligible? Eligibility Checklist for Navy Federal Navy Fed NavFed NFCU Thread

 

Need to be retired - not a veteran.

 

Or trace direct family lines (parent or sibling).

[RussInGotham]

 

 

Discover is way behind Cap1 now...... I think it's because Cap1 has a better marketing department. C'mon who doesn't like Alec Baldwin?

That's batshit crazy to me. The secured Discover it is a no-annual fee rewards card that can graduate to unsecured. It also offers a monthly TU 08 FICO when statements generate.

I applied for discover for my wife. .she had one four year old judgement and a 645...they would not Even consider it..what's the point

 

The point is that you start with the best option, which is what should be recommended first. If you can't get into Navy, you try BOA. Then Discover. Then Citi or WF. Ideally you get a secured card that can graduate to unsecured. If those aren't options, then you try a Cap1.

 

What you don't do is try Cap1 first, and we shouldn't be recommending Cap1 first. It's a fine option if secured cards that graduate aren't available to someone. In order to know that they aren't available, you need to blow some inquiries first. Inquiries shouldn't be a big deal. If someone's credit is so poor that only the second tier of secured cards are an option, there likely won't be any mortgages in the next six months. There also won't be the addition of 20 quality cards over the next year. If you wind up with several hard pulls on each bureau, so be it. After twelve months, FICO doesn't even count them.

 

The important thing is to get the best options available as soon as possible so that the rebuilding can start with the best possible foundation for the future.

[pwd847]

I think in some instances Cap1 is a good start to raise your score and then try for better cards. That's what I did.

[RussInGotham]

Sometime the secured Cap1 is a good first card. I'm just saying that someone should apply for secured cards that can graduate first.

[JennyAZ]

Sometime the secured Cap1 is a good first card. I'm just saying that someone should apply for secured cards that can graduate first.

I see this the other way. If your scores are marginal, like if you are fresh out of a BK, you can boost your scores by 50 to 100 points pretty quickly by opening two or three credit cards and a small credit builder.

 

Rather than burn an inquiry with a prime lender for a graduating secured card, why not open a couple of revolvers, get that score up and have a much better chance of getting a graduating secured card from a prime lender?

 

Sure if you know you will get approved for a graduating secured card, or you are pretty sure your scores are decent enough, by all means apply with them, but if you really want a secured Discover or B of A or other major lender, why not boost your score quickly and dramatically improve your chances?

 

Also from what I have seen, it is not worth it to apply for a Cap 1 secured card because if you can get approved for it, you can likely get one of their two starter unsecured cards. Just ask Liz about getting rejected for a Cap 1 secured. It seems the UW standards are nearly the same.

 

This is what I did and it worked for me, though I skipped past the graduating secured cards and went straight to unsecured cards and 80 K in unsecured credit 1.5 years after BK 7.

 

Just another way to look at it. All roads lead to the doghouse.

Edited March 17, 2015 by JennyAZ

[AnnMichele]

 

Sometime the secured Cap1 is a good first card. I'm just saying that someone should apply for secured cards that can graduate first.

I see this the other way. If your scores are marginal, like if you are fresh out of a BK, you can boost your scores by 50 to 100 points pretty quickly by opening two or three credit cards and a small credit builder.

 

Rather than burn an inquiry with a prime lender for a graduating secured card, why not open a couple of revolvers, get that score up and have a much better chance of getting a graduating secured card from a prime lender?

 

Sure if you know you will get approved for a graduating secured card, or you are pretty sure your scores are decent enough, by all means apply with them, but if you really want a secured Discover or B of A or other major lender, why not boost your score quickly and dramatically improve your chances?

 

Also from what I have seen, it is not worth it to apply for a Cap 1 secured card because if you can get approved for it, you can likely get one of their two starter unsecured cards. Just ask Liz about getting rejected for a Cap 1 secured. It seems the UW standards are nearly the same.

 

This is what I did and it worked for me, though I skipped past the graduating secured cards and went straight to unsecured cards and 80 K in unsecured credit 1.5 years after BK 7.

 

Just another way to look at it. All roads lead to the doghouse.

 

+1

 

Oh Jenny, I swear I couldn't have said it better myself.

[pwd847]

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

[AnnMichele]

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

I think it's number one because it's the easiest card to get approved for when your credit is atrocious and you're trying to rebuild.

[pwd847]

 

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

I think it's number one because it's the easiest card to get approved for when your credit is atrocious and you're trying to rebuild.

 

That is not true. Cap1 does deny people. I was denied in 2011 for Cap1. There are other cards that are guaranteed approval.

[AnnMichele]

 

 

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

I think it's number one because it's the easiest card to get approved for when your credit is atrocious and you're trying to rebuild.

 

That is not true. Cap1 does deny people. I was denied in 2011 for Cap1. There are other cards that are guaranteed approval.

 

I swear you're the first person I've heard of that was denied. (not saying that there aren't others)

 

What other cards are guaranteed approval? Is that part of your secured card post?

Edited April 8, 2015 by AnnMichele

[pwd847]

 

 

 

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

 

I think it's number one because it's the easiest card to get approved for when your credit is atrocious and you're trying to rebuild.

That is not true. Cap1 does deny people. I was denied in 2011 for Cap1. There are other cards that are guaranteed approval.

I swear you're the first person I've heard of that was denied. (not saying that there aren't others)

 

What other cards are guaranteed approval? Is that part of your secured card post?

Maybe you should go take a look.

[RussInGotham]

 

Sometime the secured Cap1 is a good first card. I'm just saying that someone should apply for secured cards that can graduate first.

I see this the other way. If your scores are marginal, like if you are fresh out of a BK, you can boost your scores by 50 to 100 points pretty quickly by opening two or three credit cards and a small credit builder.

 

Rather than burn an inquiry with a prime lender for a graduating secured card, why not open a couple of revolvers, get that score up and have a much better chance of getting a graduating secured card from a prime lender?

 

Sure if you know you will get approved for a graduating secured card, or you are pretty sure your scores are decent enough, by all means apply with them, but if you really want a secured Discover or B of A or other major lender, why not boost your score quickly and dramatically improve your chances?

 

Also from what I have seen, it is not worth it to apply for a Cap 1 secured card because if you can get approved for it, you can likely get one of their two starter unsecured cards. Just ask Liz about getting rejected for a Cap 1 secured. It seems the UW standards are nearly the same.

 

This is what I did and it worked for me, though I skipped past the graduating secured cards and went straight to unsecured cards and 80 K in unsecured credit 1.5 years after BK 7.

 

Just another way to look at it. All roads lead to the doghouse.

 

Why are you even worried about inquiries at that stage? It's not like the difference between two and six will be much if a difference. After six months the inquiries have a reduced impact. After twelve months, they have no impact.

 

Just take the extra ten minutes and try for cards that will serve you better in the long run.

[AnnMichele]

 

 

 

 

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

I think it's number one because it's the easiest card to get approved for when your credit is atrocious and you're trying to rebuild.

That is not true. Cap1 does deny people. I was denied in 2011 for Cap1. There are other cards that are guaranteed approval.

I swear you're the first person I've heard of that was denied. (not saying that there aren't others)

 

What other cards are guaranteed approval? Is that part of your secured card post?

Maybe you should go take a look.

 

I've read it before, actually a few times, but there's no place where I see approval probability.

 

The only ones that seems to be guaranteed is Open Sky and SDFCU but you need to be a member for that one.

[paycuthurtme]

 

 

 

 

 

I'm starting to wonder if I should have made the poll say, "What are your 3 favorite secured cards after reading the Master Secured card thread." How is Cap1 in first place?? probably because Cap1 is the only secured card that a lot of (uninformed) people have had.

I think it's number one because it's the easiest card to get approved for when your credit is atrocious and you're trying to rebuild.

That is not true. Cap1 does deny people. I was denied in 2011 for Cap1. There are other cards that are guaranteed approval.

I swear you're the first person I've heard of that was denied. (not saying that there aren't others)

 

What other cards are guaranteed approval? Is that part of your secured card post?

Maybe you should go take a look.

 

I've read it before, actually a few times, but there's no place where I see approval probability.

 

The only ones that seems to be guaranteed is Open Sky and SDFCU but you need to be a member for that one.

 

 

The First Progress cards are guaranteed but they don't have online payments. I don't like pushing payments so I passed on them.

 

For SDFCU, you can join the American Consumer Council ($5 a year or $15 lifetime) as a qualifier to join. That's what I did. I also like that they don't hold payments. I made a payment last night and it was credited this morning.

[pwd847]

First progress is garbage. Stay away.

[tweak]

 

Discover, unfortunately, does not let you add to the deposit.

So put as much as you can afford to tie up for 12 months on Discover when you sign up.

 

Discover is about to let secured card holders add to the deposit.

http://www.doctorofcredit.com/discover-it-secured-credit-card-can-now-increase-their-security-deposit-and-credit-limits/