I started rebuilding my credit 7 months ago so I can buy a house in a few months. I got a $300 secured credit card from Wells Fargo (they report to all 3 bureaus). I use it just for gas and misc items. I paid all but $50 each month so it would show a balance on my credit report. 4 months ago they raised my limit to $600 and didn't ask me for any additional security deposit. I continued to use it more and then would leave $100 balance each month. Today I received a letter stating that they are 'upgrading' me to an unsecured care in the next 45 days and returning my security deposit. That is all great BUT they state they will be giving me a new account number and transferring my balance (which is just the amount I purposely leave). My concern is that this secured card has been helping me build up my credit score. I am afraid that if they move me to a new card (and close the secured card) that it will hurt my score since it will be 'new' credit and close the one that has positive history. They are giving me the option to call and decline this offer, but I am not sure what to do. Any advice? I thought about calling to see if they can keep my secured card active and still give me the unsecured but just not sure.
I would call them and ask if they are rolling over the secured card history to the new card or if they are going to just start a new account and close the secured card?
yes, it does show as secured... but as long as you are using it and paying, they seems to make it an unsecured card in less then a year
I asked because when purchasing a house, unlike a CC that is a computer decision, this will be a manual review and I would think that it would be less preferred to see revolving accounts that are secured than unsecured on a manual pull. I do suggest along with jmc and vettecor calling WF and asking if this process closes the existing account and reopens as new. ALSO, if it does, ask how it will be reported on your reports..."closed by credit grantor"? which isn't good...
ok.. so WF stated that they will be moving my good payment history to the new card...the only thing that will change is my card number and it will move from secured to unsecured. Lets hope this is what really happens!
