Hello, I have an interesting situation to examine. I have an opportunity to obtain through my credit union a secured card. Although this card reports to only Trans Union it doesn't report as secured. That is a nice benefit, I also can open this with any amount from $250.00 - 2,500.00. Now my question is, should I open this account with a larger amount? Will doing this look better as opposed to opening it with a smaller amount. I plan to always pay the balance monthly and keep the utilization ratio very low...thanks in advance for any suggestions.
Response For UTIL purposes the larger the CL and the lower the balance, the better your UTIL ratio. The question you should ask yourself is, what amount can you afford to have tied up in a secured savings account. Why not start with a decent limit, like $500 or so, and if you feel you need to increase it, do so. (Ask them if they allow additional deposits to increase the CL). Good luck! Happy Credit Rebuilding!
Don't make the limit too small if you have any choice. I have a $300.00 secured card with Citi and I charged more than $150 one week and it reported before I made the payment. So util was over 50% on this card. FICO was dinged, 7 points on EQ IIRC. Easily fixed but takes until the next time the issuer reports. Just one consideration, if you are concerned about you current FICO.
Yeah, thanks for the replys....I guess I'll just start with $500.00 or so...this way I don't have a significant amount tied up. Do you think it looks the same to the scoremakers if you utilize say a 10-15% ratio regardless of your balance size. I mean is it the same to them if my utilization ratio is based on a $2,000.00 credit limit or a $500.00 credit limit..? Something to think about although I'm not going to tie up $2,000.00. They are also letting me obtain a secured loan with no credit check, I'm going for it.
While TU might be your worst report why not go for one of the secured cards that actually reports to all three bureaus instead of just Transunion... That way all three reports benefit... I have both National City and Elan and would highly recommend Elan... while it does report as "secured" on your credit reports I don't really believe that matters in the long run and when the card unsecures you keep the age of the account. If it was me I would get a card that reported to all three bureaus. That way you can help all three scores
I agree with your suggestion re: getting tradelines which report to all three CRAs. My next angle of attack is to apply for a secured loan and card which report to all three. Along with getting added as an authorized user to a well established tradeline, these tactics should give my scores a healthy shot upward. Kind of like Barry Bonds and his Balco juices effect on a pitchers fastball...LOL
I just posted some responses to my original post,........I posted this today on another board, I don't mean to take credit for the responses as mine, I just wanted to share the info...hope I didn't step on anyones toes or offend anyone as that wasn't my intention...
