Building credit with a secured credit card (Wells Fargo, pay, rate)

[mikew78]

Hi all I know this is a basic question but I keep getting snubbed at other forums. I'm 35 with no credit (checked mine on creditsesame.com) and I draw social security each month. After medicair is payed I have 913 for bills. After bills I have 400 to spend. I need recommendations for which secured credit card to go with. I've reviewed some popular cards and narrowed it down to a few. I'll list if needed. Also, how much should I put on the card to begin with considering my income? I was thinking 800? Not sure tho. I have 2500 saved. Again, just need to know which card and how much to put on it. I thought maybe to get a secured card with a bank that has a good credit card to graduate into. Do I start off with a citibank card like people suggest then switch to the best credit card later? Any help or suggestions would be most appreciated.

[Gandalara]

Compare Secured Credit Cards at Bankrate (All of them have annual fees)


You also might want to look into a prepaid card ...
Compare Prepaid & Debit Cards at Bankrate (All of them have monthly fees)

[mikew78]

Ok I'll look at the difference between secured and prepaid. I'm guessing they both build credit. I'm aware that there are fees. I suppose I'll have to compare and get the one with the lowest fees and or deposit. Lol, I'm tempted to just jump into one. It seems as tho no one is really familiar with secured cards except a few here and there. Another person on a thread here suggested State Department Federal Credit Union secured card. Doesn't graduate to a credit card with that union but supposedly the best. Idk, I'll start digging into the fine print for all of these cards I guess. Thanks for the pointers

[berdee]

Forget about prepaid or debit cards, they do absolutely nothing to help grow your credit.

There are a couple of good ones that you might look at ..

Discover It secured card. You cannot directly apply for the secured card, but if you apply for the regular It card and you're denied then they may offer you the secured card. The secured card typically graduates to unsecured in about 12 months, it offers rewards, you get your TransUnion FICO score for free each month, no annual fee, doesn't report as a secured card. The interest rate is high, like with most secured cards, so be sure and pay it off in full each month to avoid paying interest.
https://www.discover.com/credit-card...DR_ALLPS_CC_IT

SDFCU (State Department FCU). This card won't unsecure, there is no credit check, no annual fee, it has a low interest rate, it offers some rewards - I'm not completely sure how it reports but I think it doesn't report as secured.
If you don't qualify to join the CU under their regular terms then you can sign up with American Consumer Council (ACC) and that will qualify you to join SDFCU
https://www.sdfcu.org/emv-creditcards

As for how much to put on a secured card, $800 isn't bad but getting it up to at least $1k would be better - since it would take it out of the toy limit range (FICO and other creditors really don't like seeing toy limits).

edited to add - When people apply for secured cards, they will often get the 5+ day notification comment instead of being instantly approved, so don't worry if you get that notice. If you 'are' denied then always call and ask to speak to an underwriter, then ask that person to reconsider your application - many, though not all, have been approved, for either secured or regular cards after being denied, by asking for a reconsideration.

[AZDesertBrat]

Originally Posted by Gandalara

Compare Secured Credit Cards at Bankrate (All of them have annual fees)


You also might want to look into a prepaid card ...
Compare Prepaid & Debit Cards at Bankrate (All of them have monthly fees)

About 14 years ago, due to divorce, the death of my son, losing a job and a few other 'bad' things happening, I found myself in a big financial mess. My credit, which up to then had been stellar, went belly up. It took me about five years to get back on board and I got a secured credit card from my bank...then Wells Fargo. I paid them $300, used the care sparingly and paid it off each month. After a year they gave me back my $300 and raised the limit to $500. Over the years they've raised it every year but I don't NEED it raised and will not max out ANY credit card. It was, however, a life saver for me then and I now have two VISA cards and a store card. They are all paid in full every month...IF I use them. I've never paid a monthly fee for any of them.

[AmFest]

Originally Posted by mikew78

Ok I'll look at the difference between secured and prepaid. I'm guessing they both build credit.

No. Prepaid cards do not help you build credit.

Originally Posted by mikew78

I'm aware that there are fees. I suppose I'll have to compare and get the one with the lowest fees and or deposit. Lol, I'm tempted to just jump into one. It seems as tho no one is really familiar with secured cards except a few here and there. Another person on a thread here suggested State Department Federal Credit Union secured card. Doesn't graduate to a credit card with that union but supposedly the best. Idk, I'll start digging into the fine print for all of these cards I guess. Thanks for the pointers

I highly recommend the Bank of America BankAmericard secured credit card. It earns rewards and graduates in a year with usually a credit limit increase and a permanent fee waiver. This card has reviews all over the internet. I personally had this card and have since built a solid credit history on the foundation. In the one year I had the card the rewards paid multiple times the annual fee.