Why are secured cards never discussed as a means to rebuild credit?

[backtoschool]

I thought that secured cards are possibly reported slightly different than regular unsecured cards. Can someone chime in on this?

If there's no difference based on other's stories, then I may convert to this route.

The obvious negative is that you need the money up front and "in a sense" is locked into the secured card... but this route might even be the only solution for people wanting to immediately (within months of discharge) re-build credit.

Some banks report their secured cards as "secured" on the credit report, but this should not hurt your score, it is just a notation. Many banks and credit unions report secured cards the same way they report unsecured cards. My CU reports the card as it would any charge card, there is no secured notation.

[tobee43]

Just wondering if anyone has personal experience using a small secured credit card to re-establish credit. I don't want any of them, but if I were going to get one it would obviously be secured. Why does it always have to be a unsecured card that leaves the ability for you to get back into the same mess with credit? Far as I know a secured card reports the same on a credit report that an unsecured card does. Maybe I am wrong, but just looking to hear some alternatives to the credit orgy going on around here. I have my alternative, but trying to put another option on the table for people.

yes, we are just waiting for some more time between our discharge and going to the credit union to set one up...that will be our "BIG" credit limit card....because we really do want to buy this cute little house!

we were going to approach them in a few months...only because some banks still frown on it, we are uncertain how our credit union will react. we will propose the card be secured by a cd...we'll see what happens.

prior to bk we opened 2 accounts one at a cu and one at a small local..we need your business type of bank...so we hope one of them will do it.

[CCsAreEvil]

I thought that secured cards are possibly reported slightly different than regular unsecured cards. Can someone chime in on this?

If there's no difference based on other's stories, then I may convert to this route.

The obvious negative is that you need the money up front and "in a sense" is locked into the secured card... but this route might even be the only solution for people wanting to immediately (within months of discharge) re-build credit.

[LSUTiger32]

Good to hear some people are taking this route......would love to hear more stories.

[backtoschool]

The first card I got after discharge was a secured card from a local CU with a $500 limit. I have raised the limit to 1300 and will continue to the max of $3000. I have had them for a year so I plan to call in and ask about a graduation to a unsecured card soon. If that happens i'll take the money I had securing this card and get another secured car. For me the secured cards are two fold. They act as a means and motivation for stashing money in a savings account, and it's an active credit line. I think it's smart for people to get as large of a limit on the secured card as they can before applying for unsecured cards or you risk being stick on "Toy Credit Limit Hell".

I agree. The larger your secured card limits, the easier it will be to get a credit card in the future with a real "normal" sized limit.

[Meh]

The first card I got after discharge was a secured card from a local CU with a $500 limit. I have raised the limit to 1300 and will continue to the max of $3000. I have had them for a year so I plan to call in and ask about a graduation to a unsecured card soon. If that happens i'll take the money I had securing this card and get another secured car. For me the secured cards are two fold. They act as a means and motivation for stashing money in a savings account, and it's an active credit line. I think it's smart for people to get as large of a limit on the secured card as they can before applying for unsecured cards or you risk being stick on "Toy Credit Limit Hell".

[backtoschool]

Just wondering if anyone has personal experience using a small secured credit card to re-establish credit. I don't want any of them, but if I were going to get one it would obviously be secured. Why does it always have to be a unsecured card that leaves the ability for you to get back into the same mess with credit? Far as I know a secured card reports the same on a credit report that an unsecured card does. Maybe I am wrong, but just looking to hear some alternatives to the credit orgy going on around here. I have my alternative, but trying to put another option on the table for people.

I have a 5k secured card with my credit union that I use for business travel. It reports as a 5k credit line on my credit report.

[LSUTiger32]

Just wondering if anyone has personal experience using a small secured credit card to re-establish credit. I don't want any of them, but if I were going to get one it would obviously be secured. Why does it always have to be a unsecured card that leaves the ability for you to get back into the same mess with credit? Far as I know a secured card reports the same on a credit report that an unsecured card does. Maybe I am wrong, but just looking to hear some alternatives to the credit orgy going on around here. I have my alternative, but trying to put another option on the table for people.