Secured cards used to feel like a punishment but now I get it

Back in 2018 when my credit was shot after some dumb mistakes in my 20s, I opened a secured card with a $200 deposit. I hated it. Felt like I was being treated like a kid with a training card. Felt embarrassed every time I swiped it at the gas station near my apartment in Phoenix. Fast forward to last year after I bumped that same card up to a $1500 limit and got my deposit back. Now I actually tell people to start with secured cards instead of jumping into predatory lenders. Paid off a $600 balance in 3 months and saw my score jump 40 points. Anyone else notice how much easier it is to get approved for a real card after 12 months of on time payments with a secured one?

3 comments

3 Comments

ericcraig1d ago

And the thing nobody talks about is how secured cards can actually help you dodge the whole "credit score dip" that happens when you close a card. When you eventually upgrade to an unsecured card with the same bank, they usually let you keep the account history alive instead of starting fresh. That old secured card becomes a $0 fee card with years of payment history still working for you.

abby_morgan181d ago

Wait @hannahcraig are you saying we're basically dating our secured cards now?

hannahcraig1d ago

Right there with you... I hung onto my secured card for almost two years and watching that age just keep piling on my report felt like cheating the system. @ericcraig nailed it about keeping the history alive, I think that part gets overlooked way too much.