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Topic: Secured credit card?
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kaylagurl21

7/5/2018 9:53:06 PM
Member since:
Mar 2009
Total posts:518
Secured credit card?

Just wondering if anyone has one? I'm looking to build my credit and have been doing a bit of research but id be interested to hear anyone's personal experiences.  
I don't have any debt, and the security funds they are asking for are quite low so I've been considering it. Interested to know how long it took to raise your credit limit, what kind of activity was on the account if it was a quick raise and also about the security funds. Any problems getting those back? (When account is paid in full of course)

 
 
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Just an opinion

7/5/2018 11:02:23 PM
Member since:
Sep 2008
Total posts:1892
Question

Just trying to understand  
You want to get a credit card and build up your credit right?  
Why do you need to pay money to get one?  
If you have no debt and have a job have you gone to any banks or credit unions to talk to them and apply for a card with a low balance to begin with and build up your credit history by using it and paying it off.  
My advice is to try them first especially the credit unions. Explain what you want to fo and they should be able to advice you without costing you any money.

Amaxinlin

7/5/2018 11:33:38 PM
Member since:
Nov 2011
Total posts:641
.

My first time getting a credit card was when I was a student in school, I was on E.I so it was really hard to get one. I had no debt or credit. I got a credit card through capital one after many many others turned me down. My credit limit was $300. They gave me a credit increase offer of $3000 after about 18 months - 2 years. It took a long time for me to be eligible for a credit increase. I’m not sure if that’s the norm, I haven’t applied for any others since then. After 2 years my credit score is in the 800’s. I recommend getting one. My capital one was free of charge to get and designed for those with no credit or those who are restoring their credit.

PuddleJumper

7/5/2018 11:40:55 PM
Member since:
Mar 2006
Total posts:138
****

If you are refused a card through other sources, then a secured card may be an option.  
 
The most common one in Canada is the Capital One card. It has a yearly fee and a security deposit required. The security deposit gets returned when you close the account.  
 
The fastest way to build a credit history is to put a monthly recurring expense on the card and to ALWAYS pay the balance in full. MPI car insurance on a monthly payment plan works well.  
 
If you had to go with the Capital One card, after a couple years you should qualify for another card with no fee. Close the Capital One account once you receive a better card.  
 
Edited by PuddleJumper, 2018-07-05 23:42:11

Amaxinlin

7/5/2018 11:51:40 PM
Member since:
Nov 2011
Total posts:641
.

I just googled it and the credit card I have was discontinued (to new customers) last year. I’m not sure if there any others like it. Research all your options!

Pray it Forward

7/6/2018 12:16:14 AM
Member since:
Jul 2010
Total posts:1026
sure

I got one through this company  
https://refreshfinancial.ca/  
 
If you make your payments on time, your credit eventually improves.  
Minimum contribution I think is $300 to start and you can add more funds as you go.  
There is a yearly fee and monthly, but cheaper than Capital One when you add it up.  
 
What ever you put down on it, that is your credit limit. Eventually, if you cancel, you can get your secured credit refunded to you, and you can get another card. This is a Canadian owned company.  
 
Edited by Pray it Forward, 2018-07-06 00:18:25

kaylagurl21

7/6/2018 8:36:05 AM
Member since:
Mar 2009
Total posts:518
Capital one

I have really been considering capital one. They only want a 75$ deposit which is the cheapest option I have currently. I don't work full time so trying to get a card anywhere else is near impossible unless it's a secured card. And I'm okay with that because I only want it to pay my bills I already pay monthly. Such as phones, mpi and internet. I've never had a credit card because I felt I wasn't responsible enough in my 20s. And credit wasn't in my vocabulary. I have my phone's with bell so that has been building credit for me slowly but I'm still not where I would like to be.my sister took out a credit building loan but the interest she has to pay on it isn't even worth the loan so I'd never go that route. Borrowing 1500$ to pay back over 3000 sounds like a rip off to me. Lol  
Anyways I didn't think it would be a fast thing. But will be faster then doing nothing different.

Abbysmum

7/6/2018 10:57:31 AM
Member since:
Mar 2009
Total posts:3268
credit card

I never had to put money down on a credit card when I first applied, although that was many, many years ago. I just got a low credit limit (~$500 if I remember correctly).  
 
I would caution you about being careful with the credit card. It's very easy to get one with the best of intentions, and very quickly have it spiral out of control. My suggestion is that whatever you get, don't get a limit of more than what you can pay off in a month (so, $500-$1000?), and then tell them not to increase your limit unless you expressly ask them to.  
 
Also, don't get too hung up on credit score. A credit score is simply a value that demonstrates how you interact with debit - whether you pay or not etc. Ideally, if you have no debt now, you want to keep it that way and pay cash for any purchases instead of borrowing, keeping your need for a credit score to a minimum. The exception to that would be a mortgage, but if you have a sufficiently large down payment (25% or more), then that reduces the need even further.

Just an opinion

7/6/2018 11:59:12 AM
Member since:
Sep 2008
Total posts:1892
Did you

Try applying at Walmart they are always asking and promoting and finally I thought ok . I only worked part time so figured I wouldn't get it but I did. You can use it anywhere.

kaylagurl21

7/6/2018 12:58:04 PM
Member since:
Mar 2009
Total posts:518
Walmart

I'd never take a Walmart card. I used to work for them and even then they tried to push it on us. Wouldn't get it then and still wouldn't now.

lilolme

7/6/2018 2:18:41 PM
Member since:
Mar 2011
Total posts:115
WHAT ARE YOU TALKING ABOUT!?

  
Just an opinion said "Try applying at Walmart they are always asking and promoting and finally I thought ok . I only worked part time so figured I wouldn't get it but I did. You can use it anywhere. "

DONT GET TO HUNG UP ON CREDIT SCORE????!!!  
 
 
I am sorry to say it but almost everything in adult life revolves around credit score. New cell phone?(credit check) buy a car(credit check) want to buy a house(credit check) even service providers like Westman have starting doing credit checks for TV/Phone/Internet. If I could talk the teenage me I always say I would do everything I could to improve my credit!  
 
I have amazing credit NOW but have gone through all stages including a personal bankruptcy. I can not stress enough how important credit and GOOD CREDIT is.  
 
that is probably the single worst piece of advice I have heard on ebrandon.  
 
* The Capital one root would probable be your best best. That is unless you bank with someone like Westoba Credit Union they may be a little but easier to work with than a traditional bank. I know when I was looking many years ago RBC/CIBC wanted something like a minimum of $1000 down.

kaylagurl21

7/6/2018 2:33:17 PM
Member since:
Mar 2009
Total posts:518
Agreed.

  
lilolme said "
  
Just an opinion said "Try applying at Walmart they are always asking and promoting and finally I thought ok . I only worked part time so figured I wouldn't get it but I did. You can use it anywhere. "

DONT GET TO HUNG UP ON CREDIT SCORE????!!!  
 
 
I am sorry to say it but almost everything in adult life revolves around credit score. New cell phone?(credit check) buy a car(credit check) want to buy a house(credit check) even service providers like Westman have starting doing credit checks for TV/Phone/Internet. If I could talk the teenage me I always say I would do everything I could to improve my credit!  
 
I have amazing credit NOW but have gone through all stages including a personal bankruptcy. I can not stress enough how important credit and GOOD CREDIT is.  
 
that is probably the single worst piece of advice I have heard on ebrandon.  
 
* The Capital one root would probable be your best best. That is unless you bank with someone like Westoba Credit Union they may be a little but easier to work with than a traditional bank. I know when I was looking many years ago RBC/CIBC wanted something like a minimum of $1000 down. "

Credit and good credit is everything. But you quoted the wrong post lol.  
 
I know how important it is, and I wish I had also known sooner. But better late then never. At least I am responsible enough for that route now.

Pray it Forward

7/6/2018 3:18:48 PM
Member since:
Jul 2010
Total posts:1026
Credit score

Go here to check your credit score.  
 
https://creditkarma.ca/  
 
When setting up account, they will ask for your SIN # and probably current and former address.  
 
When you are done, they will make suggestions on bottom of page for what you may qualify for.

Pray it Forward

7/6/2018 3:22:50 PM
Member since:
Jul 2010
Total posts:1026
Don't get hung up on credit

  
lilolme said "
  
Just an opinion said "Try applying at Walmart they are always asking and promoting and finally I thought ok . I only worked part time so figured I wouldn't get it but I did. You can use it anywhere. "

DONT GET TO HUNG UP ON CREDIT SCORE????!!!  
 
 
I am sorry to say it but almost everything in adult life revolves around credit score. New cell phone?(credit check) buy a car(credit check) want to buy a house(credit check) even service providers like Westman have starting doing credit checks for TV/Phone/Internet. If I could talk the teenage me I always say I would do everything I could to improve my credit!  
 
I have amazing credit NOW but have gone through all stages including a personal bankruptcy. I can not stress enough how important credit and GOOD CREDIT is.  
 
that is probably the single worst piece of advice I have heard on ebrandon.  
 
* The Capital one root would probable be your best best. That is unless you bank with someone like Westoba Credit Union they may be a little but easier to work with than a traditional bank. I know when I was looking many years ago RBC/CIBC wanted something like a minimum of $1000 down. "

In the way that it should not make or break your identity, nor define you as a less-than-hard worker, a bad saver or delinquent bill payer...but some people it does!  
 
I bought a home (rent to own) with little to no credit. I took over a business, and opened an account with credit less than 400 points.  
 
all the best.  
 
Edited by Pray it Forward, 2018-07-06 15:24:56

Abbysmum

7/6/2018 3:43:27 PM
Member since:
Mar 2009
Total posts:3268
oh nevermind

  
Pray it Forward said "
  
lilolme said "
  
Just an opinion said "Try applying at Walmart they are always asking and promoting and finally I thought ok . I only worked part time so figured I wouldn't get it but I did. You can use it anywhere. "

DONT GET TO HUNG UP ON CREDIT SCORE????!!!  
 
 
I am sorry to say it but almost everything in adult life revolves around credit score. New cell phone?(credit check) buy a car(credit check) want to buy a house(credit check) even service providers like Westman have starting doing credit checks for TV/Phone/Internet. If I could talk the teenage me I always say I would do everything I could to improve my credit!  
 
I have amazing credit NOW but have gone through all stages including a personal bankruptcy. I can not stress enough how important credit and GOOD CREDIT is.  
 
that is probably the single worst piece of advice I have heard on ebrandon.  
 
* The Capital one root would probable be your best best. That is unless you bank with someone like Westoba Credit Union they may be a little but easier to work with than a traditional bank. I know when I was looking many years ago RBC/CIBC wanted something like a minimum of $1000 down. "

In the way that it should not make or break your identity, nor define you as a less-than-hard worker, a bad saver or delinquent bill payer...but some people it does!  
 
I bought a home (rent to own) with little to no credit. I took over a business, and opened an account with credit less than 400 points.  
 
all the best.  
 
Edited by Pray it Forward, 2018-07-06 15:24:56"

I'm clearly supposed to shut my mouth at this point as I've failed to actually post a reply twice now.  
 
Suffice to say, thank-you that's exactly what I mean. There's always options.  
 
Edited by Abbysmum, 2018-07-06 15:45:30

A.G.

7/6/2018 5:06:59 PM
Member since:
Jan 2010
Total posts:1995
.

Do you have bad credit to begin with or just ok credit? I’d try to get a regular credit card instead of one that you have to put funds on— if you can maybe capital 1, or another company. You have to pay it on time or even better in full. As well as keep all credit sources within under 75% utilized. If you have multiple streams of credit helps too. If you use your card to pay a monthly bill then pay it off. Closing cards and multiple credit checks also affects your score. Sign up for free for Borrowell (equifax) and/or Credit Karma (trans union) and get your free credit score and report. Don’t believe the people that say your score doesn’t matter — it does. The better the score the easier it will be to get credit, as well as potentially get you better interest rates. Many Apartment rentals check credit, cell phone companies, tv service providers. And also mortgage, car loans, student loans, etc. So it is good to keep it at a higher score.

MrDobalina

7/6/2018 5:32:55 PM
Member since:
Jun 2017
Total posts:259
I suggest applying online for capital one

I was approved for $300 pretty quick and my credit was NOT very good...it was pretty horrible actually (380...and that's low) My issue wasn't bad credit it was NO credit...aside from speeding tickets I had nothing on my report at all.  
 
I also spoke with a rep at RBC and said "if I buy a $1000 GIC will you use that to secure a credit card?...they agreed. After one year I'd established enough credit to carry the card and cashed out the GIC" it was a $1000 limit, AVION.

kaylagurl21

7/6/2018 5:58:05 PM
Member since:
Mar 2009
Total posts:518
Credit karma

I actually used credit karma and capital one was what they suggested. My credit is at 609. So its not bad it's just not good either. (It has gone up 200 points in the last 2 years)  
Anyways I have decided to go ahead with the capital one card. It's my cheapest option as I said. Can't afford to put out 1000$ for a card. Nor can I afford an extra 300 for anywhere else. I'm trying to not break our bank account.  
 
And yes credit score isnt everything and sure people can get by without it but why would you want to if you don't have to?

Just an opinion

7/6/2018 6:10:28 PM
Member since:
Sep 2008
Total posts:1892
Something

To keep in mind  
My nephew got a Visa card 2 years ago but never used it so he still had no credit score when he tried to get an apartment.  
He went to the bank they told him to use it so he would get a credit score so for the past 6 months he used it once a month faithfully nothing big just so it''s used then he pays it off when he gets his statement.  
Now he has a credit score and he is moving into his apartment Sept  
So make sure you use it if you want to increase your credit score.  
 
Edited by Just an opinion , 2018-07-06 18:11:51

PuddleJumper

7/6/2018 10:51:45 PM
Member since:
Mar 2006
Total posts:138
Yes....

Yes, you absolutely have to use it. The OP's plan to use it for recurring BUDGETED monthly fees is the best as long as she pays it off every month.  
 
Her credit score will improve in no time.

justsaying

7/7/2018 2:36:50 PM
Member since:
Aug 2012
Total posts:6
Be careful with credit...

The problem with credit cards is that few people have the self discipline to only charge what they can afford to pay off each month. Also, many studies have proved that people simply spend more money using credit cards than they would if they were paying with cash.  
 
I’d challenge you to try living without credit and without debt. Try listening on YouTube or podcasts to a financial guy named Dave Ramsey for a while. He can be abrasive in that he tells truth about finances...without holding back. If he thinks you are doing something dumb with your money, he will tell you. I’ve read his book called Financial Peace and it is a very logical read about living without debt. People are led to believe that they can’t live without credit cards and debt, that is not true. Most marriages that fail list financial struggles as a contributing factor, many people’s lives are ruined by debt and bankruptcy. I wish I’d have followed Dave Ramsey’s advice years ago and not got sucked into the idea that credit cards are necessary.  
 
The damage that you can do to your life with debt is worse than any benefit you can gain from having a good credit score.  
 
Edited by justsaying, 2018-07-07 14:38:20

kaylagurl21

7/7/2018 7:35:46 PM
Member since:
Mar 2009
Total posts:518
Lol

  
justsaying said "The problem with credit cards is that few people have the self discipline to only charge what they can afford to pay off each month. Also, many studies have proved that people simply spend more money using credit cards than they would if they were paying with cash.  
 
I’d challenge you to try living without credit and without debt. Try listening on YouTube or podcasts to a financial guy named Dave Ramsey for a while. He can be abrasive in that he tells truth about finances...without holding back. If he thinks you are doing something dumb with your money, he will tell you. I’ve read his book called Financial Peace and it is a very logical read about living without debt. People are led to believe that they can’t live without credit cards and debt, that is not true. Most marriages that fail list financial struggles as a contributing factor, many people’s lives are ruined by debt and bankruptcy. I wish I’d have followed Dave Ramsey’s advice years ago and not got sucked into the idea that credit cards are necessary.  
 
The damage that you can do to your life with debt is worse than any benefit you can gain from having a good credit score.  
 
Edited by justsaying, 2018-07-07 14:38:20"

I currently live without debt and credit. Have been for as long as I've lived on my own. I agree people can do damage when they aren't responsible. I know I can live without it as I've said this already. But in order to get some apartments, cellphones, bank accounts and even some jobs you need a good credit score. I want to have all my doors open if I should ever need them. If I need a loan I want instant approval. Not to jump through all the hoops. It's just better and easier for me personally.  
 
I think it's funny people are so quick to think there aren't some responsible people out there who use their cards like cash.  
My fiance gets tips daily. Really we don't need to borrow any money. That's why I think it's as good a time as any to build credit. We have cash daily for our needs I can literally use my card and pay it immediately after using it to build said credit.  
 
It can be done and that is my plan. Thanks for all your input.

Never_give_up

7/7/2018 8:13:15 PM
Member since:
Apr 2010
Total posts:350
Kaylagurl21

  
kaylagurl21 said "
  
justsaying said "The problem with credit cards is that few people have the self discipline to only charge what they can afford to pay off each month. Also, many studies have proved that people simply spend more money using credit cards than they would if they were paying with cash.  
 
I’d challenge you to try living without credit and without debt. Try listening on YouTube or podcasts to a financial guy named Dave Ramsey for a while. He can be abrasive in that he tells truth about finances...without holding back. If he thinks you are doing something dumb with your money, he will tell you. I’ve read his book called Financial Peace and it is a very logical read about living without debt. People are led to believe that they can’t live without credit cards and debt, that is not true. Most marriages that fail list financial struggles as a contributing factor, many people’s lives are ruined by debt and bankruptcy. I wish I’d have followed Dave Ramsey’s advice years ago and not got sucked into the idea that credit cards are necessary.  
 
The damage that you can do to your life with debt is worse than any benefit you can gain from having a good credit score.  
 
Edited by justsaying, 2018-07-07 14:38:20"

I currently live without debt and credit. Have been for as long as I've lived on my own. I agree people can do damage when they aren't responsible. I know I can live without it as I've said this already. But in order to get some apartments, cellphones, bank accounts and even some jobs you need a good credit score. I want to have all my doors open if I should ever need them. If I need a loan I want instant approval. Not to jump through all the hoops. It's just better and easier for me personally.  
 
I think it's funny people are so quick to think there aren't some responsible people out there who use their cards like cash.  
My fiance gets tips daily. Really we don't need to borrow any money. That's why I think it's as good a time as any to build credit. We have cash daily for our needs I can literally use my card and pay it immediately after using it to build said credit.  
 
It can be done and that is my plan. Thanks for all your input. "

Don’t pay it off the same day. This is something so many people don’t understand. In order to build credit you need the card to produce a statement showing a balance owing and then paid off before due. A lot of people have done what you are doing and also made the mistake of buying something and paying it off immediately. This does NOT build credit. Make a purchase, wait for a statement then pay it.

kaylagurl21

7/7/2018 8:38:03 PM
Member since:
Mar 2009
Total posts:518
From

Everything I have read it doesn''t matter if I pay it early. It only matters if I pay it late. The usage is still there.  
 
Edited by kaylagurl21, 2018-07-07 20:44:08

Donnel

7/7/2018 9:51:32 PM
Member since:
Jan 2018
Total posts:64
secure cards

Secure cards are a low risk and great way to start out after a year your credit can jump pretty fast at first then slow to a crawl as it builds but its more about the history then paying off early or fast creditor look always at age of account then they look at the payment history then at your ability to pay after all that’s done you have great credit.

AndreaD.

7/7/2018 10:32:59 PM
Member since:
Dec 2011
Total posts:701
Capital One

Definitely Capital One. Use it faithfully, never max it out. Pay it off regularly and completely before the due date.  
Great and easy to use secured website/app. You can trace all transactions. Emailed updates for payments posted (when your payment has gone through) and international transaction alerts.  
Fastest way to build up credit is to pay it off after it has been "posted", about a week after you charged something.  
I started with no credit, didn't have to put down a security deposit. Started at $500. After 12 months, it was upped and upped again after another year. I asked them to not up it anymore because I want to have only credit that I can realistically pay off.  
I never use mine for all my monthly bills. I feel it makes it too easy to double spend the paycheque. Better to pay only one modestly sized monthly bill via credit card. Like a phone bill that doesn't have a bunch of overage charges or hydro that is on the EPP.  
Contrary to popular belief, it is not how much you charge each month that ups your credit. It is how much you use the card and how quickly you pay it off. ALWAYS PAY IT OFF 100% EACH MONTH. If you charge on it, pay off the posted balance each paycheque. If you get paid weekly, pay the balance on your credit card each week. This will keep you from double spending or falling into the trap of thinking you have more money than you really do.

Just an opinion

7/8/2018 8:36:43 AM
Member since:
Sep 2008
Total posts:1892
Yes and no

  
kaylagurl21 said "Everything I have read it doesn''t matter if I pay it early. It only matters if I pay it late. The usage is still there.  
 
Edited by kaylagurl21, 2018-07-07 20:44:08"

Yes and no  
To build credit "yes" you must use the card and yes never miss payment and never go over limit.  
 
No do not use it at a store then go home and pay it immediately wait for your statement then pay it off just like your hydro or phone as "never give up" stated just above your quoted post here  
 
You sound like you are responsible and have a good grasp on your finances so you will be fine . Go ahead apply and just use your own judgement and good old common sense and you will be fine.  
 
Edited by Just an opinion , 2018-07-08 08:41:33


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