A secure credit card can be a useful asset for people on the journey to build better credits and a great tool to help them learn good credit habits. However, there are many advantages, Secure credit cards Once your credits improve, you should consider them as a stepping stone on the road to traditional, unsecured cards.
Once established Fair Credit Scoreyou can start searching for unsecured cards that suit your financial needs. Find out what factors the issuer is looking for to upgrade your secure credit card to an unsecured card and how to do so.
Can I upgrade my secure credit card to an unsecured credit card?
Ideally, you should be able to move from a secure credit card to a secure credit card after building your credit card. In the best case, secure credit card issuers have the option to graduate from secure credit cards. If not, you will need to search for a new unsecured credit card and apply as with any other new card.
If you make your credit card payments on time for a certain period (usually 12-18 months), you have built your score to meet the card issuer’s requirements (usually start around 580 for cards Fair Credit) and consistently maintains credit usage at below 30%. Given that card issuers have unsecured options, there is no problem with upgrading to an unsecured card.
If you want to upgrade your secure credit card
You may consider upgrading your unsecured card to an unsecured version if you meet the following:
-
You have your secure credit card At least 1 yearor if you need to improve your credits, it will be longer.
- yI got a fair credit score. Don’t know where your score is? By learning how to get where you are in your credit building process Check your credit score.
Why do I want to keep my secure credit card open?
Despite the charm of the opening New unsecured credit card And everything that comes with it has a number of reasons why keeping a secured credit card account open can benefit you.
First, if you decide to close your secure credit card, you may see a dip in your credit score. Additionally, if you cannot convert a secure credit card to an unsecured card, you can leave your secure credit card account open.
How to upgrade your secure credit card
Once you have at least a year of credit creation (creating all payments on time and keeping your credit usage below 30%), contact your secure credit card issuer and take steps to upgrade your secure credit card. Here’s how:
Step 1: Contact your credit card issuer
One of the easiest ways to move to unsecured credit cards is to upgrade your secure card. Many credit card issuers offer a direct pass from a secure credit card to a secure credit card, given that they are using their protected cards responsibly. When considering an upgrade, contact your card issuer and find your options.
Step 2: I’ll go shopping
In many cases, credit card issuers offer to simply convert a secure credit card to an unsecured credit card and return the security deposit. However, there are several options for those who have a secured credit card that is ready to switch to traditional unsecured credit cards.
Card issuers will want to see the account’s on-time payment history for the life of their account. For example, Discover will automatically review Find your IT® Secure Credit Card Account in 7 months to determine whether cardholders can be upgraded to unsecured cards. Qualified cardholders can even receive security deposits and access higher credit restrictions.
Secure credit card issuers will know that they have no option to upgrade their secure credit card to an unsecured credit card, or that the option doesn’t suit you. If so, start shopping with a credit card Please meet your needs. Qualified credit cards are dependent on the credit cards you create with security.
Step 3: Reclaim your deposit
Whether you upgrade your secure credit card to an unsecured credit card or shop for a new unsecured credit card, when you transfer or close your secure card account in good condition, you will be Please refund your security deposit.
This process can take some time as the card issuer needs to ensure that there are no outstanding payments linked to a secure credit card. It is best to contact your credit card issuer to confirm that you will be regaining your security deposit.
Conclusion
Secure credit cards are a great option for consumers looking to build credit on their journey to traditional, unsecured credit cards. You can upgrade your protected credit card to an unsecured credit card, but you will need to work with the credit card issuer to find a non-security credit card option that you can use based on your credit score.
If you need to look at others Credit card issuer There are plenty of options to find the right card for your needs when you’re ready to upgrade your secure credit card.
learn more: Please take a look at the credit cards that can be used with Bankrate Card Matches.
