I am writing to inquire about secured credit cards. Do you know if my credit score would be affected by applying for a secured credit card? For example, I understand that my FICO score goes down for every credit card I apply for, anywhere between 4-7 points depending on the card. However, I am unsure if that same principle applies to secured credit cards. Since I will be using my own money, do the credit bureaus view a secured credit card as an inquiry or more like a tradeline? I have researched this information on line for the past two days and have found nothing satisfactory. Please kindly advise. Thanks.
Your credit will be pulled up regardless whether it is a secured credit card or unsecured credit card. Now you should also know that your credit score does not go down if you simply are researching and applying for credit cards within 1-2 month period. The bank issuing the credit card will look at this activity as if you were seriously researching the best credit that fits your needs. However, you credit will be affected if you apply for a credit card (secured or unsecured) and you are again in the market looking for another one just few months down the road. Defenitely avoid doing this. Same thing applies when you are looking for a mortgage.
I am an Accountant and not a credit analyst. The above information is what I have gathered based on my experience and based on my converstations with credit analysts, brokers and agents.
I hope this is satisfatory. You can also check if this information is accurate by calling folks who work as credit fixing agencies.
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