Could a secured card actually hurt your score? My ordeal at the Denver Walmart

I put $300 down on a secured card at a Denver Walmart last fall, and my score dropped 22 points because the credit line showed up as a new account while my utilization stayed the same. Is it smarter to just do a self-lender loan instead of a secured card if you're starting from zero, or did I just get a bad bank?

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miles_burns22d ago

That 22 point drop is just the opening move, not the whole game. The real thing nobody talks about is how the secured card ages. Give it 7 or 8 months and that same new account becomes your oldest line, which pulls your average account age way up compared to someone who just does a self lender loan. The loan ends and disappears, the card stays open for years if you let it. Utilization matters now, but history matters more later. Stick with the card, keep the balance low, and that 22 points comes back with interest.