My husband and I each opened a secure card over 2 years ago from our bank. We have been with USBank for over 15 years. When we opened our secured cards they required a $300 each. We asked if we could build credit faster if we did $500 each and the banker said yes. He told us that if we make on time payments and paid it off every month for 6 mo to 1 yr that they would automatically change us to unsecured cards with a higher amount of credit. Of course we believed him and he pulled up the contract for us each to read on a signature pad. I started reading when all the sudden his computer had some kind of glitch so the sig pad went blank. He told us he would just print the last page so we could each sign it and he would mail us our copies once their system started working. He never sent us anything. I called to speak with him I was told that he got transferred to another town 2 hrs away so that he could finish school. I asked for a copy of our terms and she recommended for me to call the main bank # and they would be happy to send us copies. So I called and was told that they would but never did. I regret & should have been more diligent with them. At the time we had no credit and we each had 2 medical bills. We needed to buy a house because we rented from a lady for 7 years and she needed to have us out so her son could live there. We spoke to an awesome lender to see what we could do to build more credit. We opened a non-secured joint credit card with our bank and inquired about our secure cards on why they hadn’t changed them to unsecured cards. We were told that was not the way it worked and if we wanted to get our $500 ea returned to us that we should close the cards and reapply for an unsecured card each. Our lender told us not to because it would look bad to have closed accounts on our credit. We did eventually buy a home recently.
My husband got a letter today from our bank that if he would like to open a new card with a higher limit that he would be able to close his secure account, get his $500 plus interest back. I’m sure I’ll be receiving the same letter any day now. My concern is that our credit scores will drop because of having a “closed” acct. This is what I’ve read in my research about building credit. Any advice is much appreciated. Sorry so long. Thanks y’all