Im looking to change from a secured card to a unsecured card however am concerned this will create a new credit file an i will lose my payment history and also take a ding for the inquiry. Anyone have any information if this is actually the case?
Hi @DannyH, welcome to the community, glad to have you with us! Right now, there’s not a way to transition the existing secured account to a standard one (though our team is actively working on that). And you’re right about how closing the account could impact your credit. What would you think about just reducing your credit limit to the minimum amount needed to keep it open? This isn’t typically something we recommend, but may be a good option in this case. Our agents are able to help with removing part of the security fund once every 365 days.
I have contemplated that however it really doesnt make any sense to reduce my limit and keep the account open if im not going to use it since i have to pay 5$ a month just to have the card, which was originally a no monthly fee card. Its just really dissapointing that neo advertises that they review your credit every 90 days and that you can recieve a higher limit without adding more funds “in as little as 90 days” however im now being told this is not the case and that neo currently cant do that even though they advertise that its possible.
The receiving a higher limit without depositing more would be in regards to a newly released feature where on top of your secured funds we would also give you some credit ourselves. So if you had a limit of $100 you may receive an offer where we would provide $50 so your new limit would be $150 without having to deposit anything further. The numbers are just for the example, I wouldn’t be able to know what kind of extra credit we would be able to offer you, but that does exist. It just wouldn’t refer to being able to swap to a standard credit account without any deposit, and I truly do apologize for the confusion that this has caused.
So how would one apply for this or does this have to be initiated by neo. What are the requirements one would have to meet to recieve an offer like this?
It would be an offer sent to you, not something you could apply for. You would need to have had the card for a minimum of six months and to be keeping it in good standing with regular on time payments. Beyond that, it’s just keeping your overall credit health looking good and then waiting for the offer to be sent to you so that you can accept it.