Please stop recommending secured cards to new BK7 rebuilders

[Lechte]

SoulMaster....not to burst your all-knowing bubble, but as I said in the other thread...a CLOSED account has no factor on the AAoA, a positive closed account remains on a persons CR report up to 10 years from the date it was closed and is factored into the AAoA as long as it remains on a persons CR....even a Charged-Off Account counts towards AAoA as long as it remains on the CR.   As for your secured card theory..."SECURED" does not show up on a CR.   A lender cannot distinguish between secured or unsecured by looking at your CR.   A bunch of low limit cards showing on a persons CR doesn't help when looking to obtaining higher CL's from other Creditors, but a person doesn't have to settle for a $300 secured....if they have the means, they can increase their deposit or limit.  As well, starting out, it is unlikely that a person will obtain an unsecured card with a high CL, so your facts or point is mute either way.

[aussiesareforever]

I agree. A closed account does not affect your AAoA since it stays on your CR for ten years.

Absolute generalizations don't work for everybody. I think secured cards have their place for certain individuals and can be very helpful in rebuilding. I was rebuilding with a secured card before I finally decided to file BK, which actually helped raise my credit score. I would recommend applying for an unsecured card but if those don't pan out, most definitely take the secured route.

I think Soul Master's plan is terrific and would help a ton of people on this site. Along the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

[TRC2k13]

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@aussiesareforever wrote:

IAlong the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

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Yep... I'm 11 months out of my Ch 13 and could very well hit 700 across the board by the end of this year.  I've got a dozen or so inquiries that will reach 1 year old (and supposedly stop affecting my scores) in the coming months... and just refinanced my car last week... my first and last inquiry of 2014.  My 20% utilization will be less than 2% by the end of this month.

Rebuild is going well.

[Lechte]

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@aussiesareforever wrote:

I agree. A closed account does not affect your AAoA since it stays on your CR for ten years.

Absolute generalizations don't work for everybody. I think secured cards have their place for certain individuals and can be very helpful in rebuilding. I was rebuilding with a secured card before I finally decided to file BK, which actually helped raise my credit score. I would recommend applying for an unsecured card but if those don't pan out, most definitely take the secured route.

I think Soul Master's plan is terrific and would help a ton of people on this site. Along the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

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I don't necessarily have anything against his plan overall.....just his preaching that secured cards are bad and they keep people in low limit hell and that it looks bad on a credit report, as well has him continuing to tell people that closed accounts are not counted towards your AAOA...which in turn, cause people who believe that to start closing accounts that maybe they shouldn't.    People would benefit more by putting down $500 or even $300 for a Secured Card with a low AF ($20-$30) with that $500-$300 coming back to them once they close the account, than to have a card like First Premier that puts them in a $150 non-refundable hole from the get-go with a starting limit of $300 and a $75 AF and little to no CLI's.   ...a Secured Card trumps a sub-prime card like FP any day and all day.  

[Scupra]

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@Lechte wrote:

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@aussiesareforever wrote:

I agree. A closed account does not affect your AAoA since it stays on your CR for ten years.

Absolute generalizations don't work for everybody. I think secured cards have their place for certain individuals and can be very helpful in rebuilding. I was rebuilding with a secured card before I finally decided to file BK, which actually helped raise my credit score. I would recommend applying for an unsecured card but if those don't pan out, most definitely take the secured route.

I think Soul Master's plan is terrific and would help a ton of people on this site. Along the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

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I don't necessarily have anything against his plan overall.....just his preaching that secured cards are bad and they keep people in low limit hell and that it looks bad on a credit report, as well has him continuing to tell people that closed accounts are not counted towards your AAOA...which in turn, cause people who believe that to start closing accounts that maybe they shouldn't.    People would benefit more by putting down $500 or even $300 for a Secured Card with a low AF ($20-$30) with that $500-$300 coming back to them once they close the account, than to have a card like First Premier that puts them in a $150 non-refundable hole from the get-go with a starting limit of $300 and a $75 AF and little to no CLI's.   ...a Secured Card trumps a sub-prime card like FP any day and all day.  

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edited because I found what I asked for.

[Lechte]

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@Scupra wrote:

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@Lechte wrote:

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@aussiesareforever wrote:

I agree. A closed account does not affect your AAoA since it stays on your CR for ten years.

Absolute generalizations don't work for everybody. I think secured cards have their place for certain individuals and can be very helpful in rebuilding. I was rebuilding with a secured card before I finally decided to file BK, which actually helped raise my credit score. I would recommend applying for an unsecured card but if those don't pan out, most definitely take the secured route.

I think Soul Master's plan is terrific and would help a ton of people on this site. Along the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

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I don't necessarily have anything against his plan overall.....just his preaching that secured cards are bad and they keep people in low limit hell and that it looks bad on a credit report, as well has him continuing to tell people that closed accounts are not counted towards your AAOA...which in turn, cause people who believe that to start closing accounts that maybe they shouldn't.    People would benefit more by putting down $500 or even $300 for a Secured Card with a low AF ($20-$30) with that $500-$300 coming back to them once they close the account, than to have a card like First Premier that puts them in a $150 non-refundable hole from the get-go with a starting limit of $300 and a $75 AF and little to no CLI's.   ...a Secured Card trumps a sub-prime card like FP any day and all day.  

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edited because I found what I asked for.

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Am I missin something?

[DaveSignal]

I've never field BK, so I can't give my specfiic rebuilding experience here.  I don't often post in this forum.  Soulmaster has done it and his method worked, so I'm sure that it would work for other people too.

For people rebuilding that have not filed BK, this I do have experience with.  I have done it twice.  I can definitely say that the rebuild is significantly quicker if some positive revolving lines are opened and maintained starting as soon as posibile.  For people who haven't experienced a BK, I can state that secured or unsecured does not matter.  It is easier to build higher limits if a larger limit is used from the start on the secured card, however.

If BK comes into play, I have no advice regarding this.  Although I would assume that the rebuild is similar to anyone else who is rebuilding from charge-offs and collections, this might not be the case at all.  If it was me recovering from BK, would find out how other people who filed BK did their rebuild and, using a combination of the collective posted advice/experiences, develop my own plan. 

[Scupra]

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@Lechte wrote:

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@Scupra wrote:

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@Lechte wrote:

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@aussiesareforever wrote:

I agree. A closed account does not affect your AAoA since it stays on your CR for ten years.

Absolute generalizations don't work for everybody. I think secured cards have their place for certain individuals and can be very helpful in rebuilding. I was rebuilding with a secured card before I finally decided to file BK, which actually helped raise my credit score. I would recommend applying for an unsecured card but if those don't pan out, most definitely take the secured route.

I think Soul Master's plan is terrific and would help a ton of people on this site. Along the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

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I don't necessarily have anything against his plan overall.....just his preaching that secured cards are bad and they keep people in low limit hell and that it looks bad on a credit report, as well has him continuing to tell people that closed accounts are not counted towards your AAOA...which in turn, cause people who believe that to start closing accounts that maybe they shouldn't.    People would benefit more by putting down $500 or even $300 for a Secured Card with a low AF ($20-$30) with that $500-$300 coming back to them once they close the account, than to have a card like First Premier that puts them in a $150 non-refundable hole from the get-go with a starting limit of $300 and a $75 AF and little to no CLI's.   ...a Secured Card trumps a sub-prime card like FP any day and all day.  

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edited because I found what I asked for.

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Am I missin something?

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Nope! I asked a question and then found the answer so I deleted it. This thread is like walking on egg shells so I didnt want to post in it really. Thanks though!

[Lechte]

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@Scupra wrote:

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@Lechte wrote:

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@Scupra wrote:

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@Lechte wrote:

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@aussiesareforever wrote:

I agree. A closed account does not affect your AAoA since it stays on your CR for ten years.

Absolute generalizations don't work for everybody. I think secured cards have their place for certain individuals and can be very helpful in rebuilding. I was rebuilding with a secured card before I finally decided to file BK, which actually helped raise my credit score. I would recommend applying for an unsecured card but if those don't pan out, most definitely take the secured route.

I think Soul Master's plan is terrific and would help a ton of people on this site. Along the same lines, it is okay to follow a different rebuilding pathway, as long as you are making smart decisions! 

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I don't necessarily have anything against his plan overall.....just his preaching that secured cards are bad and they keep people in low limit hell and that it looks bad on a credit report, as well has him continuing to tell people that closed accounts are not counted towards your AAOA...which in turn, cause people who believe that to start closing accounts that maybe they shouldn't.    People would benefit more by putting down $500 or even $300 for a Secured Card with a low AF ($20-$30) with that $500-$300 coming back to them once they close the account, than to have a card like First Premier that puts them in a $150 non-refundable hole from the get-go with a starting limit of $300 and a $75 AF and little to no CLI's.   ...a Secured Card trumps a sub-prime card like FP any day and all day.  

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edited because I found what I asked for.

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Am I missin something?

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Nope! I asked a question and then found the answer so I deleted it. This thread is like walking on egg shells so I didnt want to post in it really. Thanks though!

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I hear ya.  I'm not tryin to be controversial...but the "secured card" and "closed account AAOA" view has been expressed on multiple threads and I believe it's in the best interest of everyone coming here for information and advice to walk away with facts rather than false information that could negatively affect their financial/credit situation. 

[DaveSignal]

I don't think that he was saying that closing an account hurts AAoA, but that opening band new secured cards does.  This is true.  But, of course, opening new positive tradelines is a neccessary part of a rebuild.  Regardless, this thread started off a bit confrontational and didn't go in the right direction.  Lets end the argument here.  There are many users on these forums who have posted many other threads with personal advice that has worked for rebuilding credit.