Discover it secured card ? Do you think I would be approved? thanks in advance

[Joecooltech]

I currently am on aggressive rebuilding stage. Current Fico score is 575

The good
Auto loan for the last 18 months paid on time co signed by parent
Wells Fargo credit card Open for the last 18 months paid on time cosigned by parent
Personal loan amount of 1200 owed out of 2000 for the last seven months paid on time
Fingerhut opened last month 800 limit using 100 bucks
The bad
Six collection accounts that are reporting every month all or small credit cards such as capital one credit one bank GE retail bank

[joltdude]

Uhm... Not very likely....

That said if you do want a Discover Secured sometime in the not too distant future (i predict)

Sign up for Credit Scorecard preferably a day when youd like to get a free FICO score every month... 

(one it gets you on their radar and the offer in Credit Scorecard, is a bit more reliable than just trying to blind app or use their "prequalify" ) Still would wait for scores before accepting it when offered... (Realize some still have been turned down even with the secured offer but also realiize they have your score and not just a blind marketing pull so its more accurately targeted)

Work on cleaning up and see if you can do some work on some baddies.... Check out the rebuilding forum for suggestions....

I think it wouldnt take much time to come into range where its a better possibility...  Thinking low 600s 

 An aside.. 650-660 after the usual 6-7 months is the score where they start to unsecure.. but i do think some of your baddies are gonna have an effect on that...

Even though discover offers a secured card.. its not quite as easy to reach as a lower tier secured card... though they seem to be more amicable than when they started issuing secured cards at offering them... Still think its worth it IMHO... 

Remember its not just your score.. history can and does have an effect with many lenders....

-J

-J

[joltdude]

It really doesnt matter the amount.. (yes larger amounts do tend to be taken a bit more heavily on manual review).... really try to PFD some of those accounts.... 

The AUs will only slightly help you because you still have those accounts in arrears in your name...

Theres more to credit than just your score.. but its a big part of it...

-J

[Anonymous]

J the OP didn't say AU accounts they said the parent co-signed as in those are JOINT accounts 😨

For the love all that is holy take @ Jolt's advice, regarding the quick clean up, the Scorecard for sure, erase usage off that FH account immediately...
You say the WF is paid on time does that account show a balance along with the FH at any time...

Is the WF carrying a balance...

Either way A.S.A.P. push score enough to secure 2 personal CCs and get Mom/Dad OUT of the line of FIRE, period!!!

Close the CC, Refi the auto loan as quick as yesterday
IMO you NEVER want to put family members, especially Mom/Dad in ANY danger of going down with ANY hiccup that might happen

=Not worth it, pay the extra % rate a year, even 2 because it buys peace of mind and " insurance" against 'what ifs' that might screw things up

Parents can't help create wise, if their credit suffers due to a kid's hiccup that damages BOTH profiles...where had they stayed separate Mom "could" have gotten a loan to help out but NOT now because Jr.'s missed auto payment tank her score to

Do NOT co-sign, which is JOINT sign for folks with credit issues ( even if you love them) the family can't take the chances of screwing up more than one profile trying to save one....it's better to PAY a little more ( I call it insurance protection) towards the building of the weaker profile, than chance the family safety net.

A well meaning kid loses a job, goes through a break up and now 2 profiles are jacked... don't do it

Better to personally lend 💰 one can afford to lose than play Russian Roulette with an extra credit profile

Car dealers so often, soften what co-signing is and I always remind ppl that just like a co-owners means both ppl own co-sign means you both signed, period none of this IF they don't pay stuff, everything that happens, happens to you...

[Joecooltech]

Gem, to answer your question the WF has a balance of 3800 out of 5800 the FH I paid it's at 0% utilization due to the death of a family member I have money in the bank so I don't I have to worry about a hiccup. But I very much do agree with your principal that I should get them out of the line of fire .

[Joecooltech]

I miss spoke the limit on the WF is 8600

[Anonymous]

Ok, np
1) If our objective is score enhancement, as we build positive data towards a thick profile
We gotta manage the utilization ratio on that WF and if it can't be under 10%.... it's gotta be sub 20% max

Secondly it says the FH may/may not report even a $100...the issue with the RISK scoring model is if multiple revolvers are reporting A balance of any size it = a ding
Because the model doesn't register an amount, it's just the more than 1 has a chance, a Y/N scenario

This nitpicking is important for a young file because the model grades the Freshmen/Sophomore more harshly than it would the Senior/Grad Student

Keep this in mind,so that prior to apping and wasting HPs you get yourself as 'pretty' as possible before they take snapshots ( meaning if $100 balance is the difference between 100% of a profile's revolvers showing a balance...kill the $100 balance prior to the photographer arriving)

Also if aggressive building is the goal and there's cash in the bank why not secure to few CCs where you're primary
Cap-1
Citi
BoA
Several quality CUs for SURE
Maybe even WF
( Make sure there are no glaring stip issues)

Grab the TLs keep utilization down, allow the several lines to age together, thus aging the HPs as well as the negs... again as the multiple positives age as well 10-15 months of such a video game bodes well

And one's profile could be unrecognizable after 10-20 reporting cycles
Best of Luck, friend

[Joecooltech]

Wow, gem thanks so much I have one question though if I lower the utilization to below 10% and I end up paying it off I'm i going to have to charge more debt to show revolving payment history? Or do I just let it sit at 0% ?

[Anonymous]

Great question... it gets confused and butchered ALL the time

When, we speak of showing utilization... again it's got the CAMERA, just showing a little leg for the pic
There is ZERO reason to 'carry' a balance or take on DEBT in order to show a little leg.

Example is the best way to see this in action

Let's say the closing date for one's Statement is the 10th of the month with a Due Date of the 5th of the following month (25 day grace, right)

To play the leg game, managing the video game only requires that one allows say $50 to report as a balance on Statement Cut day/ Snapshot to the CRAs day

Meaning that on the 10th your Statement Cuts showing a $50 balance vs your $1000 CL
This info is relayed to the CRAs as a reported utilization of 5% usage of your $1000 CL
*Remember it's a once a month snapshot, the photographer is gone till next month

At this point, you can pay the $50 (leg showing amount) and be done with it

Remember you have a 25 day grace period prior to any % being due, so ZERO cost will be added as long as you pay by the 5th of the following month but as I said you can pay on the 11th the pic was snapped on the 10th

Anything NOT showing on the 10th Statement Cut is deaf, dumb and unseen to the CRA they only get the ONE snapshot per month....

This is way one can run up $900 vs that $1000 CL and make a payment that post on say the 9th for $801 leaving only $99 to post as a Statement Balance on the 10th FICO rounds that % up to 10%( so it looks like a $100 balance vs the $1000 CL) even if it's .0001 FICO rounds up so if one I'd shooting for a 9% utilization keep it at 8% because 9.00001 will report as 10

Anyway where ppl get confused is they will WAIT and allow the $900 to bill on the Statement ( we're used to that in other parts of life) then they immediately pay the Statement and wonder WHY their score doesn't go up or suffers ....it's because at the moment of the snapshot their ratio was $900/$1000 CL or 90% = Maxed out

The model doesn't see that it got paid the very next day, remember photographer is gone till same time next month....

It just comes down to playing the dates

Had that same person dumped $900 on the 11th ( a day after the pic, model doesn't see again till next month )

Hope, I didn't confuse you further and you understand you never have to CARRY a balance over a cycle just allow some usage/leg to be seen....

It's as easy as getting gas on the 3rd allowing it to bill on the 10th Cut date and simply paying it off on the 11th = never a problem, never a penny in interest but usage shown = win-win

[Joecooltech]

Makes absolutely perfect sense to me . When you put it in that perspective it shows just how much a game the credit system is.