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Established Member
anackerman
Posts: 45
Registered: ‎01-19-2013
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Getting secured cards....advice?

My next step in my credit repair is getting a secured credit card. I would like to open 2-3 cards right now. Any feedback on that? I've read that the best option is to open 1 card, let it age 6 mos then open another. However, I will be spending the next 12 months repairing and rebuilding my credit and not applying for loans or anything of that sort. I am planning on applying for an unsecured card in 6-9 mos. Currently, I have no open revolving credit. Here's what I want to do and my reasons for doing so:

 

1) Open 2 secured cards now. From what I understand, that should drop my score a little because multiple new accts will drop my AAoA...but after 12 months of rebuilding, it shouldn't matter much, right? In a year, I would like to show 2 revolving lines with 12 months positive history. Good idea? Neither of the cards I'm applying for will graduate to an unsecured card. I can't find any secured cards that graduate that I'll get approved for.

 

2) Add money to 1 of the secured cards to increase limit each month. Of course, keeping my util under 9% with 1 card and 0% with the other

 

3) In 6-9 months (or longer if my scores aren't where I'd like), apply for an unsecured card in order to have 3 revolving lines of credit

 

4) In 18 mos, open another unsecured card then close the secured card that I didn't make limit increases on. I would like to close the secured card because it won't graduate to unsecured and I'd like to eventually get my money back.

 

Any recommendations on secured cards? Any that will do increases? I think I've burned my bridges with BofA and Cap1 as I have old cards from both of them that went into collections. 

Any feedback would be greatly appreciated!

Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
Established Contributor
jamie123
Posts: 811
Registered: ‎03-22-2012
0

Re: Getting secured cards....advice?

Which secured cards do you plan on applying for?

 

What kind of baddies do you have on your report and when was the most recent one?



Starting Score: EQ 658 6/18/12
Current Score: EQ 696 9/5/14 - EX 687 7/21/14 - TU 682 7/21/14
Goal Score: EQ 720+
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Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Getting secured cards....advice?


anackerman wrote:

My next step in my credit repair is getting a secured credit card. I would like to open 2-3 cards right now. Any feedback on that? I've read that the best option is to open 1 card, let it age 6 mos then open another. However, I will be spending the next 12 months repairing and rebuilding my credit and not applying for loans or anything of that sort. I am planning on applying for an unsecured card in 6-9 mos. Currently, I have no open revolving credit. Here's what I want to do and my reasons for doing so:

 

1) Open 2 secured cards now. From what I understand, that should drop my score a little because multiple new accts will drop my AAoA...but after 12 months of rebuilding, it shouldn't matter much, right? In a year, I would like to show 2 revolving lines with 12 months positive history. Good idea? Neither of the cards I'm applying for will graduate to an unsecured card. I can't find any secured cards that graduate that I'll get approved for.

 

2) Add money to 1 of the secured cards to increase limit each month. Of course, keeping my util under 9% with 1 card and 0% with the other

 

3) In 6-9 months (or longer if my scores aren't where I'd like), apply for an unsecured card in order to have 3 revolving lines of credit

 

4) In 18 mos, open another unsecured card then close the secured card that I didn't make limit increases on. I would like to close the secured card because it won't graduate to unsecured and I'd like to eventually get my money back.

 

Any recommendations on secured cards? Any that will do increases? I think I've burned my bridges with BofA and Cap1 as I have old cards from both of them that went into collections. 

Any feedback would be greatly appreciated!


I would say 2 secured cards rather than 3.   Increasing the deposit is a very good idea.   Worrying about the utilization is only relevant when you are applying for something else, otherwise a waste of time.  I would wait over 12 months for the first unsecured application.   Read the terms carefully on the secured cards, some are very expensive with fees.

 

 

Established Member
anackerman
Posts: 45
Registered: ‎01-19-2013
0

Re: Getting secured cards....advice?

Not sure which one's I'm applying for yet...any ideas? I've seen a lot with hefty fees which is not a huge deal for me at the moment. I'm in rebuild mode so if it costs me now, its worth it in the long run. It wont be forever.

 

My report is full of baddies...I'm just now starting my repair. The report consists of defaulted loans and charged of credit cards...Many are old enough to fall of this year or next, some are a couple of years old. Getting secured cards is just one of the many steps I'm planning on taking

Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
Valued Member
jchu2013
Posts: 44
Registered: ‎01-12-2013
0

Re: Getting secured cards....advice?

 

I got the US bank secured and BOA secured, both of them will graduate, this is the main thing I like about them.

 

 

 

 

My current situation :
Credit Score : NONE.
BOA secured card (4000), US bank secured card (4000)
4 Inquiries in Dec 2012
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Established Contributor
TiggerDat
Posts: 1,032
Registered: ‎10-15-2011
0

Re: Getting secured cards....advice?

My advice is to get a Merrick Bank secured card.  They gave me one when I had baddies on my report.  I think it was about 2 years after they hit my report.  I put down $1000, which they still have to this day 5 1/2 years later. 

 

I would then open another account as soon as you can with another bank or credit union which is good about doing secured cards.  I think USAA would do it.

 

I would then also do another one as soon as possible also with another bank or credit union.  You should avoid PNC, as they will probably say no!  From what I have heard about their secured card is that it is good, but with too many baddies then you will be declined anyway. 

 

The reason I say 3 accounts is because this is what FICO recommends in their booklet which you can download.  (Yeah, I read it.)  Managing one or two accounts is OK, but if you can manage three or four it shows you can budget better. 

 

I suggest opening all on the same day or within the same month because of AAoA.  This will build that the fastest!  The trifecta of the three accounts in 12 months should be very good. 

 

Also, you can't go over 20% for your score, but remember that is really only important in 3 situations.  1.  If you are applying.  2.  If you are being solicited.  3.  If your bank is nervious about your util. 

 

Certainly you know that you should pay them off in full each month and if you can add a little every few months to their limits through deposits.  Some banks like this.  Also some banks will release the funds after a set period of time, such as a year or two, others depending on your score, and some (Merrick) never!  (After 5 1/2 years you would think they would understand that I am not going to default on their card.  When I get an Amex, at the latest, I will close the Merrick.  Don't get me wrong, I like them, but they have my money and I am paying an annual fee to them on a monthly basis.  They are the only card I pay an annual fee on.)

 

You might also be aware that if you burned BofA they might come after you and file court papers.  I think their collections agency waits for you to open a card to do so.  That way they can guarantee payment.  If the BofA ends up with Calvary Portfolio, all I can say is watch out.  They served me at an old address and I never even knew it until they tried to drain my BofA checking account, I think they keep in touch with each other!  (I say tried, because I had money wired to the account then transferred it to another account the same day, they only got me for the $100 legal fee from that account, but they did take money from the other account later.)  They at one point had turned it over to an attorney who did collections too.  They even went so far as impersonating me and called my credit card company and then offered me a payout for the exact amount of available credit I had.  I called the bank and I asked them when was the last time that I had called and explained why I needed the info.  They had actually called 3 times.  I think they were waiting for my available to be higher, when it wasn't it was a matter of get what they could.  I called Calvary and explained what I knew to be a fact and we then settled for the amount I named to them.  (I would have taken it to court, oh yeah!, but I was not in the country and wasn't returning any time soon!)  So if Calvary has your collections for BofA, then be careful.  They themselves might not do anything illegal, but I am pretty sure they look the other way with who they send off some of their debts to and I am certain they retain ownership of the account.  That is what the attorney/collection company told me anyway.  When I contacted Calvary, they said they could deal with me directly!  Since I knew what had happened, they were certainly willing to avoid an intanglement of a lawsuit, probably because they did retain ownership. 

 

So, you might want to check the statute of limitations and wait for that BofA to be out of their touch!  (Funny thing is, I had 2 accounts at BofA accounts and they only sued for one, but I suspect there was a reason behind that.  I suspect that it was so they could apply payments to one and hold the other as a bargaining chip.)

 

I hope this is helpful



Rethink every purchase you make, before you make it. Use the card with the best rewards. Pay in full each month. Redeem rewards often. Use the cards online shopping for more discounts. Smile, knowing that being thrifty allows you to actually get more out of the same amount of money!
Established Member
anackerman
Posts: 45
Registered: ‎01-19-2013
0

Re: Getting secured cards....advice?

Omg! Thanks for the input...that's good to know. What a nightmare! My collection was with Cavalry but I paid it recently.
Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: Getting secured cards....advice?

I would recommend you get one of the secured US Bank rewards cards. Aim for a $5,000 limit.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Getting secured cards....advice?


Dustink wrote:

I would recommend you get one of the secured US Bank rewards cards. Aim for a $5,000 limit.


Approval is very unlikely.    Been there.

 

Open Sky approves without credit check, but no grace perios, so watch how you use it.     Check out First Progress secured card.  It is in the find credit cards sectrion on this site.      I would not worry about your credit score at all for at least a year.   Getting  1 secured card now, can help you to get approval for unsecured in a year, so you can start with 1 card for now (less expensive) and end up with about the same result.  Getting 3 cards costs more and will help only a little. 

Established Member
anackerman
Posts: 45
Registered: ‎01-19-2013
0

Re: Getting secured cards....advice?

Thanks everyone. I actually signed up with First Progress last night. US Bank doesn't really seem like an option for me.
Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680

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