Guaranteed Secured CC Options

[3darcher2]

With Public Savings on hiatus and Orchard being taken over, what options are there for secured cards for really bad credit.

I'd like no pull.  I can put a substantial amount up front.  I have been through some very rough times, and I have a lot of negatives, a couple of oustanding judgments which I will be working on over the next few months, but I want to sell my house and move in about 18 months and I will obviously need to get a new mortgage.  That is the only current account I have (48 months, one 30 day late that wasn't, it is being disputed right now), everything else is cash basis.  I think I need to get moving now to get some TLs going now so that I can get squared away in 2013.  Income and DTI will all be fine, I just have to keep chipping away at the negatives.  I've gotten rid of about half in a month, still working the rest.

As an aside, what is the reasoning behind not approving a secured card by the various banks.  If you can't get the money out, and you can't go over your limit, why do so many banks decline?  I guess the judgment could garnish the deposit?

[Wolf3]

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@3darcher2 wrote:

With Public Savings on hiatus and Orchard being taken over, what options are there for secured cards for really bad credit.

I'd like no pull.  I can put a substantial amount up front.  I have been through some very rough times, and I have a lot of negatives, a couple of oustanding judgments which I will be working on over the next few months, but I want to sell my house and move in about 18 months and I will obviously need to get a new mortgage.  That is the only current account I have (48 months, one 30 day late that wasn't, it is being disputed right now), everything else is cash basis.  I think I need to get moving now to get some TLs going now so that I can get squared away in 2013.  Income and DTI will all be fine, I just have to keep chipping away at the negatives.  I've gotten rid of about half in a month, still working the rest.

As an aside, what is the reasoning behind not approving a secured card by the various banks.  If you can't get the money out, and you can't go over your limit, why do so many banks decline?  I guess the judgment could garnish the deposit?

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I am not sure why Capital One taking over Orchard keeps you from applying with them?  The Credit Card Center lists 3 other secured cards that look like they would take really bad credit, but I don't know.  I only have experience with 3 secured cards.  ( PSB, HSBC, Capital One).

Why worry about an inquiry?  With really bad credit, it makes no difference.   

There is a danger of garnishment with Judgements and secured accounts, so I would suggest waiting until the judgements are handled.

Some secure accounts are for people with no credit starting out, they don't want bad credit customers.   I think others want rebuilders who have a good chance of becoming good customers in the future, so they are picking people who they might give unsecure credit to in a year or two.   Others cater to really bad credit and expect to get paid a lot for the privilege.   PSB was an exception to this, until about a year ago.   Before that, they had real good terms and no credit check.

[valley_man0505]

I had a US Bank secured card a few years ago.  At that time, the approval was guaranteed as long as you didn't have a bankruptcy on your record.  Othere than BK, they didn't care what was on your record.  In fact, I had 10 CO's, a few CA's, and a bunch of lates at that time and I still got approved.  They will do an INQ to check for BK.  Your limit is equal to your deposit.  Once your FICO reaches 680, it becomes unsecured (as long as you have had the secured for at least one year without any problems).

Of course, this was a few years back, so things may have changed since then.

[Wolf3]

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@valley_man0505 wrote:

I had a US Bank secured card a few years ago.  At that time, the approval was guaranteed as long as you didn't have a bankruptcy on your record.  Othere than BK, they didn't care what was on your record.  In fact, I had 10 CO's, a few CA's, and a bunch of lates at that time and I still got approved.  They will do an INQ to check for BK.  Your limit is equal to your deposit.  Once your FICO reaches 680, it becomes unsecured (as long as you have had the secured for at least one year without any problems).

Of course, this was a few years back, so things may have changed since then.

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Well 2 years ago, US Bank delined me for secured card.    I had some chargeoff settled accounts, but no BK.     HSBC and PSB approved me right after that.

US Bank is not for  very bad credit.

[xlr8d]

No pull? I'd say a local CU. The one near me has no credit check, and like 8.75% apr. Much better service than the others, oh yeah no annual fee