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New to add a credit card for rebuilding credit

Established Member

New to add a credit card for rebuilding credit

Hello everyone. I'm working on repairing and rebuilding my credit. I have several COs from CCs from 2008. There's a total of 10 accounts that are in collections and I've paid off 2 and planning to pay off another 2 this month. 

 

I currently have 1 cap one secure card and a loan with my CU for 2 cars. Both of these account are perfect. 

 

Question: what are the best cards to get for rebuilding and establishing new credit? Should I get 1-2 more secured credit cards? If yes, what are the best cards to get that I will qualify for? 

 

Thanks for any feedback. 


Starting Score: 657
Current Score: 657
Goal Score: 725


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6 REPLIES
Established Contributor

Re: New to add a credit card for rebuilding credit

 

I think a good place to start would be to get a secured card with your credit union as you already have relationship with them.  Be sure that any such card will get reported to all the credit reporting agencies though.


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

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Senior Contributor

Re: New to add a credit card for rebuilding credit


Alpha123 wrote:

Hello everyone. I'm working on repairing and rebuilding my credit. I have several COs from CCs from 2008. There's a total of 10 accounts that are in collections and I've paid off 2 and planning to pay off another 2 this month. 

 

I currently have 1 cap one secure card and a loan with my CU for 2 cars. Both of these account are perfect. 

 

Question: what are the best cards to get for rebuilding and establishing new credit? Should I get 1-2 more secured credit cards? If yes, what are the best cards to get that I will qualify for? 

 

Thanks for any feedback. 


Capital One secured card is good, suggest you build up a good deposit/CL.  Eventually you should be able to get unsecured card from them.

 

Does your CU have secured card?  That would be my choice for 2nd card. 

 

All those CO and collections will make it hard for several years.    I would be happy with 2 CC for rebuilding.

Message 3 of 7
Valued Contributor

Re: New to add a credit card for rebuilding credit

I agree with the secured card suggestion, it will likely take some time to regain trust for unsecured credit. 

 

Many enjoy the Bank of America secured card because it typically allows the cardholder to add rewards and may unsecure after as soon as 12 months. I never held this card and only know what I have read on here, but if you search around for more information it may help you make a better decision on which secured card to add. 

 

Good Luck!


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Last App: June 27, 2015
Message 4 of 7
Moderator

Re: New to add a credit card for rebuilding credit

In your situation OP, I'd combine the two.  Go the secured card route with the credit union if it's there.  

 

After that, I'd try for the BOFA card, though I don't know on approval criteria with a bunch of unresolved CO's still reporting.  It's a bit of a flier, but an extra inquiry isn't a concern for you right now, and if you get approved, it's hands down one of the best secured cards available currently with the 1-2-3 rewards package added and it does unsecure reliably.

 

Two credit cards and two auto loans is pretty optimal though for establishing good payment history, so a third card isn't a huge deal regardless.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
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Valued Contributor

Re: New to add a credit card for rebuilding credit

I know that this has nothing to do with your original question, but that one is well answered above. A quick word of advice: try and PFD for everything that you are going to pay. You will be in much better shape for each one that you successfully PFD.



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Valued Contributor

Re: New to add a credit card for rebuilding credit

I think you should app for a Walmart card. It appears to me that Walmart approves most applicants as long as their scores are above 640 and it has been at least 2 years since the last baddie.

 

The Walmart card is serviced by GE and they are really generous with CLIs. You would also get a free TU FICO score every month after signing up for electronic bill pay.


Starting Score: EQ 653 6/21/12
Current Score: EQ 703 8/5/17 - EX 743 8/5/17 - TU 731 8/5/17
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