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No Open CC, Can I Avoid Secured CC?

Established Contributor

No Open CC, Can I Avoid Secured CC?

I currently have no open CC accounts. I'm wondering what I should open up to rebuild, etc. My EQ on myFICO is over 660. All sites pretty much say not having open CC accounts is hurting me. I am wondering if I need to start with a secured CC, sub-prime card or if I could just get these few remaining derogs off and jump back in w/ prime cards. Below is a general idea of what is on my report:

 

- a few closed satisfactory CC accounts, some historically with large limits. Most of these were closed through due to no usage.

- a couple of very old very low limit CO accounts that will fall off in the next year or two.

- major SL lates from 1.5 years ago that go back quite a bit. I was making payments but techincally had a past due balance for over a year and they reported as such.

- one medical collection

- one LVNV collection which should be coming off soon

Message 1 of 7
6 REPLIES
Senior Contributor

Re: No Open CC, Can I Avoid Secured CC?


bahbahd wrote:

I currently have no open CC accounts. I'm wondering what I should open up to rebuild, etc. My EQ on myFICO is over 660. All sites pretty much say not having open CC accounts is hurting me. I am wondering if I need to start with a secured CC, sub-prime card or if I could just get these few remaining derogs off and jump back in w/ prime cards. Below is a general idea of what is on my report:

 

- a few closed satisfactory CC accounts, some historically with large limits. Most of these were closed through due to no usage.

- a couple of very old very low limit CO accounts that will fall off in the next year or two.

- major SL lates from 1.5 years ago that go back quite a bit. I was making payments but techincally had a past due balance for over a year and they reported as such.

- one medical collection

- one LVNV collection which should be coming off soon


I think a secured card is probaly best since you have no open accounts and some negatives on your report.    Is there any reason you want ot avoid a secured card?  

 

You might qualify for a unsecured CC, but if they have high fees and bad terms, I suggest secured card is better option.

 

I think a Capital One prequalify can give you a better idea of where you are at.

 

 

Message 2 of 7
Established Contributor

Re: No Open CC, Can I Avoid Secured CC?

Thanks for the info. I think I'll be trying to skip the CapOne prequal. I'm not looking for subprime rebuilder cards nor their secured card. 

Message 3 of 7
Frequent Contributor

Re: No Open CC, Can I Avoid Secured CC?

Unfortunately your options become very limited if you don't consider rebuilder cards/secured cards. I doubt prime lenders will be willing to issue you "prime" cards when you have collections on your report and no positive recent tradelines. IMHO you should reconsider until you build your history back up. Good LuckSmiley Happy

-------------------------------------------------------------------------------------------------Fico Score Range 600-625 across the board
Message 4 of 7
Valued Contributor

Re: No Open CC, Can I Avoid Secured CC?

With the scores and history you currently have I doubt you would be approved for a card from a prime lender.

 

Prime lenders typically want you to meet 2 requirements, a score of at least 680 and at least 1 year of demonstrated good credit behavior with at least 2 credit cards. You don't meet either of those requirements at this point.

 

I would suggest the following:

 

Apply for a Cap1 card. I know you don't like them but they really aren't that bad. You can always close the card after you get your prime cards in a year.

 

Apply for a Walmart card. They are really good with CLI so hopefully in a year you can start your prime cards with higher CLs. You also get a free TU08 FICO score when you sign up for electronic bill pay.

 

You might also consider getting a secured Bank of America card. They are really good at graduating this card to unsecured after you demonstrate 1 year of good credit behavior. At 1 year you would then have an unsecured prime card that will grow with you.


Starting Score: EQ 653 6/21/12
Current Score: EQ 703 8/5/17 - EX 743 8/5/17 - TU 731 8/5/17
Message 5 of 7
Senior Contributor

Re: No Open CC, Can I Avoid Secured CC?


bahbahd wrote:

Thanks for the info. I think I'll be trying to skip the CapOne prequal. I'm not looking for subprime rebuilder cards nor their secured card. 


Then you may need to wait until your CR is clean.   Then you would have a shot.    IMO, better to start now with secured card.

 

Message 6 of 7
Established Contributor

Re: No Open CC, Can I Avoid Secured CC?


Wolf3 wrote:

bahbahd wrote:

Thanks for the info. I think I'll be trying to skip the CapOne prequal. I'm not looking for subprime rebuilder cards nor their secured card. 


Then you may need to wait until your CR is clean.   Then you would have a shot.    IMO, better to start now with secured card.

 


Go with the Cap1 Platinum MC, you'll get a low CL ($300) with a step's CLI after 6 months ... first year no AF with $19/yr after that. I got it when I had similar credit to yours and no need to secure it. Worth a try! 

Message 7 of 7