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Member
Posts: 19
Registered: ‎11-24-2012
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Re: Opening Secure cards to rebuild credit

My credit dropped from 557 because of 6 delinquent accounts that showed up on my credit. Im disputing them because I don't know what they are from but If I caused them Ill pay them off. They all total less then $1700. 

 

One thing Im unclear about is how long secure cards hold your cash. I read how some people get $300 secure limits then later get them upped but I never hear how long it took for a company to refund the cash. I know usaa does it after two years. But these other ones I don't see time limits on


Starting Score: 492 TU 437EQ ( November 29, 2012)
Current Score: 533 TU 515EQ ( November 29, 2012)
Goal Score: 700 (For starters)


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Valued Contributor
Posts: 1,738
Registered: ‎08-13-2012
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Re: Opening Secure cards to rebuild credit


randonie wrote:

My credit dropped from 557 because of 6 delinquent accounts that showed up on my credit. Im disputing them because I don't know what they are from but If I caused them Ill pay them off. They all total less then $1700. 

 

One thing Im unclear about is how long secure cards hold your cash. I read how some people get $300 secure limits then later get them upped but I never hear how long it took for a company to refund the cash. I know usaa does it after two years. But these other ones I don't see time limits on


Clean your credit report and remember pay off a debt doesnt mean your score going to increase. Only offer PAY FOR DELETE with collection.

They ussually refund the money after 1 year. Depend on each CC company.

 


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 13k| Amex: NSPL|Dis: 9.4k|Cap: 5.5k|CAP: 2k|CSP: 13.4k| Pen:4.5k

Member
Posts: 19
Registered: ‎11-24-2012
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Re: Opening Secure cards to rebuild credit

Pay for delete is when they delete it from your credit after u pay right?


Starting Score: 492 TU 437EQ ( November 29, 2012)
Current Score: 533 TU 515EQ ( November 29, 2012)
Goal Score: 700 (For starters)


Take the FICO Fitness Challenge
Valued Contributor
Posts: 1,569
Registered: ‎11-10-2012
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Re: Opening Secure cards to rebuild credit


randonie wrote:

Pay for delete is when they delete it from your credit after u pay right?


Right.

 



My Wallet:
WalMart: ||15k|| USAA Platinum MC: ||26k|| BCE: ||9k|| Chase Freedom Siggy: ||10k|| Discover it: ||6.5k|| SG Visa: ||11k||
USAA World MC: ||23k|| US Bank Cash+ Siggy: ||7.5k|| Citi TYP World MC: ||12k|| Barclays Arrival World MC: ||13k||Citi Double Cash World MC ||25k||Sallie Mae World MC ||18.8k||Fico Scores (3 Fico Monitoring): EQ 751,TU 749, EX 743. Last app: 9-12-14 Sallie
Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Opening Secure cards to rebuild credit


randonie wrote:

My credit dropped from 557 because of 6 delinquent accounts that showed up on my credit. Im disputing them because I don't know what they are from but If I caused them Ill pay them off. They all total less then $1700. 

 

One thing Im unclear about is how long secure cards hold your cash. I read how some people get $300 secure limits then later get them upped but I never hear how long it took for a company to refund the cash. I know usaa does it after two years. But these other ones I don't see time limits on


Secured cards hold the deposit until the account is closed or unsecured.  There is usually a waiting period of about 60 days (Capital One for instance) but it varies.  

Valued Contributor
Posts: 1,772
Registered: ‎10-28-2011
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Re: Opening Secure cards to rebuild credit


trix_r_4_kids wrote:

I do not have any personal experience with Bank of America (BOA).  However, there are quite a few posts in the forum from those who have had a secured card through BOA that transitions to an unsecured card.

 

Perhaps others with BOA experience will chime in.  In the meantime, search the boards for unsecuring BOA.


I just had my BOA secured unsecured last friday.  I had the card a little over 12 mos.  

 

Heres what most people dont understand.  When you open a secured account, an account is reported to the CRA's.  When the product "becomes unsecured" the secured account gets closed and a new tradeline gets reported.  Now if the secured account is your oldest tradeline then it wouldnt hurt but if it isnt then it could quite possibly lower AAOA depending on the age of other accounts

NFCU plat 5k | NAVCHECK 5k | NFCU cashrewards 15k | BOFA 123 6k |
Chase Freedom 1.5k | Amazon 3K | Walmart 3K | Buckle 300 | AMEX BCE 2.5K | CHASE CSP 12K | CITI sears 6k | Kay 2k

On the prowl for Chase Sapphire Preferred! APPROVED 12K!
scores 7/14 647 622 630 (85%util)
scores 8/14 767 760 758 Boom! finally in the 700 club
Regular Contributor
Posts: 193
Registered: ‎07-17-2012
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Re: Opening Secure cards to rebuild credit

[ Edited ]

randonie wrote:

I'll be opening two secure credit cards very soon. One with USAA for $500 and one at capital 1 for $1500. If I understand correctly having a higher limit but using less then 10% on the card is the best way to build credit. Im just wondering if it would be better to have $1500 on the USAA secure card and $500 on the Capital secure card. Any Suggestions? I mostly wanted to put the $1500 on a secure card that would become unsecured over due course and not require me to close the account and open a new one, but it seems as though that's how most card places work.


Ten (10) months ago I had Zero credit and applied for a CAP1 secured card with a credit line of $300 to start.

The cards reported to all three Credit Reporting Agencies and within two months I started to get fico scores.

It took a full six months for all the Credit Reporting Agencies to post scores.

 

After six months with no prior credit I recieved scores in the low 700's.

Here is how I did it:

With just the one CapitalOne card I charged no more than 10% every month.

I paid in full every month.

(Note: I had no Bankruptcies or Charge offs in my past)

After the first two months I increased my secured credit limit to $1,000

After four months I increased my secured credit limit to $2,000

Continued to Keep usage down and PIF andmy FICO scores continued to rise. 

 

 After just Eight (8) months of paying in full and on time I applied for an Amex Zync card and BCE and was approved.

(NOTE: 25 years prior I had an Amex card but had no credit cards till I applied for the CAP1)

 

 

 

 

 

 

 

 

 

Amex Zync NPSL 9/12, Amex CostcoTrue Earnings $10K 9/12
Amex BCE $3K 9/12 (Amex Back Dated to 1983)
Chase Sapphire Preferred $17K 11/12, Chase Freedom $7K 11/12
Discover More $750 11/12
CapitalOne Platinum Secured Card 2K 2/12 (Closed 12/12)
FICO: EQ = 804 EX = 802(Amex) TU = 801(Discover)
New Member
Posts: 5
Registered: ‎06-19-2012
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Re: Opening Secure cards to rebuild credit

Gotta love amex in 10 months you went from having no credit score to 800's im jealous

Valued Contributor
Posts: 1,607
Registered: ‎09-15-2012
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Re: Opening Secure cards to rebuild credit


Mustangfrank wrote:

randonie wrote:

I'll be opening two secure credit cards very soon. One with USAA for $500 and one at capital 1 for $1500. If I understand correctly having a higher limit but using less then 10% on the card is the best way to build credit. Im just wondering if it would be better to have $1500 on the USAA secure card and $500 on the Capital secure card. Any Suggestions? I mostly wanted to put the $1500 on a secure card that would become unsecured over due course and not require me to close the account and open a new one, but it seems as though that's how most card places work.


Ten (10) months ago I had Zero credit and applied for a CAP1 secured card with a credit line of $300 to start.

The cards reported to all three Credit Reporting Agencies and within two months I started to get fico scores.

It took a full six months for all the Credit Reporting Agencies to post scores.

 

After six months with no prior credit I recieved scores in the low 700's.

Here is how I did it:

With just the one CapitalOne card I charged no more than 10% every month.

I paid in full every month.

(Note: I had no Bankruptcies or Charge offs in my past)

After the first two months I increased my secured credit limit to $1,000

After four months I increased my secured credit limit to $2,000

Continued to Keep usage down and PIF andmy FICO scores continued to rise. 

 

 After just Eight (8) months of paying in full and on time I applied for an Amex Zync card and BCE and was approved.

(NOTE: 25 years prior I had an Amex card but had no credit cards till I applied for the CAP1)

 

 

 

 

 

 

 

 

 


MustangFrank, I think you were in a much different situation than OP.

 

Honestly, for the OP, a secured card is probably the only option at the moment.  You should try go for a secured card with NO fees first.  While not all secured cards will unsecure, all secured cards will give you your deposit back when you decide to close your card.  So, what many members have tried doing is opening a secured card to build positive history and closing it at a later date (1 or 2 years), the card will continue reporting positive history for 10 years and will give you a chance to get your credit back to normal.

 

Good Luck!  Patience and responsible use of credit are the most important things for you now.


In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Citi Forward (12/12) $14,600, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Thank You Premier (6/15) $6,800

Last App: June 27, 2015
Regular Contributor
Posts: 193
Registered: ‎07-17-2012
0

Re: Opening Secure cards to rebuild credit

Yes,  Amex was great they back dated my cards and I now my FICO scores are over 800.

 

But it was CAP1 who made it possible to start the rebuilding process.

I will be closing the secured  CAP1 card after securing some more credit lines. 

People knock CAP1 but it is a good way to get your credit rebuilt.

 

 

 

Amex Zync NPSL 9/12, Amex CostcoTrue Earnings $10K 9/12
Amex BCE $3K 9/12 (Amex Back Dated to 1983)
Chase Sapphire Preferred $17K 11/12, Chase Freedom $7K 11/12
Discover More $750 11/12
CapitalOne Platinum Secured Card 2K 2/12 (Closed 12/12)
FICO: EQ = 804 EX = 802(Amex) TU = 801(Discover)
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