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Regular Contributor
Mustangfrank
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.


Chriss wrote:

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


 

 

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)
New Member
randonie
Posts: 14
Registered: ‎11-24-2012
0

Re: Opening Secure cards to rebuild credit

Thank you everyone for your input!!!! I didnt expect so many responses so thank you! 

Ive got a plan for the next two years and Im wondering if there could be any changes to it.

 

-Pay off and dispute the recent delinquent accounts
-Open two secure cards. Im going to put a tv bill on one and a gym membership on the other. This will keep them at 10% of their limits and I'll PIF each month.

-no applying for credit or loans or anything thatll ding my score for at least a year. Idealy two.

 

Ive got an auto loan with USBank and because of my credit history/score its at 18% So thats why I say a year or two. Once my score improves enough Im going to try and refinance that loan to get the rate down. I had to use a military program to get the car because of my credit. When I got out of the military I had my live in gf handling the bills and we both forgot about the auto loan. Haha it was coming automatically out of my check and once I got out she thought I was paying it and I thought she was. US Bank never called me or sent me letters or anything, the car was just gone one day. Luckily the account we used to pay our bills still had the money. So I was able to get the car back in about a week. 

Im not fond of US Bank so Im desperatly trying to get away from them. USAA has been an amazing bank. They are always super duper helpful, always polite. Its just a wonderful customer experience I have with them. 

US Bank on the other hand...about a month ago I started looking at new cars and I ended up looking up what my rate was with them(31.28%) I still owed waay more then the car was worth. I bought the car for $18000 and a year later I still owe $15000 on it. Decideding I needed to pay this off quickly  I sent them over a grand for my next payment. About a week later I got a call from the bank saying I didnt pay. 

As it turns out they claim that because I paid before the monthly bill was ready it didnt count as the payment for the month. I told the guy I put all my cash into the payment until my next pay day. Next day I get a call..and the next and the next..twice a day too. Asking where their payment is.  I finally told the person that called me last that I had just paid $1000+ for the month and wont have any more money till the next pay day and to stop calling me twice a day about it. The man told me it was company policy to contact me this much till I pay. I informed him thats fine but please let it be known I will not be a pleasent person to talk to next time they call and whoever calls me should be ready to hear me yell and use bad words. I guess that was enough deterent because I havent heard from them about it since. 


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


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Established Member
haoniukun
Posts: 43
Registered: ‎08-17-2012
0

Re: Opening Secure cards to rebuild credit

Last year, citi provided a secured credit card with $29 annual fee. You can earn 1.0% interest with your secured deposit. It will become an unsecured card after 1 year and a half. But I cannot find the card on citi's website. Maybe you can call them and ask.

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Opening Secure cards to rebuild credit


rootpooty wrote:



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


Many banks close the secured card and open a new account if you apply for 1 (Capital One for instance).   Some keep the same account and simply return the deposit.

 

However closing the secured account does not affect the AAoA for 10 years.   Closed accounts continue to age and help with AAoA, and oldest account until they drop off the report.    So whether it gets closed or unsecured makes very little difference.

New Member
randonie
Posts: 14
Registered: ‎11-24-2012
0

Re: Opening Secure cards to rebuild credit

Ive been trying to find a good secure credit card with a company that has a credit card Id like to aim for getting when my credit is good enough but Im begining to think I should just worry about the cards im getting for now and building credit with them. 


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


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Valued Contributor
rootpooty
Posts: 1,772
Registered: ‎10-28-2011
0

Re: Opening Secure cards to rebuild credit


Wolf3 wrote:

rootpooty wrote:



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


Many banks close the secured card and open a new account if you apply for 1 (Capital One for instance).   Some keep the same account and simply return the deposit.

 

However closing the secured account does not affect the AAoA for 10 years.   Closed accounts continue to age and help with AAoA, and oldest account until they drop off the report.    So whether it gets closed or unsecured makes very little difference.


I understand what your saying.  Last week my BOFA cc and NFCU secured accounts became unsecured.  Now the secured accounts became closed and a new tradeline was generated to the CRA's but with the same open date.  Now if your secured accounts are you oldest it may benefit your AAOA but if you have older accounts say school loans or an old paid off auto loan, generating another duplicate account will lower AAOA.  Just food for thought most people dont realize what happens when an account gets unsecured

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

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Valued Contributor
rootpooty
Posts: 1,772
Registered: ‎10-28-2011
0

Re: Opening Secure cards to rebuild credit


randonie wrote:

 

-Pay off and dispute the recent delinquent accounts

US Bank on the other hand...about a month ago I started looking at new cars and I ended up looking up what my rate was with them(31.28%) I still owed waay more then the car was worth. I bought the car for $18000 and a year later I still owe $15000 on it. Decideding I needed to pay this off quickly  I sent them over a grand for my next payment. About a week later I got a call from the bank saying I didnt pay. 

As it turns out they claim that because I paid before the monthly bill was ready it didnt count as the payment for the month. I told the guy I put all my cash into the payment until my next pay day. Next day I get a call..and the next and the next..twice a day too. Asking where their payment is.  I finally told the person that called me last that I had just paid $1000+ for the month and wont have any more money till the next pay day and to stop calling me twice a day about it. The man told me it was company policy to contact me this much till I pay. I informed him thats fine but please let it be known I will not be a pleasent person to talk to next time they call and whoever calls me should be ready to hear me yell and use bad words. I guess that was enough deterent because I havent heard from them about it since. 


Please do not just dispute negative information with the CRA's.  Take the appropriate steps.

 

On the car note.  was a 30 day late reported?

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
New Member
randonie
Posts: 14
Registered: ‎11-24-2012
0

Re: Opening Secure cards to rebuild credit

What are the appropriate steps after I request the letter of verifictaion or whatever its called from the collection agency? I have no idea of those delinquent accounts are mine or another stolen identity problem. 

 

yea it says 30 days late for 4 months


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


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Valued Contributor
rootpooty
Posts: 1,772
Registered: ‎10-28-2011
0

Re: Opening Secure cards to rebuild credit


randonie wrote:

What are the appropriate steps after I request the letter of verifictaion or whatever its called from the collection agency? I have no idea of those delinquent accounts are mine or another stolen identity problem. 

 

yea it says 30 days late for 4 months


Am I reading this correct.  Your are paying 31% interest on a 18k car loan?

 

Start a thread in the rebuilding section there and we will help you get started and what appropriate steps to take to dispute inaccurate info

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
Blogger
HiLine
Posts: 2,945
Registered: ‎10-19-2012
0

Re: Opening Secure cards to rebuild credit


rootpooty wrote:

Wolf3 wrote:

rootpooty wrote:



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


Many banks close the secured card and open a new account if you apply for 1 (Capital One for instance).   Some keep the same account and simply return the deposit.

 

However closing the secured account does not affect the AAoA for 10 years.   Closed accounts continue to age and help with AAoA, and oldest account until they drop off the report.    So whether it gets closed or unsecured makes very little difference.


I understand what your saying.  Last week my BOFA cc and NFCU secured accounts became unsecured.  Now the secured accounts became closed and a new tradeline was generated to the CRA's but with the same open date.  Now if your secured accounts are you oldest it may benefit your AAOA but if you have older accounts say school loans or an old paid off auto loan, generating another duplicate account will lower AAOA.  Just food for thought most people dont realize what happens when an account gets unsecured


I didn't know BofA would 'duplicate' your CC account when your secured card graduates. Very nice! I'm assuming all payment and balance history is retained in the new account?

 


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