Please analyze my current credit plan

[Anonymous]

I have no tradelines at all on my CR. All I have on it is 14 baddies from seven defaulted school loans that I'm rehabbing so my FICO is only 579 EQ and 568 TU. I want to add a couple secured cards and PIF each month so I start adding something positive to improve my score until seven of my guarantor's baddies are removed after the rehab process is complete. I'm afraid I'll get rejected for a prime bank secured card right now, so I'm going to apply for an Orchard card for $300 first and wait a few months hoping it increases my score up a little bit so I can get approved for the US Bank secured card. If that goes well,  I'll keep dumping money into the US Bank card to increase the CL as much as I can since that one at least has a chance of graduating over the HSBC one. Am I doing the right thing or should I be taking a different approach? TY.

[creditwherecreditisdue]

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@Anonymous wrote:
I have no tradelines at all on my CR. All I have on it is 14 baddies from seven defaulted school loans that I'm rehabbing so my FICO is only 579 EQ and 568 TU. I want to add a couple secured cards and PIF each month so I start adding something positive to improve my score until seven of my guarantor's baddies are removed after the rehab process is complete. I'm afraid I'll get rejected for a prime bank secured card right now, so I'm going to apply for an Orchard card for $300 first and wait a few months hoping it increases my score up a little bit so I can get approved for the US Bank secured card. If that goes well,  I'll keep dumping money into the US Bank card to increase the CL as much as I can since that one at least has a chance of graduating over the HSBC one. Am I doing the right thing or should I be taking a different approach? TY.

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What are the details of your rehab process? (Timing?) What baddies will remain post rehab?

[wmarat]

I would start with local CU.

[Anonymous]

I went away for the weekend so couldn't reply. I have three months left to complete the rehab process. I have 7 loans, so right now I have 14 baddies showing. After rehab is done I will be stuck with 7 baddies from the original lender for 6 more years since they are required by law to report accurately.Those baddies show up as lates with $0 balance and pays as agreed for status. Once rehab is complete 7 baddies from the guarantor will get deleted when the 7 loans are picked up by a lender. Once picked up, I'll make sure to not pay them late etc so that in time they help improve my score as well. I'm pretty much trying to be proactive now and do what I can to help improve things so I'm thinking adding some revolving accounts might be all I can do.

Regarding the CU advice, there aren't many around here that look promising. I also don't think many will accept me due to my FICO being low. I was reading up on Alliant since there is one around here, but I read you need at least a 680 to get in. 

Message Edited by jaystay on 09-21-2009 10:14 AM

[creditwherecreditisdue]

You don't need great scores to join a credit union. You may need better scores than you offer to obtain unsecured credit at most CU's.

It might be best for you to obtain a secured credit card from either a bank or CU, preferrably one that will convert in the future.

[Anonymous]

Thanks for the info. It would be nice to get a card that has a chance to graduate one day, but I'm afraid my low scores and baddies also make it more difficult for me to get the US Bank secured card even though I'm not in chexsystems. That's why I mentioned getting Orchard secured card first to hopefully get a little boost, then apply for a prime bank secured. Am I correct or do I have a chance to get approved for a prime bank now?

Message Edited by jaystay on 09-21-2009 12:06 PM

[creditwherecreditisdue]

If you app for a BofA unsecured card they may offer you a secured card if you are declined.

Baddies can be an impediment to obtain a secured card as well as an unsecured card.

[creditwherecreditisdue]

I might take a chance with a BofA app over Orchard. You can always app Orchard if BofA won't play ball.