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Posts: 16
Registered: ‎01-20-2014
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Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

Hello Guys,

 

I am trying to help my Boyfriend improve his credit but need your opinion.

 

He has a couple of credit cards that were charged off back in 2012 and others that were settled.

The credit report shows they stopped reporting after charge off and there is no recent activity.

 

His fico EQ is 613 but Trans U is 580. He has an up to date mtg and no active credit cards. 

 

1) Is it possible to improve his credit with a secured credit card or having the charged off accounts from 2012 will negate anything good he does?

 

2) Do you recommend he tries Wells Fargo for as secured credit card?

Reason for trying wells fargo would be that they graduate the card in the future and return your deposit, but since he has the charged off accounts, they might never graduate him until that is resolved.Would you agree with that thouhgt?

If that is the case, then Wells Fargo is not the best and first option to get a secured credit card in his case since they make you open a bank account and that will be another monthly expense. Might as well try a secured card were he already banks.

 

Thouhgts on those 2 questions will be greately appreciated. thanks!

Moderator
Posts: 22,629
Registered: ‎12-13-2013
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.


Best2014 wrote:

Hello Guys,

 

I am trying to help my Boyfriend improve his credit but need your opinion.

 

He has a couple of credit cards that were charged off back in 2012 and others that were settled.

The credit report shows they stopped reporting after charge off and there is no recent activity.

 

His fico EQ is 613 but Trans U is 580. He has an up to date mtg and no active credit cards. 

 

1) Is it possible to improve his credit with a secured credit card or having the charged off accounts from 2012 will negate anything good he does? It is possible to improve with new cards, shoot for 3 of them, as the COs age their impact is less on score.

 

2) Do you recommend he tries Wells Fargo for as secured credit card? No unless he banks there and def not if they were one of the prob accts

 

Reason for trying wells fargo would be that they graduate the card in the future and return your deposit, but since he has the charged off accounts, they might never graduate him until that is resolved.Would you agree with that thouhgt? Could be an issue

 

If that is the case, then Wells Fargo is not the best and first option to get a secured credit card in his case since they make you open a bank account and that will be another monthly expense. Might as well try a secured card were he already banks.

 

Thouhgts on those 2 questions will be greately appreciated. thanks!


CUs are great for secured cards especially the ones that graduate. Good luck Smiley Happy


EX Fico 08 BC 08/15: 798 (-8); EX Fico 04 V2 06/14: 775
EQ Beacon 5.0 12/14 757
TU Fico 8 08/15: 761 (+6)
Member
Posts: 16
Registered: ‎01-20-2014
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

thanks for the reply gdale6.

 

You meant get 3 separate secured credit cards? Which ones would you recommend?

 

I was looking into Wells simply because they eventually give you a chance to graduate and get your deposit back, but given that they might never do that due to this charged off accounts that are still lingering there the point is moot. He never defaulted with Wells Fargo. He doesnt bank there either and would have to open an account. Maybe start banking there instead for the sake of having the card.

 

He banks with fifth third bank and they told him before pulling credit that if he had any collections they would not be able to offer him even a secured card.

Not sure if a collection will be different than a charged off account from 2012 in their eyes. It is not like the accounts are updated every month as they are charged off, they are like dormant.

 

I am wondering if you can have a secure card while having charged off accounts at all?

 

 

Established Contributor
Posts: 545
Registered: ‎03-20-2009
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

I've got 3 secured credit cards and numerous charged off accounts on my credit report most from the last 1-2 years (going through divorce).  I have 2 cards with USAA & 1 with Stellar One Bank. 

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
Current (7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)



Member
Posts: 16
Registered: ‎01-20-2014
0

Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

mt2va, have you seen a credit improvement by havign secured credit cards but still having charged off accounts?

 

I am not too sure there will be a benefit for him since he will still have the charged off accounts hurting him.

 

Were you ever denied a secured card ? USAA is for military correct?

Established Contributor
Posts: 970
Registered: ‎12-13-2013
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

My suggestion would be to try some credit Union Cards which reports to all 3 CB.

They would be easier to get at first than from the prime banks, After some months of usage on these cards Can try for BOfA and US Bank Secured Cards.

Established Member
Posts: 29
Registered: ‎12-03-2013
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

To the OP, the scores can for sure be increased even with bad debt still showing on his CR. I currently have 5 bad debt accounts totalling around $3700 showing on my CR. I apped for two secured CC's via BofA and Wells, put $300 on both cards middle December '13. At the start of my credit build journey less than 60 days ago, my scores were 599, 615, 599. As of today, my scores are 616 627 654.

So, i would say definitely app for those "prime" secured cards and make sure you guys keep the overall uti under 10% and use them as much as you can along with paying them off monthly.

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Established Contributor
Posts: 997
Registered: ‎05-05-2010
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

Like the others mentioned credit are great. Check out State Department Federal  Credit Union. The have a great Secured card. They don't pull credit for secured products

Member
Posts: 13
Registered: ‎02-19-2014
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Re: Secured Credit Card while having charged off accounts. Wells Fargo Secured or not worth it?.

SuburbanGuy80 - by 5 debt accounts, do you mean charge-offs? And, did BofA approve you instantly? If not, how long did it take? Thanks!

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