Trying to help sis obtain CC..Maybe lost cause right now?

[epigurl4credit]

OK Im taking all that I have learned here to try to help my sister. All of her FICO's are in the 400's

I am trying to help her clear up old problems, GW, PFD etc but it will be a long haul. She has NO revolving accounts-and is not showing any credit worthiness at all.

Any suggestions on a low limit card she can get just to make a small purchase and start making timely payments to start building credit again?

[smc733]

She will either have to:

1.  Get a ridiculously subprime card, such as First Premier (but hopefully one not as outrageous), that charges horrendous fees and interest rates.

2.  Put a few deposits down and get multiple secured cards.  Orchard would be a start, then after 6 months Citi or Capital One.  Bank of America is strict about all of their applications, and they'd likely still turn her down for a secured card.

There is always hope, but scores that low will not be a fun recovery.

[Datx]

I would go the secured CC option as suggested by smc. If Orchard Bank does not approve her for a secured card, then go with a secured card through public savings bank since they dont check credit reports.

[jforsyth]

It's never a lost cause and with scores that low she's gunna want to get started on her rebuilding process as soon as humanly possible.

Like other said, have her hunt down a secured card. That's probably going to be all she's going to be able to get for a WHILE, but the sooner she starts turning things around, the better. No sense in letting her reports sit stagnant with all those negatives. Time to get things headed in the other direction.

I think it should go without saying that she should use any card she might get sparingly (a tank of gas and/or a grocery store purchase each month) and then pay in full BEFORE the statement cuts. It's going to take a lot of nursing and patience to climb out of a sub-500 hole, but it's definitely been done before.

[Wolf3]

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@MyCreditStinks wrote:

I would go the secured CC option as suggested by smc. If Orchard Bank does not approve her for a secured card, then go with a secured card through public savings bank since they dont check credit reports.

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+1

I suggest you put down more than the minimum.    Bigger limit cards look better on report.   I suggest you use show a lot of usage on the card every month and Pay in full by due date.   Never be late and  never go overlimit.

Strongly suggest you don't take any unsecured cards with high fees.   Secured cards are much more economical.  

After a year of good history, your options for the next card will improve.

[Creditaddict]

my friend was able to get a best buy mastercard with a score in the high 400's $100 limit

[ngerasimatos]

I would go the secured CC route. I know most Credit Unions out here in San Diego offer a "rebuilder card" for people with past credit history problems. 

[BungalowMo]

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@ngerasimatos wrote:

I would go the secured CC route. I know most Credit Unions out here in San Diego offer a "rebuilder card" for people with past credit history problems. 

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+1  That sounds like the best idea yet!!