What's Next

[Anonymous]

Ok, I need some advice. I am in the process of rebuilding my credit. I have zero open credit cards. All are in collection, which I am in the process of paying off (first with a DV and then a PFD). Do I wait until I've paid those off before getting a secured card? Or should I get the secured card now? Or does it even make a difference? Also, how many secured cards and with whome should I get? I currently bank with a credit union, who offers them. But I also have a savings with Capital One, who also offers the secured card. I am trying to raise my score enough to qualify for an FHA mortgage (660 minimum).

[Anonymous]

Get the secured card ASAP. Most people forget that BUILDING new credit is the other half of credit repair. Im not sure of your financial situation, but you will want the largest credit line you can afford. I wouldnt go below $500 though, $1000 is ideal.

[haulingthescoreup]

Yes, but if all OP has is cards in collections, even a secured card for a half-way decent limit might not be possible.

OP, keep working on the PFD's and so forth, and when you can, get one card, just one. Secured is fine, and it might be all you can get. Maybe Cap One; maybe your credit union. If someone will give you one now, great. Otherwise try back when you've made progress on the collections.

Give it six months of clean history and then add a second if you like. Let it also report 6 months (12 months on the first), and then you can start thinking about expanding beyond that point.

Good luck!