10-18-2012 08:41 PM
I was wondering if getting secured cc is the way to go even though I already have 2 credit cards(Cap1 and Orchard). It isn't that I NEED to have one, but if it would help increase my credit then I might consider it.
I have been reading that people are getting secured cards and then adding to the limit. I didn't know that there was that type of card out there. WOuld anyone be able to suggest some that I can investigate? I am just trying to decide if it is something that will benefit me in my quest to get to 750.
10-18-2012 09:30 PM
10-19-2012 02:48 AM
I agree, focus on any open accounts that within a 24-36 period....STAY CURRENT>>> Get everything showing as pay as agree, current... If you have accounts that are in collections try to get them reage.. Negotiate, Negotiate, Negotiate.. If you are making payments, IT HAS TO BENEFIT YOU IN THE LONG RUN... get your accounts reage... Of settle the debt, but use PFD Letter and have deleted.. Finally, is time....just give it time...
10-19-2012 03:32 AM
Why would you want to reage collections? it just makes them look newer and hurt more.
10-19-2012 04:36 AM
Without seeing more of your History, one can not accurately project where you are going. However, based on your reported scores and time frames listed, it appears you do NOT need any more credit at this time. You will take a hit for the inquiry,new credit category, and reduce your AAOA. This alone will impede or slow down your uphill ascent for at least one year. Time and patience appear to be what you need. These two components are the major backbone of increasing your score when all accounts are current.
10-19-2012 04:10 PM
Here is my point on re-ageing accounts... Active Accounts, Open Accounts that are in collections are already hurting any person Credit scores already... correct... Re-age the account is something the account holder can have done, while making payments under an agreement... An old collection account can become a new reage current account under a agreement. At the same time the individual wins with a fresh account, but has the original date opened... I have done this, so I'm speaking from experience... And It has huge benefits to ones credit scores over 1-2yr period. (This is debt restructuring 101, done in repayment plans all the time) Every individual has the power to do this. It is also honorable and the right thing to do when you have made a mistake or two financailly.
The individual must negotiate for this up front… Before any payments are made get everything writing.. Accounts outside of 36mth period should not focused (in my opininon) on unless, it has other benefits (student loan, auto loan or mortgage loan) These accounts are worth the process because its link to a strong personal benefit. Such as holding on to your house, car or going back to school..
10-19-2012 05:52 PM
I agree with going the credit union route. NFCU approved 2000.00 CL unsecured but with the same hard pull (as long as within 30 days) I can get the secured card as well and increase limit to whatever I want. I want to do this for future Prime card approvals with high limits if that makes sense. AAOA will take hit at the same time the unsecured reports but with only one hard pull. Then off to Gardening I go.
10-23-2012 03:34 PM
I think my original post didn't come across I thought it would.
I originally got Orchard when I first started trying to increase my credit. Right now I am in the mid 600's for EQ and high 600's for TU and still working on getting 2 baddies removed. If having a secured card would help my score then I would really consider applying for one. However, I want to make sure that if I apply for one that it will be for something that will fit my needs and/or wants. I know that obtaining 750 is a work in progress and it won't happen overnight, but I am willing to work at it until it happens.
I currently have a Cap 1 500CL, Orchard 320CL, Sears Store Card 2300CL, and I am an AU on another Sears Card 1000CL. I mainly use my debit card to pay for all my items if I need anything. That is one of the reason that I was wondering about cards that you can use and also increase the limit every so often. I think that I would be able to grow into it. I always thought that secured cards couldn't have their limit raised and after so long they would turn into a regular credit card.
I do have a CU near me (Eastman Credit Union), but I have not looked into opening an account with them. I already have 2 checking accounts with 2 different banks and didn't know if it would hurt having that many open. I am only the primary on one and then an AU on the other account.
10-23-2012 09:32 PM - edited 10-23-2012 09:36 PM
Opening a new secured CC will lower your credit utilization ratio, and increase the amount of your available credit, but will have a minimal effect on your credit score otherwise, since it will likely be reported as a secured card, which doesn't impress as much as a regular card. Seeing that you already have about $3000 in available credit from regular cards, I don't think getting a secured card would much helpful. I would rather apply for a relatively easy non-secured card instead.
By the way, you might want to shift your main method of payment from debit cards to credit cards. Did you know that you could earn cash back rewards and get many types of benefits using your credit cards? Ever since I got my first credit card, I have completely stopped using my debit card for purchases, except for recently when I found out that my BoA checking account qualified for the keep-the-change program. Once I hit the limit of this program's benefits though I will switch back to only using credit cards for purchases. I exclusively use credit cards for large value or potentially risky purchases.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.