Denied Secure Credit Card Now I'm Sad

[drake_darkholme]

So me and my wife have recently paid off all our debt. We owe no one any money at all. We even paid off her student loan and we're both 26. Turns out that this isn't a good thing. We went to the bank this past weekend to see if we could get a home loan. We're in a really good financial position right now and we have quite a bit of cash saved up for a pretty healthy down payment. They ran my credit and it came back as a 583. I've never had a credit card. They told I should get one. I tried. It didn't work. Now I'm sad. I've never felt more defeated and insulted in my life and I don't know what to do. I want my wife to have the life she's always dreamed of and I feel like a terrible husband because I made some mistakes in the past. All those mistakes are fixed now but apparently, just paying off every last cent of my debt wasn't good enough. What do I do?! I've never felt so lost so I appreciate any and all advice. Thank you.

[starry1]

First, where did you apply for a secured card?  There are several places we could recommend that will probably have easier acceptance criteria.  Secondly, you will need 2-3 credit cards to maximize your scores, not just one.  I assume your student loans are still reporting, so I don't think you need an installment loan reporting to help with your credit mix quite yet.  

[drake_darkholme]

I applied with Capital One. Like I said, I've never had a credit card before so I'm honestly not sure where to start. And I paid off my student loan last year and my wife's was paid off in July. Both our vehicles are paid off as well. One was bought with cash and the other one I paid off a couple years early. The only reason I got the one auto loan was because I worked for the president of the bank. So, any recommended links on applying for those other secured credit cards and is there a way we can get joint credit cards so they report on both our reports?

[bear812c]

You can apply for a CreditOne credit card. They will do a soft pull on  your credit so it wont affect your score. I just applied for one for my brother who also has no credit cards. His score is a 540 and he was approved and it's not a secured card either, so no deposit required. 

www.creditonebank.com and click on the right where it says:

"Get Pre-Qualified-

"See if you're pre-qualified, without affecting your credit score."

Good Luck

[starry1]

Credit One has insanely high fees.  Yes, they can help you rebuild your credit, but they really are a last resort solution.  

I would suggest that you first join and apply with a credit union.  They have both secured cards and what are called credit builder loans.  Also you can try store credit cards, those are generally a much easier approval.  I would perhaps try Wal Mart first, or one of the Comenity cards via shopping cart trick.  

[drake_darkholme]

So with a credit builder loan, can I just keep the money I get from the loan and then pay it back with that money or do I have to make payments? I have no interest in incurring any interest costs from this endeavor. Basically I want to use a credit card and any time I do, I'll put that money aside in my written budget so I don't have to pay anymore that I have to. Going back into debt when I just got out of debt would be unwise. In the land of logic, that's the case anyway. 

[starry1]

A credit builder loan is a secured loan.  So you would put X amount into a savings account and they would give you a loan equal to that amount.  After you have paid it off, they will release the funds back to you.  Its similar to a secured credit card.  

[drake_darkholme]

Where I come from, that's called getting the run around. Robbing Peter to pay Paul kind of thing. My question is, do I have to pay interest on that loan? I don't wanna put 500 in and have to pay back 700, ya know?

[starry1]

Yes you do, that's why I first advised you to join a credit union, which has much lower interest rates.  That's certainly better and cheaper than paying the massive fees of a bad credit card like First Premier or Credit One.

[drake_darkholme]

Doesn't that strike you as a little dumb? Can't I just get one of those credit cards and pay them off every month? Do I still pay interest on those cards purchases even if I pay them off at the end of every month?