Do you think it is time for me to apply for an unsecured card at this stage?

[danny4l]

I started at 581 last year.

Today, my unsecured debt is being managed by a debt retirement company and I will make the final payment in August 2015

I already have a Capital One secured card with a $300 limit that I only charge a tank of gas on.

A settled a judment in full and they agreed to file a motion to vacate so I will have that off my report shortly

The only collections I have are some medical collections

I have five 180 day lates from Sallie May from 2010 and I have three 90 day lates from them as well from the same time.

My FACO is 621 right now, even with the judgment.

Do you think it is the right time to apply for an unsecured card so help my score?

[StartingOver10]

Is a debt retirement company the same thing as a debt settlement company?

In other words, are you paying the debt retirement company a fixed amount every month and then they allocate the payments to your various creditors?

If so, I would think that would be a big red flag to any new potential TL's. Why would they issue you a cc if you can't handle the one's you currently have open?

IMO it would be best to get your existing situation repaired first, then apply for new credit afterward.

If I have mis-understood the term "debt retirement", please let me know.

[guiness56]

Without knowing your true FICO, I would wait.  Sometimes the differences between the 2 scores can be tremendously different.  Not necessarily in your favor. 

I would go to some of the CCC sites and see if they come up with any pre-approvals for you.  These don't require an inquiry on your CR and you will know if you qualify for anything.

Also, it isn't all about your FICO score, it's about what is on your CR and the requirements of the CCC.

[danny4l]

Hi,

Yes you are correct.  With the debt retirement company, I agree to pay the full amount but they negotiate lower interest rates.  I pay them a fixed amount and they distribute it to the different credit card companies.  On my credit file it says payment being managed by debt retirement corporation.  Once the last payment is made in August 2015, the accounts will go to a pay as agreed status.

So I guess what you are saying is that I should wait till 2015 at the minimum before I even start thinking of opening a new line of credit?

[danny4l]

In this situation, do you think it is worthwhile to apply for a second secured card?  I just want to do whatever I can to help my score.  I don't need the extra credit but if they report to the three CB's then I guess that will help.