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Established Member
Posts: 45
Registered: ‎01-19-2013
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Getting secured cards....advice?

My next step in my credit repair is getting a secured credit card. I would like to open 2-3 cards right now. Any feedback on that? I've read that the best option is to open 1 card, let it age 6 mos then open another. However, I will be spending the next 12 months repairing and rebuilding my credit and not applying for loans or anything of that sort. I am planning on applying for an unsecured card in 6-9 mos. Currently, I have no open revolving credit. Here's what I want to do and my reasons for doing so:

 

1) Open 2 secured cards now. From what I understand, that should drop my score a little because multiple new accts will drop my AAoA...but after 12 months of rebuilding, it shouldn't matter much, right? In a year, I would like to show 2 revolving lines with 12 months positive history. Good idea? Neither of the cards I'm applying for will graduate to an unsecured card. I can't find any secured cards that graduate that I'll get approved for.

 

2) Add money to 1 of the secured cards to increase limit each month. Of course, keeping my util under 9% with 1 card and 0% with the other

 

3) In 6-9 months (or longer if my scores aren't where I'd like), apply for an unsecured card in order to have 3 revolving lines of credit

 

4) In 18 mos, open another unsecured card then close the secured card that I didn't make limit increases on. I would like to close the secured card because it won't graduate to unsecured and I'd like to eventually get my money back.

 

Any feedback would be greatly appreciated!

Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
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Regular Contributor
Posts: 150
Registered: ‎05-16-2007
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Re: Getting secured cards....advice?

Great plan. I personally used Applied Banks Secured card. It required a $500 deposit but it was relatively easy and didnt look like a secured card. It was 0% interest but had a monthly fee. I was okay with the fee but didnt like the paying interest on my own money lol.

Have you thought about getting a secured loan and using those funds to open the secured card? This gives you an installment loan as well :smileyhappy:

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Established Member
Posts: 45
Registered: ‎01-19-2013
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Re: Getting secured cards....advice?


Kevin5974 wrote:
Great plan. I personally used Applied Banks Secured card. It required a $500 deposit but it was relatively easy and didnt look like a secured card. It was 0% interest but had a monthly fee. I was okay with the fee but didnt like the paying interest on my own money lol.

Have you thought about getting a secured loan and using those funds to open the secured card? This gives you an installment loan as well :smileyhappy:

Thanks for the reply! I'll look into Applied Bank and check out what they have to offer.

 

I have thought about getting a secured loan, however, I currently have the money to get secured cards with decent limits and I have 6 student loans reporting, so I don't want to go that route unless I have to. I'm finally starting this whole "paying my bills" thing and don't want to overextend my discipline by opening up a loan that I don't need or I don't feel would benefit me. That's one less payment to fall through the cracks lol

Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
Valued Member
Posts: 38
Registered: ‎01-15-2013
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Re: Getting secured cards....advice?

Capital one was pretty easy to get. The let me open with a $200 deposit even though I had an old Cap1 collections on my report from 4 years ago.

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Re: Getting secured cards....advice?

Why don't you make a post on the CC forum about your situation.  Those guys over there are gurus with credit cards.



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Established Member
Posts: 45
Registered: ‎01-19-2013
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Re: Getting secured cards....advice?


mspiggybank wrote:
Capital one was pretty easy to get. The let me open with a $200 deposit even though I had an old Cap1 collections on my report from 4 years ago.

Really? That's great to know! I keep seeing them recommended but I haven't even bothered to apply because I just paid off a collection from them. I'll research to see if anyone has had any success with less than a few years between paying a collection and opening a secured card.

Starting Score: EQ 511 (1/20/13)
Current Score: EQ 633
Goal Score: 680
Regular Contributor
Posts: 142
Registered: ‎12-16-2012
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Re: Getting secured cards....advice?

Also, check out your local credit unions. Ours (if you're in North AL, it's Redstone Federal) doesn't do a credit inquiry and it just found out that it reports unsecured, so it shows up like a regular CC. You would need an account first, of course.

 




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