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01-29-2013 07:34 PM
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!
01-29-2013 07:47 PM
01-29-2013 07:54 PM
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
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
01-29-2013 07:58 PM
01-29-2013 08:07 PM
Why don't you make a post on the CC forum about your situation. Those guys over there are gurus with credit cards.
01-29-2013 08:20 PM
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.
01-29-2013 10:41 PM
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.