How do I repair credit -- I blew it up 8 years ago

[Anonymous]

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@EAJuggalo wrote:

Cap1 has been graduating for a few months now.

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Yep - which is why I recommended them

[Anonymous]

Thanks -- great advice from everyone. Very helpful!

Is a higher limit secured card more beneficial to credit score? Say, $1,000 vs. $500?

[Anonymous]

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@Anonymous wrote:

Thanks -- great advice from everyone. Very helpful!

Is a higher limit secured card more beneficial to credit score? Say, $1,000 vs. $500?

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Answer:  Depends on how you use the card

There is no direct benefit since the limit itself is not a scoring factor, however you might find it easier to maintain a proper ratio of balances to limit with a larger limit.  Since optimal scoring requires <9% balance on one card, having that balance on your highest limit card will give you a bit more flexibility.

[Anonymous]

Thanks everyone for your help.

I ended up getting a $500 secured card from Affinity FCU. They told me it doesn't graduate, but in the end I just chose them for convenience since I am already a member there and can go into the physical branch. It's official and I have the card in my wallet now.

I went with $500 so as to not tie up too much money. But TygerHawke's point is well taken in the previous post.

Now, I guess, I've got to put it to use a little bit.

• Keep the balance under 10% but above 0% ?
• Pay in full every time -- of course, paying in full makes the balance $0, so how does that work? After paying you make sure and get a balance back on there quick for when it reports?
• I assume the reporting date is different from the bill due date?

Also, it seems I should get another secured card somewhere else in order to get another account reporting.

If I've got anything wrong here, let me know. I always appreciate all the feedback no matter what your opinion.

[EAJuggalo]

Since you bank there it's not a bad plan to take their secured card for a year then apply for one of their regular cards.  CUs are generally more willing to work with an existing customer on things.  The 10% is to maximize your score.  As long as you're not going over the limit and paying it off completely by the due date no long term damage will be done by letting a large utilization number report.  However if you are going to apply for something in the next month you really want that number down.  As a data point I lost somewhere around 70 points strictly from utilization early last year.  The came back once I paid the numbers down.  The reporting date is generally a few days after the statement close date which is the date you should be concerned with for score purposes.  They will report whatever number is on the statement, usually the statement date is 5-7 days after the due date.  So if your statement date is the first, your bill will usually be due on the 26th.

You are going to need three revolving lines plus a loan to maximize score,  I still like the discover secured.  With those two you should qualify for a good card in the next six months or so.

[Blackswizz750]

On that item you are not sure about, think about nay lender you may had and go up for a dispute. I say this because of two things, the item may not be yours(someone could have applied in your name or the Statue of Limitation could be up. You mention, you stop dealing with credit cards and baks for 8 years. You dont want an item like this hovering over your reports if they dont need to. I have been in your shoes and still read on MyFico daily.

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@Anonymous wrote:

Thank you TygerHawke and EAJuggalo for your thoughts.

I assume if I could get an unsecured card, that would be better than secured -- is that correct? If so, what is the best way to approach seeing if I can get an unsecured card?

Last night, I looked back at a TransUnion report I got through AnnualCreditReport.com a year ago. It had 5 accounts listed. 3 credit cards, a $300 account that I don't even know what it was, and an electric bill that went unpaid for $200. To my surprise, all but the electric bill were scheduled to be removed from the report over the past year. The electric bill is supposed to stop reporting in 2/2017 (next month).

So I am thinking that maybe there is a lender who will give me an unsecured card -- not sure if that's true. But I think there will only be 1 account on my credit report now, that old $200 electric bill scheduled to come off next month. Interestingly, I have been a customer (again) of that same electric utility for the past year, but I don't recall them trying to collect that old debt from me since I showed back up on their radar.

Also, I do already have a relationship with Affinity Federal Credit Union. I have a personal checking and a business checking with them. I like EAJuggalo's idea of being able to go into the physical branch if I get a secured card. But I also see that a lot of people on this forum seem to really like NFCU.

Thanks again for the great advice, and I'm curious to hear anyone's thoughts on whether I have a chance at an unsecured card, and whether that's superior to secured for credit-rebuilding purposes, and where I should inquire to get an unsecured card if so.

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[Anonymous]

Well I've been putting about $25 on the $500 secured card, and paying it off each month for the past 5 months.

And now I just got a pre-qualified offer in the mail for a Capital One Platinum Mastercard.

Should I fill out the application for it and take it? Or should I wait for more offers? Or go apply for something better on my own?

[Anonymous]

Cap 1 is a nice way to start unsecured rebuilding.  You can be friends for a while then upgrade.  I like their QS card.  

[Anonymous]

Backwoods, thanks for the reply.

I decided to just go for it. They gave me a $500 limit and said the card would arrive in 7-10 days.

[Brickbybrick]

Are you scores getting better over the last couple months?