How many secured cards and process to maximize FICO increases.

[Anonymous]

In the process of PIF offers and DV accross the board. Also attempting to establish some good payment history to maximize my efforts.. All of my previous items on reports are negative and I doubt they can be switched positive. So my idea was to establish 2 secured credit cards. One with BOA and another currently undetermined.

My questions are

Will it reflect negatively having 2 secured lines open?

Will the second lender look badly upon having a secured line recently opened?

Should I establish the first with BOA then wait for it to switch over,followed by opening second line?

Also,recommendations on a second secured card lender with good feedback to work with for my next 5yrs +

[daisyduke]

hi Dangerous Minds,

welcome.

If you have not already done so, you might want to consider buying your two FICO scores from this website. That will give you a good idea of where you are in the picture of things. When you know what your scores are, you will know which creditors will dance with you.

I would try to clean up your reports the best you can (get rid of collection accounts if you have any)....then onto rebuilding strategy.

Now i'm not sure if the Boa card reports as secured or not, I think it will appear to be a regular TL. Someone else can chime in on secured Bofa. It is my understanding that Bofa does reject some applications. Meaning, I don't think applying is nec. a guarantee. One might think so because you are funding the account with your own money. If you do a search in the credit card forum for BOFA Secured, you might find some other posts that could be helpful to you.

I also think that Citibank offers a secured product as well, but that is funded not through a bank account, but  a CD, so you can't increase your limits like you could if you were giving them cash.

I hope this helps.

[moondog7324]

If you haven't already go to : www.annualcreditreport.com get the free reports from all 3 agencies- these are reports only not scores- Use these reports as a baseline to begin rebuilding.

If you want to purchase you FICO score buy the two available on this website ( www.myfico.com)  If you want a free FAKO go to www.creditkarma.com

If you are at the begining phases of rebuilding I wouldn't get too concerned with scores right not- you need to create good habits by repairing the bad and building the good.

Secured cards are not a automati, just because you have money does not mean they have to give you a card. If BOA still has one I would try there. I would also do this:

1. Join a credit union in your area

2.Open a savings account and place 50 a pay into it each pay check- direct deposit if available- (this is a rebuilding only account- do not mingle other financial obligations with this one)

3. When you get > 1000 save ask for a secured card (if they offer them)

4. Do not ever let the balance get >30% (around 5-9% is optimal)- pay in full every month to avoid finance charges

5. Keep putting money into the savings account- and when you get another 1000 make it a $2000 card.

 remember-this money will not be available for use during the secured period.- That is why I reccommend saving and waiting- your less likely to miss it- and at the same time building good habits and trust with you CU

6. After you get your 2 secured cards- Wait at least a year before applying for any other credit-you will waste time and valuable inquiries by going on an app spree

7. after a year compare your scores with your current scores

8. During this time period you should be trying to repair/ delete all the bad items on your current report

Message Edited by moondog7324 on 11-08-2009 05:10 PM

Message Edited by moondog7324 on 11-08-2009 05:11 PM

[moondog7324]

When your doing you PIF's keep in mind your state's SOL- you may not be 'legally' obligated to pay these old debts- look up PFD or pay for delete- it may be an option for you.

Another thing to remember- a secured card looks no different on a credit report than a regular card.

Message Edited by moondog7324 on 11-08-2009 05:09 PM