I was wondering if there is a "right time" to apply for a secured credit card. I just paid off a settlement with a CA for just over 5k and have one CC balance with Wells Fargo which is in "charge-off" status. I'm going to try and settle that with my tax return money.
My question is, do I need to wait until these two issues appear on my CR to apply for an unsecured card? Is there an optimum time to apply or the sooner the better?
My most recent middle score by FICO is 554.
Starting Score: EQ 584 TU 539 EXP 554 Current Score:EQ 700 TU 700 EXP 700+(lender pull) Goal Score: 720+
HI! Try these 2 links first they have helped me alot, and from personal experience and from what I have heard from others. I would first apply for an unsecured Orchard Bank card they are a little easier to get than the CapOne, then apply for CapOne.
For secured cards, I would apply for Open Sky (no Hard Inquiry for this one), Orchard Bank, Cap One. in that order
if you have time read this:
http://money.cnn.com/galleries/2011/pf/1104/gallery.best_credit_cards_bad_credit/index.html
and this site, just click on what credit card you want to apply for and it will show you who got approved with what scores and things on their reports and who did not get approved, very helpful site
http://www.whogavemecredit.com/forms/search.php?srch=browse
HTH! Have a good nite!
@beachdude wrote:I was wondering if there is a "right time" to apply for a secured credit card. I just paid off a settlement with a CA for just over 5k and have one CC balance with Wells Fargo which is in "charge-off" status. I'm going to try and settle that with my tax return money.
My question is, do I need to wait until these two issues appear on my CR to apply for an unsecured card? Is there an optimum time to apply or the sooner the better?
My most recent middle score by FICO is 554.
In my opinion, the sooner the better. If you are not approved for Cap 1, Orchard, etc you could perhaps try a local CU, or you can try www.openskycc.com. The open sky card does not pull a credit check, and so none of those issues should impact it. At the Orchard website, they have a preapproval thing that will let you know which card (if any) you are most likely to be approved for), so that may be another option.
In regards to the paid settlement, did you negotiate a PFD with the CA?
EDIT: Izze, we posted very similar information on the CC's but thanks for the links, your post wasn't showing before I submitted mine or I would have just piggybacked off of it.
Starting Score: 576 EQ 1-12-13Thank you guys.
No, I did not negotiate a PFD at that time. I was happy settling on just over 5k for on a balance that was just over 12k. If you can recommend a plan of action, thanks. And to all those who answered my post, I am very appreciative. Thank you.
@beachdude wrote:Thank you guys.
No, I did not negotiate a PFD at that time. I was happy settling on just over 5k for on a balance that was just over 12k. If you can recommend a plan of action, thanks. And to all those who answered my post, I am very appreciative. Thank you.
Hi there, having the paid settlement on your reports is still hurting your credit. I would strongly suggest that you send a GW letter to see if they will remove the negative information or delete the entire TL from your report. That is how you will most likely get your scores increased.
Before paying off debts, try to do a PFD so that the negative information can be removed.
If you search on here or on the net for GW letters you can find one that works for your situation. Best wishes!
If I already paid off a debt from a CA, would I still ask for a PFD? I thought PFD's were a combo of paying off a debt AND getting it removed from your CR. No?
@beachdude wrote:If I already paid off a debt from a CA, would I still ask for a PFD? I thought PFD's were a combo of paying off a debt AND getting it removed from your CR. No?
If you've already paid off a debt you would need to do a GW (Goodwill) letter to request that they remove it.
Ok, I will give it my best. Thank you both for the advice.