Starting over- no credit usage

Anonymous · ‎07-13-2018

So, I have installment loans in the form of student loans, no auto loan or credit cards. Currently via CK I have a 570 (just regained 30 pts! Woohoo) wondering thoughts on a secured credit card. Are these a “sure thing” since I don’t have an active card what steps should I take to build credit while clearing past collections? Any advice GREATLY appreciated!!

Anonymous · ‎07-13-2018

Consider getting a secured card from a bank that is not in collections. Also, Credit Karma does not provide accurate scores, but they do provide accurate updates on your TU and EQ credit reports.

Check out this site: http://www.beverlyharzog.com/the-best-and-worst-secured-credit-cards/

moosemoney · ‎07-13-2018

I will praise to the heavens until my last day the greatness of the Discover IT secured card. They report to all three bureaus, you can deposit more cash in to raise your limit any time during your "secured" phase, you earn the cashback bonus even while it's a secured card, they graduate you to a regular card, and there's no annual fees. Interest is a little high but I never carry a balance so that doesn't bother me a bit.

My FICO 8 was 552 when I signed up. I had zero cards, only my mortgage as an active account (with only one year of on-time payments), and I was riddled with derogatories. I was instantly approved! I started with $200 and added $200 more a couple months later. Customer service is fantastic!

Anonymous · ‎07-13-2018

OpenSky Secured Card is an option.

Pro- It does not run your credit so no inquiries.

Con- There is a $35 annual fee.

Anonymous · ‎07-13-2018

Hey thanks for the info! Applied with a 200$ secured limit and was thankfully APPROVED. WHEW! thanks again

Anonymous · ‎07-13-2018

Hey bigdaddy! I was just approved for a discover it secured. Do you recommend applying for an additional card like open sky at some point as well??

Anonymous · ‎07-13-2018

Capital one is another good secured card. Based on your credit, you could get a $200 credit limit with a deposit of $200, $99, or even $49.

The “bad” thing with cap 1 is a triple pull (one inquiry per bureau). 3 inquiries is a lot when you’re rebuilding.

I got two secured cards when i started rebuilding (see my signature). After I got those, I tried the shopping cart trick for a couple of store cards. Not saying my way was the best, but it’s what I did.

Anonymous · ‎07-13-2018

@Anonymous wrote:
Hey bigdaddy! I was just approved for a discover it secured. Do you recommend applying for an additional card like open sky at some point as well??

I think you should. For an optimal Fico score, you need at least 3 revolving accounts, preferably bank-issued ones.