Where to begin?

[AtlantaWill30339]

It's been a while since I've been up here to post or read comments. I hope someone can help since, my mind has been out of the credit game for a while...

What do I need to tackle first?

I have about 2,300 in cc debt, 3,000 in medical debt (insurance didn't cover as much as they originally said), a car that is atleast 8k underwater (ridiculous interest rate), and 3,200 repo debt.

For the CC debt, I'm in a debt management program. I started in April with 3,100. For the past year and a half or so I lived on credit cards to cover my expenses since my income drastically went down. It wasn't until March/April when I hit my limits on the cards before I had a dose of reality. My income still isn't that great, but I've recently picked up another part-time job that'll hopefully give me another 900-1,200 a month. Seeing as I've depended on credit before just to live, I don't want that to be my only backup plan. I'd love to save money for an emergency fund, but I'd also like to work on my credit. Does anyone have any suggestions for a plan? Also, would a secured card be a decent option? Of course this time around, it will be sock drawered with my other cards.

Thanks,

Will

[Startome]

Hey there, I'd look at the Harley Davidson Secured Visa if you go the secured route, it's the only one I was able to find that doesn't ever have a yearly fee. At least those were the terms when I got it a couple months ago.

http://www.h-dvisa.com/credit/visaSecured.do

[12njoy]

Will,

Is all the things you described after you BK of 1/11? USAA secured cards are a good option, but they don't graduate to unsecured.  The interest rate on their secured cards is 9.9%.  I don't think you have to be a full member.  The only fee is a $35 annual fee and you get the option of Amex, MC or Visa.  Also, is any of the debt you described (besides the repo) in collections or CO?  You have decent scores, very similiar to mine.

[Startome]

Does that AMEX get you in the door at all with AMEX? I know some are just serviced by the company but not technically "in the door" with the company.

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@12njoy wrote:

Will,

Is all the things you described after you BK of 1/11? USAA secured cards are a good option, but they don't graduate to unsecured.  The interest rate on their secured cards is 9.9%.  I don't think you have to be a full member.  The only fee is a $35 annual fee and you get the option of Amex, MC or Visa.  Also, is any of the debt you described (besides the repo) in collections or CO?  You have decent scores, very similiar to mine.

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[12njoy]

The partner Amex cards don't get you in the door with Amex since they just operate on the Amex network. I do believe under a manual review, a partner Amex could help if you have good payment history. That's just my opinion though. Others would disagree, but no one really knows the Amex risk scoring model but Amex. I got for cards from Amex directly with lower scores

[Startome]

Bummer, but it's worth a shot. lol

[12njoy]

@startome,

USAA offers a secured Amex (my two at $5,000 are secured) with a $35 annual fee and 9.9% APR.  The only bad thing about this is that it doesn't unsecure, but still better than the Capital One's, Merrick and First Premier.  They will fee you to death.  Minimum starting deposit is $250.  What I have been doing to rebuild my credit is paying everything, and I mean everything, with a credit card and when I get paid, I pay off the credit card.  That looks wonderful on my history.  Now I'm in the garden for at least the next six months.  I'm closing my two secured cards ($10k total) in March 2014 and will stick those funds into a Chase account or with Amex so that I can build on those existing new relationships.

[Startome]

Sounds like a good idea =) and thank you. good luck!

[12njoy]

@startome,

Thanks and good luck to you also

[AtlantaWill30339]

Thanks so much for the responses. USAA burned me a few years back and I made up my mind that I wouldn't use them again for anything. Now I'm kinda second guessing that lol. I went to my bank over the weekend to deposit money and the branch manager was the person that assisted me. I asked her about a secured card from there and any ideas on what to do. She told me that she was in my shoes a few years ago with a bk and has rebuilt. She told me to apply for one of their unsecured cards first--it gave one of those 7-10 day messages. She said if it came back as declined, to apply for the secured card with them which has a 100% acceptance for account holders and I'd also get the first year fee free with the exception of the average apr. Min to deposit is 300, which isn't bad. So I'll wait to hear the status of the unsecured card. She also told me about a few other cards that she tried in rebuilding. Target, Old Navy, Walmart, Brands Mart, Macy's, etc. I'm no dummy...I know GE HATES me with a passion and I'm ok with that lol. I did try for the target card since it's with TD Bank (I also hear they have a secured card) but didn't get approved, the reason was too many inquiries from when I was trying to refi my car.

I've hit the pavement hard with my job search...I got 2 offers and waiting on 3 others to see if they'll offer me anything. Once I start making more I plan to pay off the DMP, save up to settle with the repo and CO, then move onto paying down the car.