rebuilding credit w/ secured CC

[jmnegron21]

Hello everyone,

Do you think it's best to try and resolve old accounts before applying for new credit? I currently don't have any credit cards and according to Credit Karma that's part of the reason why my credit score is low. What do you suggest I do? I know the credit cards that are offered for people with poor credit scores have high interest rates and tons of fees. Any feedback is welcome, thanks :-)

[lmfields]

Unfortunately, when you have damaged credit, you don't have much of a choice.  I would try OpenSky Visa, I have heard great things about them.  You will have to pay the fees and interest, just keep your balance super low (under 9% of your CL) and pay in full each month.  It should help your score relatively quickly...

[NWintellectual]

Another one to try is US Bank. I have/had majorly effed up credit (~20 charged off or collection accounts) and they still approved me. Even if you are not too into motorcycles, I'd recommend their HD Secured Visa. No annual fees but interest is a little steep in the 24% range. Min deposit is 300, you can increase after 6 months and then add more every 90 days after each increase.

[jmnegron21]

Is it bad to increase a secured CC limit too quickly?

[jmnegron21]

Thanks for the feedback so far

[SLO805]

I opened my Cap1 secured w $500 and added another 1000$ in the first month of receiving the card. I hope it isnt detrimental to add more available credit(?). Did not notice a dip in score afterwards.

I thought US Bank Declined a lot of people from what I've read. Cap1 was approved instantly before sending money (US bank wants money up front, refund if you are declined). Also Open Sky I just added a secured card, they do not even do a credit check so no HP ding on the scores either.

[jmnegron21]

I haven't heard of US Bank approving many people with low credit scores. Capital One seems pretty good from the reviews here

[Whitneyy]

I got the capital one secured credit card, only had to put down $99 and you can pay that over a span of 80 days if you don't have all your deposit money. I can't wait until my actual card comes and I can start using it. I plan to always pay an extra $100 a month. 

[NWintellectual]

I know from my initial application (approved) last June, my EX score was about 475 from the letter they sent me. I had two COs just report and a couple of new collections (in addition to the 12-15 other negative CO and CA accounts) and no open accounts except for a student loan (which was past due or in deferment at the time). So I can't speak to their secured card underwriting criteria but if I can get approved with that junk, their standards must be pretty generous. I had been declined by BoA and DCU prior to that.