FICO on the mend

[creditmole]

I have just completed a 4 yr. Debt Mgt plan. I have only closed credit accounts. 2 car paymts pay off in Oct. I was thinking about opening a secured Visa until my FICO score gets higher (currently it is 584-606) I need advice on whether this is a good move or not. I understand a new acct. would lower my score in the short term A local credit union is still reporting a Visa I have had since 1988 as being open. (they did not send me a new card at expiration) They told me on the phone that I would have to come in to see if they would reopen it. I will need to purchase a car in about 6-10 mos. and I want to get a reasonable interest rate. I want to make wise decisions going forward so informed advice is welcome

[marty56]

I graduated DMP back in November.  I will asume you have no credit card debt now so util is not a problem.

What will prevent you from getting new credit and a good rate on a new autoloan is any derog information on your CR.  All DMP added to my CR was TLs saying the account was in  DMP.

I would strt with your CU and see if they will reinstate you credit card.  If not, I would apply with a CCC that was not one of the ones you had in DMP.  I would also work on any derog information on your CR since util is not a problem so the only way to raise your scores in the timeframe you want would be to see if you can GW any derog information.

[Anonymous]

I would definitely try to milk the CU card option. That card's history is very important if it is an account in good standing.

Further, a secured card is not a bad option. Diluting any bad trade lines is good and the way to do that is with carefully selected new accounts.

You could look into a secured card from other financial institutions with which you have a relationship that is in good standing or you could try applying for the BoA platinum and when rejected hopefully you have a 99/500 offer.

Its great that your program is paying off and you are on the right track. Goodluck to you!

[creditmole]

thanks, but what is a 99/500?

[Anonymous]

It is a partially secured card where you put down a $99 dollar deposit for a $500 dollar CL....after 6-12 it usually graduates to an unsecured card. You would get your deposit back. People on this forum have had great success with it. It gets you rebuilding your credit with a prime bank.

[haulingthescoreup]

What debtisgood said.

With BofA, the 99/500 is only available as a counter-offer. (Don't know about other banks and their partially secured cards.)

If you're offered a fully secured card instead (deposit $500 to get a $500 CL), jump at it if it's from BofA. With perfect payment history, it will graduate at 9-12 months. There's a current thread on Credit Cards by a member who just graduated. With secured cards from other banks or CU's, ask if they graduate (convert to unsecured), if so, when and under what circumstances, and does the newly unsecured card keep the opening date of the original secured card. Good luck!