topic Re: First Secured Card in Credit Cards

First Secured Card

Anonymous — Wed, 03 Aug 2016 04:18:08 GMT

So when I was 18 I had some issues with spending and not making payments on 3 cards I was instantly approved for and as a result of dragged my credit way down. Well one of them there was actually fraud because it had charges saying I was in France even though I never had a passport nor left the US. Then the bank said prove it and give documentation and I just repeated I am here and can prove I never left and they never removed the charges so I said screw it. I was dumb and 18 and I just let those cards go down but that's the past. I'm 23 now and have worked my way back up to about 610-620 (I think heavily because I enrolled in college and took out subsidized student loans it shows 300 payments made on them but I haven't made one it's the government but it looks like it helped my credit). Anyways now I just got approved for a Discover secured card with a $400 deposit/limit and would like to know what's the best way to use it and/or rebuild my credit.

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 05:08:55 GMT

Short answer
Don't use it to BUY stuff you couldn't have purchased using your debit card (meaning what you could PAY for RIGHT NOW....or at worst your very next paycheck... not 'some' I mean ALL)

When rebuilding with these small CLs it is hard to keep the balances low... that's why I say just treat the card for what it is , which is a TWC (training wheel card) so only use it as such.

If one were to use the best practices method of keeping reported balances below 10%...that would mean not allowing more than a $40 balance report on that card.

Which means bubble gum/ Netflix or something but not SPENDING crazy amounts on a card you are using to AUDITION for bigger better things, too often ppl blow their wad (as you admit, you did in the past) prior to

a) being READY &
B) before they allowed their credit behaviour to manipulate the internal system to give then bug enough CLs to matter.

Manipulate the scoring model by keeping your balances low and payments on time ( you already figure out how the dumb computer model is giving you juice for loans, you aren't even paying) in the same vein the model at this point only cares about

On-time payments and debt % relate to CL
So $40/$400 is the same as $400/$4000

Let time work for you and you'll be shocked in 6-9 months what as happened.

You'll want to add at least one more, two is better, revolving CC to age along with your Disco and the student loans (which adds credit mix, to your profile)

2 ways to add
1) Check out the prequel sites (Cap-1 etc) to see if you can app unsecured
Disco will give you a free TU score monthly + if you sign for their credit scorecard .com site you'll get a free Exp score (both are true Fico) this will give you good info to know where you stand, you don't want to app for denials

2) If you just want another secured card to get it quick look around this board there are several decent CUs that you can app up with as little as $110 for a card just to get a line, if money is tight.

IMO, I'd stay away from the bottom feeder high fee folks because it only takes months to qualify for better suitors, places you wouldn't mine keeping a long term relationship with like Disco

If more ppl treated this project like a science project, like in school vs trying to USE the credit along the way... they'd be better off

This is like taking 50-75% of a year to build a huge cake, you can't actually EAT and enjoy the cake along the way because you'll stunt the growth (and get fat) before it's really time... let the batter set and allow the thing to raise, yeah check the oven, add ingredients build it big...then eat, when it's grown up.

Good Luck

Re: First Secured Card

morgacj2004 — Wed, 03 Aug 2016 05:13:27 GMT

Congrats! Think baby steps u will be back soon

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 05:27:44 GMT

Hi,

Thanks for the info I definitely will try to work on this and not eat my cake!

One question is: One of the main benefits of this card is the doubled cash back in the first year. So to make the most of this I wanted to max the card but PIF same day just for the cash back a few times. I'm not sure if this would be reported because it would literally only be on my card balance for an hour. And after that I would keep balances below 10% when not paying in full immediately. What do you think?

Also maybe unrelated but I was recently checking my CS through Experian and TU and it showed a $6,000 CL opened with Chase bank in May about $800 of which was used. I didn't open this and I even called Chase but they checked my Social Security and couldn't find any cards open. As of now it seems to be severely boosting my credit due to the high limit. What should I do about that?

Re: First Secured Card

bourgogne — Wed, 03 Aug 2016 06:02:45 GMT

Also maybe unrelated but I was recently checking my CS through Experian and TU and it showed a $6,000 CL opened with Chase bank in May about $800 of which was used. I didn't open this and I even called Chase but they checked my Social Security and couldn't find any cards open. As of now it seems to be severely boosting my credit due to the high limit. What should I do about that?

i would see if they can insert your ss# in, take over the 6K account and dispute the 800 in charges -- man you cannot make this stuff up...what is the address they show on file? get a CCT and post your current scores and take the advice above and check for a pre-qualify on cap1 site and if it says your name snap it up

Re: First Secured Card

Vegas4Play — Wed, 03 Aug 2016 06:46:39 GMT

Congrats on getting the secured card, when we are rebuilding we have to start somewhere. With time and patience you will rebound nicely.

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 11:16:56 GMT

Ok, here we go

1) Yes, in theory slamming spend thru your card and PIF... would be no problem (Sometimes vendors don't like that behavior to be too extreme, right up front I'm the relationship... due to money laundering and other sly ish scammers attempt FYI)
IMO again with $400, just how much would the double match be worth vs the effort and attention placed elsewhere or used towards building yet another account...any hiccup and there's egg on face over what $50? IMO bigger fish to fry, wrong place for focus again IMHO

As to #2
Honestly, this has happened to ME
A as far as I know random Cap-1 account reported me as an AU
And to be honest, when I disputed some other things off my reports I stay Quiet about the ghost account that added needed history and welcomed extra volume to total CLs and it helped ( eventually just recently it fell off and it's not like I can call and tell or ask for it back) In my case, it was some abandon account that didn't report NEW every month but the model included the line and the history in my favor for more than a year before it went ghost on me last month

I called NO ONE to complain because it helped me, it appears to be doing the same for you.

If you were my client I say leave it alone, add your accounts around it before it disappears because once you have X amount and start to build from there all you can do is thank heaven, you got a lucky assist that may or may not be at any moment.

But, I wouldn't call anybody or dispute a darn thing if it's helping, if things change, the utilization goes haywire or a late payment...Now it's time to dispute this B.S. off your profile, until then see and hear nut tin😂

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 15:05:30 GMT

Okay so I looked at my CR again and when looking at my student loans it says Individual Account but on the Chase card with 6k limit it shows Authorized Account maybe that's why they couldn't look it up?

As for using the Secured Card I was just using maxing it as an example. But if I want/need to spend $200 but pay it down to just $40 later that day would that be okay?

And yes I agree if the Chase account isn't hurting me and only helping why complain.

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 15:12:03 GMT

Oh and it shows:

604 FICO score
621 TU CS
634 Experian CS

This was updated prior to apply/being approved for this Secured Card so expecting it to drop about 6 points. Is this an okay score? I still have 4 Collections scheduled to be taken off between 4/2018 and 06/2020. I read on here about something called early exclusion so about 6 months before the fall off dates I'll try calling in for that. I'm really trying to work on my credit I just graduated with my B.A. And am planning on applying for law school by the time I finish law school I'm hoping I can have vastly improved.

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 17:26:00 GMT

To answer your question...
Yes, the score is 'ok' ... nothing special but not horrible, think C or C- letter grade in school terms, enough to pass but no gold stars or a parades

By the time those collections are within that 6 month deal
A) their impact as diminished (as, has the 1st one) so much that it's mostly a cosmetic change by then IMO
B) couple that with the good history choking out their importance and it'll be up to you to gauge the need to go that route especially 3 years from now, with 3 years and many new great paying 2&3 year aged accounts by then.

Your scores are good enough to grab a couple 'instant approval ' cards where there isn't a manual review (SL might not be great but so what you're in with a chance) you don't want manual review because a human UWer like myself would SEE whats on your reports and not be fooled by just the score and numbers.....where some automated '60 second ' decision cards have the screening set so low that if the computer see basic criteria met it may be allowed to approve X amount SL simply based on score and slight age....no humans involved....you get 2 of those and you're good to go.

Re: First Secured Card

Anonymous — Wed, 03 Aug 2016 18:30:30 GMT

Thank you for the advice. I don't seem to be having luck with instant decisions I applied for the C1 secured card and was selected for review and they want proof of income even though I put I was a full time student. And Discover put me in review for 3-4 days.

Are these typically "instant" or are these not the instant approvals you mean?

Thank you!

Re: First Secured Card

Anonymous — Thu, 04 Aug 2016 04:13:18 GMT

Couple of things

1) Looking at your age (23) does that jive with the age of that AU account... meaning is the account obviously too old for you to have been even involved in the account. (Many people put a 15 y.o. account with a 10k CL along with a 6 month old $300 CL account of a 22 y.o. kid and WONDER why it goes to review.... duh? So the account opened when the applicant was 7 has great history and a 6/8/10k CL but somehow the most recent approved account is a $300 starter card....it begs, to be pulled outta the TSA line for additional screening....a card with a more modest CL and definitely less aged would have been a better fit.
Since the new regs to 'protect' the public against predatory lending the scrutiny over companies proving that they extended credit to young ppl to appeared ABLE TO PAY as made it IMO more difficult for tweener folks to qualify.

Politics pushed by overspenders who CRY, the company KNEW they shouldnt have lent them money or extended them credit (with all the guns at heads during the application process and all btw) has forced companies to be more diligent in vetting income/ability to pay for young people ( this is by LAW under 21 ...but a thin file at 23 may still spook some vendors)

Why did you app Cap-1 secured...had you tried the prequel site for Plat/QS1?

I wasn't aware you were willing to invest in secured accounts
That being the case, you should pull what I call the Gemini method (explained in greater detail by searching through my past post)

But in a nutshell

You app for a secured PL 1st (preferably, all or most of this with no HP organizations)
Use the loan proceeds to secure 2-3 secured CC accounts and let the games begin.

One could theoretically use $660

Get a $600 PL (leaving $60 available in savings)
Use the $600 in loan money to secure
A) $300 Visa
B)$200 Disco
C)$100 MC

That's 4 TLs...3revolvers and 1 installer

Now use the available funds in the savings account to make the monthly payment of the one card used to make that months loan payment

And because Everytime all loan payment happens more of the money securing the loan becomes available, there's allows enough for the next month's payment...never actually have to 'find' money to make a payment because it was in the bank in the 1st place.

Let this video game play out on your reports for 8 months (again using the cards for nothing more than our game) and you will have 32 On-time payments recorded (4 accounts X 8 months) 24 revolving CC payments with LOW debt usage ..

.the model with LIKE the management of debt and multiple accounts... remember at this point the size of the CL isn't as important as the % of debt vs the overall CL....and since the only thing ever recorded per month was a small loan payment, the management and juggling of accounts looks Pretty on paper, your score will GROW, no doubt

Also at 8 months, your only 4 away from any HPs gathered during the process about the lose their one year sting at the same time all 3 cards are turning a year old. Generally releasing YOUR $ (remember the loan money you used to secure to CCs is your dough😃)

You can, if wish payoff the secured loan with some of that cash, thus freeing up the money held in that account and closing out that loan...with it hanging on your reports for 10 years as a well paid closed account (you could allow it the finish the game and boost your profile but you wouldn't need to ad you have student loans to add mix anyway)

Bottom line your scenario is PERFECT for the Gemini method, especially because you are going to school and have even more time to allow to video game to play out, if you want.

Either way 8-13 months in offers will come in and the relationships built with the institutions used during the Gemini Game are real and can set up lifelong financial partnerships

Think of it this way if
Those 4 accounts were with
Discover
CU A
CU B &
Bank of whatever

They all lend money, issue CC, offer chk/sac accounts IRAs etc and ALL have been paid on-time by YOU and may be on your team Forever (that's another reason why I like to avoid ish bottom feeders upfront..you don't need to outgrow Discover Bank or Navy FCU..you just grow up with them, even State or Digital or your local CU might be useful for whatever in the future but one NEVER goes back to Credit One for ish😉)

Re: First Secured Card

Anonymous — Thu, 04 Aug 2016 04:46:46 GMT

Okay first the accounts we are thinking of making me an AU on are:
1) 1 month old 3.5k CL B of A ($0 balance)
2) 1.5 year old Macy's 1.5k CL ($0 balance)
3) 5 month old balance transfer card from local FCU 7k CL ($6,000 balance 0% APR until April)

So not too unbelievable age wise.

Next that plan sounds awesome I definitely am willing to invest in my future via the "Gemini Method" it sounds really great and thank you for suggesting it!!!!

A few Q's:

1) What should I request for a PL term 12 months?

2) Won't the Secured Card Companies see multiple hard pulls and applications for multiple Secured Cards? If so wouldn't they be a cause for them to deny my app even though it's secured?

3) So I should just accept the HP and forget about Cap1?

4) What are good Secured Cards most I've looked at have an annual fee which is kind of a turn off for me they charge me $39 for what? To loan me my own money damn.

Thank you for all the help I really appreciate it!

Re: First Secured Card

Anonymous — Thu, 04 Aug 2016 22:42:06 GMT

Update: Just went to apply for a secured PL with local CU and was denied. Was told I was in Chexsystems (some reporting agency) for $62 at Wells Fargo. I went to Wells Fargo and paid the $62 they told me it'd be at least mid next week before it updates everywhere. So probably next Thursday I'll try again to get started on the Gemini method!

Re: First Secured Card

Anonymous — Fri, 05 Aug 2016 06:35:24 GMT

1) I'd app for the longest period available for the amount requested.... preferably 2-4 years
a) keep the payment low and a no brainier
B) If you decide to let it ride out the 'open' loan continues to provide credit juice.
Ie
Having a $11 payment on a 4 year loan allows for that loan to grace your reports for a total of 14 years ( 4 years of loan + the 10 yr post pay off) that number is only 11 with the higher payment required for a 1yr term. It isn't a deal breaker but when given the option + there's a pay down to the last 2 payments trick to grab extra points that's too advanced and maybe overkill for your needs at this moment you've got enough on your plate, we'll keep it as simple as possible.

2) Remember the goal is to grab these secured CC in pretty quick order so for the most part they may not have even reported yet... wouldn't worry too much lots of rebuilders app for several cards, so not a new phenomena.
There are several non HP basically deposit and approved vendors, mostly CU, granted not all CUs are created equal
Do NOT just app any ole CU some of these fools actually vet secured cards, you don't want to just waste HPs
Regarding the Cap-1 HP, can you not provide the income docs? They probably only want to see ANY income enough to pay rent and enough to make payment.

Also, you gotta be careful if you're on Chexsystems or EWS as, if the bank/CU doesn't run credit they mostly will at least run either Check or EWS (both are basically a bank account credit reports to screen for bad check writers and risky bank account holders
Just FYI both these reports fall under the same rules as other CRA... one Free copy per year and you can dispute just like any CRA...
The cool thing is you can call and ask them if your clean prior to going to a bank/cu and getting shut down. I forget one will email you the other wants a letter but once they say clean, I never follow through with the letter I figure why it's clean
Another FYI although items can stay on for 7 years just like the other CRAs
Chex has decided to clean their files after 5 years, so if your baddies via bank accounts are older than 5 you're probably good
Again EWS is the same thing as Chex systems just run by the 4 big boys BoA, Wells, Chase & I think Wachovia or US Bank I'm sure of the 1st 3
Anyway unlike the CRA agencies attempt at their own version EWS has made in roads and lots of other banks and CUs actually use the alternative whereas nobody uses Vantage over Fico
Ppl do use EWS over Chex so it's worth checking at least once a year to make sure there is no B.S. just like any Consumer Report

We only think credit but these other reports are by definition CRs just the same

4) Research my post I just gave a list of no AF secured cards or just Google and you will find a bunch

Btw Alliant FCU is a good place to start your secured PL journey
As for local CUs it's hard for me to vet unless I just happen to know but there are plenty options otherwise
If local is important ask them specifically about requirements to qualify
If you don't hear oh its almost a formality STOP
Someplaces don't even run credit for the PL, most will at least app the CC but the PL should be the easiest to get.

Check with that local you tried to see if they HP you and if cleaning up the Chexsystem item is enough to move forward.

Dont apply anywhere you're not 85% sure of approval

Re: First Secured Card

Anonymous — Fri, 05 Aug 2016 06:38:12 GMT

What state are you in?

Also places are sensitive to Tax liens, little things like Chexsystems tax liens etc one had to consider prior to applying
No big deal just need to know whom to avoid as you rebuild

Re: First Secured Card

Anonymous — Fri, 05 Aug 2016 07:23:11 GMT

I'm in Minnesota and actually having some trouble finding secured cards with no annual fee that also have a low initial deposit ($200 or less). I'm considering Affinity FCU because they have branches near me but nowhere does it clarify if there is an opportunity to graduate (if you will) to an unsecured card. I've heard a lot of companies just leave you secured forever and if you want to get your money back you have to close the account which negatively impacts your score.

I'm open to any suggestions. I'm on my phone so it didn't take me to your posts only ones you've commented on which are a lot and Google wasn't much help.

Re: First Secured Card

Anonymous — Sat, 06 Aug 2016 07:32:12 GMT

Here are a few with comments at the bottom....by joining the American Consumer Council you become eliglible for BUNCH of CU's

around the country....if the coupon code 'Consumer' still works it's FREE....don't know if it still works but as of a few months back it did, either way it's cheap to

join and once in, you're good to go in a bunch of CU's

Look around the sites of the others listed they all have life hacks to get in.....kill all that noise about branches and where they may be located....who gives a crap, bro

it's a CC.....Keep you eye on the PRIZE....credit history step ladder, you aren't going into a branch seeking a freaking toaster, so who gives a flip flying....you think I'm visting San Antonio to walk into USAA let alone the Alamo...yeah, right

Community Secured Visa

Coastal Federal Credit Union

$100 no AF

Justice Federal: Visa Classic Secured Credit Card

Cost to join – $5 to join JFCU or $43 if you need to join another organization to become eligible
Minimum deposit – $110

State Department Federal Credit Union

Cost to join – $1 to join the credit union (which the SDFCU usually covers) + $5 (or $15) to join American Consumer Council
Minimum deposit – $250

BCU Credit Builder Launch Card

$150 deposit no fees

https://www.bcu.org/Products/Credit-Cards/United-States/Credit-Builder-LAUNCH-CARD

Affinity (in Minn…..your home state,right?)

$250

Initial deposit ($250) + fees ($0)

_____

Ok, remember we pivot from where we're standing, friend sometimes EVERY option we'd like isn't EXACTLY the one avaiable RIGHT NOW!

ie Although ALL 3 cards you get might not be your forever cards...if your goal is to get the ball rolling, get a history built, on the cheap (regarding deposits)

compromise ...again pivot from where you are standing TODAY!

Yes, I LOVE the Navy secured card but @$500 it ties up funds....I love the Disco card but if they say no...oh well ...the objective is to fall FORWARD, no matter what

if the goal is to light up that scoreboard....light it the best way you can.

Sure, you may burn 2 of those cards next year but one might hang around as a 2016 oldest anchor...remember you don't need to keep 'em all open for the rest of your life...you want DATA on the board, period once you have data reporting ....you will come to a different fork in the road and need to pivot from where you're standing that DAY but you gotta get there.

$100, $150 and $250 cards will report and if that's the side window or back door in... freak it...that's better than sitting in the parking lot wishing you could play!