topic Re: Getting secured cards....advice? in Credit Cards

Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 04:37:08 GMT

My next step in my credit repair is getting a secured credit card. I would like to open 2-3 cards right now. Any feedback on that? I've read that the best option is to open 1 card, let it age 6 mos then open another. However, I will be spending the next 12 months repairing and rebuilding my credit and not applying for loans or anything of that sort. I am planning on applying for an unsecured card in 6-9 mos. Currently, I have no open revolving credit. Here's what I want to do and my reasons for doing so:

1) Open 2 secured cards now. From what I understand, that should drop my score a little because multiple new accts will drop my AAoA...but after 12 months of rebuilding, it shouldn't matter much, right? In a year, I would like to show 2 revolving lines with 12 months positive history. Good idea? Neither of the cards I'm applying for will graduate to an unsecured card. I can't find any secured cards that graduate that I'll get approved for.

2) Add money to 1 of the secured cards to increase limit each month. Of course, keeping my util under 9% with 1 card and 0% with the other

3) In 6-9 months (or longer if my scores aren't where I'd like), apply for an unsecured card in order to have 3 revolving lines of credit

4) In 18 mos, open another unsecured card then close the secured card that I didn't make limit increases on. I would like to close the secured card because it won't graduate to unsecured and I'd like to eventually get my money back.

Any recommendations on secured cards? Any that will do increases? I think I've burned my bridges with BofA and Cap1 as I have old cards from both of them that went into collections.

Any feedback would be greatly appreciated!

Re: Getting secured cards....advice?

jamie123 — Wed, 30 Jan 2013 04:43:14 GMT

Which secured cards do you plan on applying for?

What kind of baddies do you have on your report and when was the most recent one?

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 05:07:31 GMT

@Anonymous wrote:
My next step in my credit repair is getting a secured credit card. I would like to open 2-3 cards right now. Any feedback on that? I've read that the best option is to open 1 card, let it age 6 mos then open another. However, I will be spending the next 12 months repairing and rebuilding my credit and not applying for loans or anything of that sort. I am planning on applying for an unsecured card in 6-9 mos. Currently, I have no open revolving credit. Here's what I want to do and my reasons for doing so:

1) Open 2 secured cards now. From what I understand, that should drop my score a little because multiple new accts will drop my AAoA...but after 12 months of rebuilding, it shouldn't matter much, right? In a year, I would like to show 2 revolving lines with 12 months positive history. Good idea? Neither of the cards I'm applying for will graduate to an unsecured card. I can't find any secured cards that graduate that I'll get approved for.

2) Add money to 1 of the secured cards to increase limit each month. Of course, keeping my util under 9% with 1 card and 0% with the other

3) In 6-9 months (or longer if my scores aren't where I'd like), apply for an unsecured card in order to have 3 revolving lines of credit

4) In 18 mos, open another unsecured card then close the secured card that I didn't make limit increases on. I would like to close the secured card because it won't graduate to unsecured and I'd like to eventually get my money back.

Any recommendations on secured cards? Any that will do increases? I think I've burned my bridges with BofA and Cap1 as I have old cards from both of them that went into collections.
Any feedback would be greatly appreciated!

I would say 2 secured cards rather than 3. Increasing the deposit is a very good idea. Worrying about the utilization is only relevant when you are applying for something else, otherwise a waste of time. I would wait over 12 months for the first unsecured application. Read the terms carefully on the secured cards, some are very expensive with fees.

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 06:18:01 GMT

Not sure which one's I'm applying for yet...any ideas? I've seen a lot with hefty fees which is not a huge deal for me at the moment. I'm in rebuild mode so if it costs me now, its worth it in the long run. It wont be forever.

My report is full of baddies...I'm just now starting my repair. The report consists of defaulted loans and charged of credit cards...Many are old enough to fall of this year or next, some are a couple of years old. Getting secured cards is just one of the many steps I'm planning on taking

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 07:28:23 GMT

I got the US bank secured and BOA secured, both of them will graduate, this is the main thing I like about them.

Re: Getting secured cards....advice?

TiggerDat — Wed, 30 Jan 2013 13:21:54 GMT

My advice is to get a Merrick Bank secured card. They gave me one when I had baddies on my report. I think it was about 2 years after they hit my report. I put down $1000, which they still have to this day 5 1/2 years later.

I would then open another account as soon as you can with another bank or credit union which is good about doing secured cards. I think USAA would do it.

I would then also do another one as soon as possible also with another bank or credit union. You should avoid PNC, as they will probably say no! From what I have heard about their secured card is that it is good, but with too many baddies then you will be declined anyway.

The reason I say 3 accounts is because this is what FICO recommends in their booklet which you can download. (Yeah, I read it.) Managing one or two accounts is OK, but if you can manage three or four it shows you can budget better.

I suggest opening all on the same day or within the same month because of AAoA. This will build that the fastest! The trifecta of the three accounts in 12 months should be very good.

Also, you can't go over 20% for your score, but remember that is really only important in 3 situations. 1. If you are applying. 2. If you are being solicited. 3. If your bank is nervious about your util.

Certainly you know that you should pay them off in full each month and if you can add a little every few months to their limits through deposits. Some banks like this. Also some banks will release the funds after a set period of time, such as a year or two, others depending on your score, and some (Merrick) never! (After 5 1/2 years you would think they would understand that I am not going to default on their card. When I get an Amex, at the latest, I will close the Merrick. Don't get me wrong, I like them, but they have my money and I am paying an annual fee to them on a monthly basis. They are the only card I pay an annual fee on.)

You might also be aware that if you burned BofA they might come after you and file court papers. I think their collections agency waits for you to open a card to do so. That way they can guarantee payment. If the BofA ends up with Calvary Portfolio, all I can say is watch out. They served me at an old address and I never even knew it until they tried to drain my BofA checking account, I think they keep in touch with each other! (I say tried, because I had money wired to the account then transferred it to another account the same day, they only got me for the $100 legal fee from that account, but they did take money from the other account later.) They at one point had turned it over to an attorney who did collections too. They even went so far as impersonating me and called my credit card company and then offered me a payout for the exact amount of available credit I had. I called the bank and I asked them when was the last time that I had called and explained why I needed the info. They had actually called 3 times. I think they were waiting for my available to be higher, when it wasn't it was a matter of get what they could. I called Calvary and explained what I knew to be a fact and we then settled for the amount I named to them. (I would have taken it to court, oh yeah!, but I was not in the country and wasn't returning any time soon!) So if Calvary has your collections for BofA, then be careful. They themselves might not do anything illegal, but I am pretty sure they look the other way with who they send off some of their debts to and I am certain they retain ownership of the account. That is what the attorney/collection company told me anyway. When I contacted Calvary, they said they could deal with me directly! Since I knew what had happened, they were certainly willing to avoid an intanglement of a lawsuit, probably because they did retain ownership.

So, you might want to check the statute of limitations and wait for that BofA to be out of their touch! (Funny thing is, I had 2 accounts at BofA accounts and they only sued for one, but I suspect there was a reason behind that. I suspect that it was so they could apply payments to one and hold the other as a bargaining chip.)

I hope this is helpful

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 16:28:05 GMT

Omg! Thanks for the input...that's good to know. What a nightmare! My collection was with Cavalry but I paid it recently.

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 16:34:11 GMT

I would recommend you get one of the secured US Bank rewards cards. Aim for a $5,000 limit.

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 18:02:22 GMT

@Anonymous wrote:
I would recommend you get one of the secured US Bank rewards cards. Aim for a $5,000 limit.

Approval is very unlikely. Been there.

Open Sky approves without credit check, but no grace perios, so watch how you use it. Check out First Progress secured card. It is in the find credit cards sectrion on this site. I would not worry about your credit score at all for at least a year. Getting 1 secured card now, can help you to get approval for unsecured in a year, so you can start with 1 card for now (less expensive) and end up with about the same result. Getting 3 cards costs more and will help only a little.

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 18:09:42 GMT

Thanks everyone. I actually signed up with First Progress last night. US Bank doesn't really seem like an option for me.

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 21:44:47 GMT

@Anonymous wrote:
Thanks everyone. I actually signed up with First Progress last night. US Bank doesn't really seem like an option for me.

Best way to find out is to go to a branch and see if the bank manager can recommend your approval.

Prior history with the bank ie checking and savings is a big plus, but simply an intention to open those accounts can help.

Re: Getting secured cards....advice?

Anonymous — Wed, 30 Jan 2013 22:17:01 GMT

I'm wondering if it's a good idea to increase the limit on a secured cc?? My cl on my Cap One secured card is $200 and has been for 10 months now.

Re: Getting secured cards....advice?

TiggerDat — Wed, 30 Jan 2013 23:37:59 GMT

Oh yeah, I forgot about First Progess, but my understanding is with them they don't give credit limit increases and they never return the security funds.

3 - 4 cards is the recommended amount by FICO themselves and it is explained in the pamphlet they offer on this site. From personal experience my score did increase with just one card, but it certainly increased better with 3. I had the Merrick card only for a long time, then I added Finger Hut, which only reports to Trans Union, and then I added 2 Capital One Cards. My score jumped higher and did so more quickly after that. When I got my first card with a limit over $2000 my score also jumped from that alone, but I don't think it works with secured cards. I don't remember if my Merrick account had already reached $2000 by that the time I got the Marathon Visa with the $2500 limit. When I got that limit it immediately bumped my score about 35 points I think.

My FICO is now 699 and without all the inquiries it would be a 760. When these new accounts age I am fairly certain I will be in or near 800. So in about a year or two I should be up to at least 750, but probably more like 780. Two years ago I was about a 550. My strategy was really helped by using Credit Karma and following the advice from them, I was able to add over $20,000 in credit in the last year. I had collections and baddies showing on my report until the middle of last year. But using the advice here and there I was able to add the right cards to show more accounts and more positive payment history. One of the accounts that I added about 1 year and 3 months ago was a Marathon Gas card. The limit started at $150 and I got an increase on the third month, now my limit is $900 and I bet if I asked them for another now they would give it to me. It was the history with Comenity that got me the $2500 Visa. I had that Marathon card and a Bealls of Forida with them. I barely use either cards, but they still give me CLIs and I think I didn't even get a hard pull for the Visa card. I can't find it on any of my reports, so that was a nice thing!

Re: Getting secured cards....advice?

Anonymous — Thu, 31 Jan 2013 21:16:56 GMT

@Anonymous wrote:
I'm wondering if it's a good idea to increase the limit on a secured cc?? My cl on my Cap One secured card is $200 and has been for 10 months now.

It can help bigger limits later, expecially with Cap One.

Re: Getting secured cards....advice?

Anonymous — Thu, 31 Jan 2013 21:20:04 GMT

@bernhardtra wrote:
Oh yeah, I forgot about First Progess, but my understanding is with them they don't give credit limit increases and they never return the security funds.

...

You have any evidence of that, or is it just BS.

Re: Getting secured cards....advice?

TiggerDat — Fri, 01 Feb 2013 00:12:26 GMT

@Anonymous wrote:
@bernhardtra wrote:
Oh yeah, I forgot about First Progess, but my understanding is with them they don't give credit limit increases and they never return the security funds.

...
You have any evidence of that, or is it just BS.

I got the information directly from them when they started the card. At the time I did not think I would be able to get other cards, oh boy was I wrong! I was shopping around to see what my options were and there were some ads on it and I called to ask about the cards. I wanted to know what made it Platinum amount the CLI's and security funds release timeframe. Basically what I found out is that there is nothing that made the account Platinum, there are no rewards or benefits to the card. In fact, but it has been a while, I don't think they even offer car rental insurance as most companies do. I usually just do the simplest thing when I want information and ask the company themselves. Remember, with time things do change, so they might have changed a policy or two, but overall it will probably be the same. The card is issued by a bank called Synovous which is a southern banking company and I imagine that if you were in GA, FL, or another state they are in you could if need go into a branch and pay. They do market it as a seperate product than their other cards. If I were looking for a secured card, then I would call them and check it out. It might be a benefit if they have altered it a bit to be more in line with other secured cards available. I think their strategy is to be a leader in the secured card industry, they do promote it heavily! It's fee is less than some of the others, but if I were to need a secured card now I would ask them the benefits and the rules about CLI's and security release, as time does alter things. I DID call them before when I thought I needed another card, at that time the restrictions were too much to make me want the card. (It was about a year and half ago I think, just shortly after they started promoting it heavily.)

Re: Getting secured cards....advice?

Anonymous — Fri, 01 Feb 2013 00:33:18 GMT

@bernhardtra wrote:
@Anonymous wrote:
@bernhardtra wrote:
Oh yeah, I forgot about First Progess, but my understanding is with them they don't give credit limit increases and they never return the security funds.

...
You have any evidence of that, or is it just BS.
I got the information directly from them when they started the card. At the time I did not think I would be able to get other cards, oh boy was I wrong! I was shopping around to see what my options were and there were some ads on it and I called to ask about the cards. I wanted to know what made it Platinum amount the CLI's and security funds release timeframe. Basically what I found out is that there is nothing that made the account Platinum, there are no rewards or benefits to the card. In fact, but it has been a while, I don't think they even offer car rental insurance as most companies do. I usually just do the simplest thing when I want information and ask the company themselves. Remember, with time things do change, so they might have changed a policy or two, but overall it will probably be the same. The card is issued by a bank called Synovous which is a southern banking company and I imagine that if you were in GA, FL, or another state they are in you could if need go into a branch and pay. They do market it as a seperate product than their other cards. If I were looking for a secured card, then I would call them and check it out. It might be a benefit if they have altered it a bit to be more in line with other secured cards available. I think their strategy is to be a leader in the secured card industry, they do promote it heavily! It's fee is less than some of the others, but if I were to need a secured card now I would ask them the benefits and the rules about CLI's and security release, as time does alter things. I DID call them before when I thought I needed another card, at that time the restrictions were too much to make me want the card. (It was about a year and half ago I think, just shortly after they started promoting it heavily.)

They are the only secured card on MyFico list of cards. But I was not able to look at terms and conditions without starting application process which i did not do. I find this irritating. I would not worry that you did not get your deposit back.

Re: Getting secured cards....advice?

TiggerDat — Fri, 01 Feb 2013 00:45:14 GMT

Well having been with Merrick for 5 1/2 years, I am worried about getting my security funds back, I am not earning interest on those funds. So you might later be worried, even if not now. I really wish Merrick would offer prime type products to graudate us to! With the First Progress, since they are part of Synovous, there might be a way later depending on their policies and changes, it might be possible to PC. I hope they work out the faults with the program and strengthen thier strategy, if for no other reason than to compete directly with Capone! I wish that of both Merrick and FP!!! FP is a bit new with what they are doing and I understand that. Just when I was considering it I thought it was a bit more restictive than fit my needs and might be something another person might want to consider.

Re: Getting secured cards....advice?

Anonymous — Fri, 01 Feb 2013 02:47:29 GMT

First Progress DOES do cli with prior permission and conditions. I'm not really concerned about rewards or benefits of this card as its only purpose for me is to have a new, positive and perfect, revolving trade line reporting to help me rebuild. And for anyone interested in the terms, disclosures etched, PM me and I'll give you the copy I got for being approved.