topic Re: Rebuild question in Rebuilding Your Credit

Rebuild question

Johnny35 — Sun, 19 Jun 2022 13:06:32 GMT

If someone is delinquent on all credit cards which will go into collections soon. In order to rebuild, is there any sense to get a few secured credit cards in this situation? If not, when would be the right time to apply? how many years into collections. Thanks in advance

Re: Rebuild question

JM427 — Sun, 19 Jun 2022 13:17:22 GMT

@Johnny35 wrote:
If someone is delinquent on all credit cards which will go into collections soon. In order to rebuild, is there any sense to get a few secured credit cards in this situation? If not, when would be the right time to apply? how many years into collections. Thanks in advance

I think I would focus on trying to work out arrangements to prevent the delinquent accounts from progressing to Collections before I worried about new cards. Are the cards you are referencing already Chaged off? If they are not, your credit rebuild will go much smoother preventing the charge offs such that you are only dealing with the lates and high utilization for cards closed with balances.

At any rate, to answer your original question, the Pro's of a new card if it is not made out of unobtainium is to start providing positive history, the Con's are even a secured card given what you have stated might be made out of unobtainium.

Re: Rebuild question

Jnbmom — Sun, 19 Jun 2022 13:29:54 GMT

@Johnny35 wrote:
If someone is delinquent on all credit cards which will go into collections soon. In order to rebuild, is there any sense to get a few secured credit cards in this situation? If not, when would be the right time to apply? how many years into collections. Thanks in advance

You need to work on these accounts first . If you have money for secured cards , then you have money to take care of these things first .

Re: Rebuild question

Jrobertson1998 — Sun, 19 Jun 2022 14:48:20 GMT

You could get one just to have a positive account reporting, but if I were you, I would save my money and try to negotiate something for your current accounts asap.

@Johnny35 wrote:
If someone is delinquent on all credit cards which will go into collections soon. In order to rebuild, is there any sense to get a few secured credit cards in this situation? If not, when would be the right time to apply? how many years into collections. Thanks in advance

Re: Rebuild question

Brian_Earl_Spilner — Sun, 19 Jun 2022 16:26:12 GMT

If your situation is so dire you're going to let everything go to collections and want to start over quickly, have you looked into bankruptcy?

Re: Rebuild question

jrwa81 — Sun, 19 Jun 2022 17:08:07 GMT

Definitely not. You need to be focusing solely on the cards that you are delinquent on and do anything that you can possibly can to prevent them from going to collections and/or being charged off, and also protect yourself from potentially being sued. You need to contact these creditors and try to work something out ASAP.

Re: Rebuild question

righthererightnow — Sun, 19 Jun 2022 19:40:18 GMT

Maybe you can contact the charge-off companies and they'll take you back. Seems like the world is a bit more human and forgiving right now. Look into this if it's an option for you... patching, rebuilding, from here. That's one thing I didn't do pre-BK and would if I went back and did it all over again.