Capital One Secured

[Anonymous]

Hello All!

I'm reaching out to tell you all about my story and nail biting credit app experience. About 2.5 years ago, I went away to college and got an unsecured Discover IT card. I kept current on the card, made my minimum payments, and did everything I was supposed to do. Everything was good, until I became unemployed! The payments were set up to come out of my account, and eventually the card got charged off. During that time, I had just gotten a good paying full-time job, and was still able to make payments on my charged off card but interest was still building. I had also just bought a new car on a joint account with a parent. I stayed current on the payments for about a year, then I was laid off, and moved to a different city. It took me about 3 months to find a job before I could make minimum payments in the Cardmember Assistance program for Discover. I fell behind on all my payments, car and credit card. I had to voluntarily surrender my car, which dinged my credit pretty hard, and now I have the opportunity to make a settlement amount with Discover to close my account. 

Long story short, I've just gotten offered and accepted a salary job for a company, and I'm looking to rebuild my credit while this repo lingers on my record. I recently applied for Capital One secured, and I received a letter stating I need to send in information (billing address, ID, etc.) for them to make a final decision. I'm super nervous because that repo is a fresh open wound on my score now, and not only that but my score is really low now. I'm barely hitting 21 years of age, and I'm looking to rebuild my credit.

Would it be smart for me to follow through with the secured app, or see if my Mom can add me to her Capital One account as an Authorized User and build that way?

I mean hopefully my income and age bracket can give them some kind of idea of me trying to rebuild, but the repo really makes me nervous. 

Let me know what you all think

Sincerely, 

Young, and learning from mistakes

[Anonymous]

Congratulations on taking the leap towards handling your finances and joining here! 

I say you should go ahead and follow through with the app with Cap One secured card, the worst that can happen is you will know where you stand and what you need to do before applying again if they decline you.  I would say due to your job history and your age, besides working on your credit, really try to focus on living below your means as much possible and save, save, save!  This way you build a nice little emergency fund/savings to help you should you lose your job or any other emergencies that can prevent you from paying your bills. 

The secured card possibility may not happen anytime soon and you will just have to be patient with this.  If your parents are willing to add you as an AU then go for it.  It may help a little in your case. 

Good luck! 

[Anonymous]

Thanks Bananas1! Your advice definitely gives me the green light that I had the right idea. I definitely plan on saving. I opened a separate savings account at Barclay's, and plan on putting funds in an IRA just to watch my money grow from a distance. Luckily, car wise, I was able to get a buy here, pay here car for my temporary situation. From what I was told, they report to the credit bureau, so hopefully paying this car on time will give me a small boost. Thanks for the heads up as well though!

[Anonymous]

Good luck

[Anonymous]

@Lonecard773,

Welcome to MYFICO.  I'd go ahead get the CAP 1 secured card.  I'd also get another secure card to add to CAP 1 and BOA has a very good option also.  Since your mom is willing to add you on to a card, ask if you can be added to her other cards because that will help you trememdously...

Since you are rebuilding, if you have not done so already check out the rebuilding sub-section here as it has a wealth of info.  All the best.

[gibeon]

I would certainly recommend going forward with Cap 1. They are, absolutely, the most forgiving lender out there.

As such they make an excellent barometer for a baseline. If they say "no" on a secured card, then wait six months and try with them again, and don't try for anything else in the mean time.