Credit card help

[bhenken08]

When I was 18 I really messed up my credit horribly.

(lost my job in 08 for about a year)

I had 3 credit card charge offs

Verizon charge off

I had a "car loan" for 4k that was 90 days late before I was able to pay the account off in full (no Repo)

two years ago I opened a share secured loan for a 1,000 paid it full term (never late)

1 year ago got a 1,500 unsecured loan paid it for a year. (500 balance)

3 Months ago got 2,000 loan paid off my 500 balance from my other loan then paid all of my collection accounts.

Now I after allot of hard work my score is back up to a 597 experian and 614 equifax.

what are the next steps I need to take?

I only make $2200 a month but don't have any other bills.

Can anyone recommend a credit card company that would likely grant me a credit card?

Part of what's hurting my score is the length of account history I would like to get a card and keep it open for 10+ years.  

[Anonymous]

It doesn't sound like you have any open revolving trade lines.  Opening 2-3 of them would help your credit score over time.  My suggestion is look at the pre-qual cap one and see if it thinks you qualify for anything.  Also, grab your credit report and walk into local credit unions and talk to loan officer and see what they think.  Most likely, you will have to work with secured credit cards.  Its worth doing in your case, but you need to save up some money.

[Revelate]

+1 to everything Crashem said.

Capital One is a decent place for a starter secured card: it's like $99 to open one if I recall their secured product correctly.

Something in your post "share secured loan" suggests you already bank with a Credit Union, go ask them for a card as well.  Likewise whoever it is that's underwriting your personal loans you've acquired over time if they have credit card products.  It'll probably be secured, but you really don't have to have a large limit, you're just looking for the revolving tradelines as Crashem suggests.  Even a $300 limit starts moving you forward from a FICO perspective.

You're really not in that bad of shape from what you posted: you've already addressed the collections, you do have some positive history, and those now paid collections and auto-loan lates are already aging towards insignificance.  The biggest thing you're suffering from now is being a near thin-file, and the credit cards will go a long way towards solving that. 

Edit: don't try to keep a credit card open for 10 years: if it happens, fine, but that's not something which is going to dramatically increase your credit standing.  Get the starter cards now, then in a year or two trade-up to cards you can keep open for a good long time.  It's at a minimum a two step process, there are very few products which you can do it in one with for a long-term tradeline from where you're at now... I know as I'm in a similar situation and I looked hard at that issue.

[Anonymous]

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@bhenken08 wrote:

 Part of what's hurting my score is the length of account history I would like to get a card and keep it open for 10+ years.  

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If you intend to keep the card open for 10+ years, you probably don't want to look at most of the subprime cards - they'll never grow with you and you'll be paying fees upon fees just to keep the card open. Your best choice would be to get something from a credit union (something without an AF) that has the possibility to grow over time. If nothing else, see if one of your local CU's with let you get a secured card that'll graduate to unsecured after a year. With low scores, it might be hard to get anything else.

[bhenken08]

How do store cards look on my credit report? I work at a department store and after 2 years you have "guaranteed "  approval for a card. I would not be too much of a temptation since I never shop here anyway.  Or would a secured card be better or both? 

[Revelate]

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@bhenken08 wrote:

How are store cards looked at? I work at a department store and after 2 years you have "guaranteed "  approval for a card. I would not be too much of a temptation since I never shop here anyway.  Or would a secured card be better or both? 

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You want 2-3 open revolving tradelines as Crashem suggests, which translates to 2-3 credit cards in your current situation.  Do both.

[-Cain-]

If the store card is a "guaranteed approval", I'd open it, then look to a CU for a second card.

[bhenken08]

Thanks for all of the help!

It turns out Wells Fargo has a good secured credit card program, I plan on signing up tomorrow.

[-Cain-]

You should look for a secured card that will graduate to unsecured, hopefully without an AF. That would probably be with a CU. If the Wells Fargo card looks good to you though, go for it. Good Luck!!!

[Anonymous]

Apply with wells in branch and not online. The onsite bankers can go to bat for you. Wells Fargo secured card isn't guaranteed approval.