Declined for BOA Secured?!?!?!

[Anonymous]

I applied for a Secured BOA card after being accepted for Secured Cap One. I called a backdoor line to only find out I was rejected. I of course instantly asked for a recon and they decline because I have recent collection activity (Some CA (LNVN Funding?) purchased $4k worth of Citi CC debt and started recently reporting on all 3 after 4 years)

My score bumped up from mid 560s to the mid 580s after the Cap One and I was really excited because I finally felt like I was starting to rebuild my credit and now not only did I get declined, but it cost me 6 precious points for the hard pull.

I have plenty of income and wanted to fund another secured CC with maybe $500 or $1000 that will eventually turn into unsecured and I get a open face hand in the face.

What do I do?!?!?! Does anyone have any suggestions? I don't want to apply for another secured card because I don't want another hard hit (as I am at 2 now) 

 UPDATE (pg 3)

[Chris123nTx]

If that citi is passed.the sol for your state, why dont you use the cash and make an offer to the ca on the account? Offer them a thousand if they will take it as full payment and delete the account for all three agencies. Might work, might not, but if they cant sue you, and they probably bought the debt for cents on the dollar, an offer like that might get you somehwere. Just dont promise anything you are not willing to do, and do not do.anything without it all in writing. Maybe others can offer up an opinion. I have not had to do that myself, so it is just the first idea that popped into my decidely run down brain.

[rootpooty]

The same thing happened to me. I had recent collections and they denied me. I went to the sticky on here and called every Backdoor number. I was denied the first time for a recon but not the second. Call the credit analyst number they may be able to help. Have you looked into another secured card program?

[Anonymous]

Thank you Chris123nTx & rootpooty.

 rootpooty: I am going to call tomorrow for a recon again. I am hoping because it is Friday, they may be in a better mood and I will have better luck. I honestly don't mind calling every day for an eternity to get approved for a secured CC. What was strange to me is that they still wouldn't approve me eventhough every dollar of the credit line is secured by my own money.

 Chris123nTx The reason I have not called or written a CA is that I would like to settle under the condition that they delete all the negative marks off my credit, but I have a feeling a simple $1k will not accomplish that and I am not in a capacity to spend $4k to do that.

[rootpooty]

Yeah try some more times and see what happens. Can you get in with nfcu?

[Anonymous]

rootpooty I will do just that. No I cant go with NFCU.

[Revelate]

BOA isn't one of the easiest secured products to get unfortunately, but a 4K open collection is bound to make many lenders skittish.

You stated your score is in the 500's: don't worry about the inquiries at the moment, you have a long path ahead of you in your credit (re)building journey, which is going ot take longer than a year to get back in order unless that collection is your only derogatory and you manage to get it removed.  

If you just want the trade line, and I do recommend you get a second card as well, Orchard is fine too and in all ways easier than BOA to get approval for.  The amount on the limits is truly inconsequential now, positive tradelines and time passing are your two best friends in this case.

[Anonymous]

Thank you Revelate. I elected the BOA Secured for the reason that after 12 months it can possibly convert into an unsecured card. I assumed that no secured card was "hard" to get approved for as the lender has little to no skin in the game, but as my experience showed me, I was wrong. If by the end of next week, I have no success with recon, I will got for Orchard Bank. 

How long does the application process take? From app to card in hand?

The only reason I am concerned about the hits is that 3 or 4 months down the line, I would like to get a car financed (with a downpayment ofcourse) and in the short term, attempting to improve my credit so I can get the lower rate. The long term 

[rootpooty]

One thing you need to know is that secured cards take forever to process/receive. I wouldn't bother with orchard secured card. Its another card that doesn't graduate then you will be stuck with it and cap one. Read up on USA a secured MasterCard or amex. Wells Fargo and us bank also offer secured cards. Also look into local credit unions in your area. Most credit unions can do a secured CC and will grow with you once you show good history

[Revelate]

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@Anonymous wrote:

Thank you Revelate. I elected the BOA Secured for the reason that after 12 months it can possibly convert into an unsecured card. I assumed that no secured card was "hard" to get approved for as the lender has little to no skin in the game, but as my experience showed me, I was wrong. If by the end of next week, I have no success with recon, I will got for Orchard Bank. 

How long does the application process take? From app to card in hand?

The only reason I am concerned about the hits is that 3 or 4 months down the line, I would like to get a car financed (with a downpayment ofcourse) and in the short term, attempting to improve my credit so I can get the lower rate. The long term 

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This is something of a swag, but 3-4 months down the road I'd get another card as soon as possible.  I qualified for an Orchard unsecured with the starting scores in my signature (it's a single application and they grant whatever the highest tier card you're approved for), recieved it in a week, and it was reporting a week after that.  Their secured one undoubtedly takes longer as your deposit has to clear.  

The rationale for doing it now: your score will probably rebound from the new tradeline in 3 months (for the most part), and you're going to be like me anyway: you're going to have to take a suboptimal loan on a car, and then be prepared to refinance it in 6-12 months after that.  As a result, you'll have that new card already seasoned when it comes time to refinance the auto loan.  

Re: unsecuring, while I think it's a benefit, it's by no means mandatory for credit building.  Most secured cards now are at 3 years for their expiration date, and that's more than enough time to get your scores significantly improved.  Unsecuring was a bigger benefit when most capped at 2 years.