Secured Cards with Low Deposit

[Anonymous]

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@CreditCrusader wrote:

It is for USDA home loans, but there are some restrictions as to which houses qualify...and the home price can't exceed a certain limit. There are also income limitations. However, middle FICO needs only be 620 or above to secure approval in nearly every case according to my loan officer.

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Good to know! Although I'm not planning on letting my scores drop below 650 if I can avoid it. The loan officer I was talking to (actually the branch manager, but also handles their loans) was opening some business accounts for me and mentioned the mortage thing. But that's with US Bank, and they seem pretty conservative. Then again, he also said that they really frown upon anyone who's recently changed jobs, he said that since I'd just started my own business I should wait two years before considering applying for a loan from them.

Luckily, I plan to move most of my banking to USAA and NFCU anyway.

[bruiseviolet]

Thanks-  I realize that and I tried giving enough info without giving too much info- because as I wrote it- I know my situation- meanwhile other readers do not.  =)  I have been working my butt off to get baddies off my reports since March.  I am pulling my FICO score Friday and will update.  I've had 6+ medical collections come off from my efforts with HIPAA Process last week.  I am very excited to see how much my scores have come up.  USDA is a possibility if I can get my score high enough.  I did check last March with my low score- but because of the collections not being being paid I was denied for that particular USDA loan.  Once my score is up enough I could qualify for the other USDA loan and might be able to pull that one off.  1% interest sounds nice =)  My sister just purchased a home with a USDA loan.  I will have to check, but I know they wanted 3 open lines in good standing.  I do believe though, that I can use my rent and my utility bills that are in my name.  If that's the case, I'm looking to see if opening 1 or 2 and at what credit limit will give my score the BIGGEST boost before February.  So if getting one card with a $400 deposit/credit limit will help the most- I will wait until next month when I have the extra 200 and do it...    How reliable are the score simulators?  Can they be relied upon for close numbers?  For example- creditkarma showed a 20point increase opening a new credit with a small limit- but when i changed it to a higher limit (over 500) it raised my score by over 50 points.

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@haulingthescoreup wrote:

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@bruiseviolet wrote:

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@CreditCrusader wrote:

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@bruiseviolet wrote:

it's nobody's business to tell me to 'wait on getting a house'.

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No one here was trying to upset or offend you, so I'd ask you to try to understand that we're all just trying to help.

Most of the expenses associated with buying a house don't revolve around the payment itself. It's all the upkeep, repairs, general maint...stuff like that...that takes a bite out of your wallet.

If you genuinely want to buy that house, more power to you. Just understand that people here speak from experience and are only trying to help, not judge.

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I realize this, and I am not offended, I was just a little annoyed.  My current rent is around 1400 a MONTH.  I realize having a host has extra expenses- however the mortgage / price of house is about 700 a month- giving me 700 I DO NOT HAVE NOW to pay for repairs etc.....  I also have a 3 moth emergency fund/savings set up- so I really am not worried.  Like I said, this is a better decision for me vs. renting in the area I currently live in with the prices of rentals.  I have to be out of my rental by February (they are selling the house) so- renewing this outragous lease isn't an option.  

[bruiseviolet]

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@CreditCrusader wrote:

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@Anonymous wrote:

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@CreditCrusader wrote:

My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

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Is it that low? I haven't seriously looked into a mortage loan yet (keep moving too much to want to buy a house anyway), but the loan officer at my bank said you should have at least a 680 before applying for a loan. And I remember USAA said something similar, that you should have 720+ to qualify for a decent mortgage rate.

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It is for USDA home loans, but there are some restrictions as to which houses qualify...and the home price can't exceed a certain limit. There are also income limitations. However, middle FICO needs only be 620 or above to secure approval in nearly every case according to my loan officer.

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Yes, I live in a rural area- and my sister just bought a house last week using USDA- so I know all about it.  =)  As long as I can get my FICO score up enough to qualify, I am planning on going this route.  The other lender with crazy downpayment is just my back up- in case it doesn't work out and I have no other options in February.  =)

[CreditCrusader]

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@bruiseviolet wrote:

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@CreditCrusader wrote:

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@Anonymous wrote:

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@CreditCrusader wrote:

My thoughts exactly...generally, a 620 middle FICO score gets you in for a USDA home loan...which is far better than anything of its like at that credit score. OP isn't far from that 620 mark, would be there in no time.

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Is it that low? I haven't seriously looked into a mortage loan yet (keep moving too much to want to buy a house anyway), but the loan officer at my bank said you should have at least a 680 before applying for a loan. And I remember USAA said something similar, that you should have 720+ to qualify for a decent mortgage rate.

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It is for USDA home loans, but there are some restrictions as to which houses qualify...and the home price can't exceed a certain limit. There are also income limitations. However, middle FICO needs only be 620 or above to secure approval in nearly every case according to my loan officer.

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Yes, I live in a rural area- and my sister just bought a house last week using USDA- so I know all about it.  =)  As long as I can get my FICO score up enough to qualify, I am planning on going this route.  The other lender with crazy downpayment is just my back up- in case it doesn't work out and I have no other options in February.  =)

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I know you can do it. I was a complete moron with my credit and ruined it. If I can climb back into the 600s, you can do it and then some!

[Wolf3]

Having 1 open major card will help your score.  The 2nd or 3rd will be of much less benefit.   However, if 3 cards is what you need to get the mortgage, do your best to get it.  But you have limited time. 

You definitely need to start with a secured card.  If you use it and let it report a few months, Then, you might be able to get a store card.   If not, add another secured card, and try again for another store card in another few months.    This gives you more time to get deposits together.   Since your bad items are fairly old, this strategy might have a chance.     Something to consider.

Among the banks, Orchard and Capital One are probably your best choices.    I'd try Capital One second, hoping you would get the $49 depost/ $200 CL deal.  Credit Unions may an option, depending what is available to you.

Like others said, you need to show usage, so let the small charges you plan report and PIF before the due date.   

Remember that 1 late payment destroys your plan.   In my rebuilding, I make the minimum payment or more immediately after the statement closes, then I usually PIF before the due date.   This greatly reduces the risk of a late payment.

Good luck.   

[bruiseviolet]

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@Wolf3 wrote:

Having 1 open major card will help your score.  The 2nd or 3rd will be of much less benefit.   However, if 3 cards is what you need to get the mortgage, do your best to get it.  But you have limited time. 

You definitely need to start with a secured card.  If you use it and let it report a few months, Then, you might be able to get a store card.   If not, add another secured card, and try again for another store card in another few months.    This gives you more time to get deposits together.   Since your bad items are fairly old, this strategy might have a chance.     Something to consider.

Among the banks, Orchard and Capital One are probably your best choices.    I'd try Capital One second, hoping you would get the $49 depost/ $200 CL deal.  Credit Unions may an option, depending what is available to you.

Like others said, you need to show usage, so let the small charges you plan report and PIF before the due date.   

Remember that 1 late payment destroys your plan.   In my rebuilding, I make the minimum payment or more immediately after the statement closes, then I usually PIF before the due date.   This greatly reduces the risk of a late payment.

Good luck.   

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Thank you SO MUCH for the advice.  I will probably adopt a plan that someone mentioned earlier- where I have the payment automatically come out of my bank account.  That won't be a problem and I won't have to worry about forgetting to make the payment or anything.  

[Wolf3]

Also, be aware it can take a few months to get your deposit back when you close a secured card.   In case you were planning to use for mortgage closing or such.  

[Gotons]

I had a US Bank Secured card.  I only put the minimum of 300 down for the deposit.  I was told by multiple CSR's that when the year was up, if I wasn't late with my payments and making progress with my credit, they would then turn around and unsecure the card for the amount it was secured.  They stuck to their word and it was my first unsecured card I had during my credit rebuild.

[bree19844]

hello !    (95.00 DEPOSIT ONLY )
       well my credit wasnt the best, i applied w c ap. one n was denied . i even bank w them, i went with Premier Forward C.C  everyone talks bad of it, however i been having it for 4 months, i pay extra for the loss of job, death ect. protection... i was out of work, they took off my interest as long as i paid a good 50% of my entire balance which was 147.00 ( and i paid it ) i was over my credit limit at that time bec i was out of work for a few weeks. they CALLED ME SET UP PAYMENT ARRANGEMENTS W ANOTHER DEBIT CARD  AND NO NEGATIVE REPORTS WAS NOTED ON MY CREDIT . AS LONG AS YOU CALL OR ANSWER THE PHONE THEY ARE SO WILLING TO HELP AND WORK WITH YOU.  the interest rate is 36% ... MANY PPL COMPLAIN.... HOWEVER THATS SOMETIMES THE PRICE WE MUST PAY FOR THE PLAY WE DID AS A LESS MATURE PERSON IN THE PAST. CHARGE A HAPPY MEAL A MONTH, AND THAT INTEREST WONT EVEN FEEL LIKE MUCH . MY BALANCE NOW IS 140.00 MY NTEREST ON THAT 8.92 . SO ITS NOT THAT BAD. TOTAL INTEREST IN 2013 I PAID IS 15.35 AND I WAS OVER MY CREDIT LIMIT FOR A FEW WEEKS. SO DONT ALWAYS READ OTHERS NEGATIVE COMMENTS. MAYBE THEY DID NOT DO THEIR PART. YOU CAN PAY A 95.00 DEPOSIT AND RECIEVE A 200.00 LIMIT PAY ON TIME AND INCREASE, WHEN U GET EXTRA MONEY THROW IT TOWARDS YOUR CARD BALANCE   AFTER MY MOM PAID OFF 15,000 IN DEBT W CARDS ( MY FATHER WAS A FISHERMAN) GO FIG.   SHE ALWAYS TOOK HER INCOME TAX CHECK AND SENT IT TO HER C.C ... THEREFORE IF SHE HAD A 100.00 LIMIT  ( SHE HAD PERFECT CREDIT THIS IS AN EXAMPLE)   AND SENT IN 500.00   SHE NOW CAN USE HER CAR INTEREST FREE ON 500.00  HOPE THIS HELPS
    ALSO OPEN A CD , YOU CAN ALWAYS GET APPROVED W A CD.... CHECK OUT  U.S.A.A SECURED CREDIT CARD, I WAS LOOKING INTO IT EARLIER AND IT MAY BE SOMETHING THAT WILL WORK OUT FOR YOU, IF NOT .. WHEN I APPLIED FOR MY CARD I ADDED MY BOYFRIEND AS A SECONDARY USER ( your more likely to get approved with an autho user )  NOT ONLY DID THE PREMIER CARD HELP MY CREDIT...ITS HELPING HIS TOO I HAD NO IDEA OF THAT. SO IF SOMEONE YOU KNOW WILL ADD YOU TO THEIR CARD ( AND KEEP THE CARD ) BUT USE AND PAY ON TIME. IT CAN HELP YOU W OUT YOU PUTTING OUT FEES