Secured Credit Card vs Unsecured Credit Cards

[vear23]

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@Anonymous wrote:

For fun, if you have not had the opportunity to read this thread, it is full of exceptional information.

Now, I am not advocating you go out and do any or all of this. Rather, it lays out One Person's Plan, and why. The comments from other people posting to it add further dimensions which broaden one's understanding of various choices available, and why they may benefit someone.

Just Food for Thought.

by SoulMaster

    to 700 in 24 months or less

http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/m-p...

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vear23 wrote:

I'm in the process of building my credit. 

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@SoulMaster wrote:

Larry,

I am diametrically opposed to Secured Cards, except in a case of last resort, and only then if they are 100% known to be cards that graduate.

Before I started working in the legal field I was a software architect.  There's a simple software engineering rule here:  Don't store any data you don't have to.  It's not rule #1, but it is a rule.  So, while people may think that secured cards are good, the fact is that they report on all CRs as "Secured", which means they must do something... especially when you're at a manual underwriting level.

IMO, Secured cards are an instant re-bucket item, denoting that you have crappy credit.  You'll see thousands of stories on this board about people stuck w/ low limits and in quite a few of them, you'll see secured cards still reporting.  Thus, they are best avoided at all costs.

As for department store cards, these may be even worse.  I've spoken with several underwriters who specifically regard people with store-cards as "suckers".  I've argued with them that this is usually done to take advantage of a discount or 0% apr offer and in every case their rebuttal was "if they need a 0% apr, which means they're making payments, they usually don't have the cash to cover the purchase". <-- this strategy flags as "doesn't use credit wisely", unless the same credit report is flush with positive trade-lines that off-set.  When rebuilding, people don't have those positive TLs. (please note: the underwriters I know make exceptions for gas-cards, which aren't used for large purchases and normally offer a discount.  Also, in EVERY case, they can see your charging/payment history on all cards, which can also be used to offset).

The guide I laid out at the top of this thread is based on hundreds of examples of successful rebuilds, and now hundreds of people have used it, verbatim, to start/continue/complete their own rebuilds.  They get to 700(+/-) in about 2 years.  If there's a better plan than that I haven't seen it.

-SM

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I do not have a BK, but thank you!!!!!  The link was quite informative and it would seem app'ing for a secured card DOES matter.  It seems my gut instincts are once again correct.  Again, Thanks.  I think the information can be quite useful even if you don't' have BK's. **EDIT** Included a quote above I came across.

[vear23]

MANY MANY MANY THANKS for the link you provided me Sebastian.  I followed some of the suggestions and tweaked some it  with a suggestion from a post I either found with in that thread or some other thread.  ~jumps for joy~.

My scores have jumped and it didn't even take a year to do so.  This is my progression as I keep track (not as neat as I would like. 

11/7/2016 Will request Merrick CLI

11/6/2016 LOFT CLI undetermined

11/6/2016 Pre-approved for DISCOVER IT (unsecured), FNBO ($0 AF), CITI Costco Card

11/6/2016 Synchrony/Amazon Store $2,521 (CLI)

11/6/2016 Synchrony/Google Store $2,800 (CLI)

11/06/16 TU8: 692 (savvymoney.com free vantage score)

10/2016 Applied for Synchrony/Google Store $1,400

10/19/16 TU8 BANK CARD: 755 (Merrick Go Score)
10/13/16 EX8: 656 (Discover Scorecard)
10/10/16 TU8: 757 (Synchrony/Amazon)
10/01/16 EX: 619 (Credit One score)

9/20/16 TU8: 624 (Synchrony/Amazon)
9/10/16 TU: 624 (applied for Commenity/LOFT card $500)
9/15/16 TU8 Bank Card: 628 (Merrick go score)
9/1/16 EX: 614 (Credit One score)

8/24/2016 EQ: 591  EX: 554  TU: 635 (myFICO score; applied to Amazon $800)

8/2016 EX: 608 (Credit One score)

8/13/16 TU8 Bank Card: 635 (Applied for Merrick $700)

7/2016 EX: 602 (Credit One score)

6/2016 EX: 586 (CreditOne score)

4/2016 EX:585 (Credit One score)

2/2016: EX: 554 EQ: 591 TU: 606 (myFICO scores)

1/27/16 Applied to CreditOne ($300)
1/2016: EX: 549 EQ: 591 TU: 606

[Anonymous]

@vear23

Sweeeeeet!!!

[Anonymous]

Hey  vear23,

Congratz on YOUR achievement!

Keep doing what you are doing, it only gets Better ! ! !

Best Wishes!

.

[vear23]

Can anyone tell me what to expect if I cancel the CO acct after a year?

[Anonymous]

When a charge off is removed, it's a big jump UP in fico pts. Like 10-15 I believe😄

[vear23]

The card is in good standing but I don't want to have to pay an AF when a year comes around. I meant what could possibly happen if I close out the card after a year?