@CreditScoreFail wrote:I have, but one of my uglies is owed to a bank and I am in Chexsystems so I don't know what my chances are. Currently I am with a second chance bank and they're really good to me but I would like to grow out of them eventually.
Is it a lot that you owe to the bank? Usually they will put you in the Chex system if it is something to do with a deposit account (checking/savings) not a loan/credit type of account. Maybe it is something that you can work with the bank to either settle and/or to get paid off.
If you look at Wells Fargo's site, take a look at their requirements for the secured card. I can tell you that right now they are not graduating any secured cards. That could change in the near future once the remaining part of the credit card laws are released. If you are trying to get in good with a financial institution, you can apply to get a checking/savings account with wells fargo along with their secured credit card. That way everything will be with one institution.
but I would agree, if there are any credit unions in your area, then they usually provide a much better interest rate on deposit and can offer better credit terms. As far as I have read, capital one reports to all 3 credit bureaus and they do not report it as a secured card. You may want to see if you might qualify for one of their unsecured cards through the credit steps program and then go for the secured one. Let us know how things go and we will offer any advice that we can.
Current Score: Eq: 823 Tu: 830
@CreditScoreFail wrote:At the moment I have a few things on my report, however, I am paying on whatever hasn't reached collections and or my credit report so that it won't go on my record. In the meantime, I want to work on building credit for my already ugly credit ... seriously it's ugly, whatever little is there is bad.
So using the myFico credit card matcher I was matched to three different cards:
- Orchard Bank® Secured MasterCard
- Capital One® Secured Mastercard®
- Platinum Zero™ Secured Visa® Credit Card
I'm drawn to the Capital One card simply because I've heard great things about the company itself, but I do want to chose the very best one for building good credit. I also found one on Wells Fargo - if anyone can give an opinion on them?
Next, I have a few more questions regarding secured credit cards. . .
- Once I open a secured credit card with the minimum deposit, what happens next? I know that is my available balance but is it best to not spend all of it or should I spend it all than pay it off the following month?,
- I read on Bankrate.com that a credit card granter that flags the report as being a secured credit card will not have as great of an effect on your report, apparently deterring other creditors from issuing credit - is that true, and can I request that they not do this? And;
- Any other advice on making the most of my secured CC? I simply cannot afford and slip ups and want to do this the best way.
Forgive my ignorance on these subjects but given my current credit stance I need all the advice, even the most basic, explained to me.
Sorry, reposting to try and answer some more of your questions. As far as #1: after yo make the deposit, then you receive a credit card up to that limit. My recommendation is to not spend up to your credit limit. Maybe put a small monthly bill as a reoccuring payment on your card and then pay it off at the end of each month. If you are going to carry a balance it should be between 1% and 7% of your available credit. Just be aware that if you carry a balance between cycles then you will likely end up paying interest on it. One of the reasons that I pay my card in full each month is to make sure that I am not overspending. This way I don't find myself in the trouble that I was in previously.
For #2: A revolving credit account (such as a credit card) will have the same impact on your score whether it is a secured credit card or an unsecured credit card. The only difference is that if it is reported as a secured card, when an underwriter and/or loan office actually looks at your account, they will see that its a secured card. This can push their decision in a negative factor because they tend to think, "if that particular lender doesn't want to lend you unsecured funds, then why should I?" but of course that is only when your credit is being manually reviewed. If the review is automated based on your FICO score, then there will not be a difference there.
#3: The best way not to have any slipups with your card is to pay it in full each month. I would also recommend making more than 1 payment on the card each month. This way, there is no chance of you missing a payment due date. Track when your bill is due. It will be the same day each month. Plan your paychecks ahead of time. NEVER pay just the minimum due. ALWAYS pay more than the minimum. Use your card for monthly bills and pay it off. A lot of people do that since the monthly bill is something they need to pay anyways.
As you work on building your credit, you should also work on cleaning it up. I know it is a long process but the sooner you get it done then the faster you will see yourself on that road to good credit. Please let us know if you have any other questions.
@Anonymous wrote:
No card builds credit any more than another. Building credit is about gettting an account , using it, and paying your bills on time. You should pick a card based on the terms and conditions, and feautures.
The most important thing is NEVER go over limit, or be late. Everything else is of minor inportance at this point. For me (On my 3 secure cards), I pay the minimum payment right after statement closes, I pay in full by the due date. Very little risk of being late that way.
+1 ---- excellent advice here... would have never thought to do it that way.. I like it and will have to start using it.