Just paid off in full $8k for a Capital 1 CC chargeoff after almost 6 years of being behind for various reasons. All identify theft items have just fallen off credit report. I have another loan that was in collections showing charge offs that was settled 18 months ago for less than full. All other credit cards and loans show closed though in good standing with no negatives showing. When I started to go bad with Cap1, all my other CCs closed down the accounts leaving me with no CCs. I never bothered to try to get another and just lived off using my Debit card. All negative items went bad long enough ago that they will fall off at the end of 2018. However, when Cap1 posts the payoff next month, I will have no active credit items anymore. Never had a BK.
I've been working at the same place now for 2.5 years making decent money. I want to raise my scores as I'm considering getting a car loan in a few months as my 10 year old car is starting to need money put into it that I'll never get back selling it. Could hold onto it another year, though prefer not to. But at the same time, I don't want a car loan with credit card type interest rates.
So for the sake of rebuilding my credit scores as fast as possible, what credit card(s) should I be applying for? Do I need to go with a secured card or do I have a chance to be approved for something better. Should I start applying now or wait til Cap1 posts next month. I do have a credit union membership at Kinecta FCU and they do offer a secured card. But I'm wondering, do I really need to start that low? Or am I just going to have to burn some credit pulls and see if I can qaulify for better?
Fico Scores are: Equifax: 585, TU: 549, Experian: 580.
I want to second the suggestion for the secured Discover card. You actually get rewards - is there another secured rewards card?? - and they are faithful about turning it into a non-secured card after a handful of months, with the same credit limit it had as a secured card. Finally, there's no annual fee, unlike CreditOne and their ilk. My husband got offered a CapOne unsecured card a few months after getting that card, and his scores and record (we had some rough times...) were worse than yours.
Thanks for the replies. Just applied and got a $500 secured MasterCard from my credit union. Will apply for Discover once Cap 1 posts the payoff. Will increase the initial limits after the first statement posts. I don't want a credit1 card so I guess I'll wait at that point til the beginning of the year and see where my scores end up before deciding my next move. Maybe Cap1 will forgive me by then since I did pay in full.