Credit Term Question

[Anonymous]

I took the following from a separate thread.  In this context what does CCCS refer to?

Thanks for the replies all. It has been a long, hard road rebuilding my credit from rock bottom (had to use CCCS). My interest in increasing my score is due to the fact that most of my credit cards have low credit limits (less than $3000). I would like to apply for the 'excellent credit' cards but fear being turned down and getting a ding for applying. Per the Capital one definition of excellent credit

[Anonymous]

CCCS is Consumer Credit Counseling Service. They used to hold an OK reputation, but anymore they will make your situation worse.

[Tuscani]

What are your scores?

[Anonymous]

ohhhhh, they're about as low as they get.  I piled up a lot of debt while in college for 6 years and then gave up trying to repay thinking it was the only option to stay sane at the time.  I'd say I'm in the bottom 5th percentile. 

[Tuscani]

Ok, we need your scores and more info before we can recommend card(s) for you.

[Anonymous]

I'm not certain there are cards available.  My scores range from 464-516.  There are several items that I'm am disputing now, some of which will be removed and some that may be removed.  That will still leave 4 Collections and a number of chargeoffs.  It lists 150 late payments and $6300 past due.  There are other accounts that are paid as agreed.  An auto loan now at $13000 and various student loans totalling over $20000.  There is no short road to success.  The last 3 years I have kept all new accounts current and got current with as many past accounts as I could.  The $6300 is a couple credit cards and various utilities and a cellular bill that have all been left unpaid. 

[Anonymous]

A few companies offer savings secured cards.  With the low fico scores it would be hard to find a company willing to gamble on giving you an unsecured line.  I would find a card that offeres a savings secured, put $300 in it and just buy gas on it and PIF every month. 

New Millennium Bank Black Diamond has a secured card, and reports to all 3 bureaus.  It's what I used to get from a 516 to a 597 now.  And my history was about as ugly as yours with a repo from the ex wife on top of it.  All I have open now is about 80k in student loans, my truck, and the card everything else was charge offs and such.  So I know that card can help you...

[Anonymous]

I understand that the secured cards basically function as a debit card, but since reporting they show good standing.  On the other hand, am I then paying fees and interest to use my own money?  If so, is that definitely the way to go?

[Anonymous]

Sort of... The way that they work, is that you put down $300 lets say to secure the card.  You then use the credit card as you would any other.  If after 1 yr you have had a good standing (no overlimits, no missed payments, etc) they will refund you the $300 and it becomes a regular revolving line.  They get the $300 off the bat for the "higher risk" clients in the event that someone defaults the company doesn't take a loss. 

Plus clients are more apt to use the cards wisely since they had to put money down in the first place to use them. 

I got my secured card almost 2 years ago, started with $300, got my $300 back after a year, and my balance since has increaded to $1500 doing nothing but buying gas on the card and PIF every month.  You do pay a $59 annual fee, and interest on the card, but it's the price you pay to build your FICO unfortunately...

[Anonymous]

And how is there an APR of 19%?  They charge interest based on how much money I have deposited in their saving's account???