? for my sister....

[fishbjc]

She was offered a secure cc, needing a $200 deposit.  Will agreeing to this, paying on time, in full help her score?

And please explain  a 'soft pull' vs 'hard pull' as she is applying for a new apartment & they do a 'soft'.  TNX!!!!

[haulingthescoreup]

A hard inq goes on your credit report. It is counted on your score for one year, and displays but isn't counted for another.

A soft inq does not affect your score, and isn't seen by others. Softs include when you look at your own reports, when an existing creditor checks in to see what's going on, when other companies are sniffing around to see if the want to "invite you to apply" (these get limited reports.) She's lucky that it will only be a soft.

Who is offering the secured card? They can be great if they come from someone like a credit union or Bank of America (BOA or BofA), who will let you grow with them once you're on your feet.

[My_dog_FICO]

If your sister does get a secured for $200 - remind her that it is for credit repair only, not a right to go shopping for Christmas. If she carries less than a $20 balance from month to month until they increase her credit line, she will have the most positive affect on her credit report.

Look at the main page of MyFICO. Utilization of debt is a very large portion of the scoring. Keeping it under 10% is the best way to improve her credit (and keep her out of debt).

[Anonymous]

Secured cards can be a fantastic start or rebuilding process.   She can determine her own credit limit and yes it will help out her score and her credit picture.    Everything will work the same as a reg. card.   The more she puts into it, the higher the credit limit which is always good and keep the utilation down and on time payments will go a long way for her.

Be diligent when looking for a secured, look for the fee's - annual fee's processing fee's and if there are monthly maintenence fee's etc.   That's why many here like to recommend the Bank of America one because of only one low annual fee of $29.

So shop around there are alot of BS cards out there.

Message Edited by Boswd on 12-10-2007 06:44 AM