Stocks, Save, or Secured Loans/Cards?

[datcombodoe]

Kind of in-depth question; I have 22k saved in a 3.8% Amex HYSA. (I owe 4k) so really 17k. I am kind of an all or nothing kind of guy. My question is should I

A. go all in on a stock portfolio with my broker

B. Keep going all in on my HYSA

or C. Go all in on Secured Credit products ex. 3k discover it secured, 3 nfcu 20k pledge loans, then 5k nrewards. 

I am also trying to rebuild credit without breaking 5/24. Hence I'm trying to get a lot of positive accounts but on the fence about revolving ones.

Should I try to just get one high limit card ie. NIHFCU secured? 

Should I try to dispute my Equifax report and then go for unsecured cards that pull it so I can invest what I have? 

Should I just wait the 5 more years for my baddies to fall off?

Should I say screw 5/24 and just be trying to get a ton of revolving accounts to average down the baddies and to also have higher AAoA down the line instead of a card or two with high limits? 

For datapoints I have 4 chargeoffs from 9+ mo. Ago. (60% payment history)

EX F8 630, EQ F8 595, TU F8 608

[ptatohed]

---

@datcombodoe wrote:

Kind of in-depth question; I have 22k saved in a 3.8% Amex HYSA. (I owe 4k) so really 17k. I am kind of an all or nothing kind of guy. My question is should I

A. go all in on a stock portfolio with my broker

B. Keep going all in on my HYSA

or C. Go all in on Secured Credit products ex. 3k discover it secured, 3 nfcu 20k pledge loans, then 5k nrewards. 

I am also trying to rebuild credit without breaking 5/24. Hence I'm trying to get a lot of positive accounts but on the fence about revolving ones.

Should I try to just get one high limit card ie. NIHFCU secured? 

Should I try to dispute my Equifax report and then go for unsecured cards that pull it so I can invest what I have? 

Should I just wait the 5 more years for my baddies to fall off?

Should I say screw 5/24 and just be trying to get a ton of revolving accounts to average down the baddies and to also have higher AAoA down the line instead of a card or two with high limits? 

For datapoints I have 4 chargeoffs from 9+ mo. Ago. (60% payment history)

EX F8 630, EQ F8 595, TU F8 608

---

That's a lot.  For starters, if you are paying more than 3.8% APR on the $4k you owe, pay it off immediately.  Also, you can do better than 3.8% so, if you do want to keep some/all of your $17k in a HYSA, shop around.  Investing is up to you!  What is your risk tolerance level and what are your goals?  Do you have any cards right now?  If not, go ahead and get yourself a secured card but don't tie up more than $1,000 or so.  

[datcombodoe]

So the 4k I owe isn't credit it's just in my account and I may have to send it. 

Where can I get a better APY than Amex HYSA? A lot of these other ones I've never heard of so they are fishy. 

Investing wise I have pretty low risk tolerance, I hold on to whatever shares for a while and make sure there's a reason to invest in them with my broker. 

As for secured cards, why only lock up 1k? The discover card is known for upgrading after 6 months. As for the nRewards card l could get a 5k unsecured card if I'm patient. 

The reason I'm hung up about the secured cards is because I probably can't get anything unsecured so if I went for high limits I could probably go from fair to good credit.

[FicoMike0]

I don't see the point in the high limit secured cards. I can see maybe $1000 to make it easy to manage utilization. I don't see the point in more than one pledge loan, or taking out one for more than the min for the desired term. I did a 7 year ssl with Penfed for $2100, got 30-40 fico8 points.

I believe you best plan for score growth is three bank card accounts, secured is fine, do azeo and keep reported individual utilization under 29% and aggragate under 9%. Also, pif before due date. I don't think more than three accounts will help. If you go with secured cards, I'd look for cards I might want to keep after they graduate, rather than subprime fee harvesters.

As far as the chargoffs, are they reporting balances? If so, that counts against utilization, hurting scores.

[datcombodoe]

In my eyes the point of the high limit secured cards is just to start on the right foot. If I'm going to go for a graduated unsecured card I might as well go big. 

I do get that I should go for 3 cards. Enough to help with score and keep 5/24, without too much new credit or lowering AAoA. 

I kind of understand that getting more than one SSL is pointless, however since NFCU is relationship based it may help with CC approval + with payment history for someone rebuilding. On the other hand I know that having one installment account is most important and that it could be better for AAoA + new credit. 

As for the charge offs I'm debt free. I'm only able to qualify for the Discover it Secured because of that.

[ptatohed]

---

@datcombodoe wrote:

So the 4k I owe isn't credit it's just in my account and I may have to send it. 

Where can I get a better APY than Amex HYSA? A lot of these other ones I've never heard of so they are fishy. 

Investing wise I have pretty low risk tolerance, I hold on to whatever shares for a while and make sure there's a reason to invest in them with my broker. 

As for secured cards, why only lock up 1k? The discover card is known for upgrading after 6 months. As for the nRewards card l could get a 5k unsecured card if I'm patient. 

The reason I'm hung up about the secured cards is because I probably can't get anything unsecured so if I went for high limits I could probably go from fair to good credit.

---

I posted this to Matt a few days ago.  These are some I use but feel free to research your own.

https://ficoforums.myfico.com/t5/Personal-Finance/How-would-you-pay-off-75-000-in-revolving-debt/m-p...

If you have a low risk tolerance, stick with HYSAs for now.  They are still 4%+ so keep riding that wave until they drop to below 3 or even 2%.

As for a secured card, no need to have a high limit and tie up big money.  Just deposit enough money to meet your spending needs.  Pay in full.  Your credit scores will take some time to rebound.  

[datcombodoe]

Alright thanks. I definitely do have a hard time not keeping my eggs in one basket. I want the high limits with no AF since I won't use them and just socket drawer them until they graduate, but I'm on the fence about the lower limits since I want to make it count. To answer your question from before I have no primary credit cards. Also about having a high enough limit for spending needs, I don't spend at all. I'm literally saving 99% of what I make. That's why I wanted to get high limits, just to rebuild never to really use much.

it seems like a big point your making is just to wait out the baddies instead of going all out rebuilding, and hold onto the money for interest. I could definitely budget some for credit, and the main chunk for saving which I'm hesistant about.

Another approach would be to get the massive SSL, and then 3 lower limit secured cards and save the rest. I can always increase these, at the risk of more hard pulls

[ptatohed]

With scores in the 5 and 600s, I would not focus or concern yourself with high credit card limits.  That will come later, with time and good credit practices.  Obtaining a $1000 secured card and using it responsibly now will help you later.  

[datcombodoe]

Alright I'll apply for a Discover it secured card for $1000. Should I go for 3 cards? 

[datcombodoe]

Update: good news I got approved for the discover it secured with 1000$ limit. Should I go for a NFCU card & maybe citi secured?