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@OmarGB9 wrote:
@Horseshoez wrote:
@Brian_Earl_Spilner wrote:
@Horseshoez wrote:
@Brian_Earl_Spilner wrote:Discover is pretty much the best as it's basically a secured version of the regular card. In addition, you can add more money at a later time if you need the spending power, which can't be said of many secured cards. Drawback is they have to approve you for a larger secured limit.
Also, your situation doesn't sound pathetic. Medical debt is the leading cause of bankruptcy and many people, such as myself, have had to rebuild after a lengthy or expensive medical issue.
I don't know if I'd go so far as to say the Discover secured card is "pretty much the best", it has a lower max limit than many other cards, and takes at least 8 months before being elligible for graduate graduation. Is it one of the best? Definitely.
It literally graduates into the same card unsecured which can be grown to a respectable limit. Not many other secured cards do that. There's no need to close once you've moved past rebuilding or having to deal with trying to product change out of something you got graduated into. That's on top of earning the same rewards as the unsecured version. Again, not many other cards do that. While some people may need more than a $2800 limit, most people will only put in $2-500 so that's not a very strong argument against it. It's pretty much the best card that anyone can get and you don't have to open a bank or credit union account to get one.
Hmmm, yes, for some folks the secured Discover card may well be a very good option, but for others, a poor second place to a higher limit secured card. Not only did mind graduate after only 6 months, still with the $5,000 limit, but it graduated to a Signature class Visa, that plus it offers rather better rewards than the Discover card. In my case at least, I'm way ahead by choosing the TDCash card over the Discover card.
Yes, but not everyone has $5k to put towards a secured card. Nor does everyone *need* a $5k limit. For some, the $2.5k max is more than enough.
Understood, the point I've been trying to make is there is no such a thing as "The Best" when it comes to secured credit cards (or much else in life for that matter); what is best for one person may absolutely be the worst for another. Specific to this topic, someone may only need/want a few hundred dollars of credit, and the CapOne card serves that purpose perfectly, then the CapOne card may well be considered the best for them. Last year there was only one secured card I found with a limit higher than $5,000; it was the Wells Fargo card with a $10,000 limit, and for someone needing that kind of a spending limit, the Wells Fargo card was hands down the best.
Regarding the Discover secured card; is it the best? No. Is it the best option for some folks? Probably. Why "probably"? Because many would argue the NFCU nRewards card is better; and then the circular argument starts all over.
With all of the above stated, I'm going back to my original premise, there is no such a thing as "the best" when it comes to secured credit cards.
Chapter 13:
I categorically refuse to do AZEO!
I wish you were all sitting at my house in the morning so I could pick your brains.
Thank you again for all your responses they are so appreciated.
I got 3 secured cards at the beginning of my rebuilding journey (my credit problems were also caused by health issues), which were the Citi Diamond secured card, the Capital One secured card, and the Discover secured card. I got all three of these cards because, at the time, aside from my one auto loan, I had a very thin credit file, so I knew that just one card wouldn't help me a great deal. All three of these cards helped my scores drastically. I had about a 100-point jump within the first 5-6 months of having these cards. They also opened up the doors to receiving offers for several unsecured cards and getting approved for store charge cards (I just recently got the Kohl's and Target charge cards). I now have 12 credit cards and my scores are in the mid-700s, the highest they've been in ages. When I started my credit journey about a year and a half ago, my scores were in the mid-500s, so I've come a really long way thanks to secured cards and settling old collection accounts for deletion. I highly recommend any of those three secured cards for rebuilding/establishing credit.
I went with Capital One secured. Even though I had a delinquency with them after a house damaging act of god thing a few years before and my noramlly good credit had tanked they took the least deposit level they charged folks to get it. They just returned the deposit and unsecured it recently without me asking after having it for two years.
Almost forgot to add that Cap1 offered me their Quicksilver card about a year after I got their secured card with no annual fee. They keep two offers going with that card I see. One with the fee and one not. The limits aren't that high and the interest rate is twice what I get from NavyFed, but they were their when my numbers were very low and I was rebuilding again.
I might have to check that TD bank card
A lot of good info in this thread! For some of the cards that were mentoned (Discover, NFCU and Cap 1), are those doors closed for people who burned them in BK? I've read that Cap 1 can be forgiving (a few of their accounts will be in my BK), I don't think NFCU likes to be burned and Discover might take awhile. Wondering if anyone has been there/done that with these.
Oh, and there is a TD bank 10 minutes from me. It looks like I'll be paying them a visit after this is over. Putting up $5K to have it graduate to unsecured in less than a year then get the money back sounds like a good thing.
Thank you!
@masscredit wrote:A lot of good info in this thread! For some of the cards that were mentoned (Discover, NFCU and Cap 1), are those doors closed for people who burned them in BK? I've read that Cap 1 can be forgiving (a few of their accounts will be in my BK), I don't think NFCU likes to be burned and Discover might take awhile. Wondering if anyone has been there/done that with these.
Oh, and there is a TD bank 10 minutes from me. It looks like I'll be paying them a visit after this is over. Putting up $5K to have it graduate to unsecured in less than a year then get the money back sounds like a good thing.
Thank you!
In general,
Cap1 will approve after approximately 12 months from when your account went delinquent
Discover will eventually approve you but may take a few years before they get over being burned, very YMMV situation
Navy - hell will freeze over before navy will approve you if you burned them.
@dragontears wrote:
In general,Cap1 will approve after approximately 12 months from when your account went delinquent
Discover will eventually approve you but may take a few years before they get over being burned, very YMMV situation
Navy - hell will freeze over before navy will approve you if you burned them.
This month makes 1 year since I stopped paying all of my cards so I might have a chance with them. I'm filing next month so the BK should be wrapped up in June.
As many have suggested, "Best" will vary greatly. For lots of different reasons.
I would suggest the following as potential "credit cards of interest" - for general consumption:
1. OpenSky - but has two strikes in the $35 Annual Fee and in the 'no graduation' stance (read: will forever be a secured card).
2. DiscoverIT - lots of good things here in that it typically graduates in eight months, has cashback, and doubles the cash back at the end of your first year.
3. Capital One - they are very forgiving (if your issues involved them - does not appear to be the case) and they can be very generous.
4. TDBank - I do not know about this card from experience but many many many people suggest it
5. NFCU - drawback is that 'barrier to entry' can be real. You have to have served or be a family member to someone who did. Or, have a 'room mate' who did. If the barrier to entry is not a thing for you, then there are lots of benefits to this eco system.
Those are the typical five that I suggest. Are there others? Heck yeah. May some of those 'others' suit you better? Maybe.