I got a secured credit card a year ago...and it was just closed due to non-payment

[Anonymous]

Over the past year I've had my bank closed due to being overdrafted for so long, had my car repossesed due to falling behind on payments, and now my first and only secured card with Open Sky just closed due to non-payment. 

I'm declaring this as the moment that I wake my butt up and stop making stupid decisions. I'm now in a position where I can't have a bank account (I don't think), I won't be able to buy a car unless it's cash, and a tool that I was using to build my credit in the first place is now closed. Despite that, I want to be able to do all that PLUS buy a house one day for my wife and I and be in a much better financial position. 

So I'm here like most of you guys are: I need help. I know based on the activity over the past year the first step I need to take is a mindset shift. I need something actionable I can do to get my credit out of the upper 400's and get on track once and for all.

What should I do from this step? I owe $130 left on my secured card that was just closed. Is it possible to pay off my Open Sky card and open up another secured card and take care of it this time? 

[Sandman771]

Is the $130 over and above the amount you deposited in the first place. 

First make a budget and stick to it. Use your credit as a tool to get you where you want to go but not spending tool 

[Anonymous]

Agreed, use it as a tool and nothing more. I'm sure gemini will jump on here and give some solid detailed advice soon. Dv

[Anonymous]

Yes the $130 is after they took out the deposit that I put down when I opened the account

[Anonymous]

Thanks for the advice, definitely agree. I've had the wrong mindset with debt for the last 10 years since I've been old enough to have debt. 

[Anonymous]

Is this on your credit report? Have you checked your credit reports? Annualcreditreport.com for all 3. If it isn't on your reports I'd talk with them and get it paid as soon as possible and see if they won't report it. If it's on your reports try for pfd's, or just pay it and go for a good will removal.
What other

[Anonymous]

Sorry hit send too soon, new phone.
What other derogs do you have list them here and we can get you some advice.
Yes you can get some secured cards try the capital one pre-qualify pafe and see if something comes up. Dv

[Anonymous]

I'd say the first step would be to get yourself a new bank account. You should be able to find a bank that will give you a checking one.

The main hurdle would likely be a negative ChexSystems entry . . . you can pull your report to see if you have any. If you do, search for banks that don't pull ChexSystems reports and try them. There's also banks that offer second chance checking accounts. You should be able to find lots of info if you do a search.

You can always finance a car but with poor credit, it's a terrible TERRIBLE trap. Drive cash cars and keep some $$ in a fund for repairs and for the next car.

YES on getting another secured card. Also if you don't have a car, mortgage or student loans, look up shared secured loan on here and get one of those going.

Try to negotiate a pay for delete on the $130 you owe on the credit card. If you can get that negative entry off of your reports it'll help a ton.

[Sandman771]

Yes definitely get this paid ASAP. 

Next you will have to find another bank. Which bank was it? Is there another one in your town that you could go to? Are you eligible for any credit unions. If so they are really helpful in rebuilding and most all of them have a secured credit card available as well as Wells Fargo, BOA, and the big boys. Some don't advertise them, you have to ask for them. 

I agree pull your credit report to see what is on there. If your scores support it which they may not check the Cap one pre-qual page. There is hope, but you have to plan your life and live your plan. 

[Anonymous]

+1 about the credit unions in your area, good place to start for banking and a possible secured card and loan. Dv