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Secured card for bad credit?

Swatch
Regular Contributor

Secured card for bad credit?

For a friend, are there any decent secured cards which don't mind current deliquencies? Mostly that he has student loans in default. Also other baddies, but the others are all or mostly 5+ years old.

He wants a card that would probably graduate and doesn't report as secured. Ideally a card that gives CLIs without HPs.

He has a new SSL and is AU on a card for a couple years. Trying to avoid the lowest tier places like Credit One if possible.

I do AZEO.
Message 1 of 7
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MileHigh96
Regular Contributor

Re: Secured card for bad credit?

Try the CapOne site, you can check for pre-approval without a hit to credit scores. Also, many credit unions offer secured cards, either local or national CU's, so that's another good place to check.

I also saw that US Bank has two new secured card offerings as well. Plus Discover offers one too.

Plenty of decent offers other than just the sub-prime predatory cards out there.
BK7 discharged - 06JUL2021

Before discharge:

Since discharge:


FICO8 Scores on 08/19/2021:
Message 2 of 7
spiritcraft1
Valued Contributor

Re: Secured card for bad credit?


@Swatch wrote:

For a friend, are there any decent secured cards which don't mind current deliquencies? Mostly that he has student loans in default. Also other baddies, but the others are all or mostly 5+ years old.

He wants a card that would probably graduate and doesn't report as secured. Ideally a card that gives CLIs without HPs.

He has a new SSL and is AU on a card for a couple years. Trying to avoid the lowest tier places like Credit One if possible.


NFCU is the only one that fits everything aside from reporting as secured.  Well maybe Discover also.  Most now report as secured which does not matter in the slightest in my experience.   Both of those graduate (both are in my sig and have grown since graduation).  Not sure about the US bank cards but they are actual points cards which is nice.  There are many credit unions that offer them but he would have to inquire about graduation etc.  FNBO has one that graduates at 11 months, no rewards though.  Affinity CU has one...  apparently no credit check.


|Biz | AU

Rebuilding from a sudden, swift and complete credit disaster in early 2014 | Starting Scores 2017 = High 300's - Low 400's
8-1-18 -
Current F08 -
Current 2,4,5 -
Current F09 -

No PG Biz Credit in Order of Approval - Uline, Quill, Grainger, SupplyWorks, MSC, Amsterdam, Citi Tractor Supply Rev .8k, Amazon Net 55 $5.5k, NewEgg Net 30 10k, Richelieu 2k, Wurth Supply 2k, Global Ind 2k, Sam's Club Store 11.k, Shell Fleet 19.5k, Citi Exxon 2.5k, Dell Biz Revolving $15k
Message 3 of 7
calyx
Super Contributor

Re: Secured card for bad credit?

Reporting as secured doesn't matter as far as scoring, and I had no problem securing loans and other cards with secured cards reporting as such (I honeslty don't understand why people are so fixated on that).

 

I'd recommend Affinity FCU since they don't credit check.   If they can't get in with them, Opensky also doesn't do a credit check (and doesn't report as secured, or at least didn't on my reports).   Opensky has an annual fee and does not graduate, but is otherwise pretty decent.

 

USBank's plat secured (they have some co-branded secured cards) also have an annual fee (and approved me with a defaulted loans on my reports and a 540ish credit score), but will graduate to a card that can be product changed.   I usually recommend cards that graduate & can be PCed so you can keep that single tradeline useful and relevant as well as aging.   You can add money to the card to increase the limit as well.

 

Citi has a secured that will graduate, but some people have trouble getting it to graduate (it requires a squeaky clean report before they'll think about it).   You can also product change the card it graduates to.


Check Discover as well - it gives same benefit as the non-secured card (including cashback matching) and does graduate.   That was the last one I was going for, but by then my score had improved enough I didn't have to go secured.

 

All of the secured cards I got (Opensky, USBank, Citi) approved me with an ugly, ugly file.   I still have all of the tradelines except for Opensky (since they don't graduate and they charge the AF).

F8 EQ: 804 | EX: 781 | TU: 782 | Accounts: 2/6 3/12 7/24 | Reporting: AZE10
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 4 of 7
OmarGB9
Community Leader
Super Contributor

Re: Secured card for bad credit?

To be honest, your friend has quite the wish list. I don't know of any secured card that fits ALL that criteria. That said, NFCU would probably be the closest as mentioned above (if he qualifies) other than the reporting as secured part, which shouldn't really matter as it makes no difference scoring wise or approval wise for future apps. Cap One offers a secured card, but their graduation is hit or miss.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 5 of 7
GrandBay
Frequent Contributor

Re: Secured card for bad credit?

your friend, @Swatch , is mighty picky for someone in his/her/their position

tell your friend to consider CUs (credit unions)

or whomever they bank with

if they bank with BofA then go there

or USBank etc

my experience says NFCU is very forgiving to baddies

Message 6 of 7
Remedios
Moderator

Re: Secured card for bad credit?

Multiple posts were removed primarily because personal grievances against single lender were aired (again), engaging in personal attacks, inciting arguments, all while completely ignoring OPs question.   

 

For additional clarification, see MyFico Forums Terms of Service  and myFico User Guidelines 

 

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