Which Is First: Secured Card or Clean Report

[GameMaster1564]

I was wondering what would be the better rebuilding option. Is it better to get a secured card first, while I pay off collections/other debts, or to simply pay off all debt first, then go secured.

I have an extra $200 ready and I would like to begin by getting a secured card to speed up the recovery, but I do not want to waste another inquiry and possibly get declined. All my debts remain unpaid at the moment. If I were to apply for a secured card, would the unpaid collections hurt my chances?

Would simply cleaning up my report first, have a bigger impact?

[Anonymous]

I started with the US Bank secured card while paying off and removing all my negative history. You can do both at the same time. 

[Anonymous]

OpenSky is a good option. They don't run a credit check so you wouldn't have to worry about the inquiry

[crrredit]

Get the secured card. You can build positive credit history as you pay off and eliminate your baddies. The sooner you get started the better. Get three cards when you can. 

[Imperfectfuture]

Got secured credit union card,, eventually graduated. Went with the premise that damage already done, so build while clean up. Then later, can get cap one rebuilder, and even later a regular cap one card.

[Anonymous]

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@GameMaster1564 wrote:

I was wondering what would be the better rebuilding option. Is it better to get a secured card first, while I pay off collections/other debts, or to simply pay off all debt first, then go secured.

I have an extra $200 ready and I would like to begin by getting a secured card to speed up the recovery, but I do not want to waste another inquiry and possibly get declined. All my debts remain unpaid at the moment. If I were to apply for a secured card, would the unpaid collections hurt my chances?

Would simply cleaning up my report first, have a bigger impact?

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Hi GameMaster1564,

I see that several folks gave some recommendations.  Which route did you end up going with?  Or, is there anything else that you need to assist with making a decsion?

[Anonymous]

Go ahead and get the secured card.   You can start rebuilding positive credit history while working on the baddies and getting a clean report.   Might as well do both at the same time!

[GameMaster1564]

Thanks for the replies

I decied to go with the OpenSky card because of no credit checks. With OpenSky can you increase the credit limit via additional deposits? 

[Anonymous]

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@GameMaster1564 wrote:

Thanks for the replies

I decied to go with the OpenSky card because of no credit checks. With OpenSky can you increase the credit limit via additional deposits? 

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Increasing you credit limit on a secure card does not help your scores anyway, its much better to open a second secured card with another lender.