need help repairing credit!

Discussion in 'Credit Talk' started by sergetp, Aug 13, 2003.

  1. sergetp

    sergetp New Member

    i defaulted on a credit card (citibank) last summer on a $1600 balance....i knew nothing of CA's, validation letters, etc. when i was offered a payment plan in january to pay off the balance in 4 months, i took it. i paid the last installment in april. i'm now trying to repair my credit, but don't know exactly how to do so. i thought i'd start by getting a dept. store or gas card, start slowly....but i've been turned down for the two i've applied for. what can i do to get back on track? i see offers on this website that 'guarantee' i could receive an unsecured credit card...what does the 'unsecured' mean? are these good ideas?

    any info would be GREATLY appreciated.

  2. bellybean

    bellybean Member

    I'm no expert, and the vets around here can also help, but I would get a secured card witha reputable bank. Secured means that you place money in a savings account with that bank, and, in case youdon't make the monthly payments, the savings account is taken to satisfy the debt. You have to make payments, though. They don't get taken out of the savings account. Also, your credit line is equal to the amount in the savings acct. Sometimes, they may give you a little more, but usually not. After you pay on it on time for a specific time, they may convert it to unsecured, which is a traditional credit card with no savings to secure it. That means they trust you again to make timely payments.
  3. lbrown59

    lbrown59 Well-Known Member

    what does the 'unsecured' mean?
    It means you don't have to supply the bank the funds so that they can lend you your own money and charge you interest on it.
    THE END ** *** ** LB 59
  4. lbrown59

    lbrown59 Well-Known Member

    Like I said in my other post you're paying the bank interest on your own money!
  5. sergetp

    sergetp New Member

    lbrown59--so...what do you recommend i do? what's the best way to build up my credit? thanks in advance for any advice!

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