One more Post and i'll stop for a while. i just find this really helpful and want to make sure im doing things correctly. when opening new lines of credit like a secured card to help rebuild credit. is it better to do 2 secured cards? one for say $1000 and the other for like $500 or is it better to do 1 card for $1500. Also my credit union allows me to take out a small loan to help rebuild my credit as they report the loan to the CB's and i've heard that this is also a good way to show responsible payments on something different from a secured card. is this also a good option? Thanks.
I forgot to say that i would only use 10% on each card. Just to keep the ratio in order. It's just to get my credit back in order and not to use like a regular card. Full disclosure.
Do you have any other accounts on your credit besides the two secured cards and the small loan that you are thinking about getting opening? If you do not have anything else on your credit currently then I would apply for two secured cards. Use both cards responsibly for about 6 months to a year and then apply for a credit card that is not secured. If the small loan will be reporting as a installment loan then I would consider applying for it. Having different types of accounts will also help improve your credit score. Make sure the interest rate on the loan isn't too high. You don't want to waste money on interest when the two secured cards will start building your credit. Thanks! Heather with BoostMyScore.NET
Thanks heather, No i do not have any other TL's open at this time. but i didn't want to open up too many at one time and lower my credit with the inquires as well. And yes the loan reports as an installment loan. it is through my credit union. i have a new job that i can afford to have all three and pay them responsibly but i wanted to make sure that it was a good idea to open all 3 and keep them below 10% and pay them responsibly.
I think your plan sounds pretty good. Open the 2 secured credit cards and keep your utilization at 10% or less. I would apply for one, and then apply for the 2nd a month or two later. The installment loan will help improve your credit mix and also add positive payment history. Manage all 3 responsibly for the next year and your credit scores should improve quite a bit.
Man this site is great. it keeps me motivated to stay on top of my credit. i just saw that on my 3 reports that things are listed different. for example my equifax might have the name of the actual company while trans union might have the name of the CA's when sending a pay to delete should i send it to the CA or the actual company or both? they have the same amounts its just that on one they use the actual name of the company and on the other they us the name of the CA.
It's important to find out who actually owns the debt. If the original creditor has sold the debt to a CA, then you'll need to deal directly with the CA. Make sure you DV them first though...the CA that is.
Mr.G It sounds like you are on the right track. Please keep us posted on your progress. Thanks! Heather with BoostMyScore.NET
