Hi All, A few quick questions for everyone. I am working on improving my credit score. It is currently at 550. I am finally at a place financially where I a paid back past debt/loans and can afford to get a credit card without worrying about putting myself in further debt. Currently, I have no credit card to my name. I know there is no quick and easy way to increase my credit score, but I was looking into getting a secured CC. Ultimately, within the next several months to one year, I would like to get my credit score up to the 600-620 mark. Would obtaining a secured CC make a big impact in my credit score? My credit summary is this: Credit Profile Percentage of credit currently available 0% Satisfactory accounts 3 Now delinquent/derogatory accounts 0 Was delinquent/derogatory accounts 2 Public records 0 Number of inquiries 1 Debt Profile Real Estate debt (mortgages) $0 Revolving debt (bank and retail cards) $0 Installment debt (fixed payment loans) $5,519 Other debt $0 Collection debt $409 Your Approximate Total Debt $5,928 Thanks for any help!
Secured credit cards don't really carry much value when/if you want to increase your credit score. If you make timely monthly payments for at least 2 years that secured card might become an unsecured, run of the mill credit card. Note the word "might" - and your initial security deposit might be returned to you.
It depends whether the card reports as secured or not. Some do, some don't. If it doesn't report as secured, it will be exactly like an unsecured card. You say you currently have no credit cards. However, what is on your report? Do you have anything like an auto loan or mortgage? We really need more information to know if your goal is reasonable. You might also want to consider getting an AU tradeline. Either have someone add you to an account as an authorized user (you don't even have to get a card), or you can purchase a tradeline from a company such as Apex's.
Does anyone know which cards report as secured or unsecured? I have an autoloan, which has no yet shown up on my credit report- my dad had to co-sign it with me. I have a gym membership, and about 5,000 in student loans which I Have been paying on time. My final deliquency item on my credit report is also in the process of being taken care of (hopefully deletion for payment). I have concidered being added on vas an AU on my parents account- but I'd like to use that as a last resort. I was hopign having some percentage of available credit, as opposed to the 0% which I have now, would help raise my credit scores.
Getting a card will help in the long run. However, in the short term it may actually lower your scores as the average length of your history is lower. That's why I suggested the AU account. It would give your history some age while your new account grows. It would also help your usage ratios, assuming your parents have low useage. You don't even need to have a card. They can add you and keep the card themselves so you can't use it.
As far as your question on what reports as secured, I believe that BoA reported as unsecured, but I'm not positive. Perhaps someone else will know.
BoA reports as unsecured. And with your scores, you can probably do better than the totally secured card. Folks over at MyFico have reported success with BoA via this route: Apply online for an unsecured card. You'll be denied, of course. Then a week or so later you may receive an offer for the 99/500 card. This is a partially secured card where you deposit $99 and they give you a card with a $500 limit. The great thing about this card is that it will eventually convert to an unsecured card and they are very good about credit limit increases. It's a card that will grow with you as your credit improves. Premier, Orchard, and some other companies will probably give you an unsecured card with your current scores, but those cards have horrible fees and low credit limits. Worse, they won't grow with you. The fees will never go away and the limits will not go up much, if at all.
