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Personal Finances / Credit Cards and Consumer Debt
|Subject: After bankruptcy: secured CC||Date: 4/3/2013 10:16 AM|
|Author: lcd186||Number: 306893 of 311544|
Within the next couple of days, I will apply for a secured credit card. I have saved up for the minimum deposit for such an account, but would like feedback.
According to CreditKarma.com, my FICO is currently 580.
18 months ago, I received a discharge on my bankruptcy discharge. I have been slowly getting my basic financial life in order again and rebuilding my credit is significant part of the process. In my final, follow-up appointment with the lawyer at the bankruptcy law firm I used, he said that to rebuild credit faster, I should cautiously apply for a new credit card (secured or otherwise) and use it every month, spending $100 (or barely above it) and paying it down, on time, every month. As this board understands, he strongly cautioned against keeping a balance on the account. He said at least six months from there, I should be able to apply for another account, but again must maintain the same habits. He said that two years after beginning rebuilding (and maintaining proper spending and payment habits), I should have a good credit score again.
Right now, I believe the two best choices for me may be Capital One Secured MasterCard, or Wells Fargo Secured Card. Though Wells Fargo sounds better (APR 18.99%, annual fee of $25), I believe that I may have a better chance with Capital One (APR 22.99%, annual fee of $29) since it appears it is specifically geared to people with poor/bad FICO scores and may be more generous with approving applications. Though Wells Fargo seems good as well.
For reference, this is an article about "best" secured credit cards.
6 great cards for rebuilding credit
This article names these:
1. Navy Federal Credit Union nRewards Card
2. Citi Secured MasterCard
3. Capital One Secured MasterCard
4. Wells Fargo Secured Card
5. US Bank Secured Visa Card
6. Platinum Zero Visa Card from Applied Bank
I am not eligible for the Navy Federal Credit Union card since I have never been in the military and am not related to anyone who has been in the military. Citi requires an in-person application and seems to be quite stringent. US Bank is higher in fees in general. Plaintinum Zero has monthly mandatory fee of $9.95 (annual $119.40) and least appealing.
Tips and recommendations appreciated.
Lois Carmen D.
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