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Need secured credit card recommendations for poor credit/collections


trialanderror
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I am hoping to get some advice on a good secured credit card to start rebuilding my credit. I tried to apply for the Discover secured card as a preapproval but it declined for the following reasons:

Sufficiently Obligated
- Serious delinquency and public record or collection filed
- % of balance to high credit on banking revolving or all revolving acct
- too few accounts paid as agreed
- number of accounts with delinquency

My credit score is just shy of 550

I had a major even occur 3-4 years ago where my credit pretty much collapsed, I have not settled with any creditors and am waiting for them to drop off on year 7 but in the meantime I would like to start establishing some new good history. I also have a couple judgements against me from credit card companies but from my understanding those don't show up during a credit search and I may be able to settle them when my credit is back to normal. 

Hope someone can help. BOA, Chase, US Bank, and Capital One were all creditors of mine so preferably nothing from them unless they are known to not care to do further business with people whom owe them money.

Also, any other advice about preparing to get my credit back in order after the 7 years would be appreciated. Curious to know if setting the judgement after 7 years would reset the clock and show up on my credit again as a payment.

Edited by trialanderror
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Welcome to CB

 

I don't have a lot of advice as far as secured cards are concerned, but I would be careful trying to rebuild while just waiting out the time for your baddies to fall off. Are any of them still within SOL in your state? Some CA's will see an attempt to rebuild as a great time for them to sue and get paid.

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I started cleaning my credit up last Aug.  First card was a secured Discover card.  I tossed $300 on it to start with then another $1700 last month.  Provided you have no late payments in the first 6 months (on anything) they will release your deposit and it goes unsecured after the 7th statement.  The card when unsecured and my limit increased to $3000 this morning on it.  I should be receiving the security deposit back in a few days.  FYI, my scores were around 530 in Aug, all are sitting around 730 (FICO 8 ) as of this morning.  

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This is where having a good relationship with a small, local bank can be essential.  Many banks have some manner of offering for poor credit risks but they aren't the ones that will be discussed in forums precisely because it comes from a small, local lender.

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On 3/16/2022 at 5:37 PM, VintageWillow said:

Welcome to CB

 

I don't have a lot of advice as far as secured cards are concerned, but I would be careful trying to rebuild while just waiting out the time for your baddies to fall off. Are any of them still within SOL in your state? Some CA's will see an attempt to rebuild as a great time for them to sue and get paid.

SOL is over in my state, it's approaching 5 years.

 

On 3/17/2022 at 6:32 AM, H20eng said:

I started cleaning my credit up last Aug.  First card was a secured Discover card.  I tossed $300 on it to start with then another $1700 last month.  Provided you have no late payments in the first 6 months (on anything) they will release your deposit and it goes unsecured after the 7th statement.  The card when unsecured and my limit increased to $3000 this morning on it.  I should be receiving the security deposit back in a few days.  FYI, my scores were around 530 in Aug, all are sitting around 730 (FICO 8 ) as of this morning.  

Did you get approved for the Discover card with outstanding collections? I didn't declare bankruptcy so I still have several unpaid debts on my credit.

 

On 3/17/2022 at 7:01 AM, centex said:

This is where having a good relationship with a small, local bank can be essential.  Many banks have some manner of offering for poor credit risks but they aren't the ones that will be discussed in forums precisely because it comes from a small, local lender.

This is an option but was hoping there were some well known ones out there people know about. I've seen ads about the debit cards that report to the credit bureau so that could be an option as well. It was called Extra, anyone have any experience with that? 

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On 3/19/2022 at 3:38 PM, trialanderror said:

This is an option but was hoping there were some well known ones out there people know about. I've seen ads about the debit cards that report to the credit bureau so that could be an option as well. It was called Extra, anyone have any experience with that? 

You don't need something to be 'well known.' What you need is someone who will work with you, and I trust my small local bank over something that has no assurance of actually helping with the prospective goal.  Going to your small local bank gives you the potential of TWO tradelines- the secured loan, proceeds of which then fund a secured card. 

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On 3/19/2022 at 5:38 PM, trialanderror said:

Did you get approved for the Discover card with outstanding collections? I didn't declare bankruptcy so I still have several unpaid debts on my credit.

 

Yes, I had some unpaid medical collections (5 if I remember correctly) when I applied for the Discover.  Those have since been paid and removed from my reports though.  

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