My mortgage broker suggested I get a secured card in order to raise my credit rating. I’ve looked online, but there are a million possibilities out there and I’m overwhelmed. All I want is a low limit, a low-as-possible number of fees and upfront crap, and to know that they report to a credit bureau. Looks like most of them have $300 limits and start you out with $250 in fees. Which is fine, if I must–I figure this is basically a way to buy a better credit rating.
Any recommendations? I’ve already talked to my area banks, and none of them offer secured cards. Although they’d be happy to do a secured loan, as long as it’s for a minimum of $1500. :dubious:
Best,
karol
Avoid Providian.
Several years ago, I collected for them as a third party contract agency. As in “I am a bill collector” collected.
At that time, their documentation was sloppy at best, when it existed at all, a good third of the debtors had proof the account had been PIFd or SIFd years before, even though Providian claimed the debts were “fresh” (under a year past due, first time they’d been sent to a third party, undisputed, etc), no SIFs, and suit approval for $100+.
I succesfully attached an asset for one account. One. Out of several hundred.
It is possible that Providian has gotten their shit together since I dealt with them. If you decide to go with them, please document each and every penny, every single day, and every contact, hard file, and keep it for at least 7 years.
For a positive rating – from a bill collectors point of view – Capital One has enforcable contracts, can add, subtract, and will remove the negative credit bureau report when they make an error. If I needed one, and if Cap1 still issued secured cards, I’d try them. I’ve heard (from sources who are not “in collection”) that they are really pissy about late fees, and that their customer service people are a bit surly, so YMMV.
I have acquaintences who hold a good opinion of Bank of Nevada, but I don’t remember if they do secured cards.
No matter which you end up with, keep records, and make your payments on time.
When it comes to anything important, the best policy is to document, document, document.
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Is that the only suggestion your broker gave you? A secured credit card is not, usually the best way to go. Generally, you can improve you credit score by having less credit card debt. That is if you could charge $10,000 with your current cards, but only have a $500 balance on all of them, get rid of the cards you don’t use and have only an available limit of $2000. That is how I improved my score. YMMV
SSG Schwartz
I’ve heard that National City is a good choice.
He recommended several strategies; this is just one that I wanted a little feedback on first.
I declared bankruptcy several years ago. Since then, I haven’t established any lines of credit anywhere, so I don’t have ANY credit cards or other debt. Which is nice for me, but not so nice for my credit report, since you need to show a history of payments in order to improve your score.
Any small-limit credit card would do, but my current low score means I’ll probably need to go with a secured one for now.
Best,
karol
I wish you lots of luck. I know it is hard to re-establish a good credit score. Another possibility is a store credit card. I think Sears reports to the credit bureaus. You could look into that. Buy something, pay it off, and repeat. Make sure you don’t do impulse purchases, but things that you could pay cash for if needed. I realize that I am way off on a hijack and will step aside.
SSG Schwartz
Thank you, SSG; no need to feel like you’re hijacking here. Improving my credit score is the core of it, after all. I’ve already taken some steps and seen some improvement, so it’s just a matter of keeping up the work I’ve done so far. Not easy, but it can be done, thank goodness. 
Join a local credit union. Try Member’s Choice in Bloomington, for instance. Contact their loan department prior to joining and see what their requirements are for obtaining a secured credit card.
Most credit unions will allow you a secured credit card, regardless of credit. As long as you have the funds to secure the limit you’re requesting (say, $1000) up front, and your ratios are fine (which they should be if your mortgage broker is telling you to get one) then that’s the way to go. No annual fees in most instances, no processing fees, etc.
Remember, credit unions are there for the express purpose of trying to help their members. Credit card conglomerates are not.
Keep your balance low at all times – don’t run it up to the limit and pay it off. Search previous credit card / credit score discussions on this board to find out more details regarding credit - lawd knows we don’t need to get into that kettle of fish again.
I’ve never understood why someone would want to use a bank when credit unions are readily available. Credit Unions have lower fees, better deposit rates and loan rates than most banks out there – and are friendlier, to boot.