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Hello! I finally paid off the last of my credit card debt last month, and am now wondering what to do from here. A few years ago, I got behind on almost all of my cards. I was able to pay several of them off in full, and get back on track with the others, without any of them going to collections. But last year got behind on those few, and ended up settling with collections agencies to get them paid off. My credit has improved slightly since paying things off, but it is still quite low.

So, I guess my question is- what should I do now? From what I have read, a secured credit card would be the best way to re-establish a good payment history, but I'm unsure of which card would be best? My score is still pretty bad, so I am not sure if I would be able to qualify for one... or rather, one that would be worth having, haha. Since I only paid everything off last month, should I give it some time and wait to apply for one?

Thank you in advance!




It's almost impossible to get denied for a secured card.. you just will have to put a higher deposit down based on your poor credit score. Disclaimer, I work for them, but most in the industry think the capital one secured card is the best out there and I tend to agree. Unfortunately there's no interest paid to you for the security deposit but the good thing is you can increase the deposit. With a poor credit score, you will probably have to put 200 down for the 200 credit limit card. If your score is in the high 500s/low 600s, you might only have to put down 100 or so for the 200 limit. Then you can increase the size of the credit limit with deposits. You use it just like any credit card and it gets reported just like a regular capital one platinum mastercard. If you qualify, though, I'd suggest the USAA secured card. They pay you interest on the deposit, but remember USAA is not for all citizens so you might have to settle with capital one. It's a great card nonetheless, and you get the security deposit back when you close the card or we make you into a regular customer ("graduate" the card) and up your limit on our end.

Sub: #1 posted on Mon, 08/27/2012 - 21:26

waffles waffles
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It is good that you have paid off all your debts finally. That's a great achievement. Congrats. :p You'll get a secured credit card. That won't be very difficult. However, do make timely payments on the secured credit card. These cards are infamous for their fees and interest rates. Try to pay off the balance in full each month.

Sub: #2 posted on Mon, 08/27/2012 - 22:36

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I looked into the Capital One secured card, but they are one of the companies I owed. I did pay them in full the first go around (directly), but that was after getting behind by 90+ days. It also looks like they do run a credit check, so I am nervous about applying and being denied. :/

And thank you! It is nice to finally be debt free.

Sub: #3 posted on Tue, 08/28/2012 - 12:34

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Wells Fargo also has a secured credit card.

Sub: #4 posted on Tue, 08/28/2012 - 13:25

SOAPLADY SOAPLADY
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Like I said, you probably won't get denied for a secured card. It's almost impossible to get denied for one. They will just make you put a high security deposit (equal to your credit line). The wells card isn't bad. The main reason I recommend the cap1 card is because you can keep increasing your credit line with deposits. The ultimate best one again though is the USAA one - you can't beat interest on your secured card deposit. They give you a CD as collateral for the card's credit line.

Sub: #5 posted on Tue, 08/28/2012 - 16:55

waffles waffles
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Thank you SoapLady! I bank with Wells Fargo already, but didn't even think to see if they offered one. I spoke with one of their representatives over the phone, and applied. :)

I may wait on the Capital One, but thank you for the suggestion. I ran their tested, to see if I prequalified (since it won't hit your credit), and nothing popped up. I might take that as an omen and steer clear for the time being! The WF seems to be an easier card, since I am already with them!

Sub: #6 posted on Tue, 08/28/2012 - 18:09

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Yeah if they are who you bank with obviously that's a better choice. They might even let you off with a lower security deposit than an outside institution. Like I said though, you aren't going to get denied for one. There's no risk at all for a CC company in issuing a secured card - you send us the money for the credit limit, i.e. mail a check for 500 dollars which gives you a 500 dollar limit. If you do not pay your bill and you run up 500 dollars on the card, the CC company just closes your account and your security deposit is not returned to you as you did not keep up with your end of the agreement. The reason I suggested the USAA one is, the CC company takes your security deposit and probably earns about 10x its worth before graduating your card through investments, at least with USAA they give you a return.

Sub: #7 posted on Tue, 08/28/2012 - 21:49

waffles waffles
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