I know someone who is trying to rebuild their credit after letting some student loans go delinquent and sent to collections. The loans have since been paid off in full, but they have no other credit history and their credit score is terrible. They asked me where to start rebuilding their credit and I directed them to the Bank of America and capital one secured credit cards. They applied for the secured credit cards but were rejected. So our question is where should they start rebuilding their credit if not secured cards? Are there less desirable secured cards with higher fees that they might be approved for? Are there other options? Thanks in advance for any advice.
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imbatman
Nerdy Member
posted: Jan. 28, 2013 @ 10:47a
maybe try orchard bank.
vipercon
Senior Member
posted: Jan. 28, 2013 @ 11:06a
Try a secured card via a credit union.
vipercon
Senior Member
posted: Jan. 28, 2013 @ 11:07a
As well, a target store card can be obtained by anyone with a pulse.
Edit: Since I got red (I assume by someone who got rejected), I will reword this. Target will approve people with active collections, recent bankruptcy, and foreclosures. They are very liberal on approvals and would be a good place to try.
TempName21
Member
posted: Jan. 28, 2013 @ 1:18p
What about methods other than revolving credit lines? Monthly cel or utility bill paid by debit card? Should they try to put some insurance under their name? Are there any other avenues? Or what about addressing the source of the collections? The student loans went unpaid because their parents stopped making payments without letting them know. Had they known, they could have made the payments themselves. Can / should the black mark be contested directly on their credit report?
vipercon said: Try a secured card via a credit union.
+1
maxfleischer
rehcsielfxam
posted: Jan. 28, 2013 @ 1:41p
Agree with uutxs - direct your "friend" to go to creditboards dot com.
Giants91
New Member
posted: Jan. 29, 2013 @ 10:45a
The first step is to work on repairing your credit report. Once that is done, it is time to add positive information to it, then make sure you use the credit wisely.
kiteguru
Senior Member
posted: Jan. 31, 2013 @ 3:22p
1-)Pay collections..Request that they will remove it from the credit report "IN WRITING" 2-)If there is any delay on active credit card payments, your bank can also delete those..Talk to the bank
Your friends are a reflection of who you are.Pick your friends wisely.Is he lazy enough not to ask this question himself?
SUCKISSTAPLES
FW Historian
posted: Jan. 31, 2013 @ 3:30p
I have never heard of anyone being denied a secured card unless you previously caused a loss with that same bank, and they no longer want you as a customer at all
Citibank offers a secured card too , try them
AdamW81
Member
posted: Jan. 31, 2013 @ 3:37p
SUCKISSTAPLES said: I have never heard of anyone being denied a secured card unless you previously caused a loss with that same bank, and they no longer want you as a customer at all
Citibank offers a secured card too , try them
I agree I recommend secured cards to people all the time with bad credit and have never heard of a rejection. There is not even a credit check with secured cards there is nothing for them to reject you, just give them a deposit and they give you a card...
Dawgswin
Serene Member
posted: Jan. 31, 2013 @ 3:42p
I do know people (honest it isn't me) who have gotten secured cards through banks despite having alerts on ChexSystems....what could possibly be a reason to deny a secured card?
SUCKISSTAPLES
FW Historian
posted: Jan. 31, 2013 @ 3:53p
Having No money to deposit to start the secured line
nwill002
Senior Member
posted: Jan. 31, 2013 @ 6:16p
before burning for more card applications inquiries which will lower their score even further they need to pull their credit reports and make sure nothing they are unaware of is dinging them. Also how long ago was their last delinquency? They may need to let more time pass by for their lates to age and not weigh down their scores as much.
danglywallet
New Member
posted: Jan. 31, 2013 @ 6:53p
nwill002 said: before burning for more card applications inquiries which will lower their score even further they need to pull their credit reports and make sure nothing they are unaware of is dinging them.
If TempName21's friend had a hard credit inquiry as part of the secured card application(s), then they can request a free copy of their credit report from the agency or agencies involved. Typically a response letter will contain verbiage as follows: Under the Fair Credit Reporting Act, you have the right to know the information contained in your credit file at the Consumer Reporting Agency. You can obtain a free copy of your report from the Reporting Agency, if you make a written request to the Reporting Agency within 60 days after you receive this notice. Otherwise, they can request a free copy of their credit report from each credit rating agency (Experian, Equifax, and Transunion) once a year.
kensat30
Senior Member
posted: Jan. 31, 2013 @ 7:35p
You can chargeoff a secured card for more than the deposit balance, so there is some risk involved by the issuer. I agree that it is unusual that you would get declined unless you have a bad history with the issuer. Maybe your income couldn't support the line size request? I'd imagine that if a student with a 12k annual income plopped down 5k for a secured card he would have a difficult time getting approved. Try smaller line size if the intent is to rebuild credit.
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