Name change, and/or bank change???

[USARMY]

I just started posting...if you have read any of my posts you know that I just legally changed my name for biz reasons. Anyway, now the long enduring process of credit repair begins. Step one update my CR's with name and address.

Then I am going to start my formal disputes with hopes of cleaning up my poor credit...my question. I thought about getting a secured credit card from my bank. But after reading a few different things..some suggested getting a new checking and savings account at a different bank and getting a secured CC there, now that my name is different, as there wouldn't be a banking history?

Does anyone have any thoughts on this?

[Methuss]

I just started posting...if you have read any of my posts you know that I just legally changed my name for biz reasons. Anyway, now the long enduring process of credit repair begins. Step one update my CR's with name and address.

Then I am going to start my formal disputes with hopes of cleaning up my poor credit...my question. I thought about getting a secured credit card from my bank. But after reading a few different things..some suggested getting a new checking and savings account at a different bank and getting a secured CC there, now that my name is different, as there wouldn't be a banking history?

Does anyone have any thoughts on this?

Secured CCs are not necessarily good. You aren't really obtaining/using credit because it is backed by your security deposit. A checking account with a debit card performs the same function. You'd be better off just doing the cleanup work and getting a real CC once your scores improve.

If you're looking to improve your rating, you can take out a small ($500)personal loan secured with some piece of property you own and pay it back over 6-12 months. Put the money you took out on the loan aside and use it to pay back the note. The last payment will be out-of-pocket your pocket. So all you pay is the interest and you get a good mark on your CR for a paid in full installment account.

[USARMY]

I was under the impression, that a secured CC will be viewed no differently than a regular card by the CA's? My thought was to make some higher end purchases say for example a TV, not using or keeping the TV and returning it after 15 days to a store that gives refunds. My secured CC would be credited the money, but to my credit it would report no differently and would look like it was paid off? Is that incorrect?

[Methuss]

I was under the impression, that a secured CC will be viewed no differently than a regular card by the CA's? My thought was to make some higher end purchases say for example a TV, not using or keeping the TV and returning it after 15 days to a store that gives refunds. My secured CC would be credited the money, but to my credit it would report no differently and would look like it was paid off? Is that incorrect?

CRAs do make a distinction between secured and unsecured CCs. A secured CC doesn't hurt, but it doesn't help that much either. As I said, a paid installment account would do much better.

[USARMY]

Where is a good place to aquire an installment account, I heard those car loan places charge crazy interest rates. Will a regular bank do one for me?

[Methuss]

Where is a good place to aquire an installment account, I heard those car loan places charge crazy interest rates. Will a regular bank do one for me?

If your rating is poor, you are going to have to pay the crazy interest rates, no mistake. But that's the lumps you have to take to get back on track.

I had a friend of my wife's use a short-term loan store to get a good notch on his CR. Sure the interest rate was abominable, it cost him just shy of $100 in interest over a six month term, but it got him a good tradeline.

You'll find better rates as you get the bad stuff off your report. There's no magic bullet to make the process go faster. I tell everyone I help directly that they should expect it to take six months or more to get things reasonably straightened out to a point where the real credit card companies will talk to them and the car loans are at less than 15%. FHA looks for things to be reasonably cleared up for at least a year before they will approve a mortgage.

[Ravenous Wolf]

Where is a good place to aquire an installment account, I heard those car loan places charge crazy interest rates. Will a regular bank do one for me?

You may want to do a cut and paste and post that question in the Banking and Finance Forum.

That forum is developing a list of credit unions for loans.