Delined for unsecured visa by my CU, but...

[gprncss]

...they sent me a counter - offer for a secured visa with a limit of $500. Low interest rate, less that 10%, no annual fee. Should I take it?

This offer came after I sent them a goodwill letter explaining my 3 charge-offs (6 + years old) and my old lates (4- 6 months old). I was hoping this would do the trick, especially since they took the time to try and reach me at home and the office. Hoping for some good news but the bank manager told me they will offer me a secured visa

I've never had one of those in my life! Is it worth is?

Especially since my charge-offs fall off next year between March and July.

Since they delinced me, I've added 3 TLs to my CR from Orchard Bank (2mths), Dell(2mths) and Exxon/Mobil (1 mth). They haven't helped my score any, according to PG

It will be reported as unsecured and I would like to add one more positive TL and keep them active to counter balance these charge-offs that are about to fall off.

Bottom line, how well do secure cards help to boost credit scores?

[DocDon]

They help if they report to the CRA's and you protect that credit with your life (keep the balance low, ontime payments).

It's not a bad offer considering by the time the last chargeoff falls off in July, you'll already have 7 months positive history, and it will not only help your overall credit picture, but help to offset the drop in your FICO when you lose those charged off tradelines (FICO places so much emphasis on history that even a negative history account being deleted will drop your score).

[gprncss]

Thanks DonDoc!

Looking at it from your P.O.V, it would do more good than bad.

Oh and you better believe it, I will guard it!!