Considering a card -- Opinions?

[LeslieR]

Currently, I have several subprime cards (2 1st Premiers, an Orchard, and a Credit One Bank), Target, and an auto loan all in good standing. I'm hope to be breaking into the 600 club early in 08 once I get utilization down on two of those cards and a couple of collections fall off at the end of this month.

Even though all of the crappy cards I have are unsecured, I am considering doing a secured card w/ my CU using my savings. They report to the big three CRAs, pay interest on your savings, and for a limit up to 5000 don't even require an app (and therefore don't do any pulls). I also feel that maybe by adding another product to my CU lineup, they might be more favorable to giving me a regular CC at some point??

With scores just below 600 and a few derogs still remaining until sometime in 08, I feel like this is the safest surest way to get another positive tradeline with a better CL than any of the cards I have now (rather than request and pay for a CLI or apply for another card I'm not sure of getting). I have FAs on all three reports so I hate to even try for anything because some creditors seem to automatically deny when you have a FA.

Thanks for letting me think this through out loud -- and I wonder if anyone has any opinions on my plan good or bad. Oh, and one other question: Do secured CCs "look" any different on the credit reports and do they factor into your score any differently than a regular one?

Thanks!

[razr]

If you have scores in the 600's and 1+ years of good history, I'd suggest you apply for a Kay Jewelers card. Many lenders will try to match your highest CL, and Kay tends to give $3-5+ CL. Low CLs affect your score and how other lenders see you. Once you have a Kay account you can open other accounts from Sterling Bank that all use the same credit line, but report separately (this looks like you have thousands in available credit.) Let it age for a few months, then apply for almost-prime cards like the Juniper Sea Miles and Hooters. After you get them, you'll prob want to dump those FP cards.

If you want to get a secured card, go ahead. It reports the same way and is scored the same way as any other credit card. They do sometimes include the notation that the card is secured, which may affect you if a potential creditor does a manual review. There are secured cards that graduate to unsecured after a year, that might be an option for you.

-r

[LeslieR]

Thanks, razr, for this great suggestion.!!

[TTigggers]

Great advice Razr I just got my sterling cards with the 3k limit.

How long would you let them age (about 6 months or so)?

Just wondering so I don't apply for anything too soon.

[razr]

New accounts may lower your FICO. As a general rule, new accounts are not lowering your score after six months, but should start to improve your score. That's just a general rule, your mileage may vary.

-r