brockdog

OH! I thought of one other thing I wanted to add, that's purely a vanity-thing. Orchard Bank is WELL-KNOWN as being "the card you get when you have bad credit" -- and it's kind of embarrassing to whip it out of your wallet when you're paying for stuff, because it's like a big beacon that says "I have bad credit". But I think PSB's still something of a secret, since it's so new... the card itself does not make me flinch when I hand it over.

It's weird... I've really become a flat-out FAN of this company (and no, I DO NOT work for them! I just think they're providing a very important service, and I've had great experience with their customer service people, too.)

I get the sense that the people on the phone are really... PEOPLE and not evil credit robots. They have a smart business model, and I'm sure they're making money hand-over-fist, but they are also helping people rebuild credit. That's win/win in my book.

I've had a PSB Visa for about 8 months now. I know this is not the only factor, but since I got this account, my credit score on CreditKarma has gone up 52 points, from really-bad to bordering-on-ok. And, I recently received a preapproval for a new unsecured MasterCard with a $750 credit line from another lender. Which I accepted. So, I'm on my way back into credit-worthiness.

The PSB card is a GOOD deal -- I have researched the sub-subprime credit card market thoroughly, and that's why I started there instead of Orchard Bank. I think PSB is more direct and honest in their dealings; plus I know they are a small, one-location bank that started this program only last spring. I MUCH prefer not dealing with a huge mega-bank.

Yes, you have to put funds on deposit and let it stay there. But I just look at it like, a few years down the road when I've substantially rebuilt my credit, THEN I can close the account and get the cash back. (Knowing that when your available credit dips, your score will, too.)

If you need to just get started rebuilding credit -- I think this is the best deal.

"Mid November through mid December is usually the best time to challange. All the people out of the office for holidays makes it harder to get things verified." --- WOW> THAT is a great piece of advice! I never would have thought of it, but you're absolutely right. I'm going to keep that in mind.

I have a Public Savings Bank secured card, and I LOVE it. They've been just great to work with, and FAR cheaper than any of the other secured cards I researched. The only drawback is that the card never converts to an unsecured -- if you keep the card account open, they hold onto your security deposit, period. But since getting the card in January, my score has finally broken above the 600 mark, and continues to creep upward a few points every month.

Yeah, how about you focus on paying the child support you owe? You brought kids into the world, you have a responsibility. Owing $100K in back child support just tells me you are a CREEP.

Secured cards are NOT useless -- they're a fabulous way to build or rebuild credit. Hey, this is reality folks -- building credit WILL COST YOU MONEY. Period. You just plain cannot build a good (700+) credit score without it costing you money! You need to borrow money and prove you can pay it off -- but it's a Catch-22: if you don't already have good credit, then your new credit will be very expensive, until you can prove you have good credit by making payments over a long time. It takes YEARS to build good credit -- and since thanks to Obama, you cannot now get a credit card if you're under age 21, you've gotta start as soon as you're old enough to build credit. And it'll cost you!

Nice idea -- but it's not a "Federal Credit Union Bank" -- a Credit Union is totally different from a Bank. Credit Unions are owned by their members, not by Wall St. shareholders -- so you always get MUCH better rates! And, at a credit union, you can get what's called a "share secured loan" that's usually at a really low interest rate -- same sort of thing as a secured credit card, but a whole lot cheaper. (I have one currently, and I'm paying 2.75% interest -- AND it reports to the credit bureaus and has been increasing my credit score.) Google "credit union" and your city to find a credit union near you. they're great!

I have a question on monthly payments. Can I set up an automated "set it and forget it" monthly payment that will satisfy the "paid ON TIME" element of the agreement -- PLUS -- can I also make additional monthly payments that fluctuate a bit?

What I'm trying to do is ensure that there is NO possible way I will EVER show a late payment! I'm thinking I'll set up my monthly gym membership fee to be paid on this credit card -- and make sure I make at least that $50 per month payment via automated ACH or online banking Bill Pay. Then, if I do use the card for something else during the month (like I rent a car or buy an airline ticket) then I'd make a SECOND payment to cover that.

Will that work?

(asking because I read that at least one card issuer actually penalized someone for making a payment "too early" for the following statement period!!!)

Thanks!

Disclosure first: I work in marketing for credit union that's a credit card issuer (not one that advertises on CK). As someone "in the biz" I'm really IMPRESSED with Bob from Public Savings Bank and the way he's handled dozens and dozens of questions on this thread. There are a LOT of really skeevy secured card offers out there, where by the time they've finished gouging you with fees, fees, fees, you've got enough open credit line left to take a friend out for Starbuck's. I read the fine print on this one, and it looks like a solid, reputable deal. I'm actually going to open my own card account with them (my own employer won't give me a Visa card, because of my credit score).

One thought, though: if you're someone who simply does not understand the very basic rules of how a credit card works (secured or unsecured, makes no difference) -- DON'T GET ONE until you DO understand. Anyone who signs their name to a lending agreement -- and credit cards are LOAN products, even if they ARE secured -- has agreed to the fine print, all of it. So understand it before you go for it.

(And one other little plug? Credit unions offer "Share Secured Loans" that are even easier and cheaper than MOST secured credit cards -- and report to the bureaus, too. Look into it!)