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mjporter0030

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Capitol one secured card. Help?
I was looking into one of the capitol one secured credit cards. Now my question is the annual fee of $29, is it a monthly fee of that amount or is it something that gets worked in over time?

Another question is, if i got 2 total secured cards, could I use them to pay each other off.
Like, charge $20 on one to start the process then use the second one to pay that $20, then use the first one to pay the $20 on the second one. Like perpetual credit building to say. Is that a doable thing, or would it depend on the company of the card holder?

Last but not least, given my credit situation, i owe mostly medical. would it give me a better score jump if i get a secured card and use said card on medical payments, then pay the card each billing cycle? I may be 24, but ive honestly never been taught anything about this stuff. Thanks y'all, much appriciated! :)

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Question 1 - 29.00 annual fee is charged once a year ("annual), not monthly

Question 2 - You do realize that with a secured credit card, you have to put up the money first, right?  So, if you want a $500.00 secured card, then you deposit $500.00 with the card issuer.  Then you basically pay yourself back.  Your scenario is too crazy to try, just start with one card and after 1 year you'll hopefully have a good enough score to get an unsecured card.  But I don't recommend using one card to pay another, it really doesn't make any financial sense.

Question 3 - Contact the folks with your medical collections and try to get the amounts reduced as much as possible (start by offering 30% and work up).  Also ask if they will remove the accounts from your report once paid (if they agree, get it in writing).  Then start making payments.  If you want to use the card, that is up to you.  As long as you don't incur an interest payment on the card, then it would be OK, otherwise you're just paying interest twice for the same loan.

I recommend you visit www.credit.about.com and start reading to learn tons of great information.  Best of luck!

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