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Question By
Chilli27

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Secured or Unsecured Credit Card
I have a low 500 credit score due to irresponsible spending when I was in my early 20's. Here are some the things effecting it: Auto Repossession, Cap One in collections, Store Card in collections, Verizon collection to name a few. I noticed in my last full credit report I got from the 3 agencies that practically all derogatory marks where gone. I've spent several years now drastically improving my financial standing. I just recently finished paying off my car too. I've stayed away from applying to any thing for more than 3 years. Should I remain off the radar and wait to see if my paid off car improves my credit score or start taking chances and apply for a secured or unsecured credit card?

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Remaining off the radar is not the correct answer, when you are not using credit you are hurting your credit. Paying off the car loan will most likely result in a score decrease and probably a big one if this was your only active credit account. Capital One does forgive, I would suggest that you check the preapproval link on their website and see if you have a chance of being approved for anything. I also strongly suggest that you spend an hour or two a day for the next month or so reading all that you can on the subject of credit, so you know what you need to do to rebuild. There is a wealth of information on this site as well as across the internet, all you need to do is read it, learn what you need to do and start taking action, but the important thing is to get started right away, waiting will only drag out your credit problems.

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