Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
poomerhaner

0 Contributions
0 People Helped
Should I apply for a secure credit card now, or later?
I have 8 accounts that have been delinquent on payments and 4 open accounts in collections, with a credit score of 499. I don't have any credit cards, and I am one small payment away from paying off my Capital One card that went to a local collection agency. I have a couple of small debts (Nordstrom: $244, and Macy's: $366). Should I pay off the accounts in collection first, or should I apply for the secured credit card to kick start my credit revival? I'm so confused. Please help!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
103 Contributions
30 People Helped

Ouch.....

How long since your last date of deliquency on the accounts? THAT is your main factor in how long it is going to take to repair your credit. Sounds kind of messed up, but the negative impact will stay on your report until 7 years after the last payment is made. My husbands credit was like that when we first got together. We didn't know what we were doing and started making payments to get it all taken care of, long story short, since the accounts were deliquent for a longer period of time they stayed on his report for a longer period. His account was deliquent for 5 years, made one payment on it and it refreshed the 7 year cycle.... turned 2 more years of bad credit into 7 more. OOPS. 

With 4 accounts in collections, it does look good to lenders to have the accounts paid off, BUT, if you stopped paying your bill 5-6 years ago and it will be falling off your report soon I would take the money and start rebuilding your credit with a secured card (or if you have a family member with good credit have them add you on as an authorized user to one of their accounts that has a higher credit limit and no or a low balance). 

Hope it helps. 

7 Contributions
12 People Helped

Tough Call

I would work on paying off all my debts first. Although it's great you want to start repairing your credit, it's best to give back what you owe first. Show that you are responsible by paying everything back, then get a secured card and start proving you can CONTINUE to be responsible with new credit.

Good luck

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.