Secure Credit Line With Bad Credit

I'm 18 and I need to but something that $4500 and I can't get a loan because I have no credit (not bad credit). So I'm trying to get a secured line credit of $5000. If I used $4500 in one month, how long do I have to pay it back? I'm still confused with the workings of credit cards. Do you have to pay the amount you used in full in one month or do you have an extended period of time? Where can you get a loan that doesn't require credit and can give an amount of $4500?

You deposit $5000 into an account to a secured credit card.

The terms are dictated by the financial institution.

2008-04-15 15:13:52 by phillip

loans" "unsecured personal loan" "line of credit" "unsecured business loan" "personal line of credit&quot ...

I'm am working on rebuilding my credit. I heard that one of the best ways to improve a credit score is to show a good payment history on a line of revolving credit. I'm 99.9% sure that I will not qualify for an unsecured card again (that's how my credit got bad in the first place) so unsecured seems like the best way to go. Can anyone offer information on secured credit cards (NOT prepaid credit cards because they don't report to credit agencies)?

Basically, you hand over a certain amount of money to the bank & they deposit it into an account and open a credit account with (usually) the same amount in credit as you deposited. You earn interest on the money depostited. As you use your card, charges build up like any other credit card & you pay them, preferably in full, each month. If you miss your payment, it comes from the money deposited, along with the usual late fees, over limit fees, etc., that credit cards come with. This also reduces your overall credit limit and shows as a late payment on your CBR. Never a good idea to miss a payment on a secured account as you get the old double whammy, late fees & reduced credit limit. As you pay monthly, especially if you pay your balance in full monthly, you get reported as a good repayment history on you CBR and, in 6-12 months, depending on the bank you use, you can get your initial deposit back, if you have maintained a good history. Normally, the bank will require at least 6 months of ontime payments before they will release the deposited funds. Miss the 6th payment in a string of good payments, and you start over.

2009-04-11 19:30:15 by Coqui

I've had a long battle getting my credit back from bad to good. Right now my credit score is 759 which I think is pretty decent. The only credit I have in my name now is one $200 limit secured credit card and I also have a joint line of credit with my husband from our bank for $10000. The line of credit is new and our balance is around $1000. The card I'm considering cancelling is an Amex card that I've had for less than a year. It is completely paid off, I have no intentions of using again and I have cut up my card. Is it better to cancel this card or just keep it open with a zero balance? What would be better for my credit score?

Keep it open and the balance at 0. Just make sure you check it every so often and make sure no one has put a charge against you. Also don't forget about any yearly fees that might be charged to your account. Or service protection fees. Closing the account will show negative to your credit score. Not sure why seems kinda silly to me but it does. Good luck!!

2007-08-25 20:21:02 by MTWater

I had a really bad year last year and don't know what to do. I've never had a credit card, but I have a defaulted student loan and line of credit on my report. I am paying both of these off. I am on a budget and am saving money, but I need to improve my credit scores. I can't get a secured credit card because I believe I have some bad items reported on chexsystems. Does anyone have any advice for me? The lack of history, combined with the derogatory claims have ruined my scores. Everyone says "Get a credit card to rebuild," but I can't. I don't know what to do.
I have all 3 of my reports and scores. They are really bad. I also have Suze Orman's books, and Larry Winget's, who I recommend. Suze Orman mainly talks about people with credit card debt. I have no debt except for a $3000 student loan that I'm paying $100/mo towards and a $500 line of credit that will be paid off this month. That's it. But I can't even get a secured card.
I have a checking and a savings account...Thank God, that are in good standing.
Thank you all so much for your answers and your time. This is a great forum for help.

Ouch, you really got a double-whammy. It's enough to get reported with "the big 3", but if you're on ChexSystems too? Here's some things that you can do:

1. Equip yourself- It's going to be tough to pay anything without properly equipping yourself with the right tools. And what I mean by that is an account of some sort to manage your money. I know that you're on ChexSystems right now, but that doesn't mean that you still can't get an account of some sort. The best thing in your situation would be to open an account with AccountNow. It's a checking account alternative for people that's had trouble either getting a checking account or is in trouble with ChexSystems.

http://www.accountnow.net/#

They offer a MasterCard debit card, free direct deposit, online billpay, and they're FDIC insured, just like a bank. The best feature is thier online billpay which reports to PRBC, an alternative credit bureau that helps you build credit.

2. Gather ALL your credit reports- It's important to know exactly what's on your reports. A lot of times, people believe that their credit is so bad, that they don't bother to check their reports for mistakes, and trust me, mistakes DO happen. The credit bureaus don't get paid to be accurate, they get paid to report. It's important that you gather reports from all 3 agencies to determine not just who and how much you owe, but to make sure that what's on there is even correct. If you do happen to find something that you're sure is not right, you should dispute with all 3 agencies, they all have an online dispute feature in which you can dispute the item. Once you've made sure that there's no inaccuracies on your report, then you should arrange your debts from most recent and lowest amount to oldest and highest amount. Debts that are newer than 2 years are hurting your score the worst and should be handled first. What you should know that just paying off debts, especially collection debts will not help your score. A "pay to delete" or "deletion payment", which is a payment in exchange for removing it from your report completely. I posted several links that explains this more in detail.

http://www.creditinfocenter.com/debt/set tle_debts.shtml

http://www.creditinfocenter.com/debt/neg _rating_after_settle.shtml

http://www.creditinfocenter.com/debt/Can CreditorSue4SettlementDifferences.shtml< br />
http://www.creditinfocenter.com/debt/Act ualDebtSuccesses.shtml

http://www.creditinfocenter.com/debt/deb t-negotiation.php


3. Don't believe the hype- While the majority of banks offere secured cards, there are a couple out there that offer secured cards without placing you on ChexSystems. The 2 that come to mind would be Orchard Bank and UltraVX. I've provided links to them both:

http://www.ultravx.com/

https://www.hsbcapply.com/start/orchardbank?pf=PLApply&media=O1AF18_84288651

You might want to check those two out.

3. Don't give up- Before you came on Y/A, you probably felt like you were at the end of your rope, with no where to go and nowhere to turn. Hopefully, my answer combined with some of the other answers on here will help you out


Good luck!

2008-02-18 09:35:48 by Vigi F

I am on chexsystems and have bad credit as well. I wanted to get a secured credit card, where i put down a deposit and that is my credit line. . . Do banks run your chexsystems when applying for a secured credit card account?

There would be no reason for them to run Checksystems for a secured credit card. Typically credit card only companies wouldn't even be members of Checksystems as it is only designed to report deposit account deliquency to other banks.

2008-01-30 16:56:42 by Fancy Mc Pants