I've had some previous credit problems but I've paid off all my outstanding accounts in collections. Currently I'm only still paying my student loans. I want to apply for a mortgage in the near future and want to improve my credit.
2007-02-14 03:48:32 · 6 answers · asked by maggiemay 2 in Business & Finance ➔ Credit
To answer your question directly, it depends. It really depends on what's on your credit report already whether or not a secured card will help or hurt. If you have very few (or very low balanced) revolving accounts (such as credit cards, etc) then it in most cases would help.
If you have no credit at all, meaning you basically have nothing good but not really anything bad, then it will also help.
You can go to www.myFICO.com and purchase a copy of your fico score. After doing so, you can use their calculators to actually see how certain things like opening a card would affect your score. It's actually pretty neat.
Keep in mind folks, if someone pushes a 'credit repair agency' type place on you, then don't listen. Nearly ALL of those places, non-profit or for-profit do not in fact help and can actually hurt you.
2007-02-14 04:09:31 · answer #1 · answered by dishmal 2 · 1⤊ 0⤋
Opening a credit card of any kind if you want to apply for a mortgage soon is not really going to help. Applying for the card will lower your score. The fact that you couldn't get an unsecured card, doesn't look all that great.
I'd just concentrate on paying off your student loans. Talk to a good accountant about the best way of rebuilding your credit.
2007-02-14 03:55:02 · answer #2 · answered by ZCT 7 · 0⤊ 0⤋
If you really want to know how to improve your credit check out the programs from Coming Back Strong Financially. They are experts on getting your credit back in order and how to improve it with credit cards. They will also tell you how you can buy a house with No money down. I know people who are doing this right now from getting the programs. I have them I use them all the time and they have helped my credit score come from a high 500 to now a good 710 in just over a year. My daughter is using them since she filed bankruptcy and is starting now to get really good deals on credit cards and they filed a years this last January. Go http://www.comingbackstrongfinancially dot com and check it out. If you follow what they have in the book or CDs you or anyone can have better credit. or buy a home or car.
2007-02-14 04:02:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A secured credit card will show up on your credit report just like a regular credit card. Orchard Bank will approve almost anyone for a secured card. You send them money and they will send you a certificate of deposit for your money and then send you a card. However, maxing out a credit card can lower you credit score also. It's good to keep your credit card at least half paid off at all times and to pay more than the min. monthly payment.
Also, Orchard reports to all 3 credit agencies.
2007-02-14 04:07:23 · answer #4 · answered by Mt ~^^~~^^~ 5 · 0⤊ 1⤋
You do not need credit to buy a home. You have a score ! just stay current for at least 1 year on everything and if need be a manual underwrite could be done with just providing alternative forms of credit. rental checks, cable and telephone checks etc too prove timely payments.
I am a mortgage banker in TN & KY
2007-02-14 03:55:09 · answer #5 · answered by golferwhoworks 7 · 0⤊ 0⤋
Yes, it is. But be sure that the credit card reports to all three major repositories--Equifax, Experian, and TransUnion. Some secured cards don't report at all and won't help your credit score. Good luck.
Rick
http://www.fairwaymortgagelending.com
2007-02-14 03:54:41 · answer #6 · answered by Fearless Leader 4 · 0⤊ 0⤋