Should i get a secured credit card?

Question

I am trying to repair my credit. currently i am working on paying off my current debts that are in collections i heard its a good idea to get a secured card to help my credit score while paying off my debts to show i at least have one account in good standing. is this correct.??

if i do get a secured card should i just start out with $300 dollars as the limit or should i increase the limit? which amount is better for my credit score?

Answer 1

I wouldn't worry about getting a secured credit card until you pay off the stuff in collections.  Once you've paid off those accounts, ask the creditor to change the rate on your credit report.  They won't until the debt is re-paid but once you do, they often are willing to change the rating.  THIS will help your credit WAY more than a secured card.  If you have a bank account with a debit card, you don't need a credit card anyway.  Good luck!

Answer 2

Yes, get a secured card.

One of the key points for your credit score is length of established credit lines. Better to start that clock ticking now rather than later.

Time is your friend in this if you use it wisely.

Eventually all the bad items will "fall" off your credit report. If you have re-established a few credit lines then they will have aged nicely when your negative entries disappear and you will have "good credit" instead of just "not 'bad" credit.

As for limits, no. Don't worry about the limits now, they can always be increased later on down the road. The important part is establishing the account.

Hope this was some help.

Answer 3

Since you've already shown to yourself that you are bad at managing debt, that last thing you need is another credit card.

You should do away with credit altogether. If you can't buy it with the money you have, don't buy it at all. Play by this rule and you will be a happy man.

And s***w those other debts. Don't even pay them. Let them put it on your credit. They can't do S**t.