Need a secured card

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4 posts
Mrandmrscutes
 
Posts: 1
Joined: Sat Sep 20, 2014 7:21 pm
Location: USA

Need a secured card

Postby Mrandmrscutes » Sat Sep 20, 2014 7:40 pm

In 2009-2010, I went through a very rough time. I lost my job and as a result, my credit suffered. I am back on my feet, however, the damage is done. I'm trying to rebuild my credit. I had an HSBC credit card that was charged off. It's listed on my credit report as:

High Balance:
$579
Original ChargeOff:
$291

This was sold to a collection agency and now the balance is $1,186 on my credit report. How is this possible?

All of this came to light as I was thinking about applying for a Capital One secured card. I read that Capital One bought HSBC. Do I need to clear this debt before applying for a secured card?

Any thoughts, tips or suggestions would be very much appreciated.

Thank you in advance.


MemberSince99
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Location: WI

Postby MemberSince99 » Sat Sep 20, 2014 8:24 pm

It's possible by them adding interest and fees to the balance. That's how a 291 debt turns into 10 times that amount or more. Whether that is legal or not is another matter but that's what they do.


I'd be very wary of doing anything credit wise right now unless you are prepared to deal with stirring up the bees nest. I was in your situation but charged off a HELL of a lot more than you did and I was thinking a few years later that I'd like to rebuild my credit so I could one day buy a house. I was thinking, as you are, that getting a card would be the first step in that process. HSBC sent me an offer for either a secured or non secured card with a small limit which I thought was perfect. I took it, and guess what? All the vulture agencies that had been looking for me saw the card pop up on my credit and then next thing I knew I was getting regular mail and calls from them.


So be prepared for that if you decide to do anything now.


As far as clearing the debt before you apply for a secured card, probably not would be my best guess. Also consider the BofA 99/500 secured card.

PallasAthena
Gold Member
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Posts: 44
Joined: Sun Oct 14, 2012 6:58 pm
Location: USA

Postby PallasAthena » Sun Sep 21, 2014 10:50 pm

You could try disputing that amount on your credit report and say that you owe $291. Also, did you try working with the lender to agree to pay off that $291 so that this could drop from your credit report?
I got a Wells Fargo secured credit card in 2010. 12 months later, they turned that secured card into a regular credit card and gave me my deposit back (with interest). The regular, unsecured card started out with a line of credit of $500. 3 years later, today, that line of credit is now $7700. I highly recommend the wells fargo secured card if you're looking to rebuild your credit history.
Dec '16 Fico: 800+
Ch 7 BK in '06, finally dropped off in '16
2 mortgages
paid off car
$0 CC debt (Disc, Citi, and WF Amex)

PallasAthena
Gold Member
Gold Member
 
Posts: 44
Joined: Sun Oct 14, 2012 6:58 pm
Location: USA

Postby PallasAthena » Sun Sep 21, 2014 10:51 pm

To answer your question specifically, I don't believe you need to clear this debt before applying for a secure card.
Dec '16 Fico: 800+
Ch 7 BK in '06, finally dropped off in '16
2 mortgages
paid off car
$0 CC debt (Disc, Citi, and WF Amex)



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