Unsecured Credit Cards For 550 Credit Score and Below

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
7 posts
forwardfordawn
 
Posts: 1
Joined: Thu Nov 21, 2013 12:24 pm
Location: United States

Unsecured Credit Cards For 550 Credit Score and Below

Postby forwardfordawn » Thu Nov 21, 2013 12:30 pm

My credit score is 550 roughly (547). I need to rebuild but don't want to do the deposits or secured cards if i don't have to. My ex wife kinda messed up my credit or I would be alot better off and i need to rebuild it so I can qualify for a loan.


CC Deville
Centurion Member
Centurion Member
 
Posts: 1077
Joined: Thu Aug 04, 2011 7:07 pm
Location: Phoenix

Postby CC Deville » Fri Nov 22, 2013 3:40 pm

At 550 you *may* be able to qualify for a store card but even then most want a 600 or better.

Unfortunately, a secured card is the BEST way to go as it gets you a reputable, national bank that you can grow with. Many banks offer such cards; BofA, Citibank, Wells Fargo, US Bank, PNC etc. Obviously, if any of these creditors were burned by you in the past, skip it.

Your other alternative is to get an "unsecured" card from First Premier, Credit One (not to be confused with Capital One) or Applied Bank. These banks should really be your last option. Although unsecured they charge ridiculous fees that essentially equate to what you would have put in the bank as a security deposit; only you never get it back. Also, check terms and conditions because last I checked Credit One and maybe even Applied Bank did not offer a grace period, so the minute you swipe the card for a purchase, you start paying interest.

There are tons of credit forums out there. I suggest looking at the My Fico forums and reading about rebuilding there. Also http://www.whoegavemecredit.com has people that report whether or not they were approved for credit from a certain lender with certain scores. Of course, take anything you see there with a grain of salt...some of the dates are also old (2004) and creditors have become more strict after the financial crisis.

You should look into getting a real Fico score from all three lenders to see which has your highest score and then look for lenders that only pull from that credit bureau. And remember that a FICO score is only one thing that the banks look at. If you have recent lates or charge offs that will not bode well for anything other than secured cards or bottom-feeder cards (First Premier, Applied Bank and Credit One).

GoCreditGo!
Centurion Member
Centurion Member
 
Posts: 230
Joined: Tue Nov 05, 2013 1:48 pm
Location: Seattle WA

Postby GoCreditGo! » Fri Nov 22, 2013 5:11 pm

I got a secured card with Capital One since my credit score was so low. There's an annual feel though, and I'm certain that's why they're offering that. Is there any disbenefit to canceling now that I have been approved for another card?

CC Deville
Centurion Member
Centurion Member
 
Posts: 1077
Joined: Thu Aug 04, 2011 7:07 pm
Location: Phoenix

Postby CC Deville » Fri Nov 22, 2013 5:34 pm

GoCreditGo! wrote:I got a secured card with Capital One since my credit score was so low. There's an annual feel though, and I'm certain that's why they're offering that. Is there any disbenefit to canceling now that I have been approved for another card?


Despite people's moaning and complaining about Capital One, they are not bad at all compared to First Premier, Applied Bank and Credit One. Credit One even changed their name (used to be First National Bank of Marin) and their logo to appear to be close to Capital One's...almost as if they are hoping people will confuse the two.

It is my understanding that the Capital One secured card either never graduates or it can take years to graduate. So eventually you will want to close it once you've established credit with other lenders to avoid the annual fee.

In OP's situation I am recommending other banks besides Capital One because they will eventually become unsecured and in the cases of BofA and Citibank, they can be upgraded to a reward card once graduated. This way he gets to keep his first card from rebuilding whereas he would likely have had to close a Capital One card as it does not unsecure.

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Fri Nov 22, 2013 5:47 pm

I know the feeling - I want to speed but I don't want to pay speeding tickets either. I guess wish us both luck with our endevours.

Obi-dan
Centurion Member
Centurion Member
 
Posts: 190
Joined: Fri Aug 02, 2013 2:35 pm
Location: Houston, TX

Postby Obi-dan » Fri Nov 22, 2013 5:49 pm

forwardfordawn wrote:My credit score is 550 roughly (547). I need to rebuild but don't want to do the deposits or secured cards if i don't have to. My ex wife kinda messed up my credit or I would be alot better off and i need to rebuild it so I can qualify for a loan.


Secured card is really the way to go about this. Agree that you should look at BofA, Citi and Wells as they will unsecure cards. When I worked at Wells they often did it after a year.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

User avatar
otter
Centurion Member
Centurion Member
 
Posts: 639
Joined: Sat Aug 24, 2013 8:45 pm
Location: Grand Forks, ND

Postby otter » Fri Nov 22, 2013 9:08 pm

Obi-dan wrote:Secured card is really the way to go about this. Agree that you should look at BofA, Citi and Wells as they will unsecure cards. When I worked at Wells they often did it after a year.


The problem with the "big bank" secured cards is they are often picky about who they approve for secured cards. Yes, you would think the banks would realize there is little risk since there is collateral even if the lender were to default. But the banks don't seem to see it that way, unfortunately. BoA is probably the most picky of the larger banks which offer secured cards often declining those with one late payment in the past year.

The Wells, US Bank, and BoA secured cards are really cards for building credit more so than they are for rebuilding credit.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450



Return to “Visa & MasterCard”

Who is online

Users browsing this forum: No registered users and 3 guests