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Someone failed to make payments on a college loan for an extensive period (8-10 months). Their credit score has, as a result, dropped to 550-575. They have since paid off their overdue balance and have resumed making regular, on-time payments. Now the person wants to begin rebuilding their credit score.

How long should the person wait to apply for a secured credit card, such as the Discover it Secured Credit Card?

EDIT: To clarify, my concern is that the application will be rejected based on the recent delinquency. My understanding is that can happen, potentially resulting in a hard inquiry on the credit report without successfully obtaining the card.

  • On a damaged credit profile, hard inquiries are the least of your worries. – Norm May 12 '18 at 19:06
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The sooner one starts to rebuild, the faster it will go. So once everything is caught up, they should immediately start working on the rebuild. The Discover card is a great one to begin with.

  • My concern is that the application will be rejected based on the recent delinquency. My understanding is that can happen, resulting in a hard inquiry on the credit report. – David Gay May 11 '18 at 17:30
  • I opened a secured Discover card a few days after my BK was discharged - the most recent delinquency was less than 6 months old. – Norm May 12 '18 at 19:04
  • If you open an account with State Department Credit Union, their secured card does not even do a credit check. – Norm May 12 '18 at 19:05
  • The application for the "Discover it" card ended up being immediately approved online, despite only 3 months since delinquency and only one month of on-time payments reported since delinquency. Of course, your mileage may vary depending on salary and many other factors. Thanks for the words, everyone. – David Gay May 16 '18 at 16:21

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