BofA said I need established 'real' credit cards...?

[ladydeac]

I recently obtained a mortgage with Bank of America in November of last year.  Although it's been only 6 months, my payment history with them is excellent (no lates, pay on due date, etc).

I am waiting for two small collections to fall from my EQ (did a PFD for one which should be off in the next two weeks, and disputed the other due to the CA saying they requested a deletion back in January and it still hasn't been removed, but Equifax says they have to wait until the 30-day dispute window closes), and the one collection each for TU and EX (the same one I PFD'd and have the letter for, just waiting for them to report).

I wanted to see if I can get a lower-level prime card, so I app'd for the BofA Cash Rewards since I bank and have my mortgage with them.  They offered instead a Cash Rewards card with a $500 limit, IF I put down a $99 deposit.  So I called the backdoor number.  She said that I had two lates in 2006 on my student loans (deferrment ended and in between the time I applied for another due to still being in school, the lates hit), so I needed to re-establish my credit.  I thought that's what I HAD been doing.

I currently have First Premier since 2009, no lates; WFFNB since November of last year, no lates; Walmart since last month.  Only balance I am carrying is $98 on the FP card, total available credit is $1300 across three cards, so that gives me about 7% utilization.

I have a Wells Fargo auto loan that I'd had since January 2011...there is one 30-day late showing because of a due date change. However, I just recently traded my car because of the outrageous interest rate and was approved for a lease through Honda Financial.  Payoff was just received yesterday, so I assume the payoff and the new lease will hit my credit reports within a few weeks.

Have a paid off Auto Loan prior to that, no lates.  And then Santander hit me with a charge off in 2009 that shows a $0 balance (working to get that changed - car was totaled, insurance paid all but $900.  Received a Pay in Full letter from Santander for $600, with a promise to report as Paid In Full - so I am in the process of fighting).

How do I try to 'establish' more revolving credit?  Another store card?  My scores:

EQ My fico - 623

TU My fico - 671

EX FAKO - 665

I'd like a real credit card, but am afraid to apply until the last collection falls of off EX and TU (the PFD medical collection for $153) and the two mentioned above from EQ.

It dumbfounds me that BofA can give me a $180K  mortgage and have my checking accounts, but won' t but still say I need to establish credit before they'll give me a credit card.  Any suggestions on which card to try for and the timing??  Oh and my salary is $93K.

[Chris123nTx]

I have a mortgage, two checking accounts and a savings acct with bofa and they turned me down fo a credit card a few years back. When i had applied my credit was not in the shape it is today, but i, like you were perplexed that i could have a mortgage with no problem at all, but a revo,ving line of credit just seemed to much of a risk to them. To this day, i have never had under my "special offers" on their website, a preapproval for a card and my scores are all at or above 800 now. Go figure. You are not alone in your confusion with them.

[ladydeac]

Wow.  I have sworn that I would sever my ties with them completely, but now that I have my mortgage through them that's kind of difficult.  Strange creatures they are....

[Crashem]

Did you do it at the branch?

[Anonymous]

You're probably better off with a local CU.  Seems like you have an awful lot of derog information still on your reports.  You may be able to speak with a loan officer at a CU and explain extenuating circumstances etc and have a potentially better chance of getting a credit card with a higher limit.

In reference to your general question about why BoA would give you a mortgage and have your checking accounts, but not extend more than $500 credit:

If you stop paying your mortgage, BoA takes your house.  The loan is secured by an assett.  Low risk.

You have liquid assetts in your checking account.  Bank of America stands to lose nothing by letting you keep your money with them.  No risk.

You have multiple late payments, charge-offs, collections, etc on your reports and you are asking them to give you additional credit secured by... your credit history.  High risk.

Good luck!

[Crashem]

Branch managers have some power to get "marginal" accounts approved. So do chase and wells Fargo. Not sure about citibank

[ladydeac]

No I did it online.

I guess once the collection falls off, I will then have left the 2 derogs on the student loans that are 6 years old, and the 30 day late for the auto payment. I am truly hoping that Santander will honor their pay in full and report correctly also since the charge-off should not have been reported that way.  I guess patience in this case is a virtue....

[Crashem]

---

@ladydeac wrote:

No I did it online.

I guess once the collection falls off, I will then have left the 2 derogs on the student loans that are 6 years old, and the 30 day late for the auto payment. I am truly hoping that Santander will honor their pay in full and report correctly also since the charge-off should not have been reported that way.  I guess patience in this case is a virtue....

---

Apply in branch

[AF_23]

---

@ladydeac wrote:

How do I try to 'establish' more revolving credit?  Another store card?  My scores:

EQ My fico - 623

TU My fico - 671

EX FAKO - 665

I'd like a real credit card, but am afraid to apply until the last collection falls of off EX and TU (the PFD medical collection for $153) and the two mentioned above from EQ.

It dumbfounds me that BofA can give me a $180K  mortgage and have my checking accounts, but won' t but still say I need to establish credit before they'll give me a credit card.  Any suggestions on which card to try for and the timing??  Oh and my salary is $93K.

---

Well it may seem dumfounding, but it isnt. BOA doesnt take primary action when it comes to CC lending. FIA Card Services does and they apparently have no idea what your banking realtion likely is. I know this becuase, ive been a checking customer for a long time with BOA and when i asked for a C.L.I. FIA had asked me who i banked with, employment, and how much was in my checking LOL. I figured those idiots had access to see those figures, well apparently they dont because they were put off guard when i told them about my BOA relationship.

Your scores aren't good enough for their 1-2-3 card, and those derogs are killing you. Honestly, i would recon over the phone because you're gonna get auto denials online from prime lenders unless you garden for a bit and or see the collections removed. BOA isnt that strict, becuase i had 2 30 lates that were somewhat recent back when i applied so you have hope.

[ladydeac]

Thanks for the advice!

So once these two collections come off, probably by the end of the month, which will leave me with no collection accounts, but still the student loan derogs, the auto 30 day late, and possibly the Santander if they don't budge, do you think I'd have a better chance at getting a prime card?

The student loan derog kills me because Nelnet has them split into 4 different accounts, although there is one balance due.  So it looks like I have two lates on 4 accounts as opposed to one.  I asked them if they could just report one account for the full amount and they told me no.