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Credit card to help rebuild

Established Member

Credit card to help rebuild

I am looking for a credit card to help rebuild credit.  I currently only have student loans on my credit report and no credit cards except for JCPenney, which is closed out.  With credit score in the high 500's would I only be able to get secured credit cards? If so, which one would you recommend? Thanks for the help!


Starting Score: 525EQ, 573TU
Current Score: 528EQ, 596TU
Goal Score: 650 or whatever it takes to get a mortgage!!!


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Message 1 of 6
5 REPLIES
Contributor

Re: Credit card to help rebuild

I used New Millenium, they report to all 3 CRA's as unsecured.It appeared within 10 days on my report. Minimum is $300 but  we went with $500 to keep it a little higher. I was turned down by Best Buy , i called in for reconsideration and this account appeared and it alone got me $750 limit.

 

 

Message 2 of 6
Moderator Emerita

Re: Credit card to help rebuild


rn200878 wrote:

I am looking for a credit card to help rebuild credit.  I currently only have student loans on my credit report and no credit cards except for JCPenney, which is closed out.  With credit score in the high 500's would I only be able to get secured credit cards? If so, which one would you recommend? Thanks for the help!


 

I'm sure we can give you some recommendations, but can you tell us more about your credit profile, and what your credit goals are first?

 

For example, you mention that you have student loans and one closed store (JCPenney) card reporting, but what else is on your credit report? Are the loans in good standing? Do you have any major derogs (collection accounts, charge-offs, liens/judgments/bankruptcy, 60 days or more lates)? Do you have any recent (within the last two years) 30 day lates? Do you have many INQs? If you do have derogs, I'd strongly recommend repairing before your start rebuilding.

 

Also, what do you plan to do with the card? Are you planning to use it every day as your go to card? Pay in full every month? Are you planning to not use it much?  Will you use it to carry balances?

 

 

 

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Message 3 of 6
Senior Contributor

Re: Credit card to help rebuild

Are you 21 or older?

 

You have to be careful about terms and conditions, there are several banks with awful terms.   Unless they changed, New Millenium does not have grace period (makes the card useless).  There are better cards out there.

 

Most credit unions have good terms.   Most major banks have good terms.    Who has your checking or savings accounts?

 

 

Message 4 of 6
Contributor

Re: Credit card to help rebuild

If you're using a secured card like New Millenium and you need a grace period, something is wrong.

 

You dont pay $100 start-up fee and $59 annually for a clean trade line reporting and need a grace period. You be on time every time. Only use these cards for minimal purchases,not to buy a new flat screen or a Wii.

 

These should be viewed as tools not as credit cards.

Message 5 of 6
Senior Contributor

Re: Credit card to help rebuild

 

When I was looking at secured card.   New Millenium was one of the better deals in sub prime, but with no grace period and huge fees. it seemed way too expensive.   Then I found Public Savings Bank, a useful and reasonably priced card.   .

 

Message 6 of 6