Denied Bank of America Secured Card

[tinuviel]

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@tobey wrote:

I'm not really sure who BofA is targetting with their secured card. When I was new to the credit scene two years ago, they denied me due to a lack of credit history (I thought that's what a secured card was for!). I'm with everyone else, call for a recon. If that doesn't work, try Capital One, Orchard, or even Wells Fargo.

BTW, now that my score is in the mid 700s, BofA constantly sends me card offers. They go straight to the trash.

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Any idea on what their underwriting requirements are? Not for secured, but unsecured. I've banked with Wachovia -- which they own -- for years. Two of the prime cards that I have my eye on are WF and the BoA affinity card for my college alumni association. I'm still rebuilding, and I have one CA dropping off this year, and another at the end of next year. Part of me would like to be able to try for a prime card at the end of this year, yet I imagine that I'll need to wait for both to drop off before even trying for any prime cards. But, sometimes I see cases of people that were approved with an old collection. Thoughts from anyone would be appreciated.

[Tazman81]

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@tinuviel wrote:

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@tobey wrote:

I'm not really sure who BofA is targetting with their secured card. When I was new to the credit scene two years ago, they denied me due to a lack of credit history (I thought that's what a secured card was for!). I'm with everyone else, call for a recon. If that doesn't work, try Capital One, Orchard, or even Wells Fargo.

BTW, now that my score is in the mid 700s, BofA constantly sends me card offers. They go straight to the trash.

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Any idea on what their underwriting requirements are? Not for secured, but unsecured. I've banked with Wachovia -- which they own -- for years. Two of the prime cards that I have my eye on are WF and the BoA affinity card for my college alumni association. I'm still rebuilding, and I have one CA dropping off this year, and another at the end of next year. Part of me would like to be able to try for a prime card at the end of this year, yet I imagine that I'll need to wait for both to drop off before even trying for any prime cards. But, sometimes I see cases of people that were approved with an old collection. Thoughts from anyone would be appreciated.

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Check out WF website.  I believe their UW critieria for their secured card is right on the site.  But I am pretty sure that for many places, one of the disqualifiers is having an open collection account.  I think a lot of places deny based on this because a secured card normally comes with a "deposit" account (where the funds are kept).  Deposit accounts can be seized by a court ordered judgement from one of the collection accounts.

[Anonymous]

So here is an update to my situation.  The HSBC Orchard card came in a week later after receiving the approval.  I paid the $59 annual fee online.  I didn't wait for the bill.  I wanted to make sure at the end of the month it was reporting a small balance which was $1.  Orchard reported to the credit bureau a few days ago.  I checked my Equifax FICO score on this site and it is now at 653 from 636. 

[vish1]

I will suggest you wait for 3 months and then get a store card like GEMB. In a position like you (in terms of revolving accounts, not collections), you may find it useful to have a second line of revolving credit (with no AF) which grows quickly to like 1500 and help your util.

This way you should be ready to move on from orchard after a year and get a prime card (with rewards and no AF).