Getting CC after "settled for less"

[Anonymous]

OK, I had a B of A CC that I recently settled.  It shows up as "legally settled for less" on my CR as of 7/08.  I want to try and purchase a house in about a year and I am in the middle of rebuilding.  EX FICO is 636, up from 580 in Jan.  Anyways, should I even apply for a CC from B of A or will they automatically deny me since I just settled another account with them.  Should I just apply for another card instead?  If so, who?

[Creditaddict]

well even if BofA would give you another card, 636 is pretty low for them I think, maybe a secured card with them.  I think you would be better of trying to bank elsewhere now.

[Anonymous]

One option to consider is opening a checking account right away with a credit union and then applying for a credit card with them 6 months later. They will likely give you credit with a lower score than a bank would.

[Anonymous]

The UTL is no longer hurting you now that it is at a zero balance- but the "settled for less" status is dingging your score-

[Madison]

636 should get you a credit card. I would try Capital One, Chase or any other cc companies. You may not get the best interest rate initially but after a few months of good stewardship, you should be able to negotiate the rate down. I got my credit score from 569 to 684 in one years time. But more importantly, I got 90% of my credit cards to reduce their interest rates they were charging me and my avg interest rate dropped from the mid 20% to around 8-12% which saved me more money to pay off credit cards earlier.