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New Member
shimabuku
Posts: 1
Registered: ‎03-13-2010
0

Rebuilding Credit

Hello!

 

New to the forums, please be gentle. :catvery-happy:

 

I just pulled my credit report from all 3 bureaus and my score roughly 570. I have only 1 open account which is about to be paid off this month. Given my credit score, I know I am not able to acquire a credit card from like Bank of America or Chase. A friend of mine told me to go with a secured credit card with Applied Bank. http://appliedbank.com/cards.html

 

Not sure what is the difference between these credit cards. Are there any other credit cards I should be on the look out for? Any help is appreciated, Thanks!

Regular Contributor
Tommy5746
Posts: 440
Registered: ‎02-08-2012
0

Re: Rebuilding Credit


shimabuku wrote:

Hello!

 

New to the forums, please be gentle. :catvery-happy:

 

I just pulled my credit report from all 3 bureaus and my score roughly 570. I have only 1 open account which is about to be paid off this month. Given my credit score, I know I am not able to acquire a credit card from like Bank of America or Chase. A friend of mine told me to go with a secured credit card with Applied Bank. http://appliedbank.com/cards.html

 

Not sure what is the difference between these credit cards. Are there any other credit cards I should be on the look out for? Any help is appreciated, Thanks!


Bank of America and Chase are Very prime credit cards... Meaning they have strict lending credentials... a credit score of 570 will def not get you a prime card right now... good news is though you can now start to raise that score up! Do you have any recent inqs? Any charge offs? Lates? Give us a breakdown of what your credit reports look like and we can better determine what you should be doing.. 

Goal: 700 and an Amex Card!

Chicks Dig Guys With Good Credit :smileyhappy:
Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012
0

Re: Rebuilding Credit

[ Edited ]

shimabuku wrote:

Hello!

 

New to the forums, please be gentle. :catvery-happy:

 

I just pulled my credit report from all 3 bureaus and my score roughly 570. I have only 1 open account which is about to be paid off this month. Given my credit score, I know I am not able to acquire a credit card from like Bank of America or Chase. A friend of mine told me to go with a secured credit card with Applied Bank. http://appliedbank.com/cards.html

 

Not sure what is the difference between these credit cards. Are there any other credit cards I should be on the look out for? Any help is appreciated, Thanks!




Chase and bank of america (to a lesser extent) are considered prime lenders. They both offer unsecured cards that have more favorable terms (lower interest rate, rewards programs,etc). Your score is a minimum of about 80 points from qualifying for these types of cards, but 700 is really a good target number to be approved for these types of cards. 

 

A secured card like the one your friend suggested, requires you to put down a deposit with the lending institution. In exchange you get a line of credit that is usually equivalent to your deposit. As you can imagine these types of cards are easier to qualify for, since there is little risk on the.part of the lending institution. They are beneficial for those looking to establish or reestablish credit, as positive payment history with them will allow you to eventually move on to unsecured cards.

As far as which secured cards are better than others, I honestly don't know but I'm sure someone else will be able to help in that area.

 

Also, where did you get those three scores from? I'm guessing they aren't fico scores since an actual experian fico cannot be purchased and you said you pulled all three. If those scores aren't fico, then yiu might want to look into the scores available on this site since they give you a more accurate (actual fico) score.

EQ 778 | TU 776
Barclay US Airways WMC 7.5k | BCE 5.8k | BofA Travel Rewards 9.1k | Chase Marriott Premier 13k | Citi TYP WMC 6.5k | Freedom Visa Sig 8k| Discover it 10k
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Rebuilding Credit

Secured cards are very good for building or rebuilding credit.

 

The Applied bank cards are expensive and appropriate for people who are just starting to rebuild from very bad credit .  I would not go for them unless, I was declined for better secured CC.     Capital One has much better terms and is about the easiest to get among the major banks.   The other major banks are harder to get generally.    Credit Uniions are also good if you belong to one.

 

 

 

 

Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012
0

Re: Rebuilding Credit

You can't remove all the baddies.  But you can build the goodies   My suggestions, in addition to your GW, PFD, repair work is:

 

1.  Establish a savings account with a credit union that offers secured loans (make sure rate is not more than 3% above the savings rate) and secured credit cards.

2.  Deposit $500 to $1000 into a savings account.

3.  Take out a "secured" personal loan.  This is a good addition to mix as an installment loan.

4.  When you get the loan check (the money you borrow), deposit it back into savings.

5.  You now have doubled your savings balance (example:  you deposited $1000, then borrowed $1000 which you deposited into savings giving you $2000).  The amount of interest you collect on $2000 should be equal to or higher than the interest they charge you for the loan on $1000....so essentially you are not out (of pocket) any cost to build your credit with this loan.

6.  Ask for a secured credit card.  If they won't approve initially, ask again in 6 months.

7.  Once you obtain the secured credit card, only use it for items you PIF each month (don't accrue interest)

8.  Pay off the loan at 12 months.

9.  At 12 months ask to unsecure the card.

10.  You have established to great credit references and credit TL's and built a relationship with a solid credit source....credit union.

11.  During the course of the year above, continue working on the repair side of your credit.

12.  You may also obtain other builder card such as CapOne or Orchard to add an addition TL and CL.

13.  After you pay off the loan to the credit union, continue to make regular deposits to saving, just like you were still paying the loan off.  This is a financial habit that you need to continue, and it gives you your emergency fund and savings that protect against unforseen events which can take you by surprise (and hurt your credit if you are short on cash).


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k

Regular Contributor
cmthomas06
Posts: 174
Registered: ‎06-21-2012
0

Re: Rebuilding Credit

+1 

 

Just try for a card with Cap1 and see if you get approved. If you do, use it wisely and PIF each and every month. After a year, get another card and do the same. it will take some time for your scores to improve, but it will happen with responsible use. Good luck! :smileyhappy:

Ex 752 (Amex) Tu 758 (Walmart) Eq 703
Goal: 750+ on all
Current Cards: Cap1 Cash Back; Chase Freedom; Chase Amazon; Citi Thank You; Citi Forward; Discover iT; Amex Zync; GE WalMart; BoA 3-2-1
Established Contributor
lithium78
Posts: 929
Registered: ‎07-30-2011
0

Re: Rebuilding Credit

The best financial institution for secured credit cards are credit unions.  They will give you much better interest rates and may even give you rewards, which is rare for secured cards.  If you can build a good relationship with a credit union, it will pay off as you rebuild your credit.  You'll be able to get rates for loans at rates far superior to commercial banks.  


Starting Score: TU: 566
Current Score: TU: 741 (Discover FICO); EQ: 755 (MyFico) EX: 774 (FAKO)
Goal Score: 800

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Established Contributor
Ravensfan2001
Posts: 556
Registered: ‎11-10-2012
0

Re: Rebuilding Credit

State Department FCU is a good place to start. Anyone can join (they explain how on their website). I opened a savings account and regularly deposit there. They have a secured Visa card with 6.99% APR, no annual fee, and a rewards program. If you call them to open a credit card, there is no credit pull at all (there is a hard pull if you apply online). And they report to all 3 CRAs as a secured card. I opened mine last month. So far so good. Good luck!

Starting Scores: (4/16/12 lender pull) TU 596 | EX 550 | EQ 576
Mortgage Scores:(7/24/13 lender pull) TU 663 | EX 635 | EQ 649
Current Score (7/13/14): TU 675 | EX 605 | EQ 631
Goals: 680 across the board by 3/2015. Last app 7/16/14
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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
0

Re: Rebuilding Credit


shimabuku wrote:

Hello!

 

New to the forums, please be gentle. :catvery-happy:

 

I just pulled my credit report from all 3 bureaus and my score roughly 570. I have only 1 open account which is about to be paid off this month. Given my credit score, I know I am not able to acquire a credit card from like Bank of America or Chase. A friend of mine told me to go with a secured credit card with Applied Bank. http://appliedbank.com/cards.html

 

Not sure what is the difference between these credit cards. Are there any other credit cards I should be on the look out for? Any help is appreciated, Thanks!


I would consider a local credit union or Cap 1. Applied Bank IMO is not a popular secured card to get, loaded with fees.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
New Contributor
Simplyjays
Posts: 61
Registered: ‎02-22-2013
0

Re: Rebuilding Credit

the best piece of information i have ever seen!

Inquires= 0 as of 3/20/2013 till 4/1/2014
-Amex green NPSL -Discover it 1k -Capital One 1.25k -Walmart 700.00
-JDCU 500.00 -Credit one bank 400.00 (credit builder card =) -Babys R-us 200.00? =(
TU=649
EQ=632 as of 3/20/2013

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