Reply
Established Member
Swiftd03
Posts: 44
Registered: ‎01-06-2013
0

Re: Rebuilding-I thinNeed higher limit for business travel

Corporate card is not an option, even my bosses don't get one but they all have AMEX and have been in their positions making $75K yearly plus bonuses and reimbursements for 10 years or more. Secured card probably isn't going to work for me because it would take me a long time to save up the $1,500. I could probably put $500 toward one in the next few weeks though. Any options there?

Valued Contributor
jsucool76
Posts: 2,959
Registered: ‎12-11-2011
0

Re: Rebuilding-Need higher limit for business travel

You can always start a secured card off with the 500 and then continually add to it (provided they dont do HPs for initial deposits)

If you cant get a corporate card, the secured route is probably your best.
Wallet: Capital One Quicksilver 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 3000CL, Walmart Discover: 3500CL, Barclay Arrival: 3500CL, Chase Slate: 1000CL, Discover IT: 2000CL, Citi Forward: 2600CL, Bank Of America Student Travel Rewards: 2700CL, Amex PRG, Citi DoubleCash: 1200CL, Chase Marriot: 5000CL
In The Garden Since 9-2-2014
Established Member
Swiftd03
Posts: 44
Registered: ‎01-06-2013
0

Re: Rebuilding-Need higher limit for business travel

What companies offer good secured cards? The only ones I've seen raise limit dollar for dollar with deposit. Isn't there some equal medium like deposit $500 for a $1500 limit?

Valued Contributor
jsucool76
Posts: 2,959
Registered: ‎12-11-2011
0

Re: Rebuilding-Need higher limit for business travel

Cap1 does 49 or 99 fpr 200 i think, but that is only if you qualify. Boa does something similar but i think they hp for extra deposits.

Cap1 reports like an unsecured card, which i think is a great feature.
Wallet: Capital One Quicksilver 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 3000CL, Walmart Discover: 3500CL, Barclay Arrival: 3500CL, Chase Slate: 1000CL, Discover IT: 2000CL, Citi Forward: 2600CL, Bank Of America Student Travel Rewards: 2700CL, Amex PRG, Citi DoubleCash: 1200CL, Chase Marriot: 5000CL
In The Garden Since 9-2-2014
Established Member
Swiftd03
Posts: 44
Registered: ‎01-06-2013
0

Re: Rebuilding-Need higher limit for business travel

The only card I have now is an unsecured with Cap One. Any chance they would open another account for me? Seems to me that keeping one account with a higher limit is better than 2 accounts with lower limits for them?

Valued Contributor
jsucool76
Posts: 2,959
Registered: ‎12-11-2011
0

Re: Rebuilding-Need higher limit for business travel

I think you have to wait 45 days before you can app again. Not entirely sure though. That might just be if you close your account.

Wallet: Capital One Quicksilver 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 3000CL, Walmart Discover: 3500CL, Barclay Arrival: 3500CL, Chase Slate: 1000CL, Discover IT: 2000CL, Citi Forward: 2600CL, Bank Of America Student Travel Rewards: 2700CL, Amex PRG, Citi DoubleCash: 1200CL, Chase Marriot: 5000CL
In The Garden Since 9-2-2014
Moderator
Revelate
Posts: 8,897
Registered: ‎12-30-2011
0

Re: Rebuilding-Need higher limit for business travel


Swiftd03 wrote:

The only card I have now is an unsecured with Cap One. Any chance they would open another account for me? Seems to me that keeping one account with a higher limit is better than 2 accounts with lower limits for them?


Unsecured CLI's with Capital One are a crap shoot still.

 

I didn't read the full thread for which I apologize if you've stated this somewhere; however, what's your maximum float that you need to cover with your expected expenses and your company's reimbursement schedule?  Also with your promotion, what's your new income, and what's your discretionary income post promotion?

 

You're in an unusual situation and I think this may well require an unconventional response.  I think you're almost stuck going the secured route with your particular needs and current credit profile; though there are the deep subprime credit cards (First Premier, Credit One), but you're likely going to get a $300ish CL to start, with $100+ lost in AF's right up front.

 

Here's three paths I see towards making a secured card work (and for your needs, I *highly* recommend Capital One as others have posted you can add to it over time) and avoid a lot of potential issues:

 

1) Family (or friend) loan.  You don't need much, you just need to cover the float for whatever your reimbursement schedule is.  This is fast, easy, tax and potentionally interest free since we're talking less than 13K (I think the current gift maximum).  Write up a schedule though for a repayment plan and stick to it even if it means sacrificing elsewhere financially.  Best option if you can swing it, but if you can't...

 

2) Take a loan out against one of your assets, likely your car.  Not a brilliant option, and it takes time which you may not have to set that up.

 

3) The interesting solution: take a deep subprime loan at some horrendously awkward interest rate (I used Cashcall at one point and it worked brilliantly), making certain it's a simple interest loan, and that there's no prepayment penalty.  Take their $2500ish loan product if you can document their income, and as soon as the wire transfer lands, make an out of cycle payment *immediately* for whatever the difference is on your required float; namely if you need an additional $1000 float, you take your $500, and $500 from the loan, and make a $1000 secured card deposit... anything else, gets paid immediately back to the subprime loan.

 

Any additional money you make after that, pay off the loan first.  The mathmatics of this, assuming the Cashcall model I know, $2600, of which you lose $75 on the application fee, assuming $1000 secured card, you're repaying roughly $2000 back immediately.

 

Your balance is then $600 at an APR of some ridiculous amount (call it 120% for easy napkin math), and you're going to be repaying it at $300+ per month.  First month (assuming you let it go that long) you pay $60 in interest and 240 principal (if at $300 payment), second is $36 interest and 264 principal, and the last month costs you about $10 bucks.

 

Worst case you're out $105 approximately this case + the $75 application fee, and that's if you're making minimum payments (and really you should be kicking your free cash to the loan not just the minimum), you get your secured card to handle things, you and your bosses are happy, no mess, no fuss, and less financial cost than likely additional unsecured debt, and less social cost than a family loan depending on your situation.

 

Just had a thought, that's a pretty silly way to pay it back: put an extra $500 on the secured card than you need for the float, and then start refinancing the CashCall (in this example) loan by leaving additional money on the secured card and paying back extra via the company reimbursement in addition to free cash.  Refinancing that 120% APR to roughly 20% for the win.  Hrm, do the math on your expenses, may be able to actually pay not much and get a $2500 secured credit line easily with your business expenses.  Worth looking at, run the numbers.

 

I even got an installment tradeline on my credit reports too when I did this, extra bonus.  

 

The only thing I will caution you on, because a bunch of people I saw did this when I worked at such a place, they took the entire money and then went and spent it, and made minimum payments which under that high APR, is just financial ruin waiting to happen.

 

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Moderator
Revelate
Posts: 8,897
Registered: ‎12-30-2011
0

Re: Rebuilding-Need higher limit for business travel


jsucool76 wrote:
I think you have to wait 45 days before you can app again. Not entirely sure though. That might just be if you close your account.


There's an application delay I think of at least 30 days when I had a C1 snafu (my stumbling around in the dark before finding this forum) when I was establishing my credit.  I think it's a non-issue though, OP stated earlier that he was past his second statement cycle so I think that point is moot 60+ days beyond original application.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Established Member
Swiftd03
Posts: 44
Registered: ‎01-06-2013
0

Re: Rebuilding-Need higher limit for business travel

At the most I would be looking at $1500. Currently my debt to income is 32%, mortgage and this one card, that is it. Truly disposable income however is not much, I have cut back on going out to eat, cable bill, and the expendables like netflix, music subscription service, etc when I took this job but it was a substantial pay cut for me after covering medical costs, insurance, food and the neccessities I only have about $100 a month that is truly disposable and that is going toward fixing up 2 vehicles that need repairs, field trip costs for the kids school, ballet lessons, etc.

 

I do have some time (a couple weeks) however so the car loan may be an acceptable idea. I don't like the idea of adding the payments but it is a positive installement line, even if I only do $1,000 against a $4,000 vehicle it would get me where I needed to be and help with the credit building at the same time. I am not going to entertain the last option, although extremely creative, no where worth the risk to me right now. Carrying a balance on any loan like that is not worth it to me. I greatly appreciate the idea though, keep it in my back pocket if I do really get desperate. 

 

Thanks again,

Community Leader
Valued Contributor
DaveSignal
Posts: 2,095
Registered: ‎07-29-2011
0

Re: Rebuilding-Need higher limit for business travel

You should ask if you can get a card through your business.  I have a card with a high credit limit that I can use for any official travel business that gets paid through my organization.

 

If your business expects you to do all of this travelling and isn't paying for the travel expenses, then I would decline the position.  

EX:694 TU:744 EQ:701
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+