11-04-2009 09:04 PM
Hey all, I've done a search for this topic and haven't really found any concrete answers to my question so I will lay it out for everyone. I have been actively trying to rebuild my credit for reasons beyond just good financial standing. Within the next year I plan on starting my own business and feel my poor credit may negatively effect that endeavor. On the same token, I work in finance and feel my poor credit standing could hold me back from getting a new job if I decide not to start my own business.
I have been without any sort of revolving credit for 2-3 years now and the only major installment tradelines on my CR are my student loans; still in deferrment. I recently tried to purchase a car a few months back and was notified my scores were in the mid-500's and would command a 24% interest rate. Sufficite to say, I did not purchase the car. In any case, I have been researching secured cards for a bit now, just wanted to get everyones opinion.
I have narrowed it down to three cards: Wells Fargo Secured Visa (I work for them so with some luck and good habit, I may be able to have that converted into an employee card/$18 AF), Citi Secured Mastercard ($29 AF), or the HSBC Secured Mastercard ($35 AF). I am not considering the B of A secured option because they purchased FIA Card Services, whom I was delinquent with and that could impact whether I am approved. I also wanted to know whether I should devote $1000 to one card, or $500 to two cards...I understand the concept of revolving usage and multiple tradelines and want to be able to maximize the potential of raising my scores as quickly as possible. I plan to use these for small expenses; gas, lunch, etc and plan to PIF every month. Please help me shed some light; I feel quite embarassed since I am in essence a finance professional, but have had such oversight and poor performance with my own personal finance. Sorry for the long post. Thanks in advance!
11-05-2009 02:57 AM
I have had good luck with the WF secured CC. They have been very nice, and I have not experienced any problems.
Concerning whether to get 1 CC with a $1,000 CL or 2 with a $5.00 CL, I would probably choose the 1 with $1,000. Keeping a low utilization on a CC with a higher CL will show more responsibility, and future lenders will be more willing to go over $1,000 CL if you already have one there. If you have a couple CC with $500 CL, then lenders might try to keep you are that limit on future applications.