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Contributor
Posts: 80
Registered: ‎02-16-2011
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Retail cards for bad credit

I tried searching for this but couldn't find anything.  I am in the process of rebuilding my credit and was recently approved for the orchard bank gold mc with a CL of $320.  I would like to add a retail card to the mix.  My EQ is 593.  Any suggestions???


Starting Score: 593 EQ
Current Score: EQ 663 TU 675 pulled here 5/13/13, EX 640, lender pulled 2/25/13
Goal Score: 800


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Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Retail cards for bad credit

Wait until you have 6 months of history with new card.   Then apply with a store that you shop on a regular basis.

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Re: Retail cards for bad credit


Seatown1two wrote:

I tried searching for this but couldn't find anything.  I am in the process of rebuilding my credit and was recently approved for the orchard bank gold mc with a CL of $320.  I would like to add a retail card to the mix.  My EQ is 593.  Any suggestions???


Have you looked at the Credit Card Center here onsite?

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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Registered: ‎12-31-2008
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Re: Retail cards for bad credit

[ Edited ]

Marinevietvet wrote:

Have you looked at the Credit Card Center here onsite?

 


That's a great start - and probably a better option than looking for retail cards.  And Orchard will probably come up as a recommended card for you.  Bonus!  You're already there!

 

Retail cards won't give you a score boost in and of themselves.  They can be helpful if you use them for discounts at stores you frequently shop at.  After your Orchard ages, look at what cards will suit you best for the long-term.  And don't look for a merchant card just for the sake of having one.  I, like you, had an Orchard (superb rebuilder card, btw) and experimented to see if adding a merchant card would increase my FICO scores.  It didn't for me or others who tried the same thing - I think the posts for that experiment on these myFICO boards are under "Guinea Pig Results" or some such.

 

BTW, FICO looks for a bank/national cc revolving account.  You only need one to keep the happy - and you have that in place with your Orchard. 

And remember you can have FICO scores in the 800's with just one card. 

 

Often folks like to slowly build their way up to three cards for convenience; and some folks like to keep less than half their revolving accounts reporting a balance - which is easy with three cards. 

 

But it's wise to put at least six months age on that Orchard before you go looking for another.  And you may choose to wait longer, even much longer, than that.  I was so happy that "they liked me, they really liked me" that I, unfortunately, apped too soon and opened too many unnecessary cards - which decimated my AAofA.

 

Take good care of your Orchard.  Remember they report your balance on the last business day of the month.  Most folks have best FICO scores if they report less than a 9% balance.  And, of course, PIF'ing is always a smart move.

 

Congrats on your new card - Orchard is my favorite rebuilder.  Reward yourself with a yummy treat instead of an additional card - at least for the time being.

Just puttin' syrup on something, don't make it pancakes.
Contributor
Posts: 80
Registered: ‎02-16-2011
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Re: Retail cards for bad credit

Thanks for the elaborating on what the previous two stated beam.  Now when you say Orchard reports the balance the last business day of the month, how do I go about making payments on it?  Would I pay down to less than 9% just before the end of the month and when I recieve my statement PIF??


Starting Score: 593 EQ
Current Score: EQ 663 TU 675 pulled here 5/13/13, EX 640, lender pulled 2/25/13
Goal Score: 800


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New Member
Posts: 5
Registered: ‎04-10-2008
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Re: Retail cards for bad credit

Pay the balance down before your new statement comes out. If your payment is due on the 15th, make sure you pay no later than the 15th. Whether you pay it down or not ,don't be late. A new statement will come out around the 19th and that's what will appear on your credit report. Look at your due date and statement date. Timing is the key.

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Posts: 912
Registered: ‎06-14-2012
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Re: Retail cards for bad credit

Actually i think they report like BEAM said, on the last business day of the month. which means they dont report your balance that shows on your statement but the balance you are carrying on the last business day off the month. so lets say your Due Date is the 15th, so of coarse you would want to make your payment by then, now after that lets say you continue to use your card and rack up another $150 and thats the balance you still have on the VERY LAST BUSINESS DAY OF THE MONTH you would need to make an additonal payment BEFORE the last Business day of the month in order to control what ORCHARD reports to the CRA's even though your due date isn't until the 15th of the next month. does this make sense? if im wrong someone please feel free to jump in an correct me:smileywink:



Starting Score: EQ 609, EX 633(Fako), TU 700
Current Score: EQ 699, EX 758, TU 733
Goal Score: 720 across the board
Garden Club Member-GC Challenge: App free since 10/31/12 :smileywink:
Valued Contributor
Posts: 2,656
Registered: ‎06-05-2008
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Re: Retail cards for bad credit


gettnthere wrote:

Actually i think they report like BEAM said, on the last business day of the month. which means they dont report your balance that shows on your statement but the balance you are carrying on the last business day off the month..... if im wrong someone please feel free to jump in an correct me......



Not in my experience.  They have, for the past 4 years or so, always reported my "Statement Balance".

 

For the OP; the statement balance is the amount owed when the statement cuts.  For me, it is around the 10th.  So, say I run up 200 bucks on the card on the first...  then, I pay 150 on the 5th...  On the 10th my statement balance is 50, and my credit report will show 50 bucks until the next statement cycle.

Optimizing utilization is a great tool for getting the most out of your score.   As a rebuilder or someone new to credit, a smart tactic is to only spend what you can pay immediately.  And get in the habit of paying balances off before statement cutoff.  Most people have the best results at 3-9% utilization.  So it your CL is 350, you want your statement to hit between about 10 to 30 bucks.

You really only need to optimize utilization when you plan to apply for credit.  And as a rebuilder, your credit applications should always be planned, never impulsive.  (good luck with that, lol)  So, it follows that you really shouldn't worry about utilization unless you are preparing to apply.  But best practices and good habits say different.  Keep your credit tight, and be ready for anything.  

The most important thing is to pay on time, all the time.  And never go over your limit.  Do those things and call every six months for a credit limit increase, and you'll be happy with the card. 

 

Good luck!

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Valued Contributor
Posts: 2,656
Registered: ‎06-05-2008
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Re: Retail cards for bad credit


p- wrote:
Good luck!

Also...  once you get to where you have several cards you use, it helps to go a little OCD like a lot of us here.  I have a spreadsheet where I list statement dates, last statement balance, last CLI, and any automatic payment activity.  I frequently review it to make sure I don't post a high balance, miss a payment, or miss the opportunity for a soft pull CLI.  I also track my AAOA, and consider that before applying for a new card.

Orchard is pretty good for a rebuilder card.  They gave me credit when no one else would, and paved the way for some top tier cards.  I may retire the card soon because of the AF, but otherwise have been very happy with it.

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Established Contributor
Posts: 912
Registered: ‎06-14-2012
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Re: Retail cards for bad credit

thats aweome!! thats the best idea to keep up with things and really smart move, im gonna have to start doing that:smileywink:



Starting Score: EQ 609, EX 633(Fako), TU 700
Current Score: EQ 699, EX 758, TU 733
Goal Score: 720 across the board
Garden Club Member-GC Challenge: App free since 10/31/12 :smileywink:

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