06-30-2012 09:12 AM
I just opened a Wells Fargo secured card to re-establish credit history. Does anyone know how long they take to start reporting to CRAs? Are they good at reporting like they say they will do?
I have a checking account w/them but their customer service has not been as good as my experience w/Citibank. I'm wondering if Wells doesn't have a good history of reporting if I should just close and go w/Citi for a secured? Purpose and focus is to re-establish good history.
06-30-2012 10:22 AM
Wells absolutely reports, wouldn't worry about that with them. I don't know with them in particular how long it takes for them to start reporting, though my auto loan through Wells Dealer Services (not necessarily the same) reported right at first statement.
You want 2-3 cards anyway, Wells doesn't have a fantastic track record here with their secured products but that was around graduation rather than anything else. Keep it open, and if you don't have the additional revolving tradelines, go open up the Citi secured too if you bank with them. Whatever your experience is with Citi, I'd be happy to hear about it over time, Citi doesn't come up in the list of secured card suggestions very often because nobody I've read has experience with them directly.
06-30-2012 11:09 AM
Yep, like Revelate says, they report to all three.
They are better than Citi in some ways. They actually report the amount paid in addition to the min due and balance each month and EX now records this. This fine grain reporting makes it easier for future creditors to see how you pay bills. Whether you are a pif person, or what percentage of the balance you actually pay.
06-30-2012 12:15 PM
06-30-2012 12:23 PM - edited 06-30-2012 12:28 PM
Oh that's great to know. With Wells reporting that way is it better to pif or pay a %?
I may do citi as well but should probably do my second secured card w/a suggested bank. Is there a post / thread for the suggested ones? I hadn't seen that but am still working my way through this plethora of information.
Everyone is so helpful, thank you.
Not really we just tend to recycle through things. Probably should make a sticky at some point and just keep it updated as lenders change their products like BOFA did so recently.
BOFA - one of the top two easily, though they're a little pickier than others. Graduates near religiously at the 12 month mark, can now add their 1-2-3 rewards package to their fully secured cards. If you can get Wells, you can get BOFA would be my estimation. The one downside to BOFA is it's a hard inquiry to increase your limit, so it's better to put down a higher deposit if such things bother you. Reports as a secured card, that goes away upon graduation and their 1-2-3 rewards is the best you can get in this strata though you have to call them to get them added to the card.
NFCU - if you have a military tie, get one from here. Similar to BOFA's in terms of benefits, again one of the top two easily if you can establish membership. In addition to everything BOFA offers, it's not a hard pull to increase your limit, and I think they might not report as secured on your credit file. That last part really doesn't matter unless you're goosing your credit limits through security deposits.
Cap One: Doesn't graduate, doesn't report as secured, and can easily add funds to it.
USAA: Same as Cap 1, but only available to full members there.
USBank: Rewards, graduates, but it's something of a pain to setup and personally I'd skip but others swear by it.
Citi / your local credit union / your local bank: Not enough information to know, but if you have a CU that's a good one, wrap your arms around them and make one of your secured cards from them regardless of the drawbacks would be my opinion. Establishing relationships with CU's going forward is nothing but goodness for anyone in a rebuilding mode.
Edit: for the Wells or any other CC, PIF works fine for most people, you'll see lots of debate on that here on the forums... personally I just make certain to pay more than the minimum every time on all my credit cards, but unless I'm floating balances that more than minimum is usually the complete or near complete balance anyway. The most important thing is just don't be late and don't pay less than the minimum on all your tradelines, everything else is kinda gravy really while rebuilding.
06-30-2012 12:39 PM
06-30-2012 03:13 PM - edited 06-30-2012 03:16 PM
Awesome feedback. Checking out NFCU right how. Dad is ex navy and DoD 40 yrs, retired. Hopefully that still makes me qualify as family even though I'm not still a "child" lol.
Would you recommend a specific limit for card #2? WF is $500. I saw reference that higher limits show as desirable to lenders in that they see ability to be responsible.
It doesn't matter that much, the NFCU secured card can grow since you can add money to it at any time without incurring any FICO penalty.
The only reason larger limits matter is bigger limits, beget bigger limits in the future. I don't know if that straight follows from being responsible, and more just from trying to entice you to use their card and not someone else's. Psychology is funny in the credit world, and offered credit limits are no exception.
Right now the absolute most important thing is just establishing a few credit cards, and getting them paid on time to rack up positive payment history. That's the #1 factor in FICO scoring given the way it's setup and how huge penalties are for either thin files, or for any derogatory. Revolving utilization is a distant second, and can be managed regardless of how small or large your limits are.
You really just want the tradelines, when you have more free cash later, add it to the NFCU card, and with your father retired, you absolutely qualify he'll just need to join first. Future approvals and future CL's are just that, future: not something that needs to be done as soon as possible. Establishing your credit history going forward, that's an ASAP issue. Also, admittedly, NFCU is probably one of the best lenders to be with as a consumer, I highly recommend them to anyone that can get in with them; sadly, my military affiliation which got me into USAA when I was a kid, doesn't go there.
06-30-2012 03:58 PM
Thank you. These forums are so empowering.. I think I might have been getting ahead of myself. I appreciate the re-focus.
I talked to my father and he is going to join NFCU so I can join. Plus it sounds like he should be banking with them anyway - and he sounded like he agreed.
So, it will be Wells, NFCU, possibly Citi and hopefully an auto loan. Plus tending to the haunting medical collections. Sounds like a good plan! As I see scores go up, I'll be sure to share the success. And once I try Citi for a secured - if I decide to- I'll let you know my experience.
I know as respects to customer service -Citi was awesome from day 1 & have helped in ways no other bank has. Hopefully their experience w/Secured cards will be the same.
06-30-2012 04:34 PM
Yep, bigger limits on secured cards help a lot.
I just PCed my previously unsecured Citi to a 25k world mc. It took 3 years and patience. Before that I hadn't used any credit for almost 10 years.
06-30-2012 06:55 PM
From my experience, US Bank credit cards are a pain.
I've had mine for 3 years and it has yet to graduate. From what I understand, you have to request this, it doesnt automatically happen and it will be a hard inquiry.
Also I dont think the US Bank secured card can ever have its credit limit increased. I think you have to stick with your original limit/deposit.