What should I do next?

Anonymous · ‎04-01-2010

I am in the up swing of rebuilding my credit at the moment after having a wreckless attitude in my late teen years. I currently have a 500 secured Citi Card that I have had since November of 2007 that is still secured and will be for another year according to citi. I really want to get that card unsecured and I am not sure how to go about doing that but it isn't the biggest of my credit priorities. I also have a First Premier card with a 425 limit that I have had since June of 2009.

I am looking to raise my credit score and I am paying off some of the baddies on my report so that they show up as zero even though they won't go away completely. Some of them however are going to be falling off at the end of this year and I am very excited about that.

I tried to see if i was Pre-qualified on Capital one and they told me no so I didn't apply. I Do have 2 Pre-qualified offers from Orchard and one that just says HSBC but I assume they are Orchard and I have a Pre-Selected offer from Best Buy Reward Zone. My question is what should i do? Should I sit tight for a while longer? Should I accept one of these card or apply for another one? If there anything I can be doing with the current two that I have that I am not?

My Current credit scores are

TU - 630

EQ - 622

EX - 594

Anything that you guys have to offer, say, add, or comment will be helpful and much appreciated

Wolf3 · ‎04-01-2010

I suggest you add one of the HSBC cards, (HSBC, ORCHARD, or Best Buy). Pick one, they are all the same Bank (HSBC) and they can grow with you.

You may want to consider increasing deposit on Citi if you can. It shows you can handle more credit and may get bigger CL when it unsecures.

The first premiere is expensive and will never become a good card, so I would plan to drop it when some of your baddies drop away, at the end of the year, or sooner.

Next year your score should be better and you can apply for replacement for first premiere.

Use your cards every month and pay in full by due date as your usual practice. You need to establish a pattern of usage and payment.

Patience will get you there.

Anonymous · ‎04-02-2010

Hi Cbateman1! Welcome aboard!

Given that you've still got baddies that you're working on, my suggestion would be to not apply for any additional credit just now. Instead, work on PFDs (pay for deletes), and goodwill adjustments. Let the baddies that are scheduled to fall off this year fall off. Then, when your scores have taken a sharp turn north, apply for a prime product to replace your FP-- Ideally, from a credit union where you're more likely to get a higher limit & better terms. When you've obtained a solid card with higher limit & better terms, give Citi another nudge to unsecure you.

In the meantime, keeping plugging away on getting rid of any baddies, and letting that Citi card age. And, don't forget to make sure that you're building your savings and an emergency fund. This is the best time to do it, while you're in credit limbo. When you emerge out the other side, you'll have pristine credit, savings for a rainy day & raging storm, AND the sound financial practices that will help you maintain it all!

Anonymous · ‎04-02-2010

Thanks guys for the input. So Citi won't unsecure the card or allow me to increase the deposit I have already asked. I have read about back door numbers and I don't think that applys to secured cards, but honestly the annual fee is 29 dollars and I have it sitting in a file cabinet at home. I like it because it is my longest trade line and some day will grow with me. When I got the First Premier it was a low interest rate with a million fees. Now its a high interest rate with a million fee's. I will cancel it some day but I am wondering one of you said to get a HSBC card and the other said to wait. Now I am content with either but i have a question to ponder. Should I wait and then close my second longest trade line when I get a prime card, or get the best buy card now and then hold out for a prime card so that I have a trade line that is almost as old as the First premier when I cancel it.

Did that make sense?

Wolf3 · ‎04-02-2010

I think having the CITI card sitting in the drawer is not good. They want to see you use it. Might be why you aren't getting unsecured.

I still vote for getting HSBC card now and getting rid of First Premier quickly.

In the long term, your average account age will be better than waiting.

Uborrow-Upay · ‎04-02-2010

I think you should hold off on trying for another card just now. (Tie-breaker!)

I also think that you should be using that Citi card instead of ~~sock drawing~~ file-cabineting it. Use it for the stuff you'd normally pay cash for anyways, just don't spend that spoken-for cash...save it, and use it to pay the bill.

Give it a little more time(like 'til the end of the year), let your score grow higher and then app for a prime card. IMO, you'll be better off in the long run.

Wolf3 · ‎04-02-2010

@Uborrow-Upay wrote:
I think you should hold off on trying for another card just now. (Tie-breaker!)

. It is not a democracy, you have to make the decision. IMO, waiting is almost as good.