Credit Cards

[stellajuliette]

I have been slowing trying to bulid my credit score. I beacame seperated in 2006 and had some difficulty paying the minimums on 3 credit cards. They went up to 6 months of non payment and eventually the credit card companies closed the accounts. I have since paid the balance in full on all three cards as june 2008. They now show up as paid and closed but still show the 6 months of nonpayment which is affecting my score. I have no collections or public records. I bought a new car in July 2008 and pay that early every month. My Trans Union Score is 645 and my Equifax is 716. The new Experian gave me a score of 605 which is lower than it was earlier this year with Fico. It says what is hurting my credit is not having any revolving credit. So I need to get a card and don't know which one to apply to. I tried getting an AMEX and was turned down in Dec 08. I also, jsut started working again and make about $6500.00 a month. I also get $4000.00 a month in alimony until July 2011 and $2500/month in child support. Any thoughts on which cards and how many do I need to get to help my credit?

Thanks!

[score_building]

start with a local or major CU, or both.  the majors are often somewhat less forgiving of derogs...you appear to be in a v. good position to rebuild.  don't be discouraged if it is a bit rocky to start, you are well on your way from what i can tell.

boa 99/500 would be an excellent option but not sure how stridently they consider recent derogs.  2 new cards max would probably be plenty to start if you can pull it off...it may be a matter of also putting more distance between you and derog info. either via good will removals, passage of time or clearing misinfo. from your reports at the bureaus.

https://preapproved.bankofamerica.com/cc/SelfInquiry.aspx

[stellajuliette]

Thank you for the information. I want to check if BofA has any preapproval opportunities for me but wasn't sure if doing so would show up as an inquiry. I notice that you have to put your ss#  in. Will doing this short form show up as an inquiry?

[llecs]

BofA's preapproval doesn't result in a hard inquiry. I use it once a month myself.

[stellajuliette]

Thank you. Will give it a go. Cross your fingers!

[clocktick]

The new Experian gave me a score of 605 which is lower than it was earlier this year with Fico. It says what is hurting my credit is not having any revolving credit.

What new Experian?   I really wouldn't pay attention to anything FAKO says unless they're referring to your actual FICO score.  There are builder cards like Orchard and Cap One but your best bet is probably the above mentioned BOA card or a secured card from a credit union.

[txjohn]

With your income and financial resources, I suggest a higher limit secured card ($3k - 10k) through a CU, BoA or Amalgamated Bank of Chicago.

I experienced a Bk in 1998 due to a business failure (I invested in a business and signed personally).

So, my credit was dramatically affected, probably worse than yours.  I deposited $15k with Amalgamated Bank of Chicago for a $15k gold Mastercard as part of my recovery.  I was saving money while working on my credit.

At your level of income, depending on what your expenses are, you may be able to get one from BoA....but they are a bit stickier.

I would not go the starter card route (Orchard, CapOne, etc.) if you don't have to.  So, if you are low debt/payments and are receiving over $12.5k per month income, I think you should look at direct deposit with a good CU and talk to them on a secured card that will graduate in time.  But if you have the type of monthly deposits that you posted and can put a chunk in savings each month.....this will be in your favor at CU.

Message Edited by txjohn on 04-02-2009 06:43 AM