should i be excited about hsbc approval?

[spartanspirit]

I received a "pre-selected" offer in the mail today from hsbc for a card with $750 credit limit with 0% for 12 months, but with a $59 annual fee. I'm in the process of rebuilding after multiple lates, a few charge-offs that are not on reports anymore, and a paid judgment.  I applied online, was given the 10-14 day message, and was told i can come back and check my status anytime. I checked and was told I needed to call in and verify my home phone number, I did and instantly approved. I have a cap one plat. w/ credit steps $500 credit limit with a $19 annual fee and a credit card with my credit union with a $500 limit as well but no annual fee. I know it's not prime or anything, but it's something to start over with and learn from my prior mistakes. I'm trying to be like the big dogs here who get approved with $10k+ credit limits, tho I would never need that much.

[pizzadude]

It sounds like you are taking the right steps to get back in the credit game !   Personally, I think $59 is too high for an AF.   Just wait a few weeks and they will very likely send you a different offer with a lower AF.  

[-Cain-]

Of course the card can help, you just probably won't want to keep it long term. As you build your credit you will get better cards with more room for growth, maybe lower APRs, and perhaps no AFs. You've already applied and been charged an INQ, so use the card well, make it work for you in your rebuilding stage, then make the decision to keep or cancel when you are ready. You have three cards now, I would not app for anymore for a few months. See your scores hopefully improve and take it from there.

[RyVision]

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@-Cain- wrote:
Of course the card can help, you just probably won't want to keep it long term. As you build your credit you will get better cards with more room for growth, maybe lower APRs, and perhaps no AFs. You've already applied and been charged an INQ, so use the card well, make it work for you in your rebuilding stage, then make the decision to keep or cancel when you are ready. You have three cards now, I would not app for anymore for a few months. See your scores hopefully improve and take it from there.

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+1

[RyVision]

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@spartanspirit wrote:

I received a "pre-selected" offer in the mail today from hsbc for a card with $750 credit limit with 0% for 12 months, but with a $59 annual fee. I'm in the process of rebuilding after multiple lates, a few charge-offs that are not on reports anymore, and a paid judgment.  I applied online, was given the 10-14 day message, and was told i can come back and check my status anytime. I checked and was told I needed to call in and verify my home phone number, I did and instantly approved. I have a cap one plat. w/ credit steps $500 credit limit with a $19 annual fee and a credit card with my credit union with a $500 limit as well but no annual fee. I know it's not prime or anything, but it's something to start over with and learn from my prior mistakes. I'm trying to be like the big dogs here who get approved with $10k+ credit limits, tho I would never need that much.

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Great start.  You probably already know you're in the right place to learn even more with MyFico really.  Remember, almost no one starts out with prime high CL cards during building or rebuilding (esp not anymore).  Nearly all the "big dogs" here were puppies at one time (no 10k cards in their wallets or even 5k) and aren't ashamed to admit it.  

It's why a lot of them are here helping others do better with their credit through knowledge, experiences and opinions.  And we have some really big dogs here too! LOL   And they're here to learn more too, as they share what they know. I'm sure you've noticed people with 20K+ lines congratulating others on getting a 300$ card or a CLI.  I think it's because they know it's all about building a file, and that happens a page and TL at a time.

I recommend MyFico to others a lot, because of the insight offered by others here.   So if you wanted the card, and the 59$ is acceptable to you and your goals, why wouldn't you be excited? Remember, we have members here paying over 400$ a year for some cards, it's still just a TL with perks when it comes down to it.  

Congrats on the 3 cards btw!

[quest208]

i say yes you should be happy.  yes there is an annual fee, but look at it this way, who else will give you credit?

i too have a card with an annual fee.  at teh time that i applied for it, nobody else would give credit cards.  so i was in the "beggers cant be choosy" category.  well, unless you want a secured card....which i did not want to do.

at the time that i was approved for my orchard hsbc card, it had an annual fee but i had crappy credit.  but it helped me get to where i am now.  731 fico scores and i now have a USAA credit card with an 11,000 credit limit.  im sure i can get two or three other cards with high limits but im not applying yet, i know my scores are headed up.

the point is, and someone else has this in their sig: each card has a role.  let the card play its role until you are ready to upgrade.  be happy and make the card work for you.  the annual fee should be a drop in the bucket if you think about the things which you spend your money on (snacks, coffee, eating out, luxuries, thing you want but dont need, etc)

dont be discouraged.  you will be in the 700 club sooner than you think, and you can kung-fu kick the HSBC card and its annual fee.

as a matter of fact now may be a good time to open up an USAA checking account, put $25 in the checking and let it sit until your scores are in the 700s.  then apply for their credit card.  its a soft for checking account