I got a 1st Premier Bank credit card (MasterCard). The initial deposit is $95 to open a $300 credit limit and the interest on purchases is like 49.9% (I kid you not). The annual fee is $75 for the first year and $45 for every subsequent year. My intial available balance will be about $225... so at the beginning of June, I'm planning on paying about $45 so that my credit util. will be only 10%. I know fee-based cards suck because of lousy terms, but has anyone else here had some success with rebuilding their credit using (and paying on time) a fee based credit card? Thanks!
My score went up about 60pts when I got this, it showed up on my reports before I even got the card in the mail. I have no problems with it, i pay down before statement closes and leave just a few dollars on it and so far I havent see any interest charges added to my bill. So far its helping me out but I only got it to help me rebuild my credit.
Yeah, the fees can be pretty steep at first but the fact that my previous accounts look ugly on my credit report and the fact that I had no open revolving credit accounts, both were hurting my score. But if I keep my credit utilization at around 10% and pay on time every month (more than the minimum payment), that ought to be okay, right? Plus, as I mentioned on another thread, I got approved for my first real checking account in a long time, so no more reloadable debit cards for me. I think both of those steps are indicators of stability, right?