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Plan of attack w/no credit/bad: Secured vs AU

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Anonymous
Not applicable

Plan of attack w/no credit/bad: Secured vs AU

Hi all!

 

I am currently working on increasing my credit score from 550ish to better.  TU = 552, No score for the others, yet.

 

1 derog for $50, which I already received excellent advice for on these forums, thank you!

 

Just received and activated Cap 1 secured.

 

I applied for Open Sky, and I can proceed with funding that secured card as well, or hold off.

 

Ready to go with Fingerhut, if need be.  

 

At the same time, I've been researching and working on husband's credit, and thanks to you fine people with your insight, he's received some new cards and a credit increase with two cards.  

 

I do NOT NOT NOT want to be added as an AU to any current card he has since he has missed several payments.  But, I am wondering if there would be benefit to me if he added me as an AU to one or some of the new cards that should be arriving any day now?  There will be no history, obviously since the cards are new, but assuming that the bills are paid on time and the balances stay at 0% or 1-9%, would this be a good idea for my credit score to improve?

 

And, would I be better off going that route, and not bothering with Fingerhut and/or Open Sky?  I'm kicking myself for applying for Fingerhut, I certainly did not need that hard pull.  But since I already have the hard pull, should I proceed?

 

Thank you so much. 

Message 1 of 18
17 REPLIES 17
Anonymous
Not applicable

Re: Plan of attack w/no credit/bad: Secured vs AU

I would not bother with the whole AU thing. The main reason to do it is to boost your AAoA.

Message 2 of 18
sjt
Senior Contributor

Re: Plan of attack w/no credit/bad: Secured vs AU


@Anonymous wrote:

Hi all!

 

I am currently working on increasing my credit score from 550ish to better.  TU = 552, No score for the others, yet.

 

1 derog for $50, which I already received excellent advice for on these forums, thank you!

 

Just received and activated Cap 1 secured.

 

I applied for Open Sky, and I can proceed with funding that secured card as well, or hold off.

 

Ready to go with Fingerhut, if need be.  

 

At the same time, I've been researching and working on husband's credit, and thanks to you fine people with your insight, he's received some new cards and a credit increase with two cards.  

 

I do NOT NOT NOT want to be added as an AU to any current card he has since he has missed several payments.  But, I am wondering if there would be benefit to me if he added me as an AU to one or some of the new cards that should be arriving any day now?  There will be no history, obviously since the cards are new, but assuming that the bills are paid on time and the balances stay at 0% or 1-9%, would this be a good idea for my credit score to improve?

 

And, would I be better off going that route, and not bothering with Fingerhut and/or Open Sky?  I'm kicking myself for applying for Fingerhut, I certainly did not need that hard pull.  But since I already have the hard pull, should I proceed?

 

Thank you so much. 


I would forget the whole AU thing altogether.

 

I would also skip Open Sky and get a State Department Federal Credit Union Secured Visa. Better Card all around. Depending what your current credit profile is like, I would also check into a card that graduates, like B of A.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 3 of 18
Anonymous
Not applicable

Re: Plan of attack w/no credit/bad: Secured vs AU

Thank you very much for the advice.  So, just to clarify, there is absolutely NO benefit in my situation to become an AU on any of husband's cards?

 

I've seen some posts with people saying they have denied BoA secured.  What would be the reasons for this?  I just do not want an additional hard hit with no benefit.  

 

SDFCU denied me a savings account, let alone a secured card.  I have checking and savings accounts, have had them for many years so I don't know what the problem could be.  I am very frustrated by this denial nonsense that occured last week.  Smiley Sad

Message 4 of 18
sjt
Senior Contributor

Re: Plan of attack w/no credit/bad: Secured vs AU

Gillian1 wrote:

Thank you very much for the advice.  So, just to clarify, there is absolutely NO benefit in my situation to become an AU on any of husband's cards?

I dont think it would make a difference, especially if the accounts are new. Also, most banks have their own internal scoring system that ignores AU.

 

I've seen some posts with people saying they have denied BoA secured.  What would be the reasons for this?  I just do not want an additional hard hit with no benefit.  

What is your current credit profile. What are your derogs?

 

SDFCU denied me a savings account, let alone a secured card.  I have checking and savings accounts, have had them for many years so I don't know what the problem could be.  I am very frustrated by this denial nonsense that occured last week.  Smiley Sad

I would call and find out the reason for the savings account denial. What reason did they give you? Did you try to open the account online ordid you go to a branch. WHat is the current status of your checking and savings with them. Also you should be able to put funds in your current savings account to fund the secured card.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 5 of 18
Anonymous
Not applicable

Re: Plan of attack w/no credit/bad: Secured vs AU

sjt-

 

Okay, thank you.  I'll forget about the AU thing. 

 

Only thing on my credit report is 1 derog, 6 years old, for $50.  1 hard pull on TU and 3 hard pulls on Eq.

 

Let me clarify, I have a checking and two savings accounts with national banks, not with SDFCU.  They are in good standing.

 

Here is the letter I received from SDFCU:

 

"Thank you for your application and for your patience. Unfortunately, we are unable to open an account for you using our online channel. Our online application process incorporates both an identity verification and an identity authentication component which results in a numerical score that becomes the basis for the auto-decisioning aspect of the process.

The decision regarding whether an account can be opened is directly dependent on where an applicant’s score falls within a pre-established risk-based matrix. This matrix includes ranges of acceptable versus non-acceptable scores, and those scores are reflective of the weight of each factor being evaluated in the verification and authentication processes along with their associated risk.

When an application is auto-decisioned as a “decline,” the score fell below our minimum acceptable threshold. When that happens, we are not privy to the specifics regarding what information could not be verified or authenticated due to the proprietary nature of the software being used for that verification/authentication process. In those instances, whenever it is possible, the applicant needs to apply in person at one of our branches. We do thank you for your interest in State Department Federal Credit Union.

***Please do not reply to this web message. All future messages are not monitored. If you have any further questions, please email us at sdfcu@sdfcu.org. Or call our Member Service Center at 703-706-5000. "

 

I suppose I could give them a call. 

Message 6 of 18
sjt
Senior Contributor

Re: Plan of attack w/no credit/bad: Secured vs AU

Regarding SDFCU, I believe the denial had to do with verifying your identity. I would contact them for more details.

 

Based on the description of your credit credit profile, I think you would qualify for a Bank of America secured card. The 6 year old $50 collection should not be an issue at all.

 

Keep us posted.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 7 of 18
Anonymous
Not applicable

Re: Plan of attack w/no credit/bad: Secured vs AU

Yeah, its an Identity thing. Have you ever been the victim of ID Theft? Split files could cause issues I would think, also maybe a thin file as well....Hard to say. Could be something as simple as a typo in your app somewhere, too. I'd give them a call and see if they can help out.

 

You might also try NASAFCU or DCU.

Message 8 of 18
sjt
Senior Contributor

Re: Plan of attack w/no credit/bad: Secured vs AU

FYI-

 

I found this My Fico link regarding Bank of America secured card requirements:

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Bank-Of-America-Secured-Card-Requirements/m-p...

 

Under those requirements you should qualify for an account.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 9 of 18
Anonymous
Not applicable

Re: Plan of attack w/no credit/bad: Secured vs AU

Thank you very much sjt and Norman.

 

Great information!  

 

I tried calling SDFCU and a recording said that all offices are closed due to the weather.  So I guess I will have to try again tomorrow.  I'm going to hold off on BoA until after I see if there is any luck with SDFCU. 

 

In the meantime, is there anything that I am overlooking that I could be doing to help my score/report for the long run?  The goal is to buy a house in 2016.  

 

Thank you again!

Message 10 of 18
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