No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
It's been a while since I have been on the forum. I need some help or direction. I am currently recovering from bankruptcy which I claimed almost 3 years ago as a result of a car accident and losing a job all in 5 months of eachother. I started to rebuild my credit with several credit cards and was doing well till I yet again lost my job about two years ago. I joined a credit counseling service and have been seeing results, I also live within my means the best I can and sometimes work part time. My score went from the 400's to my current score of 565. I recently just paid off my car as well which will hopefully increase my score. Now to the important part, I got a credit offer in the mail and have been wanting to get a card to help when I travel ( I had my bank card stolen a while back and ever since been real worried about traveling with it). Should I take the offer? I know it's not the best but with my credit and credit offerings in general being low to nill these days I am entertaining the thought. Here are the details of the offer:
$700 limit
23.9% PAR
one time processing fee of $25
1st year annual fee $175, paid in full one time
Yearly annual fee of $174.00 paid monthly at $14.50
cash advance fee $5.00 or 3% of the amount taken whichever is greater
Late fee $29.00 for $500 balance, $35 for balances over $500
Return Item fee $29
I am scared to think about a new credit card cause you never know what could happen. I don't want to be in the position I was in the past. Lose a job and be stuck with bills and work hard just to barley keep a float.
Thanks ahead of time for support and suggestions.
I would say leave it. I think you can do better else where
It doesnt look very inviting.
With most such offers, the intial processing and annual fees are folded into your account balance.
Before you charge one penny, your account may show a balance of $200 on a $700 CL card, or a % util of close to 30%.
If not paid in full the first month, at an annual APR of 23.9%, you are paying approx 2% interest per month. Then they are going to tack on another $14.50 a month to cover your next year's annual fee? You could easilty end up, if you simple make the min monthly payment on the card, with a % util of close to 50% in a little more than a year.
I would first go to my local credit union or bank, and shop around.
I would recommend a secure credit card. Work on getting up your score a little more before you try for unsecured credit. I personally was sent a pre-approved card from 1st premier with a 1500 credit limit. I felt very tempted but I resisted. The reason why is because I knew that I could do better. You can as well friend.
Be very wary of so-called "pre-approved" offers. The controlling workd is "PRE."
What they are really doing is using a marketing ploys to get you to apply. Their "pre-approval" solicitation was made without any access to your CR, other than your name and address. They want to get your written authorization to then pull your full CR. That is when the approval process begins. Then you are hit for an authorized credit pull, whether or not the card is approved.
Do your own shopping first, dont your their home credit shopping network.
Thanks everyone, looks like I'll be shredding the offer. I believe a secured card is the best best. Which gave me a good idea, I'll put my savings for my upcoming trip on the card and use that as I travel. I have already check with my local credit union and they said I still need to work on my score and in a year I should try again. Thanks! I am hoping to get to a 600 score within a year, this should help.