topic Re: Credit One Platinum Card in Credit Cards

Credit One Platinum Card

Erika3o3 — Wed, 10 Feb 2021 18:35:40 GMT

Ok I know this is the dreaded card after reading some posts on this forum. However I am trying to rebuild. I cant even get approved for a Capital One Secured card. I got preapproved for this Credit One Platinum card with a $75 first year fee and then $99 a year after (billed in monthly installments) . The card is active and the $75 year charge has been applied. My first payment is due on February 28th. I'm torn now after reading some posts on here.

Should I just pay the $75 in full, wait for it to report a $0 balance and then cancel the card. Or is there any way this card will be beneficial for my credit for now and I should hold on to it at least for 6 months or so?

Re: Credit One Platinum Card

Anonymous — Wed, 10 Feb 2021 18:40:26 GMT

Since you've taken the HP for it, might as well hold onto it for now. Use it sparingly and make all your payments early. Keep checking prequals and when you are preapproved for something better, dump it and move on. It's a starting point only, and rebuilds usually mean less than optimal cards at first. With proper management you may find better options by the end of summer. Most will say that you should keep a card at least a year before closing it but that's if you value working with that lender. If you don't, dump it once a better option presents.

Re: Credit One Platinum Card

Anonymous — Wed, 10 Feb 2021 18:42:23 GMT

You've already opened it and are aware of the AF, so it is what it is at this time. You could try to call them and see if they can waive the AF for the first X months or whatever and see what they say. Worst case is a no. What does your profile look like that's keeping you from even obtaining a secured card?

I would suggest spending 6 months trying to clean up whatever is really holding your profile back... no doubt negative items while keeping your utilization at on your Credit One at a bare minimum. Literally let no more than (say) $10 report on that thing while paying off your statement balance in full monthly. After 6 months time, hopefully you'll be in a position to acquire at least a couple of secured cards like Discover and Capital One. At that point you can dump Credit One, handle your secured accounts responsibly for 6 months and possibly get them unsecured shortly after.

Re: Credit One Platinum Card

Erika3o3 — Wed, 10 Feb 2021 18:49:31 GMT

My account has really old medical debt mainly. I also have a previous landlord that i didnt give notice to when I moved out so thats about $6000 on my account. (long story short they werent fixing windows that were broken and couldnt be opened for months, and then when we notified them that the apartment was getting roaches after our new neighbors moved in they did nothing about it. We couldnt take it anymore with my small children and just moved. We have tried to fight it, but to no avail. )

Also I checked pre approvals with discover an they have approved me for a Discover IT secured card. Should I take that too? Or should I take that and cancel the Credit one card?

Re: Credit One Platinum Card

quikj9 — Wed, 10 Feb 2021 20:49:09 GMT

I would grab the Discover secured card in addition to the Credit One card that you currently have. The Discover secured card might be the best secured card on the market, considering that it earns rewards and has the potential to graduate as early as 7 months. It helps that their customer service is fantastic.

Then, you'll have 2 cards and be in a position to get a 3rd in 6 months or so. 3 open revolvers and an installment loan is generally recommended for rebuilding. There's no rush to get a 3rd card. You'll want to wait until that 3rd card is something that actually benefits you.

Re: Credit One Platinum Card

Erika3o3 — Thu, 11 Feb 2021 00:31:10 GMT

@quikj9 wrote:
I would grab the Discover secured card in addition to the Credit One card that you currently have. The Discover secured card might be the best secured card on the market, considering that it earns rewards and has the potential to graduate as early as 7 months. It helps that their customer service is fantastic.

Then, you'll have 2 cards and be in a position to get a 3rd in 6 months or so. 3 open revolvers and an installment loan is generally recommended for rebuilding. There's no rush to get a 3rd card. You'll want to wait until that 3rd card is something that actually benefits you.

Thanks for the feedback! I greatly appreciate it.

Re: Credit One Platinum Card

mgood — Thu, 11 Feb 2021 01:41:26 GMT

@Erika3o3 wrote:
Also I checked pre approvals with discover an they have approved me for a Discover IT secured card. Should I take that too? Or should I take that and cancel the Credit one card?

Grab that Disco.
You will want to get rid of the Credit One card, but I don't see any big rush. It's just that you will have those fees forever with no rewards or anything. Right now the reward is that it's helping you establish credit. So keep it for the moment but don't get too attached to it.

Keep in mind that a preaproval or prequalification is no guarantee that you'll actually get the card. Preapproved means you'll probably be approved. Prequalified just means that you fit the general criteria for people who get approved.

Re: Credit One Platinum Card

Anonymous — Thu, 11 Feb 2021 07:58:46 GMT

Keep Credit One for now. Wait until you get to about 10-11 months and call in to close if you don't want to pay the AF for next year. They may try and offer you a reduced AF or even no AF to retain you as their customer. As for Discover's secured card if you're showing preapproved it's worth the shot to apply for it. Regardless keep Credit One and put some use through it, following advice above and then when the AF comes up call in to close and see what they offer/where you're at credit wise.

Credit One is not a terrible card when your credit is bad and can't get anything else. It's a card for someone who has no credit and needs credit or someone who has had bad credit. Some people can only get a CC from Credit One and they have to pay both a high AF and monthly maintenance fees. You have to start somewhere but in time you will grow.

Re: Credit One Platinum Card

Erika3o3 — Thu, 11 Feb 2021 17:20:17 GMT

Thank you all for the advise. I'll give it a try on the full app on the discover secured card today. Hopefully I'll be fully approved and not just pre approved. You guys are amazing. Thanks again.

Re: Credit One Platinum Card

Anonymous — Thu, 11 Feb 2021 17:52:14 GMT

@Erika3o3 A word of advice:

Disco has been heavily using 4506T verifications on income for recent applicants. They will likely request your 2019 tax return via the form. When you apply, use whichever income was lower between your 2018 and 2019 taxes. Disco doesn't play around - if you claim more than your tax forms can prove, kiss your card goodbye.