topic Re: CC Rebuild Strategy Question in Credit Cards

CC Rebuild Strategy Question

Jutz — Thu, 25 Oct 2012 00:08:25 GMT

Looking for a bit of guidance here. I'm done with the getting rid of my debts portion of my credit rebuild (Short 1 medical collection that's out for PFD, if not will pay w/in two weeks). So basically now I'm GWing my ass off. This week I had a bit of a scare, and a car repair came up and I realized it would be nice to have a usable credit line as opposed to the basement Cap1 I have. I'd like to add two cards to my wallet in the next year, while staying realistic.

Current wallet:

Cap1 Plat rebuilder: $750 (500 to open last October)

BOA Platinum: $600 (Opened 6 years ago, but have had bad payment history previously)

GE Firestone Card: $1600 (Just as AU, don't even have possession of card, 7 years old)

My current scores are below. Have have only 1 hard pull since November 2009.

I was thinking about a Barclays card (Not store card) and a Walmart GE card. Both seem to have pretty reasonable CL policies that can actually grow well. I know I'm not going to be in Amex/Chase/Citi territory for awhile so just trying to stay grounded.

Given where I'm at, how long should I wait to take a look at either of those cards? Thanks for any guidance you may have. I just want a usable card that I can't max out with one car repair, or that crushes my UTIL with a couple of purchases.

Re: CC Rebuild Strategy

Anonymous — Thu, 25 Oct 2012 00:08:26 GMT

You should be okay for the walmart store card - they pull TU most of the time (if not always?), and GE is generous with CLI if you treat them well. I don't know much about Barclay's, but definately give Walmart a shot.

Re: CC Rebuild Strategy

Jutz — Thu, 25 Oct 2012 04:16:29 GMT

What were you at when you got your Walmart? Also, is it still at 300? How old is it?

Re: CC Rebuild Strategy

Jutz — Thu, 25 Oct 2012 04:38:06 GMT

A caveat I forgot to mention...I have a 30 day late on the BOA card from April of this year. Is this someting that will pose a major hurdle for me? I know that I've changed my financial outlook since then, but a bank doesn't.

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:13:48 GMT

@Jutz wrote:
Looking for a bit of guidance here. I'm done with the getting rid of my debts portion of my credit rebuild (Short 1 medical collection that's out for PFD, if not will pay w/in two weeks). So basically now I'm GWing my ass off. This week I had a bit of a scare, and a car repair came up and I realized it would be nice to have a usable credit line as opposed to the basement Cap1 I have. I'd like to add two cards to my wallet in the next year, while staying realistic.

Current wallet:
Cap1 Plat rebuilder: $750 (500 to open last October)
BOA Platinum: $600 (Opened 6 years ago, but have had bad payment history previously)
GE Firestone Card: $1600 (Just as AU, don't even have possession of card, 7 years old)

My current scores are below. Have have only 1 hard pull since November 2009.

I was thinking about a Barclays card (Not store card) and a Walmart GE card. Both seem to have pretty reasonable CL policies that can actually grow well. I know I'm not going to be in Amex/Chase/Citi territory for awhile so just trying to stay grounded.

Given where I'm at, how long should I wait to take a look at either of those cards? Thanks for any guidance you may have. I just want a usable card that I can't max out with one car repair, or that crushes my UTIL with a couple of purchases.

Who do you bank with?

Re: CC Rebuild Strategy Question

Jutz — Thu, 25 Oct 2012 05:16:34 GMT

Primary account is with a local credit union, also have a checking account with TD.

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:17:14 GMT

If you have a good savings built up, a high limit secured card would be good. I think it would get you to high tier credit cards faster than just getting more low limit cards.

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:18:01 GMT

@Jutz wrote:
Primary account is with a local credit union, also have a checking account with TD.

Ask your credit union if they would be able to give you a credit card. Usually a good relationship is helpful in that regards.

]

Re: CC Rebuild Strategy Question

distantarray — Thu, 25 Oct 2012 05:24:10 GMT

What are you trying to GW? and what are wrong with your accounts? Also remember to send Debt validation requests to collections agencies, 623 to OC, and hand write complaints to the CRA on yellow legal note pad with a purple pen in cursive. but also remember to careful with fighting collections or past due accounts within your state's statues of limitations.

If there are any reporting violations or practices done you can get things removed for free. Of course it requires a bit of luck and time as well.

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:24:44 GMT

If you want a Barclays card. I think you would be approved for the:

Barclaycard Rewards

It has two tiers, if you do not get the top tier you get a chance at the lower tier.

https://www.barclaycardus.com/apply/Landing.action?campaignId=1654&cellNumber=3&referrerid=BCUSORGOG1

But I think your credit union is a good option too.

Re: CC Rebuild Strategy Question

Jutz — Thu, 25 Oct 2012 05:25:34 GMT

I understand a secured card's place in the rebuilding world, but I'm not understanding how it fits in my situation. I'm not looking to dip into my savings just to get a CC. I'm looking to find a path from subprime basement cards into lower level legitimate cards with a chance to grow. Am I missing something about a secured card? Is it not just whatever money i put down is my CL? I can wait to get a card that fits best, I'm just wondering how long that may need to be

Re: CC Rebuild Strategy Question

Jutz — Thu, 25 Oct 2012 05:28:01 GMT

@Anonymous wrote:
@Jutz wrote:
Primary account is with a local credit union, also have a checking account with TD.
Ask your credit union if they would be able to give you a credit card. Usually a good relationship is helpful in that regards.

]

this was my hope in starting with a CU, but I've been a bit disappointed. I may take some time to talk to them, but I was dissuaded by their auto loan policies, which were amazingly strict. I was quoted as needing a minimum 690...

Re: CC Rebuild Strategy Question

Jutz — Thu, 25 Oct 2012 05:29:12 GMT

@distantarray wrote:
What are you trying to GW? and what are wrong with your accounts? Also remember to send Debt validation requests to collections agencies, 623 to OC, and hand write complaints to the CRA on yellow legal note pad with a purple pen in cursive. but also remember to careful with fighting collections or past due accounts within your state's statues of limitations.

If there are any reporting violations or practices done you can get things removed for free. Of course it requires a bit of luck and time as well.

I'm comfortable with my rebuilding process as of now. I'm trying for one last PFD and if it fails I'm just going to PIF and hope for GW down the road.

Re: CC Rebuild Strategy Question

Jutz — Thu, 25 Oct 2012 05:30:47 GMT

@Anonymous wrote:
If you want a Barclays card. I think you would be approved for the:
Barclaycard Rewards

It has two tiers, if you do not get the top tier you get a chance at the lower tier.
https://www.barclaycardus.com/apply/Landing.action?campaignId=1654&cellNumber=3&referrerid=BCUSORGOG1

But I think your credit union is a good option too.

yes, this or the NFL one seemed along the lines of what I would shoot for. But I'm certainly open to suggestions, and I should probably talk to my CU, as it was a good suggestion.

Re: CC Rebuild Strategy Question

distantarray — Thu, 25 Oct 2012 05:32:26 GMT

@Jutz wrote:
I understand a secured card's place in the rebuilding world, but I'm not understanding how it fits in my situation. I'm not looking to dip into my savings just to get a CC. I'm looking to find a path from subprime basement cards into lower level legitimate cards with a chance to grow. Am I missing something about a secured card? Is it not just whatever money i put down is my CL? I can wait to get a card that fits best, I'm just wondering how long that may need to be

Secured cards give you interest on the deposits, and helps report to all 3 bureaus, also with secured cards usually yes your deposit = the CL not always, like Capital one will take $50 to give you a $200 limit etc.

Having more creditlines extended to you can help. I went from 0 credit cards last year, to having 9 credit cards reporting (2 secured $2,500 total, and a kays for $400) 6 were AU's with fresh starts. I am now in a position to get rid of everything. You close the account you get your deposit back, , and some graduates you get it back once your scores are better and converts to a secured card, or some will refund exactly in 1 year, and some never do so pick your cards carefully.

Being able to do things secure also reflects pretty good in a manual review cause those accounts are considered very low risk. Also secured cards usually have a low interest rate at credit unions that can usually rival with people with Super Prime cards.

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:36:28 GMT

@Jutz wrote:
I understand a secured card's place in the rebuilding world, but I'm not understanding how it fits in my situation. I'm not looking to dip into my savings just to get a CC. I'm looking to find a path from subprime basement cards into lower level legitimate cards with a chance to grow. Am I missing something about a secured card? Is it not just whatever money i put down is my CL? I can wait to get a card that fits best, I'm just wondering how long that may need to be

A high limit secured card would show lenders that you are able to handle high limit credit cards. Usually $5,000 is the ideal number for a minimum of 1 year.

You are not really dipping into savings, you are just moving it from one account to another, to speed up your credit building.

Sometimes secured cards graduate to non secured, so after a year or so you can get your money unlocked. Just varies between banks.

I think it would fit your situation in that it would get you out of the low limit cards into a higher limit card.

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:37:06 GMT

@distantarray wrote:
@Jutz wrote:
I understand a secured card's place in the rebuilding world, but I'm not understanding how it fits in my situation. I'm not looking to dip into my savings just to get a CC. I'm looking to find a path from subprime basement cards into lower level legitimate cards with a chance to grow. Am I missing something about a secured card? Is it not just whatever money i put down is my CL? I can wait to get a card that fits best, I'm just wondering how long that may need to be
Secured cards give you interest on the deposits, and helps report to all 3 bureaus, also with secured cards usually yes your deposit = the CL not always, like Capital one will take $50 to give you a $200 limit etc.

Having more creditlines extended to you can help. I went from 0 credit cards last year, to having 9 credit cards reporting (2 secured $2,500 total, and a kays for $400) 6 were AU's with fresh starts. I am now in a position to get rid of everything. You close the account you get your deposit back, , and some graduates you get it back once your scores are better and converts to a secured card, or some will refund exactly in 1 year, and some never do so pick your cards carefully.

Being able to do things secure also reflects pretty good in a manual review cause those accounts are considered very low risk. Also secured cards usually have a low interest rate at credit unions that can usually rival with people with Super Prime cards.

+1 well put

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:48:11 GMT

These banks have options geared towards your credit file:

http://www.spectrumcu.org/asp/general_30.asp

https://www.ufcu.org/accounts/credit_cards/index.php?loc=menu

Re: CC Rebuild Strategy Question

distantarray — Thu, 25 Oct 2012 05:52:24 GMT

Oh I forgot to add in 1 year I went from being declined for a secured BOA card (yes my scores were that bad) with help of secured cards I've now recieved Amex BCP , Chase Sapphire, Navy Federal, and Chase Freedom card this month for a total of $30k in credit limits. So secured cards are sometimes the best ways to gain business. It shows you were responsible enough to save the deposits and make wise decisions. Atleast this shows you don't live paycheck to paycheck and couldn't spare a little extra cash (manual review)

Also it's been reported long time ago during a manual review that a person got turned down for a Amex and one of the reasons were "First Premier Bank" LOL

Re: CC Rebuild Strategy Question

Anonymous — Thu, 25 Oct 2012 05:55:39 GMT

@distantarray wrote:
Oh I forgot to add in 1 year I went from being declined for a secured BOA card (yes my scores were that bad) with help of secured cards I've now recieved Amex BCP , Chase Sapphire, Navy Federal, and Chase Freedom card this month for a total of $30k in credit limits. So secured cards are sometimes the best ways to gain business. It shows you were responsible enough to save the deposits and make wise decisions. Atleast this shows you don't live paycheck to paycheck and couldn't spare a little extra cash (manual review)

Also it's been reported long time ago during a manual review that a person got turned down for a Amex and one of the reasons were "First Premier Bank" LOL

Haha, I don't see why people would be willing to pay those huge fee's instead of earning interest on a savings account.