Applying for CC at my local CU doesn't go by score **update

[mt2va]

So I'm rebuilding and have quite a few collections on my credit report (almost all paid off now).  But because of it my score is low to mid 500s right now depending on bureau.  I've done some re-establishing with secured CC.  However, one of them has a horrible interest rate and yes I occasionally do still carry a balance.  I recently opened a savings account with my credit union at work.  Very small credit union.  I put so much of my paycheck in there on DD on payday for savings account.  Anyway saw they had a Visa for 9.89% interest and thought I would inquire because the secured one I have charges an annual fee and 20.99% interest.  Asked about credit score because no point in apping if I have no shot at it.

The response I got is they don't use credit score.  I'm supposed to call and talk to someone in a little bit so how do you think is best to sell them on giving me a card (even for a low limit to start)?  They said they review my whole report.  They also go by income which is about $40k annually including a lot of OT and bonuses.  I'm assuming this will be in my favor because even though I have collections they can see they are all paid off except one I am currently paying on each month. 

My goal is to get a CC with them and to pay off/close out my other CC with the higher interest and have my security deposited returned to put into savings or possibly take it and pay off the remainder of what I owe on the one account in collections.

[bahbahd]

I think you have pretty much outlined your arguments right there in the post:

1. Collections paid off, or currently paying on a schedule.
2. Clean history over 6 months on two positive accounts.
3. Income $40k+
4. Reason: not seeking new credit or huge limit due to being over extended. Seeking new card with better rates to use as your primary spender on which you seldomly carry a balance.

[Anonymous]

BEST OF LUCK TO YA!!! I hope you get that card ,and cancel that high interest card! CU's are awesome about issuing CC's to their members(or so i hear)!

[mt2va]

Another bonus to a small credit union is I got an email and phone call from an Executive Officer.  I explained it all to her and she said to apply.  I'm going to send a letter with my application outlining in detail everything above.  I did ask about CLI and she said they don't do them automatically but after a year of good payment history I can just email her with my request. 

So I'm going to give it a go.  They pull EQ which has a ton of inquiries but if they don't care about score hopefully they won't care about inquiries.  She said they go more on income and length of time at job and address.  Same job 14 years same address 17 years so hopefully I'm good on that.  Yes will be happy to get rid of secured card with high interest rate and use that deposit to put in savings or pay off another debt.

Also when should I close my other card since it has an annual fee?  I know even closed it will still be on my credit report for up to 10 years.  Should I close it just before the annual fee hits this year or as soon as I can pay it in full and have my deposit returned??

[Anonymous]

I totally agree with everybody's advice here thus far. However, I think you're missing some key information in your case:

If you're going to use the point that you have a good income to support your credit obligations, the first question I would ask you is the following:

What's the reason for your many charge offs? Why does your recent history (last 365 days) show failure to not pay your financial obligations? Why haven't you paid off all of your charge offs to date?

What I'm getting at is people get into trouble through no fault of their own - a lot of people can't make the bills because of loss of income (unemployment, illness and the like); some people earn money but they somehow just don't pay their bills ending up with charge offs and collections. Which one are you? 

I think they're going to want to hear what everybody has noted thus far (your case as to why you should get a credit card from them) but I think the credit union is also going to ask some questions about HOW and WHY you had troubles meeting your obligations in the past...and what's changed now that you think you can pay on time and not get into more trouble?

I think if you covered that base you'd have a great shot - afterall, the people granting the credit are human, too. They'll certainly understand if your circumstances warrant getting a "pass".

[bahbahd]

---

@mt2va wrote:

Also when should I close my other card since it has an annual fee?  I know even closed it will still be on my credit report for up to 10 years.  Should I close it just before the annual fee hits this year or as soon as I can pay it in full and have my deposit returned??

---

Why pay a fee to be loaning a bank money if you get a new unsecured card? Get your money back and put it in that CU savings account.

[mt2va]

@unusuallyconfused you bring up a good point and I guess I failed to mention this in detail in the beginning of my comments, but I have addressed it in the letter I'm mailing the credit union with my application the reason previous cards have gone to charge off (and many many years ago a bankruptcy) and that now things have changed is I was married to a deadbeat abusive alcholic for 20 years who rarely worked and spent all my money and wrecked several cars and we never had anything.  Now that that part of my life is over I'm trying to get back on track with my credit, savings, and retirement accounts and hoping that at 41 I'm not going to be too far behind. 

In the past year I've managed to take care of nearly $35,000 debt he left me with and I'm hoping when I explain this to them they will consider giving me a chance.  I've even burned Capital 1 (since paid off) and Credit One (also since paid off) so I can't even get a sub-prime card/ but I didn't want that anyway.  That's why I went the secured card route.  I just felt that after a year of re-building if I could replace my 20.99% card with 9.89% for when I do carry an occasional balance it made better finanical sense for me to do so. 

I don't quite have my savings built up to the point of being able to handle un-expected expenses so I do have to rely on my CC occasionally to pay for something and then pay it back in 1-2 months.  I have come a long way from where I was and I'm hopeful (despite being alone) that things will continue to look up for me. 

[09Lexie]

Good luck to you. Kudos to you for taking back your life.

[CreditSeductress]

Applause, Applause, Applause! You didn't have to share your story with the Community, but you did. Whether you know it or not, your story has helped someone. Someone may not have been strong enough yet, or may have been on the fence regarding a bad situation, and you just helped them to go over it and get themselves out of a bad place. Maybe even saving their life!

You are on the right track credit and life wise. You've walked through the smoke, fire, flames, and ashes, to overcome those obstacles, and take back the reins of your life.

In your last post you said, "I have come a long way from where I was and I'm hopeful (despite being alone) that things will continue to look up for me."

Don't look at it as being alone.....Look at it as taking some needed time to yourself! We as individuals need that some time! Trust me, things are already looking up for you.

[BlueNightStar]

---

@mt2va wrote:

@@Anonymous you bring up a good point and I guess I failed to mention this in detail in the beginning of my comments, but I have addressed it in the letter I'm mailing the credit union with my application the reason previous cards have gone to charge off (and many many years ago a bankruptcy) and that now things have changed is I was married to a deadbeat abusive alcholic for 20 years who rarely worked and spent all my money and wrecked several cars and we never had anything.  Now that that part of my life is over I'm trying to get back on track with my credit, savings, and retirement accounts and hoping that at 41 I'm not going to be too far behind. 

In the past year I've managed to take care of nearly $35,000 debt he left me with and I'm hoping when I explain this to them they will consider giving me a chance.  I've even burned Capital 1 (since paid off) and Credit One (also since paid off) so I can't even get a sub-prime card/ but I didn't want that anyway.  That's why I went the secured card route.  I just felt that after a year of re-building if I could replace my 20.99% card with 9.89% for when I do carry an occasional balance it made better finanical sense for me to do so. 

I don't quite have my savings built up to the point of being able to handle un-expected expenses so I do have to rely on my CC occasionally to pay for something and then pay it back in 1-2 months.  I have come a long way from where I was and I'm hopeful (despite being alone) that things will continue to look up for me. 

---

What an awesome uplifting story. I admire your courage and I'm sure you have a wonderful new future ahead of you. If I was a loan officer and read your letter I would have no problem approving you immediately.