CC Question for Newbie

[Hogwash]

A lurker has come out of the woods and needs some help:

Divorce in 2000 and all the usual issues with who pays what stuff.

Pre divorce FICO's

EQ - 795
EX - 789
TU - 799

I cancelled all CC's in 2001 and had some 30 days lates and 2 CO's. As of this month I have 2 accounts that are past the SOL and were sold to 2 very reckless debt companies. They are reporting them as CO in the last 12 months (they were CO in 7/2001.

My current FICO's

EQ - 689
EX - 0
TU 654

TU just dropped all of the 30 day lates and now I cannot get a Score Power to update because the account does not meet the requirements.

My Question:

Which credit cards should I apply for under these condtions? What about Auto Loans and rates - GMC?

I have an income north of $250K myself without my spouses income. No mortgage, we own our home and -0- debt reporting other than the CO's which were joint and will drop off in July 2008

This board made a believer out of me as my FICO's are up almost 75 since following some of the great advice in here.

Thanks!

[Anonymous]

Do you have a good relationship with a local bank or credit union?  I'd start there and avoid the junk cards since you have the income to support it and the bank can glance at your account trends.  They would be likely to finance you for your vehicle as well.  A big plus is that you can meet with them face to face.

Several people have had luck establishing with Capital One.  (Provided they weren't one of the COs showing on your report.)

I would avoid BofA's pre-approval site since you don't have a score from EX.  They have been known to pull TU, but I think that's usually after pulling EX.  You might get a secured card offer, which would be a great place to start if the locals don't work out for you.

Just my dime's worth.  (Blame inflation.)

[Anonymous]

Welcome to the forum, Hogwash!

Feels good to finally come out of the shadows and

into the light, doesn't it??

I agree with WhirledPeas. A credit union would be your best

bet. If you don't currently work with one in your local area,

I would recommend one with a national footprint.

Pentagon Federal Credit Union is a big favorite with lots

of members here, and they pull Equifax exclusively. Your

EQ is 689, so you should be ok score-wise. If you're looking

for a car loan they have great rates. New car rates are as low

as 4.25% (online only) and used cars are also 4.25% for up

to 60 months. So you might be able to sneak thru the front door

with an auto loan, and then ease into credit cards, lines of credit, etc

in the next 6-12 months.

Here's their link and phone number:

http://www.penfed.org 

1-800-247-5626

If you don't meet their general requirements for membership, you can

join one of their affiliated organizations for a modest fee ($25) and then

enroll. They hard pull Equifax, but the hard pull is good for 60 days at

a time. This will help to keep your inquiries to a bare minimum.

Once again, welcome to the forum (and into the light). Don't be a stranger!

CanDo

"The right attitude is everything"

[Anonymous]

With that income and even your scores are not bad...Apply to AMEX unless you have not paid them in the past. They do have a long memory.

[Anonymous]

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so_confused wrote:

With that income and even your scores are not bad...Apply to AMEX unless you have not paid them in the past. They do have a long memory.

---

I don't know about Amex.  TU is a little low to obtain a card with that score.

I would go for the credit union.

[Anonymous]

---

TheCynicalOne wrote:

---

so_confused wrote:

With that income and even your scores are not bad...Apply to AMEX unless you have not paid them in the past. They do have a long memory.

---

I don't know about Amex.  TU is a little low to obtain a card with that score.

I would go for the credit union.

---

I agree.  Amex might flip out if they can't find an EX score for you.  I'm not sure they know how to function w/o EX.

[Anonymous]

I don't know about the credit union thing. If you have ANYTHING that you could work just a little, I'd go for a full on B of A card. You are not far from having numbers they really like. Let the last of the dust settle since itis so close now then focus on just a couple really good cards. Don't sell yourself short at this close-a-call in the game.

[Anonymous]

Forget the web stuff, at your income I'd make an appointment with the BofA Premier Banking people.

They can hook you up with whatever you need in terms of credit cards and pay more attention to the 'big picture' than just FICO scores.

I've had a few meetings with my local Premier Banking representatives. I opted not to use their wealth management and financial planning services (I'm more a DIYer), but they set me up with a nice Master Account and an Accolades card.

[Anonymous]

Having money does not solve credit issues.

Yes, Bank of America has a wonderful Premier Banking

and Wealth Management division, but one of the first things

they are going to do is pull your Experian and TransUnion reports

which are 0 and 654 respectively.

Working with an organization of BofA's caliber is a good ultimate goal,

but the immediate task at hand is to work with people best qualified to help

based on the highest FICO score, which is Equifax.

So I would recommend working with a credit union that will give you an

auto loan and maybe an unsecured cc in the 1-5k range (you'll probably get

more given your high income). Pay these new tradelines in full each month

and keep working to get those CO's removed. THEN make your move to BofA

with a clean slate, a clear conscience and your best foot forward. Plus, it never

hurts to have a diversity of credit, so positive tradelines with a credit union will do

nothing but strengthen your position. Just be sure that the credit union you work

with reports to all 3 CRA's.

Always negotiate from a position of strength. With the financial climate the

way it is these days...even if you have money....your credit has to be operating

on all cylinders in order to make your best moves.

That's my 2 cents for what it's worth.

CanDo

"The right attitude is everything"

[Hogwash]

Great information and thanks to all the contributions!

I agree that the 7 years in so close and my need for credit is only to re-establish myself with the banks that I will wait for 60 days before stepping off into the market again. I have a business account relationship with Suntrust and Smith Barney. We have not established any CL's with them but may consider doing this once my credit history strengthens. Suntrust used to be a business friendly bank but lately I have not been impressed with them.

Should I consider a personal CC with either Suntrust or Smith Barney or do you think that my chances are slim with my past credit transgressions?

Thanks again for the great feedback and your detailed answers.