Do I need another card?

[Anonymous]

Hello,

My Chapter 7 BK was discharged 7/07.  Since then I have First Premier with $450 limit, had it for 6 months.  I also have a Target red card, $300 limit, had it for 2 months.  My Experian score is 655, and has been sort of stuck there for a few months now.  No inquires other than the two cards.  I am doing well and I don't want to "ruin" it, but would it help my credit to apply for another card?  I certainly don't want another low CL card, so is it better to wait a while?

Any input would be appreciated!

[NowIcare]

The only card I would suggest if you feel like applying would be Hooters they are known for Good CL an Bk friendly. GL

[Anonymous]

May I suggest getting a car loan?  Even if you don't get a decent rate that will add instant credibility to your report.  After 6 months you should see a hike.

[Anonymous]

Thanks for your replies!  I am thinking about getting a car loan, but not having a car payment is sooo nice, perhaps even a bit nicer than a higher credit score....  Our goal is to buy a house next year, so I don't want a car loan to interfere with our chances of getting a mortgage.  I might go ahed and apply for a Hooters card, hopefully they will give me at least $1000, otherwise I feel it may be a waste, I dunno...

[Anonymous]

posts like this always make me very nervous.

it's far better for you to decide on your own how much debt you are comfortable with or whether or not you should open up some random acct just in the name of diversifying your credit picture.

[Anonymous]

Dizzier,

I had a crdit score of 765 when I filed for BK.  Circumbstances beyond my control occured, and I made the decision that it was in my best interest to file (I know you didn't ask, but I wanted to share)

I have never been in a situation where I have had to rebuild credit, and my question on this forum is just one part of the puzzel for me to make my decision regarding applying/not applying for credit.  No need to be nervous, I am just looking for some input before I make my decision. 

[Anonymous]

bunny, can I suggest joining a credit union? I've heard awfully nice things about them...a good way to start savings acct, plus they are usually generous with the credit limits.

I think others here might mirror my comments.

[haulingthescoreup]

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@Anonymous wrote:

bunny, can I suggest joining a credit union? I've heard awfully nice things about them...a good way to start savings acct, plus they are usually generous with the credit limits.

I think others here might mirror my comments.

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Absolutely, and one thing that you MIGHT want to do: get a personal loan from a credit union. It would fill the same category as a car loan, and if you like, you could bank it and pay it off in three months. (Make sure first that it has reported! ) Get very, very clear with the lender that it would NOT be reported as a consumer finance loan, because these hurt your FICO score. It is next to impossible to tell on a credit report when a loan is a CFL, so be sure that you are speaking with someone who knows what he or she is saying, and that this really will happen.

This way, you would get the broadening of credit mix by including an installment loan, but not suddenly be obligated to feeding and maintaining a 3 MPG Super Amalgamated Motor Company Mother of All Special Utility Vehicles for the next 47 years.

[haulingthescoreup]

And back to the CC issue, which was your original question (sorry!), you might want to look at either the Hooters, which is pretty generous but doesn't have a track record yet, or something from Bank of America. BofA has an online app without a hard inq to see if you qualify for a regular card. (Apply for the plat, from what I have read.) If you don't meet their cut-offs, they generally offer a partially or fully-secured CC. I don't necessarily think that BofA is the greatest thing on wheels, but I do applaud them for providing a way for rebuilders to start out with a minimum-risk card and then move on to the real things. Might want to check it out. (There are doubtless similar offers; this is the one that comes to mind.)

IMO, you could definitely use one more card --a legitimate one. Don't take any piece of crap that comes in the mail --pick something that will work for you, and preferably, grow with you. Remember, you're not a piece of garbage lying in the road, you are a customer that can help a CCC make some money off of the merchants. That's the mind-set that you want to keep to the forefront. Good luck!

[Anonymous]

Thanks Sylvia and Hauling!  I think for now I will apply for Hooters, and then next year after my raise I will consider a auto loan with a credit union.  B of A is not an option for me as they were included in my BK.  I really appreciate the information!