Improving Credit with Secured Cards and Bank Balance

[Anonymous]

Hello! This forum is an awesome resource! I'm trying to build my credit history, increase my score in 12 months significantly, and build up a good limit.

My credit history is almost non existent. My credit score is 640. I'm 24 and have paid for everything cash since I was 18, so I have practically no credit history. Three months ago I found out my credit score is terrible because of a tax lien and collection account from a cell company. I didn't know about either of these things and am having them removed successfully.

The only other thing I have on my record is a student loan of $22,000 which I fully paid off two years ago and a secured credit card for $500 I just got three months ago. I have been keeping my balance on this card below 10% monthly and my score went up 20 points already to 640.

1). I have maintained ~$120k with BofA in various savings/checking/IRA accounts. Do banks like BofA look at my balances with them before deciding if they'll extend me a credit card? If so, I'd rather apply for a decent card with BofA without going with another secured card.

2). If not, should I get another secured card to help improve my credit or just keep the secured card I have and wait for score to gradually go up before applying for an unsecured card.

Thank you very much!

[Guyatthebeach]

I would wait until your secured credit card has reported six months of activity to the credit bereaus. I would also check your credit reports to make that the negative tax lien and collection have been removed from all 3 CB's.  Try to get your score over 655 before you apply. BOA does take consumer banking account balances and account activity into consideration when you apply for a credit card.  If you PIF monthly, apply in the branch for the 3-2-1 cash rewards. You get a bonus when you deposit the funds into a BOA deposit account.

[enharu]

bank of america does value relationship.

once your baddies are removed, your scores should go up significantly. once that is done, go ahead and apply for the unsecured version. You should get approved w/o any issues.