Hello everybody, (I feel like Dr. Nick at the Simpsons!)
Part 1 of My Story will be in General Credit Issues section later.
Past: 1996 - 2000 (My College Years)
I had a Circuit City Credit card first, $2000 CL. (Closed in 2001)
Then, I got a Sears card, $500 CL. (closed)
Next, I got an AMEX Green, no preset limit. (Closed)
Then, MBNA Indianapolis COLTS Visa, $1500 CL. (Closed)
Shell Mastercard from Chase, $1200 CL. (Closed)
Best Buy card followed that, $700 CL. (Closed)
Nebraska Furniture Mart Credit Card, No set limit but highest I spent was $372. (This account is still open and in good standing (No baddies at all.)
All those cards were open and in good standing until 2000, when I had an accident and lost my car, then lost my job. For a few months a made minimum payments on all cards, but when money ran out and I was still unemployed, I called CCCs but nobody wanted to work with me. Also, I made the biggest mistake of letting my "best friend" to use my Visa and MC, which he bought stereo equipments for his car, and didn't pay me back. I knew his family and we worked together and he was making very good money at that time, but nobody warned me about the possibility. Lesson #335, Do not let others use your card, regardless who they are. I sued him, won the case, got judgment and all, but he quit the job and disappeared. I stuck with his bills, 2 cards maxed out.
All these happened when I was in college, and it is a good example of how credit system works in this country. At very young age, I was given credit and credit cards left and right. Nobody told me about credit management, FICO, collections and what happens when you misuse your credit card, how long you have to suffer. I have no family, so being by yourself you have to make a lot of mistakes to learn. I am glad, I am the only one who suffered for my mistakes.
Present: 2005 - Present (My adult life)
My overall story is at My Story - Part 1. I will skip chunks of my history on this section.
(I had no credit cards and loans between 2000 - 2005) In 2005, I had a stable job and a life. I opened my bank account, then while browsing the net, I saw about secured credit cards. I found Orchard Bank and applied for a secured card but they offered me regular card with $300 CL and $79 AF. I was surprised and happy. I wowed never to make the same mistakes I made before, and a new chapter in my life started that day.
I have never been late or defaulted on anything since 2000. I had never applied for anything until 2005. I always PIF each month and I make at least 2 payments per month, because I hate balances and I know how dangerous it can be. Since then, Orchard Bank increased my CL to $400, $600, $700 and $1100 all in 2007. Then in May, I got an offer from WAMU and I applied online and was approved for $1250 CL and no AF. Then just for joke, I applied for CAP 1 and was approved for $500 CL with $29 AF, but I closed it even tough they increased CL to $750. They weren't reporting my credit limit, and also I didn't want to pay AF.
Then, I found out about this forum in October. I have been visiting a few times a day to learn, and I did. I followed your suggestions. First, I learned about credit reports and CRAs. Then, I finally got my 3 bureau reports, and corrected mistakes. More on those in Part 1.
Last week, I needed it to buy something from apple.com and I saw the Juniper Card, and applied for fun, I thought I wouldn't be approved, but in 10 seconds, I was approved with $500 CL and no AF. It is low but, no AF is what I want. I got the card today, activated it and asked for CLI, and they said at this time they cannot offer CLI, but they check report very often and increase it very often. I really don't care about CLI right now anyway, in July, I should have a perfectly clean credit history, and all my scores should be over 720. I am sure they will increase it by that time.
Also, I applied for BMW Visa last week, but computer said in 7-10 days I will receive their response, then I called and talked to a rep, and was told it will be 30 days before their decision. Which is fine.
This is what I wanted to tell you all about credit cards:
1. Make this forum more popular in the US. Education is the key to success, and best education comes from people who has been through and who are in the industry.
2. If you are young, do not start a credit card getting spree. More you have more you are tempted to use it, and the more you use it, more debt you will be in.
3. DO NOT spend more than you can afford.
4. DO NOT let others use your card(s). Never a good idea, you are responsible from the debt.
5. Try to get No Annual Fee cards, if you don't use them, at least you won't be wasting money.
6. Check your credit reports as often as possible. There are mistakes and most of them can be corrected.
7. Never be late.
8. Try not to leave any balance for the next month, otherwise you will pay finace charges, unless this is what you want to do.
9. Be patient.
10. please update this advice list as you see fit to help others.
What I have learned since I had my first credit card is that, if you don't know anything others will take advantage of you. Reading fine prints may prevent you from a future problem. There are many of you have families, parents and friends who can guide you or teach you about credit cards, please listen to them and learn from others' mistakes. I didn't have that choice. I guess being responsible actually pays off in the long run, and I have already started to see that.
I will not apply for credit cards anymore, ever. If I get the BMW Visa, I will ask Orchard Bank to eliminate my AF, if not, I will close the card. I do not want to pay AF anymore, and for my personal use and needs, 2 cards are enough, but having a third card for emergencies doesn't hurt. I will update the progress of each card as well as on BMW Visa application.
Good luck, and use your credit wisely.
Message Edited by tomyboy on 12-05-2007 02:34 PM
Message Edited by tomyboy on 12-05-2007 02:41 PM
) this was the basis of Alcoholics Anonymous, and this why why I wrote the 12 step program 
