New guy.. credit card?

[Anonymous]

Appreciate all the help and good information on here.  I'm just now getting started on rebuilding my credit.  I have signed up for the ScoreWatch Trial.  I have also pulled my credit reports from annualcreditreport.com

I've got several baddies and have already done an online dispute via EX and EQ. Haven't touched TU yet.

My EQ score is 610.

I currently do not have any credit cards.  I do have some baddies in credit card tho.

ScoreWatch says my score could jump to 630-660 if I pick up a credit card.  

What do the experts here think?  Should I apply for one, or wait until the disputes have gone thru and hopefully some baddies drop off?

[Anonymous]

If you disputed a baddie that hasn't reported in awhile and it comes back verified you might see your scores go down!

Before filing a dispute you need to know if it belongs to you....the DOFD/DOLA

You need CC  as they count more toward your scores then any installment credit!

I will move you to the credit card board as they know almost everything about new CCs

[Anonymous]

Personally, I would wait until you get the results back from your disputes. The less derog's you have cluttering your reports the better the chances for approval.

Credit unions would be a good place to start when you are ready. 

[Anonymous]

Well, if that is the case, maybe I should apply for a card now that I have a 610 score before it could possibly go down?

[Anonymous]

I'm not understanding why your score would go down more?

Again, I would suggest to get in with a credit union. They are a bit lenient on those who are rebuilding and are alot more stable than the big banks are right now.

Bank of America also offer's a secured card program if you are interested in that. Depending on the baddies you have, even that is not a guaranteed approval.

[Anonymous]

I was just going by Happy Days response, since I have disputed some baddies on my credit report already.

Should I go with the pre-approval website at Orchard's Bank?   I'll have to find a local credit union to see about joining. 

[Anonymous]

If you want to start with Orchard, then sure. It will get you started, but don't expect it to grow with you.

[Anonymous]

Ok, an update:

I got the Orchard Bank Card.  When it reported my score shot up from 610 to 619.  I then had a correction come in that reported a tradeline as n/a owed to 0 owed on a paid settlement charge off card.  My score shot up to 629 or so.

I finally applied for a GEMB/Walmart card since I shop there.  It has recently reported and my score as gone up to a 645 now!   Excellent.

I am still in the process of trying to remove 2 out of SOL collection accounts.  One is Georgia Power utility bill and the other is Asset Acceptance.  Ugh.

I have yet to pull my TU and EX scores.  I will be going for a home mortgage FHA/USDA route sometime in April/May of 2009.  

Strategy?  Stay low and no more cc apps?  Or should I still try and get a major Credit Union card?  

I will also be making sure to keep my utilization on my 2 cards under 10%. 

[WhirledPeasPlease]

A LO will often tell you no new credit for six months prior to a mtg app.  In this credit climate there is no way in heck I would chance that w/o 720+ scores. 

Congrats on what you have so far -- a store card, a major CC and a bit of hope.

One other thing, if I were you I'd pull my EX and TU to make sure your ducks are in a row.  A mtg app takes your middle score, but can question anything on any of the three reports.

Oh, and lastly, get your util at 9 or less.  Some ppl swear there's a difference between 9 and 10.