Hi all -
I am looking to add one more card to my wallet and "garden" as you call it. I currently have a secured Cap One card (limit $301). Are there any rewards cards out there that I could qualify for with a credit score around 540? I was looking at gas rewards cards, but I don't want to have a HP on my report for nothing.
Thanks!
Starting Score: 577 EX 9/9/2015
Get a secured card from either BOFA or USBank (BOFA > USBank in my opinion though that's something of personal preference)... or NFCU if you have access to it.
Get another card now, don't wait, but in any event all three of these cards have rewards associated with them though BOFA just started and it may be on their fully secured cards only. Had to call in to get it in BOFA's case too.
I'm afraid you'll need to get your scores up around 600-620 to maybe get a stab at the average credit version Cap1 Cash Rewards. That's probably the most attainable rewards card and you still got some improvmement to do. I think some constructive discussion would be on your scores and how to get some improvement instead of looking for rewards cards.
If you care to give a run down of your credit report (though this isn't really the right board for it), there are many who can give some advice to get you to a better place where you can then applly for rewards cards.
Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
My concern was whether or not I should get another card - which many have recommended on here. And now that I know it would benefit me in the long run to get one - I just wondered if there was a rewards card I would qualify for. I'm already actively working on improving my credit. Right now I am working on cleaning up some things on my credit report from several years ago (I went through a divorce that was h*ll on my finances). I have no recent lates - just a lot of work to do on those prior ones.
Well, as others have said, then another secured card (or 2 ) that report to the bureaus is the best move. Just make sure that they are cards that can transition to unsecured without reapplying...preferably without HPs. That's important. If you get a card that won't switch to an unsecured, then you weaken your AAoA without good reason when you are forced to reapply.
3 cards might be the max....maybe later but not right away. If you have savings that you don't need for a year, a personal loan secured by a CD that you put into a savings account and put on autodebit would be another nice tradeline to add. Just watch out near the end to make sure you have enough money in there.
@ztnjpv wrote:Well, as others have said, then another secured card (or 2 ) that report to the bureaus is the best move. Just make sure that they are cards that can transition to unsecured without reapplying...preferably without HPs. That's important. If you get a card that won't switch to an unsecured, then you weaken your AAoA without good reason when you are forced to reapply.
3 cards might be the max....maybe later but not right away. If you have savings that you don't need for a year, a personal loan secured by a CD that you put into a savings account and put on autodebit would be another nice tradeline to add. Just watch out near the end to make sure you have enough money in there.
FWIW, most secured cards don't graduate, and even the ones that do, don't have competitive rewards programs for prime customers vs even a comparitively entry-level card like Chase Freedom. There's no secured route into Chase, or Amex, or others so the options are really very limited.
Also, in the subprime levels both the OP and I am in, another HP is laughable in terms of impact. That's not to be worried about, at all, when it comes to establishing or upgrading tradelines from a basement FICO score. AAoA even is sort of the same, financially speaking you're almost obligated to upgrade to the higher end rewards cards at some point in the future.. and worrying about that when you're in the doghouse like I am, is pretty futile. The important step is to open up the accounts ASAP when building credit, and it really doesn't matter what they are or who they're through as long as they report to all three bureaus.
The newer landscape of lenders offering rewards on secured cards to the general masses (NFCU's limited access doesn't count) is new, which does change the game a little but it's another reason that I think pretty much everyone should at least take the shot at a BOFA secured card: it graduates, reports to all three bureaus, and their 1-2-3 rewards package you can now get on it is the same as their regular prime rewards pack. Hard to go wrong with that as a result especially with their most excellent web interface.