Should I even try for a CC?!

[Anonymous]

Ideally, I want to buy a home in 2 years and the mortgage broker told me I should have some revolving credit and at least 1 credit card before doing so. I am so scared to get an inquiry hit and then be denied. When I applied for cc's a few years ago I was denied for not enough credit and too many collections. I have been rebuilding for the last 2 years and now only have 1 collection on my report that won't budge. It's a electric account for $518.00 (unpaid) due to fall off Jan 2013. Other than that the only things on my credit report are 3 student loans all in good standing and being paid as agreed. My oldest acct is 9 years and the average age of my accounts is 6 years. Last late payment is 4 years ago. 

My current FICO EQ score is 642. Not sure of my TU but when I checked 6 months ago it was 622. Do you think I have a chance at getting approved for a card? If so, where should I apply. When I did the prequalify for Orchard only a secured came up. Nothing came up for Cap 1, and I think I am blacklisted for Cap 1 from a 300 collections 9 years ago. No inquiries within the last 2 years.

I'm not sure how else to get my score up. MyFICO score report even suggested getting a credit card and having payment history. Do I try?!

Thanks an advance for your help.

[John060675]

I think you should be fine for a  Cap 1 CC.  I do not think they will blacklist you for a 9 year old account for only $300. 

Also, maybe you should look into a secured card that will convert to unsecured (i.e. Wells Fargo).

[drkaje]

I'd probably PFD the old utility bill and apply for stuff after it was gone.

[ptkdude]

Capital One approved me for an unsecured No Hassle Cash Rewards ($500 CL, will credit step to 750 after 5 months) when I had three charged off Capital One accounts on my credit report:  two had been paid in full and I was paying monthly on the third one under a payment arrangement I had with them.  A fourth Capital One account had been charged off maybe 10 years ago and still had a hefty balance.  It is past the SOL and CRTP, but they mentioned it when I called to arrange payment on the other charge offs.  Based on my experience, I'd say Capital One is very forgiving.

[Creditaddict]

If you don't get pre-qual on Cap1 I would not apply.

You could try Apple i-tunes card... it's backed by Barclay and they seem to approve with low 600 scores... you might be denied initailly but they are very good on recon using back door number in sticky above.

Also maybe a Walmart or PayPal account through GE

Lastly you could try setting up accounts at Express or victory Secerets and add stuff to your cart and click to check out... sometimes a pop up will appear for pre-approved for the card through WFFNB... if you are, it's usually about $500 and they give it to you with no hard pull.

[Anonymous]

I got barclays with a 66something $2,500 line of credit with my only blemish being a charge off. I would definitely go that route.

[Anonymous]

I suggest you get a secured card and plan to keep it until after you have a mortgage.   It is good to have a larger CL, so get one that you can add to the deposit over time.  Use the card for your normal purchases and build a good history of payments.  Don't worry about a few inquiries now, they will be insignificant in 2 years.

CU are good.   Does your normal bank have secured cards?  Among major banks, Capital One has a very good secured card.  I would not get one from HSBC, Orchard, Household, as they are for sale and you risk the card being cancelled. 

Getting 2 secured cards would be slightly better than 1.   Think about what the credit report will look like at mortgage app time, don't worry about the in between time.

[Booner72]

Just wanted to point out that FICO only scores inquiries one year- though they are reported for 2 years.