What CC is good for rebuilding? Any suggestions?

[OptimalFICO]

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@Anonymous wrote:

Hello All!

I am trying to apply for a CC to rebuild my credit. I was wondering, what would be a good CC to apply?

Right now, I have 4 baddies, 2 of which are scheduled to be removed on September and December 2010; the remaining 2 are scheduled to be removed on January and April 2011.

Is it good to apply through Cap One or a secured CC from a bank. Any suggestions?

Thanks!

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DeeBee I hope you haven't applied yet. Orchard and HSBC are not good options right now as both have halted all CLIs to anyone. Not sure about Capital One, but you should call to check before you apply. I wouldn't risk it. Plus, make sure whatever card you have does not have an AF. My boyfriend got an Orchard MC after his BK, but because of the subprime credit category it was granted under, they could not approve CLIs above $200-300 at a time and could not waive the AF even after his credit was re-established. Very frustrating.

If you don't want to wait until after the baddies come off your file and you have the cash, I'd suggest getting a secured card with as high a limit as you can afford ($5K if you can). Here too, be careful about which company you go with. For example, Wells Fargo has halted converting secured cards to unsecured cards. There are likely others? Both Digital and Addison Federal Credit Union offer secured cards with no AF (annual fee).

Here's a good article to read if you go the secured credit card route with 10 questions to ask before deciding on one:

http://www.bankrate.com/finance/credit-cards/10-qu estions-before-getting-a-secured-credit-card-1.as... 

1. What is a secured credit card?
2. Where can I get a secured credit card?
3. What kind of charges will there be?
4. How much money do I have to deposit?
5. Do all banks offer secured credit cards?
6. Are there any problems to watch out for?
7. Do you report to all three major credit bureaus?
8. How long does it take to qualify for an unsecured card?
9. How much interest will my deposit earn?
10. How can I make the best use of a secured card to build my credit rating?

I would add -- how high of a limit can I have? You'd think since you are securing the card with your own money you could have as high a limit as you are willing to deposit in secured funds, but this is not the case.

Best wishes to you!

[Anonymous]

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@OptimalFICO wrote:

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@Anonymous wrote:

Hello All!

I am trying to apply for a CC to rebuild my credit. I was wondering, what would be a good CC to apply?

Right now, I have 4 baddies, 2 of which are scheduled to be removed on September and December 2010; the remaining 2 are scheduled to be removed on January and April 2011.

Is it good to apply through Cap One or a secured CC from a bank. Any suggestions?

Thanks!

---

DeeBee I hope you haven't applied yet. Orchard and HSBC are not good options right now as both have halted all CLIs to anyone. Not sure about Capital One, but you should call to check before you apply. I wouldn't risk it. Plus, make sure whatever card you have does not have an AF. My boyfriend got an Orchard MC after his BK, but because of the subprime credit category it was granted under, they could not approve CLIs above $200-300 at a time and could not waive the AF even after his credit was re-established. Very frustrating.

If you don't want to wait until after the baddies come off your file and you have the cash, I'd suggest getting a secured card with as high a limit as you can afford ($5K if you can). Here too, be careful about which company you go with. For example, Wells Fargo has halted converting secured cards to unsecured cards. There are likely others? Both Digital and Addison Federal Credit Union offer secured cards with no AF (annual fee).

Here's a good article to read if you go the secured credit card route with 10 questions to ask before deciding on one:

http://www.bankrate.com/finance/credit-cards/10-qu estions-before-getting-a-secured-credit-card-1.as... 

1. What is a secured credit card?
2. Where can I get a secured credit card?
3. What kind of charges will there be?
4. How much money do I have to deposit?
5. Do all banks offer secured credit cards?
6. Are there any problems to watch out for?
7. Do you report to all three major credit bureaus?
8. How long does it take to qualify for an unsecured card?
9. How much interest will my deposit earn?
10. How can I make the best use of a secured card to build my credit rating?

I would add -- how high of a limit can I have? You'd think since you are securing the card with your own money you could have as high a limit as you are willing to deposit in secured funds, but this is not the case.

Best wishes to you!

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  I agree with OptimalFICO that one high limit secured card is the better than accepting low linit unsecured cards. I would not worry about who is unsecuring right now as that is a function of tight credit and can easily change in a few years.   If concerned, Capital one secured card gives unsecured increases to your secured card which puts it ahead of most others. 

   IMO, the most important thing is to get some major credit card history established now.   Your report and score will be much better when your report goes clean.  That will give you a lot more options.

Either way you go will a positive.

[Anonymous]

Thanks for the advise OptimalFICO.. No I haven't applied yet.. I'm still deciding on what CC to apply for..   I thought about that too since now there's a new credit law.. I have WF checking account and was thinking about getting a secured CC with them, but was still undecided.  Also, I've heard alot of good reviews about Public Savings Bank secured CC here in there forums. I want to give it a try. I was aiming for 2 CC's.  

[Anonymous]

Yes Orchard is HSBC but better in my opinion.

I got an Orchard after my BK and  they sent me both cards.

Orchard gave me auto clis while HSBC did not.

When I was rebuilding  I also got a cap one but it was

secured with 300 cl.  and had an a/f.

They all served their purpose in getting me into the

800 club.

I found that with bad credit you have to give a little to get a little. 

[smallfry]

I would go for a Capital One. Orchard will most likely cost you $7 monthly. With your 2 store cards that should be enough for now until you are clean.

[Anonymous]

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@Anonymous wrote:

Thanks for the advise OptimalFICO.. No I haven't applied yet.. I'm still deciding on what CC to apply for..   I thought about that too since now there's a new credit law.. I have WF checking account and was thinking about getting a secured CC with them, but was still undecided.  Also, I've heard alot of good reviews about Public Savings Bank secured CC here in there forums. I want to give it a try. I was aiming for 2 CC's.  

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WF is a execellent choice, good terms, lowest annaul fee  $18 and should eventually unscecure.   Probably the hardest to qualify for.

Capital One's biggest advantage is that they add CLI without more deposit.  

The advantage of Public Savings Bank is they do not do a credit check , has decent terms, and no annual fee,  just $75 application fee.     It will never unsecure, but if you keep it for several years it will justify the $75 fee.

HSBC/Orchard is easy to qualify and has decent terms.  Depends on the annual fee you get. . 

I have 2 of the 4 and hope to get the other 2 by year end.

[Anonymous]

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@OptimalFICO wrote:

For example, Wells Fargo has halted converting secured cards to unsecured cards.

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Really? Where did you hear this? I haven't heard anything to this effect.

I have a WF secured card and the whole point of the WF secured card is that they are supposed to convert you to unsecured in 12 months if you don't screw up (that's one of their biggest selling points). This is very distressing if true. I don't want to be stuck with a crappy secured card and (small) anual fee forever.

[Anonymous]

yes but Cap One has a/f and are very stingy.

[Marv94]

I would not utilize Capital One for rebuilding; I have two of their cards, but didn't know until yesterday that they only report to the CRAs quarterly, and not monthly.

Try somebody who reports monthly.

[Anonymous]

I have a Cap One and it updates every money to all 3 CRAs.  Where did you hear that they only do quarterly?