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I recently spoke with a credit repair company who wanted me to sign up for the 5K unsecured credit builder card from New Coast Direct, but i was hesistant because they only report to Equifax and Transunion, at least for now. My rep told me that it doesn't matter if an account does not report to Experian because the increase in scores with Equifax and Transunion will balance out Experian not reporting.
It depends upon your goals. Personally I wouldn't want a rebuilder card to not report to all 3. My reasons
1. some creditors pull only 1 specific report, having a lower score on that report could close off an entire product line.
2. It's easier to determine what information provides what score when all 3 reports are as close to identical as possible
3. For some people a rebuild card eventually turns into their oldest account, Causing a larger scoring divide.
4. Mortgages generally take your middle report. This is good, because if 1 report has erroneous information, you still get a good rate. However if 1 report is already lower due to a missing account, you lose that buffer if 1 of your other accounts gets a ding.
Regardless of scoring reasons, I would suggest looking elsewhere for 3 reasons.
1. 95 annual fee. Very high for no benefits on card.
2. This card/company doesn't seem stable to me. Nothing worse than a tradeline closing due to a company being bought out, or closing down. Could effect your score 10 years down the road.
3. Its a very limited use card that doesn't offer any benefits. I don't think you can even buy gas or groceries with it.
Thanks for you input. I signed up with a company similiar to new coast direct. It was my jewelers club and it really helped to boost my score. I've been told from many people that secured cards generally come with low balances and don't do much for your scores. Your thoughts please.
What are your FICO scores? Any reason you couldn’t get, say, a Discover IT secured that would graduate to unsecured most likely in 7 months? If you’re thinking about paying a $95 fee to a CC company I’ve never heard of, it would probably better to put that money on a secured card from one of the Majors.
@Anonymous wrote:Thanks for you input. I signed up with a company similiar to new coast direct. It was my jewelers club and it really helped to boost my score. I've been told from many people that secured cards generally come with low balances and don't do much for your scores. Your thoughts please.
Secured cards help your credit scores just as much as unsecured cards.
You should run from this company. It's a retail outfit like Fingerhut. They charge a $95/annual fee and they charge a $40/month fee. You are going to get screwed. Don't be stupid.
Frequently Asked Questions:
Our OP initially describes the company as a credit repair company. That suggests the strong possibility that the OP has negative items on the OP's reports.
I like Frencheese's idea of telling us the three FICO 8 scores, but even more important is the OP learning how to pull his or her reports, learning how to read them, etc. Then the OP can circle back with us (or better still the people in the Rebuilding Forum) and summarize what each of the reports say:
What accounts are on the report?
When were they opened?
Are any of them closed? Which ones?
Are there any derogs? (Lates, collections, chargeoffs, liens, judgments, etc.)
Only with that information can people here give decent advice about what the OP's next steps should be.
@CH-7-Mission-Accomplished wrote:You should run from this company. It's a retail outfit like Fingerhut. They charge a $95/annual fee and they charge a $40/month fee. You are going to get screwed. Don't be stupid.
Frequently Asked Questions:
- YES, New Coast Direct will report your Credit Account to the bureaus monthly
- YES, we do have joint Credit Accounts for applicants of the same household/address but must be completed at time of application.
- NO, New Coast Direct does not mail statements but will email statements monthly.
You can also log into your account to view statements and make payments- YES, there is a minimum monthly payment fee of $40 or 5% which ever is greater ONLY if you have a balance with New Coast Direct Credit Account.
- NO, we do not add authorized users to the New Coast Direct Credit Account after the application has been submitted.
- YES, there is an annual fee of $95 to keep your account open and in good standing
- YES, you can qualify for a zero down account with 12 months good payment history and approved credit scores.
- NO, there are no monthly fees if you have a zero account balance.
OP should probably run from said credit repair company as well for suggesting a CC that charges $40/month in fees. Ouch. Credit One and First Premier would clearly be better options.