Which card to apply for? 550 EQ score

homewardbound · ‎05-17-2007

I am about to receive discharge papers (Ch7 BK) in the mail and need to build credit as quickly as I can, of course. My EQ score is 550 (don't have TU or EX). I really want to avoid as many inquiries as possible. What kind of card should I apply for once I get my official papers in the mail? And will I only qualify for secured, or should I attempt to try to get an unsecured card?

Also, I'm hearing advice to charge each month and pay off in full for best credit building strategy, but am also hearing charge and then pay off within 2-3 months.

I know this is not an exact science, but I just really want to make the best possible moves that I can and avoid any more mistakes.

Thanks for your help.

Anonymous · ‎05-17-2007

If you're worried about a lot of inquiries, I'd apply for a secured card since that'll be your best bet for approval.

Anonymous · ‎05-17-2007

Check out my general advice on CCs here:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=5662

With a fresh BK you're likely to have to go with a secured card. Don't fret, because you are doing the right thing, which is immediately working to bring your credit back from BK Hell. You'll probably have to pony up several hundred dollars for the collateral, but believe me by 2010 when your FICO is back up in the 600s and your name is no longer "mud" to unsecured card providers, you'll find it to be an excellent investment.

This is one of those instances when the worst thing is to do nothing. BKs have a very long half-life in holding your FICO down. If you abstain from credit, you'll likely still be in the 500s for many years.

homewardbound · ‎05-17-2007

Thank you for the pep talk. I need it. Not to put all the blame of my CH 7 on someone else, but I made stupid decisions when I was younger and more naive and I allowed someone I really cared for to drag me into financial he*#. My credit was impeccable prior to this. I am in a good financial position to save a lot of money and not make any further mistakes. I am sure I will never misuse credit again, and have a strong goal in mind to buy a home as soon as I can, but one I know I can afford, even with a higher interest rate.

Do I have any hopes of getting my score from 550 to 620 in one year?

Anonymous · ‎05-17-2007

homewardbound wrote:
Thank you for the pep talk. I need it. Not to put all the blame of my CH 7 on someone else, but I made stupid decisions when I was younger and more naive and I allowed someone I really cared for to drag me into financial he*#. My credit was impeccable prior to this. I am in a good financial position to save a lot of money and not make any further mistakes. I am sure I will never misuse credit again, and have a strong goal in mind to buy a home as soon as I can, but one I know I can afford, even with a higher interest rate.
Do I have any hopes of getting my score from 550 to 620 in one year?

With a BK that's not likely. Not impossible, but not likely. But you're doing the right thing, which is picking up the ball and running with it again.

reily28 · ‎05-17-2007

In 18 months (Chapter 7) I went from 500 to 610 back down to 590 I used Orachard Bank 503-245-9280 i sent them $250.00. Pay each month on time for the first few months and soon you will get mail from First Premier Bank 800-987-5521 they will see you made you payment on time and more than likley give you a card with a limit on $250.00 And the same thing happened with Tribute 1-888-618-9920 with a $350.00 limit within one year of Chapter 7.

Just keep all payments on time and it will work out for you.

Good day hope this helps

Anonymous · ‎05-17-2007

It's good to pick up on one, or maybe even two of these cards post-BK for rebuilding purposes. I wouldn't stockpile too many subprime cards though. The fees will eat you alive. One or two paid on time and low balances for a year should open the door to better cards. Try a BofA secured if you can sit on a grand in the bank. Builds your credit, your discipline, and it's a legit bank.