2 DEEP Subprime Credit Card Offers

[Anonymous]

Verve Mastercard (continental finance) 29.99apr $75 annual fee and a Monthly maintenance fee of $10 (waived for first year) Limit $300

First Premier Bank  Platinum card 36%apr $99 program fee (paid upfront) $99 Annual fee and a waived for first year $8.25 ($99 yearly) Monthly fee. Limit $400 
Would it hurt my score if I opened one or both and canceled after 12 months? 

It pains me to fork over all that $ to such a **bleep** company but I'm in the position where I will do/pay almost anything to keep increasing my score. Currently I hardly use my cards (only charge on the capital one and PIF monthly before the statement date). The goal is to get a high score with a thick file so I can qualify for private student loans without a cosigner (in a worst case scenario way, I don't plan to get myself into a ton of debt) when I go back to school in 2022.

Just looking for any advice from likeminded people.

[Anonymous]

---

@Anonymous wrote:

Verve Mastercard (continental finance) 29.99apr $75 annual fee and a Monthly maintenance fee of $10 (waived for first year) Limit $300

First Premier Bank  Platinum card 36%apr $99 program fee (paid upfront) $99 Annual fee and a waived for first year $8.25 ($99 yearly) Monthly fee. Limit $400 
Would it hurt my score if I opened one or both and canceled after 12 months? 

It pains me to fork over all that $ to such a **bleep** company but I'm in the position where I will do/pay almost anything to keep increasing my score. Currently I hardly use my cards (only charge on the capital one and PIF monthly before the statement date). The goal is to get a high score with a thick file so I can qualify for private student loans without a cosigner (in a worst case scenario way, I don't plan to get myself into a ton of debt) when I go back to school in 2022.

Just looking for any advice from likeminded people.

---

I dont believe more credit cards are going to improve your scores. More credit does not equal better credit. I would not lower your age of your accounts by adding cards you are just going to turn around and shut down. You need to address whatever is keeping your scores down. Lates? Collections? Charge offs? What are your baddies?

[mycreditscoreisfair]

I have to agree with @Anonymous 

If you already have multiple cards and are using them wisely, why would you want more cards with ridiculous fees. Especially, considering your plan is to cancel them anyways?

Based on your signature, it seems that something hit your credit report between January 2020 and May 2020 that caused your score to drop 100+ points.

As @Anonymous said, you need to address whatever is dragging your score down. Don't just sign up for additional credit cards you don't need.

[Anonymous]

OP, your siggy also show 3 new accounts (CCs) in 4 months. I would definitely slow your roll. You need to let your accounts age and work out the baddies. If you refuse to pay your 1 collection, your scires will plateau shortly with little room for growth. I know this because I have a few CAs I am waiting out over the next few months and even at perfect AZEO, no new accounts, etc, my scores really do not change unless the bad comes off my CRs. 

Again, piling on more CCs will not improve your scores. You will need to PFD your CA or wait for it to age off. 

[Anonymous]

My personal experience has been a large increase followed by a small 5-12 point drop every card I opened. I only open cards that I get preapproved for leaving me with only one hard iquiry on my reports. 

My plan was to follow the 5/24 rule and not open any more CCs  after for 2 years. I plan to transition over to creditbuilder loans via Self & my CU ( so I can open a join loan with my mum).

[Anonymous]

Fat fingered. January's score is from 2021 (fixed my sig). Does that change your opinion about more cards. I would only cancel either card (one not both) if they wouldn't waive one of the fees either monthly or yearly. 
I can't get anymore secured CCs. My local CU denied me due to not having an account long enough and so did capital one (because I have an unsecured card). Both via prequilify so no hard inquiries. 

Trying to save up for a large (2.5-4.5k) credit builder loan in 90ish days and considering a self lender too plus I'm on the waitlist for Kikoff.

My only baddie is a $898 collection from Convergent, I would rather spend the $898 in yearly subprime creditcard fees before I paid it off on princapal. Luckily doesn't show on my Transunion. My other issue is my Capital one not reporting on any of the 3 reports. Apperently a common issue for people who live in disaster areas, my billing zipcode has the highest covid rate in america recently so thats why I assume it isn't showing.

All cards always show 0% useage. Hopefully scores improve more when my Webbank LOC shows up in a few days. 

[rostrow416]

Don't open any more.  You have a solid foundation right now, all you need is time.  More accounts will not help and shelling out cash on top of that will only hurt.

[OmarGB9]

I agree with everyone else. No more cards, just work with what you've got. Also, be sure to NOT have all cards report zero balance - that actually hurts you for having no utilization. Be sure to let one card report a small balance of about $5-$10.

And, I understand you have "moral reasons" for not paying the collection, but trying to negotiate a PFD and paying it would help boost your EX and EQ scores tremendously; probably up to about the same range as your TU.

[mycreditscoreisfair]

---

@Anonymous wrote:

Fat fingered. January's score is from 2021 (fixed my sig). Does that change your opinion about more cards. I would only cancel either card (one not both) if they wouldn't waive one of the fees either monthly or yearly. 
I can't get anymore secured CCs. My local CU denied me due to not having an account long enough and so did capital one (because I have an unsecured card). Both via prequilify so no hard inquiries. 

Trying to save up for a large (2.5-4.5k) credit builder loan in 90ish days and considering a self lender too plus I'm on the waitlist for Kikoff.

My only baddie is a $898 collection from Convergent, I would rather spend the $898 in yearly subprime creditcard fees before I paid it off on princapal. Luckily doesn't show on my Transunion. My other issue is my Capital one not reporting on any of the 3 reports. Apperently a common issue for people who live in disaster areas, my billing zipcode has the highest covid rate in america recently so thats why I assume it isn't showing.

All cards always show 0% useage. Hopefully scores improve more when my Webbank LOC shows up in a few days. 

---

That doesn't change my opinion. You still don't need new/more credit cards. Especially ones that are terrible and you're likely to close.

I don't know the 'moral reasons' for why you won't pay your collection debt, but that is by far the biggest issue that's holding down your credit score. At least, based on what you've shared so far. I can't even think of a moral reason for not paying a legitimate debt.

Kickoff, Self, or another credit builder loan may or may not help your credit. But they definitely won't negate the negative collection account.

When does the collection account fall off your report?

[Anonymous]

Predatory subprime cards are a trap and should never be recommended. You need 3 cards to really start your rebuild. Go get some secured cards if need be. The reason subprimes are a trap is because there is a 99.99% chance you will close the account which does nothing for your average age of accounts, or your total credit lines, etc etc. Paying 30% PLUS annual fees plus all the other little late fee tricks they use on you is just not worth it. I've seen these predatory lenders do more harm to well intentioned customers than the benefit the customers got out of having a $300 limit card opened. Also less evidence for this but I think it hurts your entire profile more when a bank sees a bunch of these cards on your profile. Go use ANY bank with a secured card even if it doesn't graduate before you go with an annual fee trap card.