Applying for Credit Card

For just about anything you want to get off your chest about credit cards.
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AceH
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Applying for Credit Card

Postby AceH » Sat Mar 20, 2010 8:35 am

Another local bank, that I do NOT have an account with, has better deals on major credit cards. Could I still apply for one of their cards even though I don't have an account with them?

I applied with my bank but since I don't have much of a credit history (NOT BAD CREDIT, just NOT ENOUGH CREDIT) was offered a Secured Card BUT they want to "freeze/ hold" twice as much as the card limit you specify. Example: if I wanted a $1000 limit, they would "freeze/hold" $2000. I think that's a bit extreme. Don't you?

Final question: Am I doing harm to the little credit history I have by having these different institutions check my credit?


DoingHomework
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Postby DoingHomework » Mon Mar 22, 2010 1:24 pm

AceH wrote:Another local bank, that I do NOT have an account with, has better deals on major credit cards. Could I still apply for one of their cards even though I don't have an account with them?

There is no reason to o with your local bank for a card except if they give you a good deal. Often the bank you already have a relationship with your your best choice because they know you are a good customer. If your bank won't give you a card then there is no reason not to try elsewhere.


AceH wrote:I applied with my bank but since I don't have much of a credit history (NOT BAD CREDIT, just NOT ENOUGH CREDIT) was offered a Secured Card BUT they want to "freeze/ hold" twice as much as the card limit you specify. Example: if I wanted a $1000 limit, they would "freeze/hold" $2000. I think that's a bit extreme. Don't you?

It's a little extreme but you probably don't have much choice. They need to protect themselves and if you have no history they have no reason to trust you.


AceH wrote:Final question: Am I doing harm to the little credit history I have by having these different institutions check my credit?


If both institutions check your credit then you will have multiple inquiries and that does a tiny bit of harm. But you can hardly avoid it if you are just starting out so I would not worry too much about it. Your best bet is just to get a card with a low limit and then use it wisely.

AceH
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Postby AceH » Tue Mar 23, 2010 6:17 am

Forgot to mention in my original post that I do have a T-Mobile cell phone account which I have been paying well ahead of the due date for the past 5 years.

AceH
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Postby AceH » Wed Mar 24, 2010 10:37 am

I was called back to my bank, they re-checked my records and offered me a MUCH BETTER deal which I accepted.

Is debt to credit utilization for a Secured Credit Card as important as it is for an Unsecured Card?

Would it be safe for ones credit score to have a balance on a Secured Credit Card at between 40 to 50%?

DoingHomework
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Postby DoingHomework » Thu Mar 25, 2010 2:43 pm

I think the general rule is to keep the balance (utilization) below 30%.

I makes no difference that it is a secured card. That is not reported.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu Mar 25, 2010 8:57 pm

Your cell phone account won't show up on your credit file unless you are delinquent on the account. They have to pay money to report to the credit bureaus so cell providers and utilities only report if you've defaulted on money owed.
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