Is the secured visa card from FNBO worth getting?

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dimond_dj
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Is the secured visa card from FNBO worth getting?

Postby dimond_dj » Fri Mar 04, 2016 8:19 pm

I'm new here, found these forums by accident. I'm working on trying to rebuild my credit after a job loss and some unexpected medical bills. I haven't had a credit card in the last 5 years and started a new full-time job 3 years ago. Tried applying for everything I could think of, even resorted to secured cards and kept getting denied. The other day I applied for a secured card from the First National Bank of Omaha, thought I would give it a shot since I'm in Nebraska and live close to a branch. Yesterday they called and needed to verify some information and wanted me to fax them a copy of my driver's license to verify my address. This is as close as I've come to an approval in years, but it sounded like they were going to take my security deposit and I should be hearing from them by mail in 7 to 10 days.

Silly me, I didn't research this place online before I applied because they had a local branch. A friend of mine was there when I received the call and they were having a total fit when I said I applied for a credt card from First National Bank of Omaha. There is a $19 annual fee and the APR is kiind of high but it's to build credit so I plan to pay it off every month. They said If I show that I'm managing my account well they will return me deposit in about a year and consider me for unsecured credit line increases. However when my friend googled consumer complaints, hundreds of complaints came up. Since I only put up $300 my friend thinks I should try to withdraw my application or if it's too late, cancel the card before I use it and try to get my deposit returned.

Not sure what I would do with a $300 credit limit anyhow, it's basically unusable and likely won't help my credit much. One reviewer said if you send several payments a month you will piss them off and they will lock you out of online bill pay. Another reviewer said FNBO cancelled his card without warning and the reason they gave was high utilization. So if I have a $300 limit it looks like I can only charge $30 per month then put the card away and wait for the bill. It seems after they receive your payment it can take 7 to 10 days for them to restore your credit limit.

I just have to ask, is a $300 limit going to have that much impact on my score that this card would be worth messing with? I'm just worried based on the reviews they might try to screw me over.


takeshi
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Re: Is the secured visa card from FNBO worth getting?

Postby takeshi » Mon Mar 07, 2016 12:47 pm

Unless you can cancel the app before approval the damage has already been done. You really have to decide before applying and not after.

It's not really the limit that matters. Revolving utilization matters which is balance(s)/limit(s). With a $300 limit it will be tricky to keep revolving utilization low but you can always pay down the balance on a card before its report date to lower reported revolving utilization. The generally suggested max for revolving utilization is 30% which works out to $90 for a limit of $300. Again, use what you need/want and just pay it down before it reports.

General advice is to have at least 2-3 cards for scoring purposes so you'll want to gradually add cards as your credit profile allows until you reach that mark so you might as well keep it IMO. You're probably only going to be able to add cards slowly with your credit profile. Try adding another 6 months down the road.

dimond_dj wrote:I'm just worried based on the reviews they might try to screw me over.

Negative reviews can be found for any company out there. I don't have experience with their secured cards but I've never had issues with FNBO.

dimond_dj wrote:I'm new here, found these forums by accident. I'm working on trying to rebuild my credit after a job loss and some unexpected medical bills.

You'll want to work on those if you want to make progress. Don't just wait for them to fall off. For medical items, Google whychat's HIPAA method and see if it would be of use.

Derogs tend to have a significant impact and hold one down as long as they are on reports so you want to work on removing all of them if possible. Definitely research carefully before taking action as it is possible in some cases to make matters worse if you're not careful. Make use of the various credit resources out there.

dimond_dj wrote:Tried applying for everything I could think of, even resorted to secured cards and kept getting denied.

That's probably not helping you. Again, with your credit profile the amount credit seeking activity supported is very little. If getting denied don't just keep apping. Such credit seeking activity is seen as a risk.

dimond_dj
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Re: Is the secured visa card from FNBO worth getting?

Postby dimond_dj » Mon Mar 07, 2016 6:13 pm

It doesn't look like I'll be approved for this one. No idea why they spent so much time on the phone with me the other day verifying my identity. It's been several days now, my online status still says "pending review" and they haven't taken the security deposit from my bank account yet. I called today and the lady I talked to said it can take up to 14 days to get a denial letter in the mail, but she said if I was approved, the would have taken my security deposit already. I might just resort to prepaid cards and call it wonderful.



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