TXviking wrote:With assets like that, I'd try to let some stuff age off your credit report, attempt a pay for delete before worrying about getting another card. I would not recommend applying for anything until you get your FICO scores up into the mid-600s; you'd be better off just getting a debit card and using that for a while. Secured credit cards are a good idea for someone just starting out, but they won't outweigh the negatives on your report, at least not yet. As far as a card to use for everyday transactions, with assets like that you should easily be able to get a checking account and associated debit card from basically anywhere.
I'd recommend dropping Wells Fargo like a hot potato. I had a similar situation with them in 2010 – they
"accidentally" sued for foreclosure while we were still negotiating a shortsale (after their screwups lost us four potential buyers over the course of 9 months) etc. They withdrew the foreclosure suit and that didn't wind up on my credit, but the eventual shortsale and the delinquency they required to allow the shortsale both did. Still struggling with that today. They then decided to close my credit card and my checking account unilaterally, which wound up hurting my credit just that much more ("account closed by lender".) Don't let them do that to you.
I assume there's no new derogatory information being reported now. If that is the case, time is going to do you a lot more good than secured credit cards as far as rebuilding your credit goes, IMHO. Besides rebuilding, are there other reasons you are anxious to get new credit now?
Vattené wrote:Even with a lot of assets, a bank is going to take one look at your credit score/profile/history and deem you a high risk of not paying them back. At this point you'll probably have to start with a secured card. I haven't had a secured card myself, but I would guess you'd be able to get one where the credit limit equals your deposit so there is very little risk, and there are a ton of options available. I'd just recommend avoiding any of the skeezier banks if you can (like Credit One and First Premier). I'd look into Capital One or Bank of America's secured cards. With both, however, you have a minimum security deposit and the credit limit is determined by your creditworthiness. Discover may be a good option: there's no annual fee, your security deposit will be the same as your credit limit, and after a year on good behavior it's possible to "graduate" to an unsecured account. Also, rewards shouldn't be much of a priority at this stage, but it is a rare secured card that offers rewards. BofA's secured card does have a $39 AF, but they also have the potential to let you transition to an unsecured card after 12 months. Capital One's has no annual fee, but I think they have a reputation of being much more difficult in letting you move out of your secured account.
Best of luck!
Vattené wrote:I'd also recommend checking out any local credit unions or even smaller banks around you.
SEB wrote:-Thank you so much for the quick response. I have a debit card, checking account, a small savings account through WF. I understand the credit score concern that WF would have. However, all I was looking for was a $300 secured card set up on auto draft from one of my accounts. I really have no need of a credit card other than trying to rebuild my credit. Since you also had issues with them, have you found a bank that you really like?
SEB wrote:We have been banking with then for a very long time, so to say I was ticked off is putting it mildly.