Rebuilding my credit

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SEB
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Rebuilding my credit

Postby SEB » Fri May 27, 2016 12:54 pm

Hi everyone! Let me thank everyone in advance for any help you might be able to offer me. First of all my credit score isn't very good (Transunion 553 and Equifax 627) and I'll be the first one to take ownership of that problem. The company I worked for was purchased and in the downsizing I was out of a job for an extended period of time. Transunion score should be higher, but they haven't removed an item as of yet. I have a pending foreclosure that never went to foreclosure, but it's there and will be for another two years.

Here is my current situation. My house is now paid for and the tax value is $865,000. We have 850 + acres of timberland worth probably 1.5 million, two beach homes, one not worth a lot, maybe 200,000 but we have another that the tax value is 1.25 million and close to a million in mutual funds, IRAs, 401K, etc. I'm not saying that to brag, but only to tell you that with all that, my bank, Wells Fargo, would not even give me a $300 secured credit card that I wanted to set up as an auto draft. We have been banking with then for a very long time, so to say I was ticked off is putting it mildly. I get it, terrible score, but I explained to them that I really needed some help rebuilding my credit score. Evidently they really don't care.

Other than leaving Wells Fargo in the dust, which I fully intend to do, are there any suggestions on credit cards that I could qualify for without getting killed on annual fees, etc.?


To My Credit
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Re: Rebuilding my credit

Postby To My Credit » Fri May 27, 2016 2:06 pm

Not an expert at this game, but I've read that the Capital One Secured MasterCard is an easy one to get.
Current cards: BankAmericard CR, BankAmericard BBR, Citi Double Cash, Chase Freedom, AmEx BCE, Discover It
Wishlist: US Bank Cash+

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Vattené
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Re: Rebuilding my credit

Postby Vattené » Fri May 27, 2016 3:19 pm

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
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

TXviking
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Re: Rebuilding my credit

Postby TXviking » Fri May 27, 2016 3:27 pm

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?

SEB
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Re: Rebuilding my credit

Postby SEB » Fri May 27, 2016 5:06 pm

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?


-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
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Re: Rebuilding my credit

Postby SEB » Fri May 27, 2016 5:12 pm

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!


-Thanks so much for the response. That's my issue with Wells Fargo. All I wanted was a secured credit card with a $300 limit set up on auto draft from either my checking or savings account. I don't need the card at all for anything other than rebuilding my credit and they shot it down. Again $300 secured card with auto draft payments in the bank I've been using for years. Suggestions for a new bank?

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Vattené
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Re: Rebuilding my credit

Postby Vattené » Sun May 29, 2016 7:16 pm

I'd also recommend checking out any local credit unions or even smaller banks around you.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

MemberSince99
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Re: Rebuilding my credit

Postby MemberSince99 » Mon May 30, 2016 4:51 pm

Vattené wrote:I'd also recommend checking out any local credit unions or even smaller banks around you.


Credit union would be a good choice.

If you must start off with subprime, and it sounds like you must if the credit union doesn't work out for you, then the Capital One low end cards are honestly the best way to go, as recommended above. After 6 months to a year with that or a credit union card, you can then apply for things like Discover, Amex, etc depending on what you are looking for. Or Wells Fargo though I wouldn't really recommend that as there are better options once you have done your initial time.

TXviking
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Re: Rebuilding my credit

Postby TXviking » Mon May 30, 2016 8:29 pm

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?


There are no banks I really like; I'd echo the advice of looking into a credit union. That said, Chase is the major bank I dislike the least. I do my regular checking with them and have several credit cards with them as well. I've been reasonably happy with them, although lately their fraud department has been driving me crazy with false positives. :beat:

takeshi
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Re: Rebuilding my credit

Postby takeshi » Tue May 31, 2016 8:56 am

SEB wrote:We have been banking with then for a very long time, so to say I was ticked off is putting it mildly.

Unfortunately that really doesn't mean anything to creditors so don't assume that any creditor will do anything for you based on "relationship". It's all about your credit profile as they look at that to determine the potential risk of extending credit to you.

There are some creditors that don't require a credit check for secured cards but I don't recall who they are off the top of my head. Credit unions have been suggested above because some of them may have more lax approval criteria.



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