Turned down for Bank of America secured card, what's next move?

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shoptalk01
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Turned down for Bank of America secured card, what's next move?

Postby shoptalk01 » Mon Aug 20, 2012 8:28 am

Here's how things stand with me so far. I received a letter in the mail from Capital One saying that I was approved for a secured card with a $200 credit limit and minimun deposit of $49. It says my card will be mailed in 2 to 3 weeks.

At the same time I received a letter from Bank of America stating that they were unable to approve my application at this time.

I really didn't want Capital One to be my longest history for a couple reasons.

(1). I have at least a dozen friends who totally slam Capital One and think I should cancel it immediately. Several have had a nightmare experience with Capital One and they say what I have to gain with a $200 limit isn't worth the risk.

(2). I have a friend who's a financial advisor and accountant. He says Capital One is the last card he would recommend since it will never convert to an unsecured card. To get a Capital One card with no annual fee I will have to cancel this card in a couple years then apply for a new card. Also, you should never keep a secured card longer than necessary. The one thing Capital One has going for them, they do give a good deal on a secured card and they do seem to approve people when nobody else will. The downside is that he says they aren't worth staying with once I qualify for better cards. He said if I'm lucky, in a couple years I might get a credit limit increase to $500 for my $49 deposit making it not worth keeping when I get an offer for a card with a $1,000 limit and no annual fee.

(3) My family has serious issues with Mastercard. When I was a kid, my parents went on vacation, (to them a vacation was being more than 100 miles from home for 3 days) and the banker at that time talked my dad into taking a Mastercard instead of traveler's checks. The problem was certain states only accepted Visa at that time and others only accepted Mastercard, so when we left the state, he learned the hard way that he couldn't use his card anywhere for gas or motels. When we got back he cut up the card, threw it on the banker's desk and swore never again. A few years back my mom was talked into taking a Visa card, but she thinks everyone should only have one card and it should be a Visa card.

At this point, if I could get several cards for building credit and maintaining a credit history, I would be happy. I really could care less about rewards, my future goal is (1) no annual fee (2) having enough available credit to show that I can be responsible with credit. I would likely only use credit enough to keep accounts current and in good standing. Right now I'd just be happy to be able to spend several hundred without maxing out the card.

I've given some serious consideration to the situation and I've given a hard look at USAA. So at this point, should I just learn to be happy where I am, should I try for a secured card from USAA or should I focus on adding my to my Capital One deposit?


Crashem
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Postby Crashem » Mon Aug 20, 2012 8:44 am

If you are getting rejected for secured cards, you don't need to worry about anything else but getting 2-3 revolving trade lines. Don't worry about long term or anything else. When you start getting unsecured and decent cards, you can cancel these cards. Cancelled cards remain on your credit report for 10 years and count for many fico related score calculations. Talk to local credit unions and don't apply until you have info that they will approve your secured app. Most of the we will accept anyone secured cards have pretty expensive fees. Kind of the price to pay for past credit mistakes. First progress seems to be on the lower end of fees. Others are first premier, credit one bank, etc.
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DavidNY
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Postby DavidNY » Mon Aug 20, 2012 4:15 pm

Why did BofA decline the secured card?

As much as I usually advise against CapOne, they may be a good option in this case. If it were me and I wanted to improve my credit score as quickly as possible, I'd go for it. If you can wait a while, bad entries fall off credit reports after 7-10 years.

shoptalk01
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Postby shoptalk01 » Mon Aug 20, 2012 5:11 pm

The problem has to do with my physical address - since I sold my house the next best thing I have is my mom's address. Several places I applied to wanted a copy of my utility bills to prove that it was my address and I didn't have that. It's weird, Capital One approved my application no questions asked but Bank of America said I needed to be at a physical address for at least a year. Also I've been working several different jobs for a temp agency, so maybe that might be a problem as well.

Until I can get an apartment, I'm stuck living in motels and getting mail at a UPS store. I can't get anywhere at all using the UPS store as my mailing address.

craigm1
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Postby craigm1 » Mon Aug 20, 2012 7:39 pm

I got a capital one secured in 98 with 49 down $250 limit they upgraded me 6 months later saying if I sent in $200 I would go to 1k limit I did that, now I have a limit of $4800 and I have a cash rewards card with 1.5% cash back that they converted my card into keeping the opening date of 1998, other than amex it is my oldest credit line, If you use the card responsibly it will open the door to better cards just look at the bottom of my message for my current arsenal!!!
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