Future credit card goals for 6 months to a year.....

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shoptalk01
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Future credit card goals for 6 months to a year.....

Postby shoptalk01 » Thu Oct 11, 2012 10:19 am

Yesterday I was asked what my future goals were but it's something I haven't really even thought about. At present I have a secured card from Capital One and a secured card from US Bank. Currently my Capital One Mastercard has an $800 credit limit and my US Bank Visa has a $300 credit limit.

I had considered a couple of things but no hard goals which I was told were important. Well, we all know that Capital One will NEVER unsecure, they will let me continue to have a secured card for the next 10 years unless I request to close the account. It's also my understanding I can't apply for an unsecured Capital One card as long as I have the secured card, so I will have to FIRST cancel the secured card, let it go a few months, then come back and apply for an unsecured card. My reasoning for going with Capital One is they were the easiest to get a secured card from and I can add to my security deposit whenever I want from their website. Applying for a regular card from Capital One when I qualify for a card from Citi or Bank of America to me just doesn't make sense. I know people complain about Capital One, but they do have great starter cards for people who need to fix their credit.

I was told the US Bank card does unsecure at some point, but the best we can hope for is a no frills plain ole platinum card. I just had a financial adviser tell me that a secured card from Bank of America was far superior as they convert the fastest. I know I can add up to $3000 to my Capital One card without a hard pull, but it sound like US Bank might do a hard pull to increase the credit limit? What I was told was to do nothing more for 6 months to a year, just be happy with what I have then apply for a secured Bank of America card. Oh joy, I get to look forward to applying for another secured card in 6 months to a year. While I would like something better in a year or so, with my credit currently in the dumpster, that might be as good as it gets.

Myself, what I would like to do is add at least $1200 to my US Bank card to bring my credit limit up to $1,500. The reason for adding to the US Bank card is there is hope someday the card might convert and when it does I would like a respectable line of credit. Capital One on the other hand while very easy to add additional deposits to would be likely to hold my deposit much longer and really doesn't have anything much better to offer if I ever qualify for better cards except no deposit.

I feel totally clueless what I should be trying for a year from now or what I should hope for. Maybe be happy I still have 2 secured cards in good standing????? Well, I just thought maybe somebody here could help me answer the question.


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Snowman
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Postby Snowman » Thu Oct 11, 2012 10:48 am

Shop-Just make sure you keep paying on time, don't overspend, and if you have a salary for example just charge how much you think you make in a month on the card. For example, I'm a student but I have a part time job as a waiter (for now) and a second job. I charge my current card about 400.00 out of a 700.00 limit, but I always pay it before the statement cuts, and use cash for a few days until after my payment is cleared and use my card throughout the month. Just always pay on time because 35% of it is based on payment history. Be careful, don't overspend, watch your credit like a hawk, and minimize any mistakes that you can (one late payment won't kill you, but 3+ will.) If all goes well, in 1-2 years you can apply for some better cards, maybe like a discover more, or citi forward, until then just keep at it, and eventually your credit will be okay, and life will be a little bit easier. This is pretty much what my parents told me (they both have scores that are 750+) when they explained how important credit is. Good luck.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.

shoptalk01
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Postby shoptalk01 » Thu Oct 11, 2012 3:00 pm

I think what he was getting at, he wanted to see if I had a clue what I was doing and I think I confirmed that I had no clue. He said my approach was to recklessly rapid fire 12 shotgun blasts into the air and 2 ducks fell from the sky. Well, I was desperate, because they said I was turned down for several apartments for what they said was bad credit. A friend of mine showed me Credit Karma and then I could see just how bad my credit sucked. Somehow someone tattled to my mom and she said if my credit score fell below 500 she was having me declared incompetent to handle my own affairs and having me put in an institution because she was tired of watching me make mistakes. I think several of us held our breaths as my score slowly dropped to a 534, but then it came up a little for some unknown reason. I thought if I could just get some credit I could bring my score back up. I went to every department store I could think of and was declined for all of them, tried for a few gas cards and was denied them as well. I heard a couple major credit cards were easy to get, but that turned out not to be the case. I then tried several places for payday advances and was turned down. I went to my own bank and tried to take a personal loan against a CD, but was turned down by them. Next I filled out a loan application to purchase a used motorcycle on someone's advice, they said if I had a large down payment I should be able to borrow $1,000 but the loan officer said that was a lot of money and there was just no way the bank could do it at this time. The reason was my low credit score and what he claimed was 20+ inquiries, but when I checked Credit Karma I didn't see near that many. He told me to check the Capital One website and they offered me a secured card with a $200 limit for a $49 deposit. That was the first glimmer of hope I've had in the past 2 years. The Capital One card reported and my score fell 10 points. I added $600 to bring my credit limit up to $800, waited for it to report and my score fell another 8 points. I went all over the internet and spent days trying to figure it out, and the best solution seemed to be another card. Since I drive past a US Bank almost every day I decided to check there and was able to get a secured card from them with a credit limit of $300. That card reported as soon as I activated it. I checked Credit Karma again and my score went from a 578 to a 562. About the best I see in 6 months is a better secured card because I really wanted Bank of America instead of Capital One, but I just don't see that happening.

DavidNY
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Postby DavidNY » Fri Oct 12, 2012 11:16 am

BofA offers a secured card which should eventually convert to unsecured.

shoptalk01
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Postby shoptalk01 » Fri Oct 12, 2012 5:12 pm

I was denied several secured cards and BofA was one of them. The reason's they gave, back when I lost my job and couldn't get unemployment, I had 7 delinquent accounts that were charged off. I sold my house and paid everything off, but it was too late and too much damage had been done. Since all the accounts were closed by the creditors, I'm showing 0 years of credit history. They also said I had an active collections account and 20+ recent inquiries. I applied to Capital One at the same time and was approved for a $200 credit limit with a $49 deposit.

I tried to look into the collections one but the only information I can get is it's for $322. I tried calling several times, I asked what it was for and they acted like they didn't know. I asked if I paid it if they would remove it from my credit report and they said no. Then they transfer me to some ladies' office who never answers her phone and doesn't return calls concerning payment disputes.

I just know I'll never in my lifetime get cards from Discover, Amex, Chase and Citi ever again because those were the major cards that got charged off and closed, so I'm not even going to try.

As far as better cards, I'm just plain bummed at the moment because I was told if I really work hard, I might be able to get some better SECURED cards in 6 months to a year, but that doesn't really give someone much to look forward to.

agp
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Postby agp » Fri Oct 12, 2012 5:26 pm

shoptalk01 wrote:Maybe be happy I still have 2 secured cards in good standing?????


Nothing to be happy about. Apply for a credit card (not that secured card nonsense) through a credit union. Then after a year move on to bigger banks.

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

shoptalk01
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Postby shoptalk01 » Fri Oct 12, 2012 10:15 pm

How do I find a credit union? I don't think there are any around here. I kind of knew I was making a mistake going with a couple secured cards, from what I've seen they deduct points from your credit score. I just got an email that my Capital One statement was ready, it usually takes about 2 weeks after the statement is prepaid for it to report, so I'll check Credit Karma then and see if there's any improvement or if my score continues to go down. I've only been charging up to $200 and then paying it off before charging more.

agp
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Postby agp » Sat Oct 13, 2012 6:31 am

Just google Credit Union and your zip code. If there are no local credit unions around, there are national credit unions you can apply to.

Main Card: Amex Platinum
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shoptalk01
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Postby shoptalk01 » Sun Oct 14, 2012 11:14 am

I found 2 local credit unions in the next town, about 20 miles from here. Online is says you need to live or work in the community to join. My friend thinks if I sign on with a local temp agency there it might be considered working in the community then I could always quit and say I didn't like the job they sent me to. So once I get the job I can just go in and say I want to apply for a credit card and there's no security deposit, correct?

Now the huge question, do I cancel my current credit cards now or wait until I get one at the credit union? I could really use my deposits back and it seems the secured cards just pull your credit score down.

PallasAthena
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Postby PallasAthena » Sun Oct 14, 2012 7:29 pm

The reason why you keep getting denied seems to be the number of inquiries in such a short period of time! You drove all over town trying to open up a bunch of CC's and lines of credit in too short of a time. Stop doing that. Work with what you have right now. Pay off any balances. Only charge what you are able to afford to pay in cash at the end of the month. For instance, charge your groceries, gas at the pump, etc. ONLY if you can pay it off at the end of the month in full.
After a year, your cards may turn into unsecure cards.
Again, work paying off what you owe and keeping your CC's that you have now while you repair your credit.
Oct '16
TU: 783, Equifax: 772
Ch 7 BK in '06, finally dropped off in '16
2 mortgages
paid off car
0 CC debt (Disc, Citi, and WF Amex)
furniture debt: $1800
Closed unused CCs, was dinged a few pts, but recovered
I filed for BK in '06 and was in debt over $500K. Never again! You can do it too! :lift:



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