Moving away from those rebuilder cards

For just about anything you want to get off your chest about credit cards.
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xbillyjean42x
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Moving away from those rebuilder cards

Postby xbillyjean42x » Sun Jul 28, 2013 7:42 pm

Hi, I'm new here as of today and I love reading everyone's experiences, tips and tricks about credit. It's been quite a while since I've used forums as a source of information and a general place to hang out, so bare with me as I try to understand some of the credit lingo.

I figure if I plan on going into the Accounting field as my major, then I better have some information about credit and to help my own personal financial endeavors for my future. My own personal experiences of bad choices with credit and debt, and just being young and dumb has given me great lessons to deal with and know how to avoid that for the future. I'd say if I had never gone through everything I went through, I would never have known many of the things I know now.

I'm 26, I make about 29k a year. I work full time, and I'm going to college full time. I have about 8k for student loan debt(not in repayment although I do put some extra money here and there so I can take advantage of paying my principle without all the accrued interest), a car loan for about 11400(I make payments on time, put extra towards the payments, and have not missed a payment, but the apr is ridiculously high btw at a 12.75%), an Orchard Bank card(unsecured) - $300 CL(now capital one), and a Capital One(unsecured) - $500 CL (both of which I use for little stuff like gas or some clothes, or renting a car when I travel and immediately pay off every month, I try not to carry balances and be charged apr). My credit score is about a 680 (although credit scores are very misleading)

4 Negatives:

3 years ago when my job was cutting hours and I was making less than I was now, I was behind 2 payments, and my car was repossessed. (wish I knew I could have still received unemployment when you where part time, then I could have kept the car, or even try to sell it..but how else would i have learned my lessons? lol). When it was sold at auction, I was SO lucky enough to get more than what I owed on the car, (I had 8 more payments to go then it would have been mine, but enough of the what ifs lol) and have an actual refund of about 3k. So that was paid off, but at the cost of my credit score for 7 years.

I had 3 credit cards.
1)A BOFA card that was charged off. But that's payed off. Waiting to fall off 7/14.

2) A past capital one card, which I settled with them for an amount. It's paid off. Waiting to fall off 11/14. They were nice enough to give me a second chance with the Platinum card I have now which I take real good care of.

3) Sears card which they closed bc of my past credit reports even though I was making payments to them (before all this credit card legislation and such stopped companies from making determinations like that) on time. I had issues with them still reporting (0 balance, no payments) until 2012. My last payment and activity was 3/09. They closed my account 5/08. Describes as paid and closed. I had to keep disputing it every time I pulled my report because it says that the account was closed at consumers request. Ha, what a joke, they are the ones who closed it! I disputed this info, and it says that every time I pull my report now. It stopped reporting 12/12, but I don't know when this will fall off though. If anyone has any ideas..please let me know.

Anyways, should I just keep my combined $800 credit limit until my past negative credit card issues fall off? And when I am ready to make that move to try another card, what card should I go for? My longest positive credit history will be that orchard bank card ($59 annual fee btw smh) 11/11. I'm a little afraid of getting rid of the card with the longest history, but that card is too much a year. That and since Capital One acquired HSBC, I don't know what other types of options they will give to people who have that card. Can we get CLI? Can we get an option of trying to get a card with a lower annual fee? The platinum Capital One I have is from 6/12. I have read that Capital One has very rarely given CLI so I'm kinda in a corner here lol. I have a bank account with Union Bank, but from my research, it's a prime bank market so I'm assuming I need A-1 credit before I apply for one of their cards. I don't even want to touch that. I was also thinking about possibly opening up another banking relationship/and or switching my union bank account to a local credit union for better rates and service in general. I was hoping after a bulk of my negative credit fell off my credit reports, then I would refinance my car loan later on through the credit union.

And I'm not looking to do this all right now. I realize this stuff takes time, but I don't know what would be my next step. I want to do this with the best possible results for my situation. There's a plethora of information out there and sometimes knowing that much can help you and also hurt you because you would have so much to choose from. So any suggestions or comments would be appreciated :) Thanks!
HSBC Orchard Bank Platinum/Captial One Platinum MC- $3800 Nov 2011
Capital One Platinum MC- $1500 Jun 2012
Discover IT Student- $500 Aug 2013
EECU Credit Union Visa- $500 Aug 2013
Best Buy (Citibank)- $2k Sept 2013
Citi AAdvantage MC-$4k Nov 2013


takeshi
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Postby takeshi » Mon Jul 29, 2013 3:03 pm

xbillyjean42x wrote:Anyways, should I just keep my combined $800 credit limit until my past negative credit card issues fall off?

Your call to make based on your spending patterns. With $800 total CL's it would be very easy to end up with high utilization.

xbillyjean42x wrote:Can we get CLI? Can we get an option of trying to get a card with a lower annual fee?

You never know unless you ask. Some have.

MemberSince99
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Postby MemberSince99 » Mon Jul 29, 2013 4:45 pm

In your situation you should look at Discover IT. They tend to (from what I've read) if they approve you, give pretty big limits to folks in your situation. A lot higher than they give to folks like me.

And the approval criteria is not that difficult honestly. The only bad part is they don't recon declines from what I have read and was told by a rep. So if they decline you, it's a decline, as opposed to Chase who you can recon with but they have tougher approval standards.

Anyway try for Discover. If that falls through, try something by GE like a Walmart card or Amazon store card, where the CLIs will come regularly if you treat them well (and with no hard pull to boot). That will help you build up your limits and your credit at the same time.

xbillyjean42x
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Postby xbillyjean42x » Thu Aug 01, 2013 7:34 pm

That utilization does creep up quick and the low credit balances are just killing me though. It was one of the constant factors that was sited when I bought my car in October on all of the denial letters I got when the dealer put in my application, and when I applied for an auto loan through a bank. That also included my past negatives, and my average age for accounts.

Thank you for that information on the Discover and WM cards. I will continue to research this forum and reviews from other users before I apply for another card.
HSBC Orchard Bank Platinum/Captial One Platinum MC- $3800 Nov 2011
Capital One Platinum MC- $1500 Jun 2012
Discover IT Student- $500 Aug 2013
EECU Credit Union Visa- $500 Aug 2013
Best Buy (Citibank)- $2k Sept 2013
Citi AAdvantage MC-$4k Nov 2013

xbillyjean42x
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Posts: 21
Joined: Sun Jul 28, 2013 3:32 pm
Location: Fresno, Ca

Postby xbillyjean42x » Sun Aug 04, 2013 1:10 pm

Well today I called about my HSBC transitioned account to CO and asked if I could get a lower annual fee. They said at this time that the account terms from HSBC are still in effect and they couldn't decrease my annual fee (59). But the account analyst said she would give me a $25 statement credit issued within 1-2 statements on that account for me. Well, at least I was able to get something out them lol. I know many people have issues with CO, but they were there for me and gave me a second chance after all of my credit troubles. I'll always be appreciative of them. I don't know what my next card will be or how long I'll want to keep my current HSBC/CO transitioned card because I don't want to kill the history. I'm thinking I may just transitioning my bank accounts to my local EECU credit union, and establish a history with them, and next year I may just apply for a card from the bank. I'll keep an eye out on that annual fee on my CO in the mean time. I may see if I can do a balance transfer and close that account. If I wait too long, that history will get longer and be a big damage on my AoA.
HSBC Orchard Bank Platinum/Captial One Platinum MC- $3800 Nov 2011
Capital One Platinum MC- $1500 Jun 2012
Discover IT Student- $500 Aug 2013
EECU Credit Union Visa- $500 Aug 2013
Best Buy (Citibank)- $2k Sept 2013
Citi AAdvantage MC-$4k Nov 2013

MemberSince99
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Postby MemberSince99 » Sun Aug 04, 2013 9:23 pm

Yeah they gave you your shot, true enough, just make sure when you can move on, you do, and do your best to never look back. Once you get prime cards, you will not miss HSBC/CO one bit. I speak from experience.

Sounds like you may not be ready to do that yet, so just keep up the good work and in time you will be.



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