Credit Card Forum
  1. #1
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    Default trying to improve chances of getting better card in future

    Is there such a thing as a checking account with a debit card that may help with getting a credit card in the future? I want to keep the account I currently have but need something better with a debit card. My mom wants me to get an account with Wells Fargo because she has one there and she also has a Visa card with them, but I'm not so crazy about them. My first thought was to go with Ally Bank, but they don't have credit cards and I keep getting told to go someplace where they have everything. I've been looking real hard at this online only account that Bank of America has, no fees providing you don't have to go into a bank branch and since there isn't one in my state, not much chance of that. I've also considered US Bank since I already have a secured credit card with them.

    I know I need better credit cards but that the rate things are going, it's going to be a long time. Currently I have over $1,000 wrapped up in 2 secured cards and I don't see much point in adding more funds to the cards since I can only use each card for one small purchase each month regardless of the credit limit I have.

    The other day my bank's ATM ate my debit card. It sucked the card in then displayed on the screen, "Unable to complete transaction, mechanical failure". It wouldn't even let me put in my PIN and wouldn't give my card back. The bank was closed and when I called in they said all they could do was freeze the card and I would have to wait until the bank opened the next day. The next day I went into the bank to see about getting my card back, but they said my card was shredded for security purposes and it would be a $15 fee to get a replacement. I asked about having my daily spending limit raised because I said $200 per day just wasn't enough. Today I get a letter from the main branch, since I've been over my daily spending limit several times this past month, my limit has been reduced to $150.

    There's getting to be so many places around here that don't take checks, it's cash, debit or credit. Due to recent counterfeiting problems, some places won't take bills larger than a 20. I could easily add funds to my Capital One card, use it like a debit card and pay it off every week, but it's not really like using these cards more is going to get me better cards.

    I've tried several credit unions without much luck, I'm totally lost in the world of credit unions so I'm going to need someone to go with me and show me where to go. I really don't have that kind of time right now, so maybe down the road.
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  2. #2
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    Default

    Debit Cards do nothing to affect your score; however having a checking account with a bank with a long term good standing relationship and/or significant balance will marginally help your chances of getting a credit card with that SAME bank and only that bank (it isn't reported to bureaus). Yes, Ally doesn't have credit cards, but they are the best deal for checking, and the best deal for savings/money market admitting new customers (an argument could've been made for TIAA if they were taking new customers). I bank with Ally myself. There are better ways to get a CC than banking with WF.
    Sole Ownership Cards:
    1st Financial Bank Platinum Student Visa, $500 CL, Open Since 3/2012
    Citi Forward Student Visa, $6k CL, Open Since 10/2012
    Costco TrueEarnings Amex, $6k CL, Backdates to 1/2012
    SallieMae Rewards Barclay Mastercard, $2.5k CL, Open Since 4/2013
    Jointly Owned Cards (co-owner with mom, not AU, used and paid only by me):
    Chase Amazon Rewards Visa Signature, $2k CL, Open Since 8/2012
    US Bank Cash+ Visa Signature, $13.5k CL, Open Since 10/2012
    Authorized User (Parents Pay/Use)
    Costco TrueEarnings Amex $29.4k CL, AU since 11/2012
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  3. #3
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    I've been kind of drawn to Ally and I realize debit and prepaid cards can't help my credit, but I have 2 credit cards and I'm only supposed to make a small purchase on each one every month. That really doesn't help when I need to buy something. The only other option would be to carry a roll of cash in your pocket and flashing cash can get you in trouble real quick. I did have a family in front of me at WalMart the other day, they bought a television, had 2 carts full of stuff and paid cash for it all. I think it's funny when people worry about merchant fees when using their credit cards, the guy had maybe 20 $100 bills (I wasn't really watching) and the clerk had to call a manager to come and approve it. So then when you have the cash on hand but don't have a high enough credit limit, what do you do? I know most people here put everything on their cards to get rewards, but when you don't get rewards, there isn't really any reason to load up the cards other than you need to buy something and don't have another way to pay.

    I kind of heard someplace if you get an Amex prepaid card then Amex may offer you a charge card maybe a year or so down the road. The only information I could get is Amex monitors your usage and based on that, they make their decision. I kind of take it if you use your card too frequently at discount stores like WalMart, you decrease your chances of ever getting an Amex. The other thing is the card is prepaid and that's kind of a taboo word. I was kind of looking a Bank of America just to see if I could have increased chances of getting a better secured card. My other thought is to give my secured US Bank card boost in credit limit then use it as much as possible and maybe paying it off a couple times a month. Wouldn't it help me jump ahead faster if they thought I was going to use the card?

    I'm almost shocked my bank has such a laughable daily limit on their debit cards, don't they loose money in merchant fees when I approach the limit and can no longer use the card? Seriously, most of the new prepaid cards a fairly good dea ls compared to my bank account. US Bank has a prepaid card with a $2.95 monthly fee and no fees to load if I load it from a US Bank branch. Sad thing, it's better than what I have.

    With my credit, I'm thinking in 2 years I might be able to get a better secured card, as my credit score is in the totally sucks range and hasn't been coming up with 3 months of on time payments.
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  4. Centurion Member
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    If you have the cash to buy something but can't get a high enough limit to put it on a rewards card wo./ hurting your utilization, then debit is the way to go for large purchases. You don't have to carry the cash and you reduce theft/loss risks while earning interest in the bank until its used. If you have credit cards and want a higher limit then keep them in good standing with low utilization and on time payments like you're doing. This is your best way of getting an Amex too; I can't imagine why shopping at Walmart would lower your chances even if done with their prepaid card. Prepaid cards < checking account debit card in my opinion. You don't earn interest, its not as versatile as checking. I don't know whether having an Amex Prepaid does help you get a real Amex, not having either myself, but I'd imagine if they do look at its usage they'd consider a good relationship to be you loading lots of money giving them an interest free loan and demonstrating decent income/assets, then spending lots on the prepaid card, where they earn the merchant fees.
    Sole Ownership Cards:
    1st Financial Bank Platinum Student Visa, $500 CL, Open Since 3/2012
    Citi Forward Student Visa, $6k CL, Open Since 10/2012
    Costco TrueEarnings Amex, $6k CL, Backdates to 1/2012
    SallieMae Rewards Barclay Mastercard, $2.5k CL, Open Since 4/2013
    Jointly Owned Cards (co-owner with mom, not AU, used and paid only by me):
    Chase Amazon Rewards Visa Signature, $2k CL, Open Since 8/2012
    US Bank Cash+ Visa Signature, $13.5k CL, Open Since 10/2012
    Authorized User (Parents Pay/Use)
    Costco TrueEarnings Amex $29.4k CL, AU since 11/2012
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  5. #5
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    When I said a prepaid debit card was a better deal than my checking account, I was slamming my bank who I'm really ticked off with at the moment. I think I would have felt better if I could have just given them a piece of my mind.

    The only reason I've ever even considered a prepaid Amex, I question if they are worth it around here. I had an Amex gift card a while back and that thing was hard to use as in nobody would take it, had to go shopping out of town. I did just hear that some places around town are accepting paypal for payment. I just hope nobody here is standing in line behind me when I'm at the checkstand with my laptop trying to guess my user name and password.
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  6. #6
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    I think it's ridiculous to stay with a bank that puts a spending cap on your debit card when they won't offer you a credit card. I've had my issues with TD Bank, but I've never been told I can't spend my money when I want too. I've put over $300 on my debit in one transaction getting my car fixed hundreds of miles from home.

    I think you first priority should be leaving that bank for someone that lets you control your money. I think Wells Fargo offers you the most room to grow. They have a good checking account, and they offer both secured and unsecured cards. Plus if you're a student, you can drop the monthly charges.
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  7. #7
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    You definitely want to have your checking/savings accounts through the bank you want a card with. Show ONE bank that you are a steady, responsible account holder will put you in their favor. It doesn't hurt to use the hell out of their debit card since that makes them money. Something else you might consider is a small ($500) secured loan with the same bank. Your secured cards help your overall credit rating but showing YOUR bank that you want to make THEM money looks better than making the money for another bank. BTW, this feedback is verified by a friend of mine who is an officer at Citibank.
    Cards and Credit lines Acquired:

    Escape by Discover (7.75K), Barclay Holland America Visa (4.8K), Macy's store card (5K), Bloomingdale's store card (2K), Citi Custom Credit Line (3.5K), PayPal Smart Connect credit line (1.6K), Chase Freedom Visa (5K), Chase United MileagePlus Visa (5K), Chase Sapphire Preferred Visa (5K), Amazon store card (2.2K), Lord & Taylor store card (500), Nordstrom store card (500), and Gold Delta SkyMiles from American Express (3K).

    I think I'm done!

    Closed: Dell Financial Services credit line. They cut my limit, so I cut the cord. Capital One. If they won't work with me, my other cards will!
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  8. Platinum Member
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    Should I be looking at building a better relation with US Bank where I already have a secured card or should I focus on a bank where I want a card in the future? I'd like to keep some funds where I currently have a checking account but I would like to start a second account for my work expenses that I'll put about $1,000 a month on, but I don't want my employer requesting my statements and seeing my personal expenses. I don't really need the checking account, just a debit card so the US Bank prepaid card would work great, but a checking account would make me look better?
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  9. #9
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    I seem to have missed the fact that you have a card with US Bank. Considering the offer, arguably, the best rewards card, I would consider switching to them. They offer a decent checking option, you already have a secured card with them, you'll create a good history, and you could potentially make that secured turn into an unsecured.

    The only reason I would not get a second checking account is because of the monthly fee. I think you would be better off keeping receipts for everything and submitting them for reimbursement. But that is just my opinion.
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  10. #10
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    What they told me at the bank, if I always pay on time and don't go over my limit I have a good chance of getting an unsecured card in 12 months. I don't see my credit score taking that big of a jump in the next year. Also in the last few months with my new cards, my sore is going down, instead of up. There's really too many things I need to do, I wanted to wait a couple more months then start to raise my credit limit with small deposits every few months. It sound like I would get a card equal to the deposit I have when my card "graduates". The only thing is they give you a non-rewards platinum card then you have to take good care of it to be offered a rewards card.

    My other card is a secured Capital One Mastercard, but from what I read, they are just good starter cards, not a bank you really want to stay with. I don't know they are really good for more than just credit cards.

    I'm keeping money in the bank I have now, there are no fees. I was kind of considering an online account with Bank of America, no fees for opening an account online. Ally Bank is just a dang good deal and also no fees. With US Bank there would be a fee, but I would also be using a debit card where I want a better credit card. I figure I would at least keep a little savings with them and just put the security deposit in the account when the card becomes unsecured.

    I do need the better debit card because I can't buy anything with the low daily limit on the card I have, it's just now where do I want to go for a better debit card?
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