Rebuilding credit, 650 now, should I get a 2nd card?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
Money card
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Postby Money card » Sun Jul 15, 2012 12:57 am

Ratfacedudeguy2 wrote:Uh.... what? I've had a Capital One account since '08 and I've never had a checking account with them, let alone been "forced" to open one. If you applied in branch then that was probably just an overzealous employee trying to keep up with his cross sell ratios and sales goals.


but you didn't apply for the card in the Bank you got yours over the phone or through a short paper application. which is how I got my card.
capital1 doesn't take applications in the bank unless you have a checking account. unless each state has different rules . which might be in your area .
3 banks have said the same thing.


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Postby Money card » Sun Jul 15, 2012 1:15 am

as I metioned a Discover is a nice card you get a 5% cash back on rotating categorys like grocery stores, summer fun, restaurants, department stores, electronics, movies and gas but you have to sighn up chase freedom has the same and citibank dividend
all are great cash back cards.. the chase and Discover have caps of 1500 not sure what the cap is for citibank.
since your looking for a cashback card you have to decide which you like best citibank , chase or Discover.

now American express has a blue cash card the basic card has no annual fee 3% cash back at supermarkets 2% back at gas stations and 2% at department stores.
the perfered gets 6% back at supermarkets , 3% back at gas stations and 3% back at department stores annual fee free for the first year after that there is a 75.00 fee. foreign transaction fee is 2.7% on both blue cash cards.

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Postby MemberSince99 » Sun Jul 15, 2012 8:25 am

Those are nice cards, but he's NEVER going to get a BCP with a 650 score. It's hard enough to get if your score is 100 pts higher. I'd even not consider the More very likely with 650, they like to see closer to 700 though I've heard of high 600s and perfect history for a couple of years with no baddies getting it.

OP if you want an amex with your score Zync is the best bet. You won't get one of their high end revolvers so don't waste the inquiry until your score is at least a 720 or so.

CC Deville
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Postby CC Deville » Sun Jul 15, 2012 8:42 am

Viajeque wrote:Can you give me more details on what kind of other unsecured cards of any sort to get? I only have 1 Capital Secured card and I am an authorized user on 2 retails store cards.

Thank you in advance


Have you been receiving any pre-approved offers? That is often a good gage to see if there is interest from the banks in you.

A 650 FICO is still on the low end for a prime card. One option would be to open a secured card with BofA. BofA is offering the 3-2-1 Cash Rewards option on their secured Visa and they almost always unsecure at 12 months. This would be a good way to get into a prime bank whilst earning rewards. Obvisouly, if you burned BofA (or any of their legacy banks: Fleet, MBNA, NationsBank to name a few) in the past I would skip this option. As long as you keep your nose clean, by next July you could very well be in the 700s and you could qualify for a CLI on the secured BofA once it is unsecured. I realize that you asked about unsecured cards...but with a 650 you are not likely going to be approved for any; and if you are, it will likely be at a toy credit limit that would make even Capital One blush.

As someone else stated you may have a shot at a Zync card from Amex. Amex has a preapproval section on their website. If you are interested in the Zync this would be a good thing to check out. Yes, it is a charge card and yes, it has $25 annual fee. The MAJOR benefit to Zync (besides being issued from a prime company) is that lets say you open a Zync now and in January 2014 you try for a Blue Cash Everyday and are approved, it would report as opened 1/2012 thereby instantly giving you an older tradeline. Its called backdating and all the credit boards are filled with info about it so I won't go into detail here.

The other option is to wait until you get to a 670-680 FICO score and try for the Chase Freedom. But as others here have warned, do not open anything else with Capital One. They do have some prime cards and some prime cardholders but to get a decent limit with them you have to be at a high 700 score.

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Postby MemberSince99 » Sun Jul 15, 2012 10:14 am

You're right CC, and the thing is, if you have a high 700 score, you can get a decent limit from WAY better than Crapital One. So OP do not under any circumstances go for another Crap One that will NEVER grow with you and you will be stuck at a tiny limit and no rewards and possibly an AF with as long as you have the card. Zync would be a way better option for you and it will grow with you.

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Postby Viajeque » Thu Jul 19, 2012 5:39 am

Thank you for the input guys, your information was really helpful. I have come out with 4 options after reading your comments, please give me your thoughts:

1. Give it a shot to the Freedom, my score is 650, I have an income of 85 k, would a high income give me a better chance? I have a checking account with Case already that's why I want this card really bad.

2. Go for the Zync card until I bring my score to the mid 700s and then try for an AMEX Blue. If I understood right, the tradeline from the Zync will transfer to the Blue?

3. I work for Schlumberger and they have a good Credit Union, would this be something to take advantage of? I am not sure how credit unions work.

4. Do nothing, wait and continue re-building my credit with my Capital One secured card. Maybe open a 2nd secured card.


Thank you again

Javier

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Postby MemberSince99 » Thu Jul 19, 2012 5:47 am

The credit union is a good thing that you should for sure look into.

And yes I would go for Zync first because their charge cards (like Zync) are easier to get than their revolvers (like Blue). The tradeline on Zync will NOT transfer to Blue - they are different kinds of cards and Amex will not "upgrade" you from a Zync to a Blue (actually from all I've read Zync doesn't upgrade to anything else period but YMMV) but it gets your foot in the door and everything you get in the future will backdate to the date you got your Zync card. Mid 700s and a good history with Zync will very likely get you the Blue.

I'm not sure how important income is to Chase but it sure can't hurt. 650 is borderline for Freedom if everything else is good and with good income may get you the Freedom.

Really there's only one way to find out! Good luck.

Viajeque
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Postby Viajeque » Fri Jul 20, 2012 8:52 am

Guys,

I pulled out my FICO scores yesterday:

TU: 658
EQ: 623

Should I take a shot for the Freedom? Worst case scenario if rejected I get the Zync? Or just the Zync for now?

My credit use is 50%, I could pay everything off by next month with a bonus I am getting. Should I wait until I pay everything off so my score would be better? How long would it take reflect the low balances on my scores?

Thanks again!

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Postby MemberSince99 » Fri Jul 20, 2012 12:37 pm

I would say that neither Amex or Chase will like seeing your credit use at 50%. Try to get it below 10% for two reasons - first it will boost your scores which are honestly marginal, and second it will lower your utiliization which they look at when deciding whether you approve. I would wait until you pay everything off then it should reflect shortly after your next statement cuts. If you check your scores say a week after that, you should see there your use is lower and your score is higher and that would be the time to apply.

Viajeque
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Postby Viajeque » Fri Jul 20, 2012 3:59 pm

Thank you 99 for the fast response. I think patience is the key here. I will pay my balances to 10% first and try for the Freedom afterwards. I will keep you posted.



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