Credit Score of 550 Need Credit Card
author: cruiserma
Posted: Wed Nov 03, 2004 2:20 am
Post subject: Post Bk score of 550..need best C.C. company to start with..
I recently came out of a Ch.7 discharge and due to having a Contract for Deed on my home, must refinance in the next 11 months. In order to increase my credit score,(currently it is around 550) I need to re-establish credit. I can't afford to have company after company pull a report because this would definitely lower my scores. Is there a company that you would recommend that would almost be sure to issue a credit card? I'm willing to go secured if necessary. It's just really important that I get the card and work to re-establish in order to raise my score. This is really necessary in order to keep my home.
Thanks for any advice!
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author: rhwbullhead
Posted: Wed Nov 03, 2004 5:38 am
Post subject:
Stay away from Aspire and First Premier, as they will approve you, but they charge outrageous fees.
Orchard Bank (offered by Household) is a great card to start with. I got approved by them three months after my discharge. They charge a $39 annual fee, which is much cheaper than the $150+ that Aspire and Frist Premier charge. They start you with a low limit ($300 for me), but if you max it out and pay if off every month, you'll eventually get your limit raised, and you'll improve your credit.
If you want secured cards, American Pacific Bank and Plains Commerce Bank are the best deals. First, they don't show your secured status, so it looks like you have a regular credit card with them. Second, they both pay interest on your secured deposit (and many secured cards don't). Third, they charge resonable annual fees (don't remember the exact amount, but it's under $45). Finally, they have a grace period (Cross country, for example doesn't).
The only drawback with American Pacific Bank and Plains is that they will never offer you an unsecured card. You can build credit with them for a few years, and then cancel them once you get better offers.
I started with an Orchard Bank card with a $300 limit in Oct 2003. I now have a $600 limit with them. I then opened an American Pacific Bank card with a $1000 deposit (and limit) in Nov 2003. I opened a Plains Commerce with a $5000 deposit (and limit) also in Nov 20003. In Aug of 2004, I got approved for a $4500 unsecured card from Providian, so I think this approach has definately improved my credit history.
One final advice that I have for you is to make sure that all your credit reports are reports your discharged accounts as discharged in bankruptcy. Many cards will not properly reflect this. Some may be marked as charged off. Some may also reflect you as having a balance. The accounts should report a $0 balance and a notation of discharge through bankruptcy should be present.
It's a pain to fix all the accounts. After about 4-5 disputes, I have all my accounts fixed. One still shows as a charge-off, but I finally gave up with fixing it. I figure it's okay as it'll disappear in 7 years as a chargeoff instead of 10 years as BK account.
Good luck.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Nov 03, 2004 2:20 am
Post subject: Post Bk score of 550..need best C.C. company to start with..
I recently came out of a Ch.7 discharge and due to having a Contract for Deed on my home, must refinance in the next 11 months. In order to increase my credit score,(currently it is around 550) I need to re-establish credit. I can't afford to have company after company pull a report because this would definitely lower my scores. Is there a company that you would recommend that would almost be sure to issue a credit card? I'm willing to go secured if necessary. It's just really important that I get the card and work to re-establish in order to raise my score. This is really necessary in order to keep my home.
Thanks for any advice!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
author: rhwbullhead
Posted: Wed Nov 03, 2004 5:38 am
Post subject:
Stay away from Aspire and First Premier, as they will approve you, but they charge outrageous fees.
Orchard Bank (offered by Household) is a great card to start with. I got approved by them three months after my discharge. They charge a $39 annual fee, which is much cheaper than the $150+ that Aspire and Frist Premier charge. They start you with a low limit ($300 for me), but if you max it out and pay if off every month, you'll eventually get your limit raised, and you'll improve your credit.
If you want secured cards, American Pacific Bank and Plains Commerce Bank are the best deals. First, they don't show your secured status, so it looks like you have a regular credit card with them. Second, they both pay interest on your secured deposit (and many secured cards don't). Third, they charge resonable annual fees (don't remember the exact amount, but it's under $45). Finally, they have a grace period (Cross country, for example doesn't).
The only drawback with American Pacific Bank and Plains is that they will never offer you an unsecured card. You can build credit with them for a few years, and then cancel them once you get better offers.
I started with an Orchard Bank card with a $300 limit in Oct 2003. I now have a $600 limit with them. I then opened an American Pacific Bank card with a $1000 deposit (and limit) in Nov 2003. I opened a Plains Commerce with a $5000 deposit (and limit) also in Nov 20003. In Aug of 2004, I got approved for a $4500 unsecured card from Providian, so I think this approach has definately improved my credit history.
One final advice that I have for you is to make sure that all your credit reports are reports your discharged accounts as discharged in bankruptcy. Many cards will not properly reflect this. Some may be marked as charged off. Some may also reflect you as having a balance. The accounts should report a $0 balance and a notation of discharge through bankruptcy should be present.
It's a pain to fix all the accounts. After about 4-5 disputes, I have all my accounts fixed. One still shows as a charge-off, but I finally gave up with fixing it. I figure it's okay as it'll disappear in 7 years as a chargeoff instead of 10 years as BK account.
Good luck.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 10:28 PM
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