I am trying to rebuild credit. My scores are mid 650's from all 3 firms. I have had one credit card now for 5 months with a $500 limit. I keep its ustilization to less than 30% per month usually 10%. I just got another pre approved card app today and i am wondering if i got it and kept its utilization under 30% if it would also help build my score. The first card i got raised my score about 40 points. I am also wondering if i would be better off getting some sort of a small loan instead say around $1000 and makes payments over 12 months. Maybe both. I want to do all i can to build credit without hurting it with a goal of getting a mortgage around august of next year. Thanks for any input.
I would get a second credit card first, and keep doing what you're already doing. Use it sparingly, keep your credit utilization low (under 10%), and pay it on-time and in full each month. Pre-approved offers in the mail aren't always the best deals, so do your research online and compare and contrast other offers that you could qualify for with your current credit score. You may find something that's a much better fit.
Thanks for the reply. The pre approved card app i just got is an orchard bank unsecured one. I do not know where to go to look for other offers. I am afraid to go applying for just any card as i dont want to take a hit on my score each time. If you have any suggestions where to look for another card i would appreciate it greatly. Thanks again!
Nooooo!!! Put that Orchard offer down! Step awaaaay from the pre-approval! It's loaded with fees, fees, and more fees that will actually set you back. You didn't mention which credit card you currently have, but if you don't already have a Capital One card, that would be my first choice as it have 0% interest until next year. They offer a program called Credit Steps which gives you an automatic credit line increase after you've completed your 3rd month without going OVER your credit limit or making a LATE payment (I make small purchases and overpay a couple of times a month so they always owe me). Go to CapitalOne.com and do their pre-qualify (not for the rewards card and not for the standard card) select "Average Credit" and pick the "Classic Platinum Mastercard" -- high approval rate. If you feel you're beyond that, you can always try for a Priceline.com Visa by Barclay Bank. Apply for the No-Fee Visa. It have 0% interest until next year. If you're denied online, you can instantly call their Credit Analysts on the phone (they REALLY answer) and let them know you were denied and if they can review your report for reconsideration -- they do it right there on the spot. They'll ask you a couple of questions like "What will you use it for?" stuff like that, then they say APPROVED (high approval rate). The next day, I saw Barclay's listed in all of my credit bureau reports -- they update FAST. Their number is: Barclays: 866-408-4064 (Credit Analyst). Just GOOGLE "backdoor numbers" and you will see the FICO Forum which lists all Backdoor Numbers for reconsiderations and you will notice Barclay Bank of Delaware and that same number I provided. They raised my limit after 3 months of good payments. Keep us updated with which route you took.
The capital one card is the one i already have witht he $500 limit after making the 3 months payments on time. Do you know generally what fico scores you need to be approved by barclays? Thanks
Take a gander under our credit cards section here too. You might find something that's a better fit than Orchard. We provide reviews of hundreds of credit cards, and sales through our site are what help us run this forum and website completely free .
are there any listed that use a soft pull to pre approve an app? I dont mind a hard pull if i know i will end up with it but want to avoid it if i can. Thanks
1. FICO Credit score = % of types of debt you have. Increases or Decreases credit score. 2. Obtain 3 credit reports from major credit bureaus free annually. Download form and mail certified. 3. Clean up any errors. Disputes/corrections 30 days to respond or it is removed. FYI: 7 years bad debt removed. Bankruptcy 10 years. 4. Smart move=get out of debt. Proverbs 22:7 The rich rule over the poor and the borrower is servant to the lender. Debt is big business. $ 2.7 trillion consumer debt U.S. Hidden fees & % rates are astronomical. It's where these companies make their money. 5. Pay cash=freedom. 6. Do your homework when purchasing. ATM-VISA DEBIT saves you from % rates. Do Your Homework! FEES 7. Don't sign anything unless you understand what you are buying. Get out of contracts, fees, surcharges and % rate costs. 8. Pay as you go cell phones=freedom. 9. Cars are the worst investment. They depreciate 20% driven off the lot. 10%-15% every year. Pay cash. Auctions. Private Sales. 10. Be in control of your finances; not the merchant/lender/bank. 11. Suggestion: Get into a financial teaching course. Financial planning & budgeting to get out of debt, understanding money and making your money grow. Hope this helps. You don't need a credit score unless you plan on living in debt. That is all FICO is about. Cash will always be accepted everywhere. Peace be with you and the Lord Jesus Christ. Amen
BS. You have to have a good score to get a mortgage. I pay cash for everything and am debt free, but went to apply for a mortgage and was declined big time because i have a low credit score.
What the heck does this mean? Sorry, but there's a lot more to FICO scores than just what percentage of debt you have. Why not just get them for free online at annualcreditreport.com? No reason to mail anything certified. Debit cards aren't always the best choice, and they carry their fair share of fees as well these days. I prefer all the benefits my credit card provides, and I've never paid a cent in interest or fees. This statement really shows how little you understand about credit scoring and personal finance. Like it or not, FICO scores are in many ways our personal financial reputation in the world today and they can affect much more than our ability to secure credit. Besides, credit isn't always synonymous with carrying debt either, although you seem to think it is based upon your comments here. Oh, and cash certainly isn't accepted everywhere. I couldn't even buy food on a 6-hour flight last week unless I bought it with a credit card.
9. Cars are the worst investment. They depreciate 20% driven off the lot. 10%-15% every year. Pay cash. Auctions. Private Sales. While it is true cars aren't the best investment, because GM and Chrysler filed for bankruptcy used cars are worth more now than 2 years ago. Manufacturers are keeping production numbers down to decrease overhead helping to make used cars worth more. IMO I would never buy a car from an auction. Dealers are the way to go to take advantage of sales tax credit and warranty issues.
