Hello I am in the early stages of rebuilding and thus far the only CC I have is the ol' Cap One secured card $200 credit line. I have only had this card for about 5 months. I recently pulled my TU from here on myfico and it said I was at TU658. I was pleasantly surprised and got carried away by that number and I made some mistakes already by applying for a couple of cards that were out of my league because I listened to Credit Karma suggestions and thought I could be approved for the Capital One Rewards card. I was promptly denied for that as well as the Chase rewards card. Again, the only reason I applied for those is because of suggestions and the fact that Credit Karma said I had a good chance of approval. I don't think those hard pulls are helping me too much now. Anyway I think that the best course of action from what I have read is to obtain and increase my lines of credit however I can and it seems that the only way I will be able to do that is by secured cards. My plan is to increase my available credit and maintain a low Utilization Ratio. I have only had the Cap One card for a few months so I figure I should get all I can now as my Average Age of Accounts is not much so new credit might not hurt. Being that (I think) I am limited to secured cards I applied and sent off for the Orchard Bank secured card and was unaware of the Cap One acquisition. I guess I did it just in time because they sent me the packet for the sign up and deposit info and such. Anyway (finally) my question is, should I proceed with the Orchard Bank card to show another credit line or should I not as I already have one secured card with Cap One? Will I be less likely to ever be approved for the Cap One Rewards card in the future if I have 2 secured cards with them? If I wanted to add additional deposit to increase the credit line, which one should I add to? I will be able to get the deposit back if I cancel the card of course, right? I was thinking of putting an additional $1000 on one of them... What about the Visa Platinum from Credit One Bank? I know it's a $99 annual fee but if that's what I have to do to rebuild then I will just have to and cancel when things are getting better. It is an unsecured card and looks like it is easy to get. I just don't know what to do about the Orchard Bank card. It came in an HSBC envelope. You can tell they are going through the final stages of the acquisition because the final documents they want to activate the account are not printed on the pages evenly and there is highlighter marks and what not on the pages and stuff. they actually just look like a bunch of photocopies. Thank you for your opinions!!!!! I just have such limited knowledge I don't know what to do.
Dolleprod You are kinda in the grey area; the Cap1 purchase of certain HSBC accounts was final as of May 1, 2012 but the announcement of Cap1 discontinuing the OB card was several weeks later (Josh would know the actual date) so the fact you got in could be a good thing. I have a HSBC Household Bank Reward Card that converted to a Cap1 card on my CR only; I will continue to use my HSBC card until it expires in 2014. I still collect rewards and I have the benefit of having Cap1 on my reports vs. HSBC. I was told that my HSBC card would not be combined or converted to a Cap1 AT THIS TIME, but that does not mean it wouldn’t change in 2014. I don’t lose sleep over it, the limit is low (550) and I treat the card as 30 day same as cash. Yes, you are entitled to your deposit back when you close the account or if the cardholder converts it to an unsecured card. Keep in mind that your 1000 dollars does NOT earn interest, so unless you plan to spend the credit limit AND paid it off per month – maybe you find a bond/fund that could earn $$ vs. just sitting and not work for you. JMHO. As for Credit One, read Josh review of the company, I personally find the fact their marketing material looks just like Cap1 right down to the swish makes me leery of them. Don’t piggy back, if you are worth it, you will stand out, you will get my attention, don’t attempt to fool me. But that’s just me. Will you be approved for a Cap1 – only you and Cap1 would be able to answer that, we can only wager a guess and it would be purely a guess. Spend responsibility, pay responsibility and you could be rewarded – credit rebuilding is not overnight. Patients Grasshopper. Good luck with everything, keep us update you never know we might be able to help.
Ok then maybe since I happened to apply at the right time before they discontinued new applications is a good thing. I think I will proceed with getting the card before it's too late. Thanks! But, do you think it would be wise to add an additional $1000 to the Credit Line to show more available credit? And, if so, which card (CapOne Secured or Orchard)? Or split between both? Thanks, I had some feeling that that card was a little sketchy.. Where can I find the review from Josh so I can take a look? I do not have any intentions on applying for another Cap One card at this time. Sorry if I implied that because they already denied me for the Cash Rewards card and they hard pull all three CRA's so I def don't need another round of that. I know, I just am trying to put myself into a position to apply for a mortgage as I have a family now and am trying to exploit any method I can to expedite that. Thank You my friend! I will do. ============-----------=============----------------- Also, what about the Bank Of America Secured Card -or- the USAA Secured? Are these better options? Or Credit Unions?
FYI, here's a link to my review of the Credit One card: VISA® Platinum from Credit One Bank® Review: The Pros & Cons
I personally want to work smarter not harder, remember you will not earn any interest on the funds deposited on a secured card. I spend the last 28 years working for money, it time it works for me. Unless that card was giving me cash back, why would I ride the limit without a payout? Remember spend responsibly, pay responsibly and you will not need a large credit limit. Ask yourself the following: Do I have reimbursable work expenses? Do I have an at home business? Do I have an older home or car that will require repairs in the near future? Am I uninsured or under insured? Do I have the salary/wages to pay the balance in full every month? I completely understand the need to build (rebuild) credit, and IMHO if you chose to deposit addition funds I personally would go with the Cap1 card simply because Cap1 taps into the good/excellent credit categories while Orchard has been and will always be concerned sub-prime. Once again this is just my opinion, and my ex-husband can tell you… I’m not always right
Hey Josh, thanks for writing! Well I read your very informative review and thank you for that! Although, your review doesn't down the card as much as I expected (maybe there is a reason for that and I understand), but it seems you are suggesting to MAKE SURE balances are paid off before each cycle or weekly (which I intend to do). Then there's the annual fees, not ecstatic about that but if I must for a year or two because it's the only card I can be approved for then maybe I should just keep that idea on the back burner if it can get me an additional $1500 CL to be factored into my available credit and Utilization Ratio. Only thing is when I do close it, won't it hurt my AAoA? What do you mean by "ride the limit". I'm a little dense and new to the commonly thrown around credit terminology Anyway, I see your point. But how much interest can I expect on return for $1000 anyway. I'm not overly concerned about increasing my credit rating just for that sole purpose, rather I am trying to improve my odds of securing a mortgage at the best rate possible so I can purchase a home for my family and I'm looking for the best ways to do that... Also, the way I'm looking at the added $1000 deposit on the credit card is... let's face it, it's pretty much the same as my checking account or savings account after I deposit the money into the card. It's my $$ I put into the card from one place to another to what's the difference where I use it from. Or am I wrong/ confused.... that happens easily... Thank you for that info! I was unaware that it would look better on a CRA report to have the higher limit on the Cap One vs the Orchard Bank. Valuable info! Good job making him your ex then
This is one card I haven't used personally, but I understand that it doesn't provide a grace period for cardholders. That stinks, so yes- you'll want to pay off your balances as often as possible. I also wouldn't worry to much about what might happen when use close the card. This isn't the type of card you want to keep around any longer than necessary. Use it to boost your scores, replace the credit limit with a better card, and then close it and move on.
I have an old HSBC card that was written off... now that it's with Cap 1 (who I maintain 2 current accts with, an auto and CC) is there any strategy I can apply to have this removed off my account?
Not really. Capital One won't care that you have 2 other current accounts with them. The old debt is what it is. How does the debt associated with the old HSBC card show up on your credit reports now?
