Question about USAGold Credit?

Discussion in 'Credit Talk' started by tmitchell, Jan 22, 2002.

  1. tmitchell

    tmitchell Well-Known Member

    I got their offer for $5K unsecured credit. The catch is that it's $149 membership fee. Additionally, until I make 4 consecutive on-time payments, I'll have to give them 20%-30% downpayment on any purchases I make from their catalog.

    Sounds like Fingerhut on a larger scale so it's really not a good deal BUT and I think this is a big BUT - they will report the new account to all 3 CRAs as an active unsecured $5K LOC.

    Might this be a good tool to reduce ratios of bad accts to good as well as balance-to-CL? My thinking is that I buy one item and leave it at that. Make the payments on it for a year and then close the account maybe.

    Should I go with it? I've got a few small CLs with some sub-prime CCs plus an auto loan for $7K that's 2 years old. Unless I screw it up, I think this could help if utilized properly.

    I now you Creditnetters will have opinions on this one.
     
  2. KHM

    KHM Well-Known Member

    tmitchell-
    what are your scores? Maybe we can direct you to a better start up card. Also list any chargeoffs you may have with certain CC companies, that will help us help you!
     
  3. sam

    sam Well-Known Member

    its a total scam, stay away for anything not bank affiliated like that. Get a Cap 1 card..
     
  4. tmitchell

    tmitchell Well-Known Member

    KHM -

    My scores as of today are:

    EX - 590
    EQ - 597
    TU - 596

    I've got:

    Target Guest - $500CL
    Kmart MC (Cap1) - $200CL
    1st Premier (Secured) - $225CL
    Bank Hoven - $1KCL (tx'd old Providian CO to it)
    Nextcard (sec) - $425CL

    My CH7 BK was disch'd in 1997 so I'm 4 years out. My student loans (4 loans, about 12 entries!) will be rehabbed in 4 months.
     
  5. author_22

    author_22 Well-Known Member

    Well, it's not the best nor the worst. I'm no BK expert, but I did look into this card before. They appear to be the same people who run Bank of Hoven and NetFirst. I haven't heard any true problems with this card, it's just up to you.

     
  6. tmitchell

    tmitchell Well-Known Member

    That's what I am thinking. My goal wouldn't be to charge a ton of items. My goal would be to get the $5K LOC reporting.

    If the $5K LOC should somehow drive my score down, I could just close the account. To me, the $150 fee is worth it.

    I am just concerend about it being a scam like First National or CCB, et al.
     
  7. tmitchell

    tmitchell Well-Known Member

    I just realized my typo of "know" as "now" in the last sentence of my original post. I can't edit it any longer so I felt compelled to state my correction here. Maybe I'm just anal-retentive.
     
  8. sam

    sam Well-Known Member

    these places don't report squat, it is fingerhut, but a larger ripoff since you basically are paying the value of the item with your downpayment, then paying off for a long time on their profit line.

    Get another cap 1 if you must, but don't waste your $$ on this crap.
     
  9. tmitchell

    tmitchell Well-Known Member

    Cap1 was included in my BK in '97
     
  10. ohnostuck

    ohnostuck Well-Known Member

    This is a scam. I know this because my sister did it. They need your checking account number to set this up and they, over the course of 3 months debited her account 447.00. DONT DO IT.
     
  11. tmitchell

    tmitchell Well-Known Member

    This is the info I'm looking for. Why did they debit so much - mistake? penalties?. Any idea?
     
  12. GEORGE

    GEORGE Well-Known Member

    JC PENNEYS CATALOGUE IS FREE...NO $149.00 FEE!!!

    TRASH IT...IT'S NOT A VISA/MC
     
  13. tmitchell

    tmitchell Well-Known Member

    I know it's not a Visa/MC. Does JCP report the credit line? That's the whole reason I even THOUGHT about looking into this card.
     
  14. sam

    sam Well-Known Member

    don't waste your time! really.

    I have 24 positive trade lines on TU, 1 collection (96) and 1 charge off (96). My score is 587.

    The scoring model weighs Very heavily against any derogs, and doesn't care if you have a huge amount of good tradelines.

    Focus your cash and keeping your debt ratio low, try not to apply too many times (im not one to talk), and give it some time.

    In the beginning i thought getting as many and as BIG of new items on my report would offset all of the bad stuff. I was wrong.

    Keep disputing the derogs, its a long hard road, but listen to these folks advice, there are MANY companies that will prey on people when they are vulnerable, and these catalog places are #1.

    Good luck, sounds like you've come a long way already!!
     
  15. tmitchell

    tmitchell Well-Known Member

    I know the positives don't necessarily offset the negatives but that's not my intent. My intent was to open this account and buy one item and pay it over a few months just to get the $5K CL listed on my reports. This would improve my balance-to-CL ratio.

    Your input is why I posted here and I appreciate it. Is there anyone else that has any advice as well?
     

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