I hope someone out there can offer me some good advice. I ruined my credit in college and and a few years after (with a very low paying job). I'm in my mid-20's and am now in a secure financial situation, in terms of income, but my credit is AWFUL. I do not qualify for any "real" credit cards. Is it wise to rebuild credit with the companies that tell you, "You're pre-approved."? If so, can someone tell me which one is the best to go for, in terms of monthly and annual fees and credit limits? Also, I need a new car. I'm done paying off my old one. I do not qualify for car loans with auto finance companies. I'm willing to pay a higher monthly payment, I just need to know where to go to find someone who will offer me a loan...albeit with a very high interest rate. Any help would be greatly apprecitated. Has anyone been in my situation?? I'm embarrased and want to make things right!! p.s what is vB code?????
Many of us here recommend a Capital One secured card, since they give you a real chance at becoming Prime later. I started out with a $200 limit ($99 security deposit). I also have senn on this board that FCNB is also a good bank for secured cards, which can later turn into Prime. Hope this helps.
Moks, I'm new here and have a very similar situation, there are dealers that will work with you, my interest rate is 24.99 percent! This is a loan thru Affiliated Financial 1-888-605-0400. There is not much I know about this company but the fact that they were able to approve me which at the time seemed impossible. Read this boards postings as much as you can, it is an irreplaceable source of information. I was able to get an ARIA (Now Get Smart) card which started at $250 and is now at $1200.00 in 10 months. There was an $89 fee which from what I've heard can be re-imbursed with persistence. I'm still trying to find out how to get this done.. Good Luck, OS!
George, Thank you for your response. From what I can gather, you are NOT advising me to move forward with a "pre-approved" card. Am I correct? thanks
OS, Thanks, I'll look at those two cards you recommended. Where can I get info? Also, do you have any advice on the car loan thing? Thanks
Thank you so much, OS... I'll give them a call. So far, I think this site is a great source of info... moks
If it is something you want, go for it. You would be APPROVED or DENIED with-out the "PRE-APPROVAL" paperwork. It is possible that you MIGHT be APPROVED if you are a couple of points off if you had the "PRE-APPROVAL" paperwork.
Thank George... I see your point. I guess my question was, are these cards a smart move for someone like me who is trying to rebuild credit? I'm not focusing on the "pre-approval" aspect. I'm talking about companies who are willing to take a chance on risky customers, like me... thanks, moks
You may want to try Fireside Thrift Co. as well for your car loan. Their customer service # is (800) 825-1862, M-F from 8am-9pm (pacific time?) and on Saturday from 8am-1pm. I'm going thru them now. My interest rate is like 20.9% or something like that. I know it's high, but if you don't mind the high rates for now, you can always refinance later once your credit is in better shape.
Appreciate is SD!!!!! I'll give them a call. Can you tell me what your monthly paymet is...if you don't mind. I just want to get an idea!! thank, moks
I have a F.I.C.O. OF 704 and I get denied ALL THE TIME, even with the so called "PRE-APPROVED" offers...but people with 550-650 get approved for the same offers I get denied for...GO FIGURE...
I personally stay away from "pre-approved" offers since I know that it is not a guarantee that I will receive the cards. I am still establishing credit, but once my credit is in tip top shape, I might consider those "pre-approved" offers.
Moks - I have a 94 Ford Bronco in my name since April 2001 (My BF makes the payments). It cost us around $12.5K after all the tax and license stuff. Our monthly payment is $332.74 ($161.59 to Principal and $170.89 to "finance charge"). It's a 4 year loan. Isn't that horrible? If we keep making the regular payments monthly, we would have paid a little over $15K for the car at the end of the loan! I might refinance with my Credit Union in about a year. By the way, I'm a first time buyer and I really didn't know what I was doing when I signed for this loan. I paid no attention to the interest rate or anything. Next time, I know better. =0)
We financed a van last year through Americredit. The interest rate was very high, I think 22%. I called our credit union a few months later and asked which cra they used, and the required score for different levels of loans. We were able to refinance through the credit union at 11.25% 9 months after we got the original loan. At the same time, we also got a small unsecured loan through the credit union. We were told that after establishing a payment record with them (6 months) we should be able to get a Visa!
We also have a Capital One Kmart MC. It seems to be pretty easy to get. We did get it after having the auto loan for 8 months and a Sears Plus for 5 months.
Go with Cap 1, FCNB, or both. Another thing to consider is if you have some money, try to join a credit union and see if they will allow you get their secured credit card. You usually need to secure it in full, but most will allow you to secure it with $500. Some have a small annual fee and others do not have a fee at all. Best thing is your interest rate will be lower than a regular "sub-prime" card. Usually with a year of good payment history they will unsecure the card for you. For example, my newest card is Cap 1 at 18.9% (will work on getting the rate reduced once I show some history with them), FCNB is 20.5% (it is one of their unsecured cards I was pre-approved for), and my credit union Visa is 13.92%. Lately I have been getting pre-approved offers from Aspire and Cross Country Bank. They may be pre-approved, but the fees suck. Not to mention their reputation for untimely posting of payments (nothing like that to screw your credit further!). So stay away from these. You need to also read your terms very carefully on these offers. More than likely the terms are horrible. If you get a pre-approved offer from Cap 1, I would definitely take it.
Capitalone then Providian then FCNB secured... down the road Target then another Cap1, get increases, combine them into the oldest card for a better card... work on your reports all the time in the interim.
