I just had my FICO drop from 651 to 628 over night because a positive trade line closed. Not to go into long detail, but it was something like having a $18k credit card close. My question is, should I immediately apply for a CC? Since my score is so low, if it drops again for an inquiry it really wont matter. I figure if I get the card, that over time it will slowly raise my score. Whereas now I don't have anything on my credit to help me, but time.
Your FICO score has dropped into the "poor credit" range, so you may find it difficult to get approved unless you apply for a card specifically for bad credit. Are you saying that you now have no credit cards whatsoever? I do think it would be a good idea to get a new card right away, but I just want to make sure you apply for a card you're not going to get denied for. Have you thought about a secured credit card?
You are correct. I was going to apply for a credit card for bad credit. I need something to raise my score over the next 18 months because I'm looking to buy a home. I found this message board a few days ago and was starting to implement some of the things I have read. One was to get my credit report and start from there. So I was pretty excited that it wasn't as bad as I had thought. Then within 24 hours it tanked. I hadn't planned to do the CC thing for a few months. But now that it has dropped I figured now is the best time since I don't want it to raise significantly and then drop from there. Might as well start at rock bottom. lol
If you don't want to apply for a credit card for bad credit. You can always increase your credit score by adding yourself as an authorized user to existing credit card account. Just ask a trusted friend or family member to add you. Make sure their credit card has perfect payment history and they can maintain a low balance (10% or less of the credit limit). The higher the credit limit and the longer the payment history the bigger the boost in your credit score. Thanks! Heather with BoostMyScore.NET
I wouldn't get too overly concerned about a 20-point drop. However, I would consider getting a secured credit card as soon as possible, like the Capital One Secured Card for instance, so you can begin rebuilding positive payment history. You should be able to bring your scores up quite a bit after 6-12 months of responsible use. If you do take the secured credit card route, remember to keep your credit utilization low and always pay your balances in full and on time.
Heather L. -Regarding authorized user. Yes, Iv heard of this, and that person would be my mother. She has stellar credit. And she wont do it. I asked her years ago. Even told her she didn't have to tell me what account she added me on and that I didn't need the actual card, but she swears they will add my credit to her account. JoshuaJeckathorn -Regarding capital one. I have them on my credit report. Would they lend to me considering Iv shown them that I'm not responsible with their product? If they run my CR they will see the charge off from their company. Thanks for all the advice. I'm learning so much from this board.
I would try a secured credit card from a different credit issuer first. It's possible that Cap One would still give you another chance, but you may want to try a secured card from a local credit union or something instead.
Thanks for the great advice. I have a local credit union I'm apart of, and for the past 5 years I paid my car loan as never late. So I think they would be willing to work with me. Once I clear off/ pay whats on my CR then I will see if i can hit them up.
I have no idea. When I went to make my final payment last week the woman asked me did I want to take out another car loan since 'rates are so low now'. I knew my credit wasn't that hot and I didnt want a hard pull on my report. So I told her no thank you. When they gave me the car loan I think my score was something like 790 or 820. The debt on my credit report could all be paid off by next payday, so its not a lot. Ill call my credit union and see if they have a secured card.
I work for a company that sells authorized user accounts. We have a network of cardholders that get pay a commission for each client that they add to their credit card as an authorized user. We have been in business for almost 5 years and our client's credit has never transferred to the cardholder's credit. Only the specific account information for the authorized user account will report on their credit. If your mother added you as an authorized user to one of her credit cards she can have the card that gets issued in your name sent to her address and you could never gain access to her account. If you need any help with your mother let me know. I would be happy to help in any way. Using authorized user accounts can be very beneficial to someone trying to increase their credit score. Thanks! Heather with BoostMyScore.NET
Heather my mom is "old school" [and im 42! lol]. I know that it wont transfer but she has that "earn it on your own" mentality. She doesn't even have my father on any of her credit cards. The woman has had perfect credit for nearly 30 years! I did hit up your site, and found it very fascinating. We are looking to purchase a home in 2 years and my husband FOR SURE and maybe myself as well, were talking about using your authorized user service 60 days before we apply for a mortgage. I even read your section about being an authorized lender. That sounds like some great money to make! Looks like a nice way to get some extra money while you hold down a real job as well. I hope I can keep my nose clean for 2-5 yrs. Because I would love to be added to your list (once I get a CC of course, and keep it in good standing)
I am glad that you were able to look over on our website. Maybe you should convince your mother to start selling her cards with us. Just Kidding! Let me know if you have any other questions for us. Thanks! Heather with BoostMyScore.NET
