I'm at a point where I am due for a $99 annual fee on my current $300 limit Household Bank Credit Card. I've just applied for a Capital One card. I was hoping my credit had improved enough to get better terms/higher limit. Unfortunately, capital one actually approved me for a $200 limit, but with only a $3 monthly fee. Should I: A) Cancel the Household and activate the Capital One B) Cancel the Capital One and keep the Household C) Keep both and eat the annual fee for one more year on the Household with some hopes that the age of my credit account will help my credit score before next year. Thanks for the Advice?
Just curious...how did you apply for Capital One? Based on their website, I thought they were out of the subprime market?
They send me junk mail all the time. Its rare that I get an offer for something with a reasonable annual fee, so when I got this offering $36 a year I took it. Applied by web, based on the URL and code number on the app
Eat both fee's, and keep them both open. I have a similar scenario with Orchard Bank, and Crap One. I never authorized the Crap One card, and so tried to keep it from showing up, but no luck...They post the account as opened and closed 3 months later...3 months! lol, it was never authorized...but they do what they want. If you close either account, you've just lowered your average age of accounts... Household is going to be a crap card forever, they will never move you to a prime card. ...Capital One...maybe you can hold it long enough... the best way, I think now...is to not ever apply with one of these vendors, but go with a secured card, like one from Fleet bank with its no annual fee, or from one of the FCU's (with rates as low as 4.75%...if you carry a balance, you'll need the low interest rate, even if it is your own money!).
>>Just curious...how did you apply for Capital One? Based on their website, I thought they were out of the subprime market? they are as active as ever...sending out the $200 cards everywhere...its the same limit everyone gets in that bracket.
I even asked 'em if they'd transfer my$300 balance from other card (hoping that as balance transfer they'd raise the limit at least that much) but they said no limit increase for 6-8 mo.
If anyone is interested more info about what my family does: my wife (who is an immigrant and starting from no credit file at all). BankOfAmerica secured card: 29 annual fee, 250 limit, will convert to unsecured in 12 - 18 months. ME (bk 2 years ago) US Bank: 35 annual fee, 2000 limit, will convert to unsecured someday. Also, in my research Aberdeen Proving Grounds FCU: no annual fee, interest rate is just 4.75% or PenFed, no annual fee (only does 500 limit though) and 12.9 interest rate... PenFed has pretty much open membership, APGFCU does not, you'll either have to live close, or lie. anyway, thats just starters....point being, there are much better deals than Crap One and Household around....but, most people don't know about them. Me too, I'm stuck with an Orchard for a few years.
Really, a better value in a secured card? Would never have expected that. Under these circumstances, if I keep both cards active, how long am I going to have to pay $99 a year to household to keep from screwing up my credit even more? Could I cancel by this time next year? I've asked household to lower the fee, and they say they will never lower an annual fee that was part of the original card terms. Gai-jin
I would keep the Household and dumped the CrapOne (you wont go anywhere with this card). At the three months mark apply for a store card like Mobil, Target, Macys, Burdines or whatever. The at the 6 months card you should apply for Amex Delta optima or Starwood. Stay away for subprimes offer you will get on the mail and specialy from Discover (they will denied you if u apply, they send out invitation for everyone every 2 or 3 weeks). An also try to not apply for too many cards and keep your inquires numbers low. In a year you will have platinum level and you will be approved for whatever card you want with limits over 5K.
If you have some relative or friend with very good credit tell him/her that add you as an authorized user of one or two of his cards.
One last advise.. why dont you apply right now for another household card GM or Gold MC maybe you have luck and got approved with no anual fee at all and better terms. If you approved you should close your Old household with the 99 fee and the crapOne.
You would keep the household over the capital one even with the much higher fee? I've never applied for a store card other than bestbuy some time ago. is a target card likely to approve me when companies like capital one will only give me a $200 line? (And the $200 line really surprised me since I've had the $300 line for the last year and cleared at least 5 negative items off of my equifax report, which is the one they seem to have checked.) I'm thinking to actually keep and use a card I'd rather have the $200 limit capital one card over the $300 limit household card only because of the very high annual fee on the household. (And household cust svc pissed me off a few times with fees I didn't agree with, but they were technically allowed to charge.) But as someone above posted, if I'd be best off to keep both cards because canceling the household would hurt my credit, I'd hate to do that, but can do so if it would really help. Gai-jin
Target approved me at high 500's...from what I've read, and experienced myself, they are the very first store card that will approve you. secured cards from a prime bank, or especially a credit union, are the absolute best way to go. Whether its penfed, us bank, or fleet....you will either pay zero annual fee, or none...and that isn't even the issue...the issue is the interest rate. Penfed has 12.9, us bank can go as low as 9.9 (depending upon your credit score). I mean if you carry a balance of over a 1,000 dollars, that annual fee is nothing compared to interest.... so, anyway...all those people like crap one, and household, and others that target the subprime market...they are the absolute worst. THe good one's done ever advertise...takes a lot of research to find them, but PenFed, as an example, is a great card (it's also not automatic that you'll be approved for one either)....ironically you can get turned down for the very best secured cards...even though you are borrowing your own moneyd! BoA turns down people with BK on the record.....but its worth the effort to get a deal like this....having to put some money in savings (which you get back in a year or so)...is nothing compared to getting eaten up by high interest rates. my two cents anyway.
I've worked hard to never carry a balance on this existing card, except about 2 months of the last year. Other than that, I've mainly used it as a cash card for gas and such so that I am using it, but not costing me anything to do so. Gai-jin
I received a pre-approved Capital 1 offer about 4 months post Chap. 7. Card is platinum, with the rental car coverage (important for me), unsecured, and 25 day grace period. I was approved with $2000 limit. The only hitch is a $59 annual fee. But, it seems to me that is a small price for the positive trade line, and the platinum benefits. And, I did not apply for any credit at all after my BK discharge. I waited for an offer to come to me, and Capital One fit the bill. I thought I would be stuck with a $200 limit like others, but, again, $2000 limit to start with.
I received a pre-approved Capital 1 offer about 4 months post Chap. 7. Card is platinum, with the rental car coverage (important for me), unsecured, and 25 day grace period. I was approved with $2000 limit. The only hitch is a $59 annual fee. But, it seems to me that is a small price for the positive trade line, and the platinum benefits. And, I did not apply for any credit at all after my BK discharge. I waited for an offer to come to me, and Capital One fit the bill. I thought I would be stuck with a $200 limit like others, but, again, $2000 limit to start with.
Yeah, my capital one $200 limit card is a 'platinum' as well, and also came pre-approved. I think platinum is about as common as the visa logo these days. Gai-jin
But the statement has been made several times that everyone gets a $200 to $300 credit limit. I, however, was given a $2000 limit to start. Just letting everyone know, they do issue higher limits.
But the statement has been made several times that everyone gets a $200 to $300 credit limit. I, however, was given a $2000 limit to start. Just letting everyone know, they do issue higher limits.
Understood. I just find it funny how platinum used to be a card only the credit elite could get, now it's the card they send to recent bk and bad credit ppl. Gai-jin
