Hello, Iâ??m 20 (not student) and I have only 2 secured cards with 2 and 6 months payment history, with credit limits of $300. They report to all of three credit reporting agencies. I have a lot of questions, but at this time Iâ??ll ask just couple of them. Iâ??m hoping that both of my cards will become unsecured after 1 year. Any idea what credit line Iâ??m going to have when they become unsecured? Iâ??m using these cards every month but Iâ??m keeping low utilization. Should I use them every month or not? Is this going to make any difference at the time when they are going to make decision about future credit line? Should I wait until they become unsecured and then start to apply for new credit cards, or I can apply in the meantime also? I know that Iâ??m not in the position to choose but I would like to stay as much as I can away from sub prime creditors. I see on my credit report â??Most owedâ? or â??High balanceâ? info â?? Do they use this amount info in the score calculation? I would really appreciate any suggestions from you guys!
Jason, Maybe you should try with the Household trio, although I'm not sure because of your length of history. Gm Card Union Plus Card Corvette Card But anyway you said you would like to stay away from subprime cards - Household is one of the subprime creditors and they don't give many of CL increases .. Just thought.. Good luck, Denny
Or you could try with Pentagon Federal Union card - I've heard they are very GOOD. But first check which CRA they pull, so you are not going to have many of inquiries just on one CRA. Good luck, Denny
Who are your secured cards with? If they are with PRIME banks - Chase &/or BofA or a Credit Union, then you are already building a credit history and banking relationship right now. I would also advise you to give yourself credit increases as you can (ie. put more money in the collateral account).
David, Denny - THANKS a lot for your responses. )) David thanks for your advice. Although it is hard to put aside some more money in the collateral account, since I can't use it for 1 year. Is it going to help my scores? And, yes both of them are prime banks. Denny do you know which credit reporting agency Pentagon union pulls? I haven't order my score - how low do you think it is based on my info? Thanks!
Would be wise if I try suggested Household trio based on my info? Do I have any chance to get those cards? Are they subprime bank? Is this going to improve my score?
There's 2 parts to your score - helping and hurting. I suggested increasing your collateral because a higher CL is GOOD for your scores. You also AVOID unnecessary inquiries by "investing" in a higher CL - thereby increasing your scores. There are certain cards that tend to favor the rebuilder of credit - Household (never had one myself), Providian, Capital One, etc. However, your credit is extremely young (6 months on one TL; and 2 months on the other TL). I would probably wait until BOTH were at least 1 year old and apply for some good cards. Another idea is to apply for the Target Guest card or Chevron Gas cards. They both have higher APR's (20%+) and Chevron may have a $30 annual fee for their rebuilder card AND they will show credit "diversity" by having a retail card versus a bank card.
You need more trade lines in this moment.Apply for any store card or a gasoline card like Mobil. then in a couple of months apply for Amex Starwood or Hilton.
Re: Re: I have only 2 secured cards - HELP! Geo, thanks for your response! Are you sure I could go for some of American Express cards in just couple of months? I've heard they are very HARD to get! Yes, I would love to have one of American Express cards! I guess these two that you have suggested are easiest to get. Are they only for use in the hotel or I can use them everywhere? Do they have any annual fee? I just went to their site, they have a lots of cards. How about Green card? Is it harder to get this card comparing to Amex Starwood or Hilton? Thank you very much!
Re: Re: Re: I have only 2 secured cards - HELP! In the case of HILTON vs STARWOOD...STARWOOD is a "TOY" card (BOTH WIFE AND I GOT ~80% <LESS> CREDIT CLIMIT) SHE GOT $2,000 AND I GOT $3,000...THEY HAVE BEEN CLOSED AND COMBINED WITH HILTON... YMMV
Jason: yes I think that you can be approved for any of the two Amex I told to you. My brother was approved for the starwood with only 6 months of cr history and two cards on his report. They gave him 2K limit Also you can tell someone with a very good credit to add you as an authorized user of any card. So the tradeline will be added on your own reports.
Re: Re: I have only 2 secured cards - HELP! Geo thank you for info. Optimistic news! I will definitely consider this as option. Sorry for bothering you, but may I ask you can I use these cards everywhere or not? If I canâ??t use them everywhere can I transfer them to Amex Green?
Re: Re: Re: I have only 2 secured cards - HELP! Yes,You can. Amex Green is not a credit card is a Revolving card. You need to pay the full balance at the end of the month. Example: If you spend 5K in a month. You have to pay the full 5K in the next month. It also have an anual fee. I don´t like this card, neither the others Amex charge cards.
Re: Re: Re: I have only 2 secured cards - HELP! sorry my mistake.... Amex green is a Charge card (it is not a revolving card).
Re: Re: Re: Re: I have only 2 secured cards - HELP! Thank you Geo. I'll try Amex Hilton.. Will let you know what happen. Anyone has more suggestions what card I should apply next? Thanks
