I had my Chapter 7 discharged in January and applied for a few secured credit cards and was denied. My credit score is 642. I was even denied a secured Wells Fargo credit card with an annual fee of $19. Per advice I've received online, my mom has now added me as an authorized user on her credit card, and she has excellent credit. So I'm thinking of waiting 6-8 months, then applying for a no-annual fee credit card. Is this a sound plan, or is there anything else I ought to consider at this point? Thanks.
It is a very sound plan. Just make sure that the card she added you on to allowed your SSN to be input or that her address is on your reports. If not, the account won't report.
How do I find out? How do I find out if the card she added me onto allowed my SSN to be input? How do I add her address, or link it, to my reports? Thanks. David re: It is a very sound plan. Just make sure that the card she added you on to allowed your SSN to be input or that her address is on your reports. If not, the account won't report.
I checked, and my mom's address is listed as a former address of mine on my credit report. Does that mean it will be reported? I could have my mom call them again, and ask? What should I do? please help.
How to rebuild your credit Credit bureaus no longer consider piggybacking as a way to rebuild your credit. However, if you need a credit card, and your mother is willing, by all means have her sign you up as an authorized user of one of her cards. It's always a good idea to inform anyone doing this of their responsibilities. In particular, if as an authorized user, you were ever delinquent, then your mother is responsible for the payments. Any late or missed payments will hurt her credit score. Discuss details, such as how much credit you will use. Would she feel better if you prepay her for charges, especially if you make a big purchase? These are simple things, yet they often can complicate a relationship if there is a misunderstanding. Just make sure she understands her responsibility here. As to your Orchard card, if all you have to do is pay a $39 annual fee, then you probably have a good deal. Use this or another 'poor credit' credit card for some time, then you will rebuild your credit over time and qualify for cards with better terms. Keep in mind that most of these bad credit credit cards carry high interest rates, so you will want to pay your balance in full each month. Also, make sure that whatever card you choose reports to credit bureaus. I believe that Orchard is one that does. You can also find some prepay debit cards out there that report to credit bureaus. These will also help you build credit. Compare the costs to see if a credit card or debit card will be better for you. And make sure that you never miss a single payment on your credit card or any other bill. This can really hurt your credit score. Good luck with rebuilding your credit. It can be a bit of a hassle with the extra fees and interest rates for these cards, but after you rebuild your credit, it will have been worth it. Best Regards, NativeStar
Also remember if the payment is late or not made they can report it on your credit report,the best deal you just have the tradeline and no card.
I just accepted the Orchard Credit Card offer, with a credit limit of $39 and and an annual fee of $39. I plan on canceling it 11 months from now so I don't have to pay the $39 again. By then I ought to be able to get a no-annual fee card. Thanks for all the advice. D
After 12 months you might be able to have them waive the 39 dollar annual fee.In this economy you might have a problem getting a card,it seems unless you have perfect credit it might not happen.
I'll second that. Moreover, and just to clarify, AU accounts are scored just as they always have been.
