Can some of you name off the best cards for establishing credit which don't involve getting too screwed (i.e. getting a $250 initial line of credit with $230 already billed to you for set up fees and such). I know that one is basically at the mercy of anyone willing to give credit when there is no previous established credit, but was hoping for suggestions of card issuers who generally have some humanity left in them. Thanks for any input.
(1) Your local credit union, where you already have checking and savings accounts. This usually doesn't help with major banks, but does with local credit unions. Expect a $300 to $500 credit limit on a Visa or MasterCard starter card from a credit union. With no annual fee and a reasonable interest rate, you have nothing to lose. Of course, it's nice to reward the credit union for giving you a chance. You can make the credit union card one of your 3 or 4 long-term major credit cards. (2) Capital One, as far as I know, is the ONLY subprime bank even worth considering any more. They do like their ($59) annual fees, but they are generally fair in other ways, and will slowly but consistently raise your credit limit. I emphasize the word "slowly." (3) Once you have some credit established, you can expect offers in the mail from Citibank and from a few issuers of gasoline cards. You should try to get hooked up with Citibank and have at least one gasoline card. But before that, what gets it all started is at least one Visa or MasterCard from Capital One or a credit union.
I filed BK in September and it was just disharged last Thursday. I applied for Household Bank Master Card on Monday and was approved with a credit limit of $700.00, no initial fees, and a $39.00 annual fee.
I applied on-line and it didn't give me an immediate answer but I got an e-mail yesterday that said I was approved and would get the card within 10 days.
My experience with HH is only so-so. I've had a MC with them since July 2002, with a measly credit line of $300. I paid it off most months and carried a balance for a few months. I called to ask for a CL increase. They offered me another $100 for a $25 dollar fee, even though my other available credit is closed to $9,000. I paid it off, and plan to close it. My Credit Union MC is my favorite card. J
