O.K. I got slammed a few pages back for saying this but I will say it again here and let all of you decide this logic. Also I should point out that my oppinion is for SOMEONE STARTING OUT, not rebuilding. One, you can get the card for about $110.00 for 2 applicants. So a husband and wife now can "BUY" a $500.00 trade line, for about $55.00 each. And no it's not illegal in this case. Two, you don't have to keep the card for longer than 8-9 months, by that time you should have a Mobil or Exxon for $500.00, a Citibank for $2,500.00 plus an Aria for $1,000.00 and be about 3-4 months away to getting an AMEX BLUE for $2K! Three, you get a $500.00 trade line without having to tie up $500.00 at once. Now look at the fees $8.00 per month I think even if its $10.00 that's $80.00 for the 8 months you keep it so TOTAL COST for two people is about $100.00 each! Also when your done with the account transfer your built up available credit to another card or an account with C2IT, and no waiting for a refund cheque (5 months for First Premier Bank). And RONI you will like this, trade lines for BOTH applicants are posted within 1-2 months after opening the account. I didn't like this card when it first came out, but now when I compare the problems some of my clients have had getting other banks to report in a timely manner. and the long waits getting deposits back from many of the other secured cards I frankly feel quite different. One client of mine has been waiting almost 8 months to get $300.00 he sent to the associates after he was declined, writing them over 3 times!
RE: WHY I LOVE NET FIRST, yes I agree with you about everything Michael, except one thing. Why wouldn't someone take the $500 limit for $99 from Capital one. Someone without bad credit would easily get this deal. Is is because Capital one wouldnot report the $500 limit but just the balance as the credit line. That I understand. You are right that the $110 for 2 $500 credit lines is darn good. But they dont advertise that, at least they didnt when I was checking them last year when I started building. roni
RE: for someone with good cred my gf got a $500 for $99 deal, then the next month got a macy's card, then on month 6 got instant approval platinum select citi. she could close the cap 1 and get her $100 (interest, dont forget) back. Net cost: $0 of course with bad credit, don't expect the same results.
RE: WHY I LOVE NET FIRST, yes Don't forget that there is 0% interest. So the fee is comparable to the interest you would be paying, and is MUCH less than the interest rate would be on nearly any other secured card. So even if you are rebuilding, and you need a secured-like card without getting killed on the interest, this is a good choice.
Michael Do you recommend paying down the credit card (showing less utilization) or just paying 50-100 a month? Also, did they pay it down and use the card (charge on it) or just "have it"
RE: WHY I LOVE NET FIRST, yes The problem with Cap One is there low limit. If $99.00 got you a $500.00 card then hell yes, unfortunately it normally only gets you a $200.00 card. I've allready posted drastic comparisons in where you will be in 9 months later starting with both a $300.00 card as compared to a $500.00 card!
RE: Michael Actually the two clients I had just paid a bit more than minimum payments and didn't use it. We were all suprised to see how quick the card reported, and what they qualified for with Mobil. I was normaly geting similar clients $250.00 with mobil, they got $500.00. Aria gave them $1,000.00 with only a $49.00 fee!
Michael do you recommend FCNB? I was thinking about doing it (I actually called in and got approved, of course) I'm rebuilding (2 years post bk) I have 8 lines ranging from 750-6000 but my ave is 1800. I was thinking of putting 5K into FCNB (matched at 150%) so I'd have another 7500 line. Seems as though high credit limits cause other limits to prematurely increase. Any thoughts? Either about the strategy or about this company in particular?
RE: WHY I LOVE NET FIRST, yes Do you or do you not owe the 500 dollar reservation fee or is it refundable?
RE: Michael do you recommend F Michael might disagree with me, Marie, but I would think that what you've established already would be sufficient in rebuilding your credit. Considering that your bankruptcy is only two years old, I think you've done quite well, and you're going to find yourself successful. Many people automatically dismiss the Net 1st card as crap, but it is a pretty good deal for someone who has absolutely no established credit, or someone with a very recent bankruptcy. Ordinarily, with a recent bankruptcy, even a secured card is very difficult to get. That's why I think you are doing such a great job.
RE: Michael do you recommend F FCNB is an Excelent Co. Your strategy is great. You may wish to slowly close some of your smaller credit lines, this will increase your Fico Score, however keep your longest credit line open!
RE: Michael do you recommend F Dorris I also do agree with you, I think however for her to put in $5,000.00 and get a trade line of $7,500 it will help her out by getting some increases or better offers. However after a BK only time will fully heal that wound!
