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Getting my first secured CC - should I get another one or increase first one's limit?

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    Getting my first secured CC - should I get another one or increase first one's limit?

    I'm trying to rebuild my credit, 6 months post-BK and apparently my credit is just dogs**t now compared to some people's here, and I'm awaiting my OpenSky card in the mail. I just have a $200 limit on it right now and I don't exactly have tons of money. I could afford another $200, maybe $300 of secured credit right now and I was wondering if it would be smarter for me to increase the limit on this one to $400-500 or get another secured no-credit-check card for $200-300. I intend to pay it all off each month, of course. I don't have any other loans/credit at all except for my federal studnet loans which I'm about to start paying.

    #2
    Whatever it is that you decide, make sure that you carry a balance greater than $0.00 and less than 38% of the credit limit. That would give you the best score (with 0% to 8% being the best). I would wait and see how my scores panned out, and then, in 3-6 months, I may choose to try to get an unsecured card from Capital One.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      By carried balance, do you mean how much is left on the principal balance after I make a payment? Is how much I charge to the card throughout the month otherwise irrelevant to my credit score?

      Also I doubt Capital One will be giving me an unsecured card any time soon. I burned them in my bankruptcy and I had some missed payments with them before it was discharged.

      Comment


        #4
        Originally posted by dwiscb View Post
        By carried balance, do you mean how much is left on the principal balance after I make a payment? Is how much I charge to the card throughout the month otherwise irrelevant to my credit score?
        Yes, I mean that after you make your payment, the creditor reports a balance less than 29% at worse, or less than 9% at best. That's gives you the best overall scores (as utilization factors, I think, into 35% of your credit score). Never ever miss a payment, as that's another large percentage of your score. Your balance throughout the month is irrelevant. The amount that is relevant is what the creditor reports to the credit bureau as your balance (which is typically right when your statement is created).

        Originally posted by dwiscb View Post
        Also I doubt Capital One will be giving me an unsecured card any time soon. I burned them in my bankruptcy and I had some missed payments with them before it was discharged.
        Well, let nix CapOne. When your scores get to about 660, you haven't been applying for credit (keeps those inquires extremely low -- 1-3 per year), and your utilization is around 10%, you could try for a card from an entry-level unsecured card from your local Credit Union.

        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog


        I am not an attorney. Any advice provided is not legal advice.

        Comment


          #5
          Just Broke- Your advice 12-15-18 is Pristine and right on the money- I BK7 January 2016- spent the last 3 years re building- There are MANY ins and outs of to what to do or Not do- I joined up with a credit help place and their recc's mirror yours! So many uninformed people out there giving advice! Thanks JB - maybe consider change your profile name- it has a negative metaphysical statement ringi to it!

          Comment


            #6
            Originally posted by janland View Post
            Just Broke- Your advice 12-15-18 is Pristine and right on the money- I BK7 January 2016- spent the last 3 years re building- There are MANY ins and outs of to what to do or Not do- I joined up with a credit help place and their recc's mirror yours! So many uninformed people out there giving advice! Thanks JB - maybe consider change your profile name- it has a negative metaphysical statement ringi to it!
            Yes, I'm beginning to really feel that. The bankruptcy lawfirm I used set me up with a free account at a website 720creditscore.com. I have yet to really go through it, but it kind of just seems like advice that could be encapsulated in a short blog, pretty generic stuff. Is there anything better out there, online, book or otherwise?

            Comment


              #7
              For what it's worth, Capital One actually has a reputation for being very bankruptcy friendly. I included two of their cards in my chapter 7 bankruptcy after stopping paying on them over two years before (while waiting on a slow poke attorney - but that's another story), and I was approved for an unsecured card with them three days after my discharge.

              Comment


                #8
                Originally posted by janland View Post
                Thanks JB - maybe consider change your profile name- it has a negative metaphysical statement ringi to it!
                Well... "just flush with cash" not only doesn't have a ring to it, it's not me!

                Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                Status: (Auto) Discharged and Closed! 5/10
                Visit My BKForum Blog: justbroke's Blog


                I am not an attorney. Any advice provided is not legal advice.

                Comment


                  #9
                  So I got a "pre-approval" letter from Ollo Mastercard in the mail. It says they've "reviewed my credit" and I'm pre-approved. Should I just ignore?

                  Comment


                    #10
                    I filed Chapter 7 in Sept. 2018 and was discharged on 12/18 18. My credit scores are: EQ 651, TU 644 and EX. 604. What Score should I work at before applying for an unsecured CC. I really want a capital one card but I did burn them in the BK for about $5500.00. I really need a cc but would like to avoid unnecessary heard hits. I have $100,000. plus in Student Loans. I must however admit that it seems to be helping my credit score a little.

                    Comment


                      #11
                      The score will depend on which creditor uses which credit bureau for your State. Yes, it can vary. I would try Capitol One's "pre-qualification" engine and also the pre-qualifier from Discover. Some others have pre-qualification links as well. Just dno't use one that doesn't do a true pre-qualification (to avoid hard pulls on your report).

                      I think that most look at Equifax or Transunion anyhow. A score above 620 without a lot of recent searches for credit, should net you one from Capitol One or Discover. (I don't know if CapOne will be shy about giving you more credit. My answers are more generic.)
                      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                      Status: (Auto) Discharged and Closed! 5/10
                      Visit My BKForum Blog: justbroke's Blog


                      I am not an attorney. Any advice provided is not legal advice.

                      Comment


                        #12
                        Originally posted by justbroke View Post
                        The score will depend on which creditor uses which credit bureau for your State. Yes, it can vary. I would try Capitol One's "pre-qualification" engine and also the pre-qualifier from Discover. Some others have pre-qualification links as well. Just dno't use one that doesn't do a true pre-qualification (to avoid hard pulls on your report).

                        I think that most look at Equifax or Transunion anyhow. A score above 620 without a lot of recent searches for credit, should net you one from Capitol One or Discover. (I don't know if CapOne will be shy about giving you more credit. My answers are more generic.)
                        How do you know if its a 'real' prequalification?

                        Comment


                          #13
                          It's subtle, but the consensus on another forum, and my experience, is that if it shows you an APR "range" then it's not a pre-approval. If it shows you a specific APR of say 15.25%, rather than 12.9% - 27.99%, then it is more likely a pre-approval. Creditors differ and some will call it an "offer" and some will say pre-qualified.



                          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                          Status: (Auto) Discharged and Closed! 5/10
                          Visit My BKForum Blog: justbroke's Blog


                          I am not an attorney. Any advice provided is not legal advice.

                          Comment


                            #14
                            Originally posted by justbroke View Post
                            It's subtle, but the consensus on another forum, and my experience, is that if it shows you an APR "range" then it's not a pre-approval. If it shows you a specific APR of say 15.25%, rather than 12.9% - 27.99%, then it is more likely a pre-approval. Creditors differ and some will call it an "offer" and some will say pre-qualified.


                            Okay. I've gotten two offers recently- Fortiva Mastercard and Ollo Mastercard, both with a specific APR, and the Fortiva saying a line of $1500 is "reserved".

                            Comment

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