View Full Version : credit cards, and getting approved
My credit is trashed for several reasons. That recession had several impacts, the house losing 100K in value, not getting a job that paid enough, and a divorce. I got through all of that, paid the chapter 13, have my student loans in good standing, etc. and my credit score is under 600. Ouch. My living situation is awesome but if I needed to move I would be in trouble. After reading a lot I decided I need a credit card. I applied for on through Ally bank where I have my IRA CD's and got turned down. No big surprise. I looked at a lot of cards that help you rebuild credit too. However I decided to go to my credit union that I have been a member of for many years and have a money market that ranges from $3-5K consistently to see if I could get a card with them. I have an appointment tomorrow. I want to try this before the other options.
One tip I read was to get a department store credit card, charge something you know you don't want to keep, make the payment on time, and then after you make the payment return the item for cash and pay the balance down so it looks like you are paying ahead. I am sure there is an easier way than that. I was going to buy things I was already buying and then pay it a little ahead and above the minimum or to zero each time. I think paying off in full is probably better.
Sometimes I get sad, I had a excellent credit score for many years. Things happen,
I thought Michelle Singletary had a pretty interesting column about credit the other day. You might find it helpful.
https://www.washingtonpost.com/business/2018/09/20/credit-myths-that-can-cost-you-lot-money/?utm_term=.f9537f10ad9d (https://www.washingtonpost.com/business/2018/09/20/credit-myths-that-can-cost-you-lot-money/?utm_term=.f9537f10ad9d)
iris lilies
9-27-18, 1:44pm
Please dont buy something large at a store and pay it off and return the item just to benefit you
I'd check with Capital 1 or Barclays before going store card route. Both are known to help people rebuild credit because they charge high rates.
The credit union is a good idea. I love our credit union.
Teacher Terry
9-27-18, 3:47pm
I would charge something you were going to buy anyway.
I bet you'll get a card from the CU. They'll probably just give you a low limit.
Yeah--with the department credit card, I'd just use it and pay it off in timely fashion.
When you are at the credit union, it might be helpful if you discuss whether a low credit limit credit card would be granted if a large credit limit would not be acceptable. You could build it up over time by increasing the credit limit as allowed.
Deliberately buying and returning is a real turn off for me. I would reconsider ever reading or listening to someone who would propose something like that.
Credit scores are about paying on time and relationships between amount of credit available and used. (and all kinds of other things)
gimmethesimplelife
9-27-18, 4:31pm
About credit unions - I love credit unions and I support this idea 100%! If you have any verifiable ties to the military, I'd suggest Navy Federal Credit Union - not only are they good and fair and transparent, they are unfailingly polite. Every time I go in there they call me by name at least once and call me Sir at least once. Not the kind of treatment I am used to from a financial institution. I've heard they are good about helping people establish and/or reestablish credit, too. Rob
I should have added that all our financial business other than some major affinity credit cards have been thru our credit unions for over 40 years. We had the first mortgage our CU had ever done many years ago. Other than one overly involved trust officer, the service has been wonderful.
I wouldn't go store card. Go Capital One. yes, you'll get a high interest rate. Use it for things you buy anyway that are inside your budget: the grocery store, gas etc. Pay it off in full each month-don't pay ahead. Pay on time.
My Cap One fee is $19/year. Very reasonable.
I don't feel comfortable with the store card and returning, not ethical to me and there are better ways. The only store card i would consider is target. I buy clothes and gifts there and can pay them off right away.
Teacher Terry
9-27-18, 9:31pm
My Capitol one has no fee
My Capitol one has no fee
There wasn't a no fee decades ago. I'm not willing to cancel our longest standing credit report to save $19/yr. This is longer than either of our mortgages!
Teacher Terry
9-27-18, 9:47pm
Ours are only 5 years old
If you already shop at Target, they even give 5% off for their card users or has that changed? I would recommend one but I don't shop at Target. Found their merchandising was just too good and made me liable for impulse purchases.
Never have had a credit card that cost us. We look only for ones that benefit us. Our first one 45 years ago was at Sears and we had to convince the credit manager to give us a $200 limit one even though we had each had a full time job. I remember that conversation to this day.
If you already shop at Target, they even give 5% off for their card users or has that changed? I would recommend one but I don't shop at Target. Found their merchandising was just too good and made me liable for impulse purchases.
Never have had a credit card that cost us. We look only for ones that benefit us. Our first one 45 years ago was at Sears and we had to convince the credit manager to give us a $200 limit one even though we had each had a full time job. I remember that conversation to this day.
We get far more rewards from our Capital One card than the $19 fee. Rewards program gets us free plane tickets, free hotels when we travel. We can buy with our points or we can redeem for recent purchases. It is fabulous. We use it for every purchase possible and have done a great deal of free traveling.
Teacher Terry
9-28-18, 11:40am
We get cash back with our free Capital one.
ApatheticNoMore
9-28-18, 5:29pm
My credit is trashed for several reasons. That recession had several impacts, the house losing 100K in value, not getting a job that paid enough, and a divorce. I got through all of that, paid the chapter 13, have my student loans in good standing, etc. and my credit score is under 600.
well I find it very inspirational you got to a much better place eventually career and financial wise. Ok no practical advice but I'm sure you'll find a way (the store card sounds good, buy a few things you need or even just want so long as you are sure you could pay it off next month).
Not super inspirational here, though likely have some temporary opportunities soon. But your story is inspirational, in a world in which it seems we have very little control, but it's nice to see it gets better sometimes and I know it's been long and hard and demanding.
Sometimes I get sad, I had a excellent credit score for many years. Things happen,
I hear ya. I had very bad credit for several years for many reasons I don't need to discuss. I have recovered beautifully--too well, IMHO.
I think anyone who knows will tell you that it only takes 2 years to restore your credit rating. Unless you're a Dave Ramsey devotee, you're on the right track with trying to find a credit card that will help build your credit.
I would get any credit card that will give you enough of a credit limit to get started. You don't have to pay early--that doesn't impress creditors. They don't even know. It's all computerized. The red flag goes off only when you are late. A gas credit card is not a bad one to try. You have to buy gas--and it would be an easy balance to pay off when it's due.
Or try the credit union or one of the other "second chance" types of credit cards, and just make a small purchase of you would buy anyway, and pay it off before the due date.
Also, make sure you keep your balance below 30% of your available credit. That's another thing credit bureaus use to evaluate your credit score.
But most of all, remember that you are NOT your credit score.
We get cash back with our free Capital one. We could but we prefer to use it for travel.
Wow ANM, I hadn't thought about this as inspirational at all. That really helps me get through being nervous.
The credit union was a good choice. They had a higher credit score for one. The banker said if I don't get approved they can do a secure card through them without going to another bank or special card that is obviously a credit repair card. Totally minot point, I could get a card with a Red Rocks picture on it.
I'm a big fan of credit unions--that was a good choice.
iris lilies
9-29-18, 10:51am
We could but we prefer to use it for travel.
Travel! I get it.
dado potato
9-30-18, 2:16am
The credit union was a good choice. They had a higher credit score for one. The banker said if I don't get approved they can do a secure card through them without going to another bank or special card that is obviously a credit repair card. Totally minot point, I could get a card with a Red Rocks picture on it.
I had a hunch your CU would accommodate you.
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