Credit One

[lookingforward]

I know I read somewhere that a Credit One card was the card to stay away from when rebuilding credit. Any thoughts on this?

[justbroke]

It's not the worst of them. If you can, the preferred method is to use a bank that allows the cards to graduate after time. Some credit builders will obtain a secured card through a local bank (or Credit Union) to build their credit. Many of those secured cards do graduate over time.

Issuers like Credit One usually have smaller limits and may charge you monthly fees on top of an annual fee. That is why they are not worth the money in the long run.

[shipo]

I know I read somewhere that a Credit One card was the card to stay away from when rebuilding credit. Any thoughts on this?

LOL, for Credit One, just say no.

A good first starter card is a CapitalOne Quickersilver or failing that, a CapitalOne Platinum. From there see if you can qualify (via their pre-approval page), for a Discover, Ollo, and/or Mercury card. They all have pretty good reputations for being non-predatory (with lots of fees and such) cards for folks just starting out or rebuilding.

[lookingforward]

CapOne said no way. Ollo said I needed an invitation and so did Mercury. I ended up with a secured Discover. I guess I'll start with that and add another in a few months maybe.

[shipo]

CapOne said no way. Ollo said I needed an invitation and so did Mercury. I ended up with a secured Discover. I guess I'll start with that and add another in a few months maybe.

With the secured Discover card in hand it shouldn't be too long before Ollo and Mercury start banging on your door. Just in the last month I've gotten four Mercury "Pre-Approved" letters in the mail for a no fee MasterCard with a $3,000 limit.

[flashoflight]

Credit One is a predatory lender but fees depend on the applicant. Actually Credit One can generate a really good offer if one of your tradelines somehow survived the bankruptcy unscathed or is delayed in closing due to the BK filing. Like $39 annual fee or no fees at all. Definitely make use of all the prequal websites and burn inquiries only on nearly guaranteed apps where prequal is signaling an approval. Come out with two Visa/MC cards and then sit for a while. I have only one Visa and it's been a struggle to get a second one unless I pay a huge annual fee, which I won't do. The wife has two Visas with the joint BK and it's been much easier for her to get offers.

[shipo]

Credit One is a predatory lender but fees depend on the applicant. Actually Credit One can generate a really good offer if one of your tradelines somehow survived the bankruptcy unscathed or is delayed in closing due to the BK filing. Like $39 annual fee or no fees at all. Definitely make use of all the prequal websites and burn inquiries only on nearly guaranteed apps where prequal is signaling an approval. Come out with two Visa/MC cards and then sit for a while. I have only one Visa and it's been a struggle to get a second one unless I pay a huge annual fee, which I won't do. The wife has two Visas with the joint BK and it's been much easier for her to get offers.

I started with a lame CapOne secured card and got no joy from it; I closed it after 6 weeks. Then I splurged and went for a TDBank secured card with a $5,000 limit (which graduated to unsecured exactly six months after my first charge); a few months after getting that card the flood gates of no fee unsecured card offerings opened up. While I've seen other folks report significantly higher total credit limits a year after their discharge, I was completely happy with the $14,000 of no fee unsecured credit I managed to get in my first year.

[lookingforward]

Shipo, 14K of no fee unsecured is pretty sweet. I'd be completely happy too.

[flashoflight]

I started with a lame CapOne secured card and got no joy from it; I closed it after 6 weeks. Then I splurged and went for a TDBank secured card with a $5,000 limit (which graduated to unsecured exactly six months after my first charge); a few months after getting that card the flood gates of no fee unsecured card offerings opened up. While I've seen other folks report significantly higher total credit limits a year after their discharge, I was completely happy with the $14,000 of no fee unsecured credit I managed to get in my first year.

In hindsight, I wish I did your strategy using a secured card with a high deposit funded by Uncle Sam and my measly savings. Credit One + high limit store cards isn't triggering the offers unless they come with huge annual fees. Too bad I had house repairs and had to spend the stimulus. Oh well. Still will get my refinance during the 13 anyway. Should close in two weeks fingers crossed.

[shipo]

flashoflight, congratulations on your refi; keep us posted.

[lookingforward]

Where I was unable to get a prequalification on anyone, just the secured Discover, my husband got approved for a 3K Ollo and a 1K Mission Lane yesterday. I can't figure out why they like him and not me.

[shipo]

Where I was unable to get a prequalification on anyone, just the secured Discover, my husband got approved for a 3K Ollo and a 1K Mission Lane yesterday. I can't figure out why they like him and not me.

I'm thinking its nothing personal, its just business.

In our case the situation is reversed; my wife gets all of the good credit, me, not so much.