Another Credit Card or Installment loan?

[cory1848]

Over 2 years post BK7 and working at rebuilding credit. I have been getting hammered with solicitation notices from HSBC to apply for their "Platinum" card. So far I have been tossing all of them because I have 2 cards with Cap1. Those two cards have high rates, 16.9 ($1250 CL) and 24.8%($3000 CL). I was looking to increase my credit lines with Cap 1 but they denied me. I have had positive trade lines for 2 years with them and cards are paid off each month. I have considered applying for the HSBC card to see what rate/limit I would get and if it beats the cap 1, the cap 1 would get sock drawered.

Other options to rebuild would be to apply for an installment loan. I just sold a motorcycle and was planning on using the cash from that to buy another one. Currently it is in savings. Would it be a good idea to apply for a loan for a newer motorcycle so I have a tradeline? Or just to pay cash and buy it outright?

More than likely it would have to be a personal loan unless I found a motorcycle at a dealer. Would I even qualify for a personal loan 2 years out of BK7? Looking at $5-$6k.

Thanks

[reben]

I personally wouldn't recommend HSBC. I've been with them for 2 years and my limit is $400. Started with $300. 2 years with Cap1 as well. Started with $350 and now at $2100. I don't believe HSBC offers large limit. If they accept you with $400 limit that would lower your credit score....My opinion.

[Floridagail]

I am wondering what will happen now with my Hsbc card now that Capital One has bought the accounts. I closed my Orchard Card as they never reported my card each month and I paid them off in Feb. still not reported it paid to any of 3 bureaus.

[df04527]

Different types of credit are good for credit scores. Keep any one type to no more than two for best score impact.

[ksgirl38]

Over 2 years post BK7 and working at rebuilding credit. I have been getting hammered with solicitation notices from HSBC to apply for their "Platinum" card. So far I have been tossing all of them because I have 2 cards with Cap1. Those two cards have high rates, 16.9 ($1250 CL) and 24.8%($3000 CL). I was looking to increase my credit lines with Cap 1 but they denied me. I have had positive trade lines for 2 years with them and cards are paid off each month. I have considered applying for the HSBC card to see what rate/limit I would get and if it beats the cap 1, the cap 1 would get sock drawered.

Other options to rebuild would be to apply for an installment loan. I just sold a motorcycle and was planning on using the cash from that to buy another one. Currently it is in savings. Would it be a good idea to apply for a loan for a newer motorcycle so I have a tradeline? Or just to pay cash and buy it outright?

More than likely it would have to be a personal loan unless I found a motorcycle at a dealer. Would I even qualify for a personal loan 2 years out of BK7? Looking at $5-$6k.

Thanks

But are you actually using the card? Opening the account is one thing, but to build your credit score up you need to actually use the card. Try this, buy a tank of gas on it, then make sure to pay that credit card bill on time, repeat that every month and I would hope that your interest rate would go down and the credit limit and your credit score would go up. Having a credit card, but not using it doesn't really do much to increase your score if that's your goal. I was advised to use 10% of the credit limit to increase my score.

Also, closing out an account could hurt your score more than just not using it. As long as you aren't being charged a fee for the card then it's usually better to just leave the card open. Some companies may automatically close the account after a year or two of no use, but it's best not to request this unless you have a really good reason. Closing a credit card could drop your score.

[cory1848]

But are you actually using the card? Opening the account is one thing, but to build your credit score up you need to actually use the card. Try this, buy a tank of gas on it, then make sure to pay that credit card bill on time, repeat that every month and I would hope that your interest rate would go down and the credit limit and your credit score would go up. Having a credit card, but not using it doesn't really do much to increase your score if that's your goal. I was advised to use 10% of the credit limit to increase my score.

Also, closing out an account could hurt your score more than just not using it. As long as you aren't being charged a fee for the card then it's usually better to just leave the card open. Some companies may automatically close the account after a year or two of no use, but it's best not to request this unless you have a really good reason. Closing a credit card could drop your score.

Yes I am using the cards. I have reoccurring transactions set up for them and pay them off each month. I usually use them to buy things online as well rather than use my debit card.

[ksgirl38]

Yes I am using the cards. I have reoccurring transactions set up for them and pay them off each month. I usually use them to buy things online as well rather than use my debit card.

Good. Then you probably just need to give it more time. I know, frustrating.