Helping a friend build credit from nothing.

[harryfpotter]

I'm helping a friend of mine who has one $95 dollar baddie, a $1000 in student loan in good standing, and 12 hard pulls. He's sent a DV for the baddie. I've told him to get a credit card, but one that he will actually get. What is the next step? Should he go get real FICOs at myFICO so I can run them past the CB folks here? Should he just apply for a secured card? No problem to get myFICO FICOs if you'd like to know his FICO, but I don't know that he really has enough history to get a FICO. I know they are useless but his EQ FAKO is 622 (Fair).

[rel]

Capital One Secured would work until that baddie is off his reports.

[harryfpotter]

Should he get one secured credit card or more than one?

[mindcrime]

That's a lot of HP's coupled with no positive revolving TL. Before he goes burning 3 more inq's (C1 likes to pull from all), maybe try his bank/CU first, explain his profile first. C1 secured never goes unsecured from what I've read here, so Opensky (no credit check) might be a better option if he can't get card that will graduate.

[mendelssohn]

I think 1 secured card reporting for 6 months is all he would need to get the ball rolling of he can het rid of that baddie.

[harryfpotter]

@mindcrime OpenSky sounds risky. I'm not sure how credit cards work myself. I'm rebuilding and I have a C1 Platinum. I pay my balance constantly and it posts immediately. OpenSky charges interest the moment you purchase and seems to be hard to pay on time.

 

https://www.creditkarma.com/reviews/credit-card/single/id/publicsbsc01

 

But, you're saying to hard pulls? Are you suggesting getting the card, spending under $10 with it and paying it off for six months? A card that he's not supposed to use?

 

Otherwise it sounds like fight the baddie, pay off the student loan, and have one revolver for six months.

Hmm... So it's not worth it to risk more hard pulls for a rejection on even the lowest end of unsecured like C1 Platinum?

[rel]

1 Capital One secured, pay the deposit (should be $50) you'll get a $200 limit. You don't need it to unsecure, he can apply for everything else later on and eventually close it once you have more accounts reporting after some years, the sooner the better.

[mendelssohn]

@mindcrime OpenSky sounds risky. I'm not sure how credit cards work myself. I'm rebuilding and I have a C1 Platinum. I pay my balance constantly and it posts immediately. OpenSky charges interest the moment you purchase and seems to be hard to pay on time.

 

https://www.creditkarma.com/reviews/credit-card/single/id/publicsbsc01

 

But, you're saying to hard pulls? Are you suggesting getting the card, spending under $10 with it and paying it off for six months? A card that he's not supposed to use?

 

Otherwise it sounds like fight the baddie, pay off the student loan, and have one revolver for six months.

 

Hmm... So it's not worth it to risk more hard pulls for a rejection on even the lowest end of unsecured like C1 Platinum?

If he wants a no credit check secured card, SDFCU is a good one. There is no AF, there are rewards and a grace period on purchases.

 

At this stage of the game, I don't think he should be afraid of inquiries. They are a necessary part of building credit.

[rel]

Also stop applying for all those accounts, I went from Cap 1 secured straight to Amex and Chase once my baddies were removed.

[harryfpotter]

@mendelssohn It's news to me that you can get a Visa card from the State Department Federal Credit Union if you're not a employee of the State Department.

[mendelssohn]

@mendelssohn It's news to me that you can get a Visa card from the State Department Federal Credit Union if you're not a employee of the State Department.

Anyone can join through a sponsoring organization.

[mindcrime]

@mindcrime OpenSky sounds risky. I'm not sure how credit cards work myself. I'm rebuilding and I have a C1 Platinum. I pay my balance constantly and it posts immediately. OpenSky charges interest the moment you purchase and seems to be hard to pay on time.

 

https://www.creditkarma.com/reviews/credit-card/single/id/publicsbsc01

 

But, you're saying to hard pulls? Are you suggesting getting the card, spending under $10 with it and paying it off for six months? A card that he's not supposed to use?

 

Otherwise it sounds like fight the baddie, pay off the student loan, and have one revolver for six months.

Hmm... So it's not worth it to risk more hard pulls for a rejection on even the lowest end of unsecured like C1 Platinum?

 

Didn't realize there was no grace period on purchases. I still would talk to his bank/CU first. It's not a matter of being afraid of inquiries, it's the fact that with a very limited file, having that amount of inquiries isn't going to help his chances getting approved, especially from a triple puller. He'll need to build, and getting a card that graduates would be better *if* he can get one. When I was rebuilding I was very up front with my bank, got a secured card, and 12 months later it unsecured, and I still keep it open today even though no rewards simply because its my oldest open revolving TL.

[harryfpotter]

@mendelssohn Whoa! You mean I join the ACC:

 

https://www.americanconsumercouncil.org

 

For $5.00 and then I can join the SDFCU? That's amazing. And to join the ACC I need to prove that I am an American consumer?

[chugs102]

You'll be eligible for a bunch of CU membership by joining the ACC.

 

How old is that $95 baddie? Dispute it however he can. See if he can do a PFD.

 

If he can get rid of that baddie, he can go on an app spree. If not, your friend needs to apply for a secured account. Use and pay on time. Go on app spree in 6 months.

[harryfpotter]

This is all very interesting for myself too. I have a new C1 Platinum, one very old baddie with the JDB ERC, and 2 hard pulls. The baddie came after I got the C1. I've seen app spree mentioned before, but I guess it means you get as many hard pulls at once? My plan was to look for a new card every six months or so, though. To grow slowly.

 

I'm probably going to join ACC as a next step.

 

I helped him send a DV on the baddie. It's recent. It's a final bill from WOW! Cable. After he canceled service, he couldn't log into their web site to pay the final bill and they have no customer service to speak of, so they sent him to collections. Here's what the CB folks had to say about it.

 

http://creditboards.com/forums/index.php?showtopic=528281

[GR8WhiTE]

I want to add that's myFico is not giving real FICO's. Also you didn't mention who the INQ's are from? You might want to look into B*.

 

For right now, definetly get a secured card. One that unsecures would be even better. I had gotten (3) that do NOT unsecure. Either way, they have helped my credit and they are from credible banks. Not from Credit One's or First Premier's. He needs to start showing positive history. Depending how much money he has, spread it out. Maybe get (2) secured cards from 2 different banks or CU's. Even mix it up and throw in a secured loan. All these help. In the meantime, also work on removing the baddie. Once it's gone and you show that you have had good payment history for 6 months, then and only then, go for a mini-app spree.

[harryfpotter]

@GR8WhiTE myFICO is not giving real FICOs but Wal-Mart is?

 

He does have a small student loan that he's going to pay off in the new few months.

 

I'm now learning more about credit unions. Yes, he should probably get a secured card through a credit union. I believe the plan now is to have him join this AAC, then have him try to get a secured card through SDFCU, Navy or NASA or all of them. Sound good? Sound impossible?

 

Thank you everyone for your help. I'm learning so much.

[rel]

Honestly I would just get the Cap 1 secured RIGHT NOW (It won't unsecure but it should only be $50 for a $200 limit). Keep disputing that baddie until it's removed no matter what. Once that's removed he'll have PERFECT credit minus the INQs...

 

All of those credit unions are nice but he really doesn't need that right now unless he's eligible for Navy, USAA, NASA but that can come at a later date, you need a CC reporting RIGHT NOW to help you later on once that baddie is gone.

 

He also needs to start bumping those INQs off, don't worry about FICO score right now, get that baddie off and a card reporting.

[mendelssohn]

Honestly I would just get the Cap 1 secured RIGHT NOW (It won't unsecure but it should only be $50 for a $200 limit). Keep disputing that baddie until it's removed no matter what. Once that's removed he'll have PERFECT credit minus the INQs...

 

All of those credit unions are nice but he really doesn't need that right now unless he's eligible for Navy, USAA, NASA but that can come at a later date, you need a CC reporting RIGHT NOW to help you later on once that baddie is gone.

 

He also needs to start bumping those INQs off, don't worry about FICO score right now, get that baddie off and a card reporting.

I don't think someone building credit from scratch should be worried about starting B*.

 

Keep in mind, the 3 credit unions you mentioned all have great secured credit cards, and the NFCU card graduates.

[rel]

 

Honestly I would just get the Cap 1 secured RIGHT NOW (It won't unsecure but it should only be $50 for a $200 limit). Keep disputing that baddie until it's removed no matter what. Once that's removed he'll have PERFECT credit minus the INQs...

 

All of those credit unions are nice but he really doesn't need that right now unless he's eligible for Navy, USAA, NASA but that can come at a later date, you need a CC reporting RIGHT NOW to help you later on once that baddie is gone.

 

He also needs to start bumping those INQs off, don't worry about FICO score right now, get that baddie off and a card reporting.

I don't think someone building credit from scratch should be worried about starting B*.

 

Keep in mind, the 3 credit unions you mentioned all have great secured credit cards, and the NFCU card graduates.

 

 

Yes but they might not approve him for a secured card with that baddie...

 

I said all of that because he can go from slightly bad credit to just about perfect credit once that $95 baddie is removed (He has that loan reporting), no need to be thinking super far down the line, just get a card reporting and Cap 1 secured I can't imagine him being denied for.

 

Saying join this and that CU for someone new is kinda complicating his situation besides the graduating part. (He can still be denied as a member with USAA from personal experience)

[chugs102]

DO NOT EVEN THINK ABOUT B*

 

Work on getting rid of that baddie.

 

Then get 2-3 more revolving credit accounts. I only mentioned an app spree because you want to get a bunch of new accounts and let them age.

[GR8WhiTE]

@GR8WhiTE myFICO is not giving real FICOs but Wal-Mart is?

 

He does have a small student loan that he's going to pay off in the new few months.

 

I'm now learning more about credit unions. Yes, he should probably get a secured card through a credit union. I believe the plan now is to have him join this AAC, then have him try to get a secured card through SDFCU, Navy or NASA or all of them. Sound good? Sound impossible?

 

Thank you everyone for your help. I'm learning so much.

everything is possible

 

Honestly I would just get the Cap 1 secured RIGHT NOW (It won't unsecure but it should only be $50 for a $200 limit). Keep disputing that baddie until it's removed no matter what. Once that's removed he'll have PERFECT credit minus the INQs...

 

All of those credit unions are nice but he really doesn't need that right now unless he's eligible for Navy, USAA, NASA but that can come at a later date, you need a CC reporting RIGHT NOW to help you later on once that baddie is gone.

 

He also needs to start bumping those INQs off, don't worry about FICO score right now, get that baddie off and a card reporting.

Sure. He can just go for Cap One. Key is to start reporting something positive.

 

 

Honestly I would just get the Cap 1 secured RIGHT NOW (It won't unsecure but it should only be $50 for a $200 limit). Keep disputing that baddie until it's removed no matter what. Once that's removed he'll have PERFECT credit minus the INQs...

 

All of those credit unions are nice but he really doesn't need that right now unless he's eligible for Navy, USAA, NASA but that can come at a later date, you need a CC reporting RIGHT NOW to help you later on once that baddie is gone.

 

He also needs to start bumping those INQs off, don't worry about FICO score right now, get that baddie off and a card reporting.

I don't think someone building credit from scratch should be worried about starting B*.

 

Keep in mind, the 3 credit unions you mentioned all have great secured credit cards, and the NFCU card graduates.

 

B* can't hurt. But the secured card steps are first and most important steps to take.

[harryfpotter]

Okay. So get a Cap1 secured card even though it won't graduate. It will be gotten. Then, at the same time, look for secure cards that will graduate.

[rel]

You could only get 1, I don't see that baddie staying long, he'll be able to be approved for good cards once that's gone. If finances allow it, I guess it doesn't hurt to apply for the others after Cap 1