Which Credit card Is Best For Me?

Question

I have a credit score of around 550 i have a bad credit history with about 7 debts i incurred when i was 17 (i paid them off but it still shows up on my card as paid) i have been rejected by bank of america and chase bank is there any credit card company i can get apporved by? im 18 now and i just want to build up my credit and raise my score

Correction: I mean the debts still show up on my credit history as paid

Answer 1

You can do a "pre-paid" card. My friend uses one of those.

From what I have heard "AAA" is the best company to use. The rates are good. Plus having the card can get discounts at hotels, some tickets, car rentals, insurance, & resturants, etc.

People have told me I need to join and get the card.

But I have no personal experiance with that company.

Good Luck!

Answer 2

In my opinion the 'best' credit card to get is not a credit card at all. Rather it is a 'check-debit card' which is attached directly to your checking account and you can use the card ONLY if the money is available in your checking account. However, this type of card will not do much for your credit score.

There is no such thing as a 'best credit card'. They all charge high interest rates, late fees and yearly fees. The best credit card 'rates' are reserved for those that have a 750 credit score or higher.

If you are looking to raise your credit score, it will take some time and good money management on your part.

Ask your bank if they will allow you a personal loan if you put up a Certificate of Deposit (CD) as collateral towards the loan. In other words, open a $500 CD and request if they will loan you $400. If they don't, call around until you find one that does.

If you pay rent, ask that your apartment report your monthly rent payments to the credit bureaus.

Your utilities should be reporting your monthly payments as well. If they are not call and ask that they do.

Unfortunately, most times apartment complexes and utility companies do not make an effort to report your payment history unless you default on payments. Then they are all over it.

There are stores, such as electronics and furniture stores, that will extend small lines of credit to those that have bad credit. Take advantage of these stores but be very careful to read the contract and be very aware of the interest rates as you will be paying higher that normal rates.

Also make certain that they actually will report to the credit bureaus. Ask which credit bureau they report to and verify the information before entering into the agreement if it is a small 'one store' company.

As for the '7 debts you incurred when you were 17', they will remain on your credit record for 7 years from the date of your last payment. However, you may want to write a letter to the creditors and follow up with a phone call to explain the dire situation you were in and ask if they will be willing to delete the negative mark or at the very least, upgrade the reporting to read 'Paid in Full'.

Raising your credit score will take some time and work on your part. It is not a '90 day' process. Be patient and pro activ and you will achieve the result you are looking for.

Answer 3

NONE! You already got into credit trouble once, do you really think having credit will be a blessing THIS time? You only need to "rebuild your credit" if you are trying to go deeply into debt for a bunch of crap you can't really afford. This is not a plan. We live w/o borrowing & so can you! We have total peace around the subject of money. All our bills are paid 15 days early, we have a functional budget, money for emergencies & NO CREDIT CARDS OR LINES OF CREDIT!

Here are a few credit card LIES:
(1) You need a credit card for emergencies.
Bull, tow drivers take cash & so do hospitals!
(2) You need a cc to rent a car, book an airline ticket, shop online.
Bull, you can do ALL this w/cash/debit card!
(3) You need good credit to get a loan for a house.
Bull, go to a lender that does manual underwriting. As long as you pay your rent & utilities on time, you can get a loan @ a good interest rate!
(4) You need a cc to earn points/miles/cashback.
Bull, many debit cards now have these features & u can get airline miles w/ NO CARD at all. Besides, no one ever got rich off their Discover rebates!

Your credit score is just a score that demonstrates to banks that you like being in debt & pay lots of interest. it has nothing to do w/ your income. I challenge you to find a better way. We have used Dave Ramsey's "Total Money Makeover". It has been a godsend. I urge you to at least read it before you start digging yourself a new debt hole.

Answer 4

Try Orchard Bank. They have couple different cards -- one secured , one unsecured -- that both pay 2% back on all your spending. The credit limit you'll get will probably be quite low (though I've heard as high as $2400 with the unsecured one), but the cash back from those cards is hard to beat -- especially for a credit-building card.

Answer 5

You're probably going to need to get a secured credit card, where you put money on deposit up front. As your credit score improves, you should be able to get an unsecured card.

Answer 6

Get a card where you put the money up front.