56 People Helped
Member Since: January 2010
I checked this one out too, when it was reviewed as a number one pick on another site. When I checked it out the terms for the card had changed from those on the reviewing site. Initially it looked better, but then I saw all the details on the terms link (which is on the second page and very small, the fees are horrible. If you plan on running a large balance on the card from month to month, it may not be too bad at the 0% interest, but that won't help people build credit up as quickly as charging 10-30% of the available balance and paying it off will (no interest fees anyway if you use it that way). If you need a secured card to build credit try Public Savings or Orchard, they have considerably better terms that are clearly spelled out.
JimmA's response was:
Almost $120 dollars a year to keep this one.
JimmA's reply was:
I've just recieved my Public Savings Bank Visa a few weeks ago and it has already showed up on my Credit report.
I used it for a few small purchases ($42 on $1500 limit)and have already paid it off, although the payment hasn't register on my report yet.
My CK score has gone up almost 100 points since last month, thanks to this card and disputing items on my credit report.
That's not right, if it's the same debt it has to be removed 7 years after it was reported 180 days delinquent. That's the law. It can not be sold and re-aged.
Dispute it and possibly look at getting a laywer if they won't remove it.
You do realize that applying for credit lowers your credit score and stays on your report for 2 years. Reapplying for a card that you have been denied without a significant increase in your score is a waste of time. You are better off putting money aside and getting a secured card if you want to raise your credit score.
Check out the credit report card and credit advice articles on this web site to find ways to improve your credit.
Also go to annualcreditreport.com (the government mandated one and the only real free credit report site) and and get your free credit reports from all three credit bureaus.
I think the majority of it was the card. When I applied for an auto loan the last week of December, I was turned down because of no open credit accounts. At that point I decided to educate myself and remedy the situation. I was told to apply for a secured card to show some open credit. I had two paid off auto loans, but only the most recent shows up on all three reports and they are closed accounts.
There were also some old, small, mostly medical collections on there, which I disputed and all but three of those was removed. I disputed the items with two of the three bureaus and recently just sent out a dispute to the third, but my score had also gone up with that bureau (the one my dispute has not yet reached) about 90 points with just the card.
With a few months of responsible use and timely payments I'm sure my score will go up much more.
You want to have good credit utilization to build up better credit. This is ideally under 30% of your available credit, even better would be around 10%. So, for example, if you wanted to charge $100 a month you would want a limit on that line of credit to be at least about $350 to be under 30% utilization or even better $1000 limit to be at 10% utilization. Going over these limits is not good for your credit and using closer to the limit is actually harmful to it.
The Orchard Bank secured card has a decent interest rate and lower fees than most. (no application fee and the annual fee of $35 is waived the first year) It's actually a pretty good deal. I have this one and the Public Savings Bank secured Visa. If you are looking to build or rebuild your credit and not just looking for free money, these are the way to go. If you do find better offers please let us know, but I haven't seen any yet. Make sure you read all the terms and conditions on other offers as well. They may look good at first, but there are usually lots of extra fees attached.
1st Premier has some of the worst terms out there (some have low interest rates but the high fees more than make up for that), even at a higher interest rate the Orchard Bank card is better.
I had one other question about this card.
About the credit limit above $4,999, as stated in the terms:
"for balances up to $4,999 the credit limit will be equal to the amount of your security deposit. For balances between $5000-$10,000: your credit limit will be reduced by 10% of your security deposit (Example: If you have a security deposit of $10,000, your credit limit will be $9,000)"
So According to this up to $4999 security deposit my available credit is $4999 (100% of the deposit). Does that mean that at $5000 funded my available credit is is reduced to $4500 (reduced by 10% of the total deposit)?
If this is the case $4999 would probably be the maximum I would want to eventually fund on this card even though I would like to keep my utilization at about 10% of my limit.
This is a bit of an odd term, what is the reasoning behind it?
Other than that it seems like a good, long term secured card because of the no fees other than the $75 app fee and because of the decent APR.