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Thread: Closed accounts

  1. #1

    Exclamation Closed accounts

    Hello all,
    I am new to this , but I am really confident that I will find the help I need here.
    I am an immigrant and came to US in August 2007. I had no idea then about how the credit system in the US works. As a result, I was very negligent with my credit cards.
    Deliquencies in the payments was very often.
    Then, I had a HSBC student credit card (limit:$300). And later on I got a Bank of America cc (Limit:$1000).
    However, due to the deliquencies my HSBC was closed in June 2008. and as of now, I have paid all the balance on that one.
    As of BoA, I misused the card. My minimum paymemts were regular, however i always used it to the full. (the balance I used to have was around $950)
    In the meanwhile I also had Express and NY&C cards. even though I was unemployed for several months, i tried paying the minimum balances on all of these.
    However, BoA evetually closed the account in the February of this year. And both the other cards (Express and Ny&C) are closed too.
    My experian credit score is 486 and I really want to get my scores up. I am employed now and can guarantee that my payments would be regular.

    What card would be recommended for me? and I know there is no other way to build up my scores, but are there options available?
    Last edited by poorsoul; April 28th, 2010 at 11:18 AM.

  2. #2

    Default Re: Closed accounts

    I would go to a local credit union and see if they offer secured credit cards. You need to start building positive credit history right away and credit unions are the way to go. Don't fall for those First Premier type of credit cards. All they do is take your money and nickel and dime you afterwards.

  3. #3

    Default Re: Closed accounts

    I recommend you pay cash for everything. After you have zero balances on all cards close them all but one; the one with the best value. You need to learn to only buy things you can afford. Sorry to be blunt. But I think this is best for you. The card you keep will grow, they'll eventually give you credit limit increases, etc.


    Good luck!
    Last edited by Joeyman; April 28th, 2010 at 04:41 AM.

  4. #4

    Default Re: Closed accounts

    Thank you so much!
    This is indeed a great help.
    @hjm331 : I found out a list of local credit unions and found one right next to my workplace. I am going to go talk to them today. I saw that many people had recommended the Orchard Park Secured credit card, but i am not sure if that would be approved with my credit score.

    @joeyman: Thank you for your suggestions. I know i had been a shopoholic and i learnt the aftermaths of it the hard way. All I need now is a little boost or a chance and I know I can keep up and get my scores up!

  5. #5

    Default Re: Closed accounts

    Quote Originally Posted by poorsoul View Post
    @hjm331 : I found out a list of local credit unions and found one right next to my workplace. I am going to go talk to them today. I saw that many people had recommended the Orchard Park Secured credit card, but i am not sure if that would be approved with my credit score.
    The card you're talking about is the Orchard Bank secured credit card. I had my sister apply for that card two weeks ago because she doesn't have any credit (just turned 18.) She sent in her check for $200 and the card came in the mail this past Saturday. You have to apply for it online first and then, you will have to print out your application and mail it to them. When you mail them your application, make sure to send it by Certified Mail Return Receipt.

    After they receive your application, they're going to send you a few papers to sign which was the agreements to the savings account and credit card account. Sign those, mail them back (again CMRR) and wait for the card to come in the mail.

    They didn't pull my sister's credit reports so you don't have to worry about your app getting declined.

  6. #6

    Default Re: Closed accounts

    Quote Originally Posted by poorsoul View Post
    What card would be recommended for me? and I know there is no other way to build up my scores, but are there options available?
    Why were your New York and Company and Express cards closed? Had you fallen past due on those cards? Do you still owe money on those cards?

    Also, did you have credit in your native country? How would those banks handle late payments as opposed to the US?

    Like HJM said, you could check out your local credit unions or a credit union associated where you work. You could ask your human resources office if they sponser credit union membership. Just be sure to go with one that offers a share secured credit card.

    Regarding Orchard secured cards, from what I understand, that card will never be unsecured (someone correct me if I am wrong). Now, that is not a bad thing, you could just keep it long enough to rebuild and then close it. But it is not a long term card. Also, like HJM said, avoid First Premier cards and even Associated Bank cards.

    If you still owe money to Bank of America and your Express and NY&C cards, I would pay them down for a few months then apply for a secured card.

  7. #7

    Default Re: Closed accounts

    Quote Originally Posted by Joeyman View Post
    I recommend you pay cash for everything. After you have zero balances on all cards close them all but one; the one with the best value. You need to learn to only buy things you can afford. Sorry to be blunt. But I think this is best for you. The card you keep will grow, they'll eventually give you credit limit increases, etc.


    Good luck!
    Can closing credit card accounts really increase credit scores?

  8. #8

    Default Re: Closed accounts

    Quote Originally Posted by belle View Post
    Can closing credit card accounts really increase credit scores?
    It depends. If your card still has a balance, your debt ratio will be affected. But if you make timely payments without adding new debt, the effect on your debt ratio will be temporary. The debt ratio is part of a component that can affect your FICO score. But if you don't immediately need a high score, then closing your account even if it can momentarily affect the progress of your credit score just so you can pay off your debts promptly -- may be a good decision. :) just my thoughts;)

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