Question about Credit Cards

[retrosniipes]

Excuse my lack of knowledge on CCs, but had a few questions about my situation.

My mom opened up a credit card for me(under my name) which had a $4000 limit back in 2007. I only had a debit card at the time and was fine just using the money I had deposited in that account. I never needed or wanted a credit card unless I knew I could pay off the payments, so I never bothered applying for one. Well, my mom used my card for two very expensive transactions that totaled about $3500 total. She told me she would pay it off immediately, and I was off in college at the time, so I just assumed it was all good. At the time, I was unaware of how credit cards worked, and didn't really look after it since I thought my mom would take care of it. Several months pass and I find out it wasn't being paid for, and my credit score had been damaged to below 600. The card was closed, and I had to try and slowly pay it off. I have been paying increments at a time, sometimes the minimum or big amounts. Sucks paying for money you never enjoyed.

Fast forward to now, I am about to pay it off fully, and am wondering what my options are now as far as my next credit card? Do I even have a chance on getting a regular credit card, or would I have to apply for a secured credit card? I want to raise my credit score as much as I can. I am aware the delinquency marks will be there, but there's not much I can do now. The last time I checked, my score raised as I started sending payments to the card. It is now around a 620-630. I never applied for a credit card during the time either. Now, I feel the need for a credit card, not for big spending, but for things I might need sometimes like renting a car, etc. I'd like the option of having a card that I can use if/when I need it. I know I would never overuse it and pay my payments on time. (My mom just put me in a bad-looking situation SMH)

Lastly, would closing the card be my only option? I am aware you should try and keep your oldest credit cards open, but since the bank closed it, can it be re-opened? Or am I better off starting off fresh with a new card.

CLIFFS:
- Opened credit card in 2007
- $3500 in debt, never paid on time, etc. (Card closed by bank)
- Credit damaged, and just finished paying off the debt by monthly payments.
- Asking for Credit Card options for next card and/or options on improving score more.

Thanks NT.

 

[retrosniipes]

Excuse my lack of knowledge on CCs, but had a few questions about my situation.

My mom opened up a credit card for me(under my name) which had a $4000 limit back in 2007. I only had a debit card at the time and was fine just using the money I had deposited in that account. I never needed or wanted a credit card unless I knew I could pay off the payments, so I never bothered applying for one. Well, my mom used my card for two very expensive transactions that totaled about $3500 total. She told me she would pay it off immediately, and I was off in college at the time, so I just assumed it was all good. At the time, I was unaware of how credit cards worked, and didn't really look after it since I thought my mom would take care of it. Several months pass and I find out it wasn't being paid for, and my credit score had been damaged to below 600. The card was closed, and I had to try and slowly pay it off. I have been paying increments at a time, sometimes the minimum or big amounts. Sucks paying for money you never enjoyed.

Fast forward to now, I am about to pay it off fully, and am wondering what my options are now as far as my next credit card? Do I even have a chance on getting a regular credit card, or would I have to apply for a secured credit card? I want to raise my credit score as much as I can. I am aware the delinquency marks will be there, but there's not much I can do now. The last time I checked, my score raised as I started sending payments to the card. It is now around a 620-630. I never applied for a credit card during the time either. Now, I feel the need for a credit card, not for big spending, but for things I might need sometimes like renting a car, etc. I'd like the option of having a card that I can use if/when I need it. I know I would never overuse it and pay my payments on time. (My mom just put me in a bad-looking situation SMH)

Lastly, would closing the card be my only option? I am aware you should try and keep your oldest credit cards open, but since the bank closed it, can it be re-opened? Or am I better off starting off fresh with a new card.

CLIFFS:
- Opened credit card in 2007
- $3500 in debt, never paid on time, etc. (Card closed by bank)
- Credit damaged, and just finished paying off the debt by monthly payments.
- Asking for Credit Card options for next card and/or options on improving score more.

Thanks NT.

 

[the notorious bum]

How is your mom going to do that to you though

 

[the notorious bum]

How is your mom going to do that to you though

 

[sneakaprince]

^ I've seen way worse. My suggestion would be for OP to keep at it. You are resyoring your credit piece by piece. I had to do the same over the last year but trust me its better to learn this lesson now than later. I would personally go the secured route if u got it. They will umsecure your money again after about a year of on time payments

 

[sneakaprince]

^ I've seen way worse. My suggestion would be for OP to keep at it. You are resyoring your credit piece by piece. I had to do the same over the last year but trust me its better to learn this lesson now than later. I would personally go the secured route if u got it. They will umsecure your money again after about a year of on time payments

 

[retrosniipes]

Originally Posted by sneakaprince

^ I've seen way worse. My suggestion would be for OP to keep at it. You are resyoring your credit piece by piece. I had to do the same over the last year but trust me its better to learn this lesson now than later. I would personally go the secured route if u got it. They will umsecure your money again after about a year of on time payments

How do secured credit cards work? Will they help my score?

 

[retrosniipes]

Originally Posted by sneakaprince

^ I've seen way worse. My suggestion would be for OP to keep at it. You are resyoring your credit piece by piece. I had to do the same over the last year but trust me its better to learn this lesson now than later. I would personally go the secured route if u got it. They will umsecure your money again after about a year of on time payments

How do secured credit cards work? Will they help my score?

 

[ayipapi]

First off...!#+$$# situation Dude..

Second..if your paying in increments the card was already closed and is basically dead at this point...your credit report should be reflecting closed by grantor status or transfer to collection...at this point the damage has been done...

What you did not tell us is the length of time all of this happened..meaning card was open for year or more..etc..if it hasn't been a long time the damage to your credit is more around the late payments then the fact that they closed your card...

In terms of fixing your credit..I personally would NOT go the secure card route..what you need is a fixed asset purchase..meaning you need a car loan, furniture loan, or some non revolving credit loan...even securing a small $1000 car loan will be good for you...term loans are the best way to both build and restore credit...as credit is a measure over time not simply the ability to borrow and pay back..fixed asset or term loans create a calendar for which you can pay back..your ability to follow that table...is what establishing credit

The other alternative are mall cards...Macy's...Lord and Taylor..crap like that...interest will be high as hell but it is what it is...

The only mistake that you've made in this scenario so far is that you've never re-established your credit...credit is one of those things that you should not wait until you need to fix...you should always use and establish credit...and since you had an issue..you should also pull a three in one report just to make sure there are no surprises out there...good luck...

 

[ayipapi]

First off...!#+$$# situation Dude..

Second..if your paying in increments the card was already closed and is basically dead at this point...your credit report should be reflecting closed by grantor status or transfer to collection...at this point the damage has been done...

What you did not tell us is the length of time all of this happened..meaning card was open for year or more..etc..if it hasn't been a long time the damage to your credit is more around the late payments then the fact that they closed your card...

In terms of fixing your credit..I personally would NOT go the secure card route..what you need is a fixed asset purchase..meaning you need a car loan, furniture loan, or some non revolving credit loan...even securing a small $1000 car loan will be good for you...term loans are the best way to both build and restore credit...as credit is a measure over time not simply the ability to borrow and pay back..fixed asset or term loans create a calendar for which you can pay back..your ability to follow that table...is what establishing credit

The other alternative are mall cards...Macy's...Lord and Taylor..crap like that...interest will be high as hell but it is what it is...

The only mistake that you've made in this scenario so far is that you've never re-established your credit...credit is one of those things that you should not wait until you need to fix...you should always use and establish credit...and since you had an issue..you should also pull a three in one report just to make sure there are no surprises out there...good luck...

 

[retrosniipes]

Originally Posted by Ayipapi

First off...!#+$$# situation Dude..

In terms of fixing your credit..I personally would NOT go the secure card route..what you need is a fixed asset purchase..meaning you need a car loan, furniture loan, or some non revolving credit loan...even securing a small $1000 car loan will be good for you...term loans are the best way to both build and restore credit...as credit is a measure over time not simply the ability to borrow and pay back..fixed asset or term loans create a calendar for which you can pay back..your ability to follow that table...is what establishing credit

The other alternative are mall cards...Macy's...Lord and Taylor..crap like that...interest will be high as hell but it is what it is...

Yeah bro, it definitely sucks and has held me back from moving forward, but I can't do anything about it now. Like you said, it's been done. I am unsure of how long the card was open until they closed it. I'm assuming maybe a year or two. Only two major purchases. I have to look into those loans you are talking about. I don't know much about them. I'll take anything right now to help my credit score out and move on from this funk.

 

[retrosniipes]

Originally Posted by Ayipapi

First off...!#+$$# situation Dude..

In terms of fixing your credit..I personally would NOT go the secure card route..what you need is a fixed asset purchase..meaning you need a car loan, furniture loan, or some non revolving credit loan...even securing a small $1000 car loan will be good for you...term loans are the best way to both build and restore credit...as credit is a measure over time not simply the ability to borrow and pay back..fixed asset or term loans create a calendar for which you can pay back..your ability to follow that table...is what establishing credit

The other alternative are mall cards...Macy's...Lord and Taylor..crap like that...interest will be high as hell but it is what it is...

Yeah bro, it definitely sucks and has held me back from moving forward, but I can't do anything about it now. Like you said, it's been done. I am unsure of how long the card was open until they closed it. I'm assuming maybe a year or two. Only two major purchases. I have to look into those loans you are talking about. I don't know much about them. I'll take anything right now to help my credit score out and move on from this funk.

 

[fdub]

I am in a similar situation minus the mom using my name to open a credit part. I opened a credit card back in 2005 because my mom encouraged me to build some credit since I was only 18 years old at the time, so for a little while I was making my payments on time and increasing my credit limit every 6 months because I kept on paying in full. 2007 came along and I started to buy a lot of stuff that kept increasing minimum payments and my max got up to $6,000 as far as my credit limit, so in late 2008 I had a job that I wasn't making that much money, so all the use of the credit card caught up with me and I got behind my payments and all of the late fees and so forth made my the charges go above my credit limit, which crushed my credit score BAD. I couldn't get a car loan to save my life. Since i got my income tax return recently, I plan on paying my credit card all up front because it seem like it will take forever to pay it off in increments and the APR is super high. Since I got my car in July and made my payments on time (Sort of High APR), I have got like 4 credit card offers (Mainly from Capital one credit), but I have been throwing them in the trash because I don't want any more dept under my name, so I plan on paying off my current credit card off since it is in it's low 5g's

and get rid of this dept. Will paying off my Credit card in full help my credit score?  

 

[fdub]

I am in a similar situation minus the mom using my name to open a credit part. I opened a credit card back in 2005 because my mom encouraged me to build some credit since I was only 18 years old at the time, so for a little while I was making my payments on time and increasing my credit limit every 6 months because I kept on paying in full. 2007 came along and I started to buy a lot of stuff that kept increasing minimum payments and my max got up to $6,000 as far as my credit limit, so in late 2008 I had a job that I wasn't making that much money, so all the use of the credit card caught up with me and I got behind my payments and all of the late fees and so forth made my the charges go above my credit limit, which crushed my credit score BAD. I couldn't get a car loan to save my life. Since i got my income tax return recently, I plan on paying my credit card all up front because it seem like it will take forever to pay it off in increments and the APR is super high. Since I got my car in July and made my payments on time (Sort of High APR), I have got like 4 credit card offers (Mainly from Capital one credit), but I have been throwing them in the trash because I don't want any more dept under my name, so I plan on paying off my current credit card off since it is in it's low 5g's

and get rid of this dept. Will paying off my Credit card in full help my credit score?  

 

[ayipapi]

^ believe it or not it will actually hurt your score...I would suggest not paying them off but rather paying them down...keep maybe $100 or $50 balance on each and pay the minium every month...again credit is a measure over time..if your not paying anything your not demonstrating your ability to pay back...

don't accept ALOT of cards...depending on your income...your should have maybe three to four credit cards active on your profile...anything more then that can hurt your debit to income...cause even though you may not be using them...it would still be considered debt because you have the ability to use them....

Your car loan is repairing your credit with each payment...if your loan is with Cap One..get a Cap One credit card..make sure your USE the card..because you need to establish history to offset the negative history that is already present...

 

[ayipapi]

^ believe it or not it will actually hurt your score...I would suggest not paying them off but rather paying them down...keep maybe $100 or $50 balance on each and pay the minium every month...again credit is a measure over time..if your not paying anything your not demonstrating your ability to pay back...

don't accept ALOT of cards...depending on your income...your should have maybe three to four credit cards active on your profile...anything more then that can hurt your debit to income...cause even though you may not be using them...it would still be considered debt because you have the ability to use them....

Your car loan is repairing your credit with each payment...if your loan is with Cap One..get a Cap One credit card..make sure your USE the card..because you need to establish history to offset the negative history that is already present...

 

[GTA 809]

Great thread. I too am slowly rebuilding my credit. I have a capital one card. They were the only ones who would accept me. I started with a 300 limit but since I payed on time for 3 consecutive months they raised it to 500. Definitely not enough to buy my dream house but at least I'm going on the right direction.
I put my cellphone bill and gym membership on automatic payments on the card and don't use it for much else.

 

[GTA 809]

Great thread. I too am slowly rebuilding my credit. I have a capital one card. They were the only ones who would accept me. I started with a 300 limit but since I payed on time for 3 consecutive months they raised it to 500. Definitely not enough to buy my dream house but at least I'm going on the right direction.
I put my cellphone bill and gym membership on automatic payments on the card and don't use it for much else.

 

[crcballer55]

Originally Posted by Retrosniipes

Excuse my lack of knowledge on CCs, but had a few questions about my situation.

My mom opened up a credit card for me(under my name) which had a $4000 limit back in 2007. I only had a debit card at the time and was fine just using the money I had deposited in that account. I never needed or wanted a credit card unless I knew I could pay off the payments, so I never bothered applying for one. Well, my mom used my card for two very expensive transactions that totaled about $3500 total. She told me she would pay it off immediately, and I was off in college at the time, so I just assumed it was all good. At the time, I was unaware of how credit cards worked, and didn't really look after it since I thought my mom would take care of it. Several months pass and I find out it wasn't being paid for, and my credit score had been damaged to below 600. The card was closed, and I had to try and slowly pay it off. I have been paying increments at a time, sometimes the minimum or big amounts. Sucks paying for money you never enjoyed.

Fast forward to now, I am about to pay it off fully, and am wondering what my options are now as far as my next credit card? Do I even have a chance on getting a regular credit card, or would I have to apply for a secured credit card? I want to raise my credit score as much as I can. I am aware the delinquency marks will be there, but there's not much I can do now. The last time I checked, my score raised as I started sending payments to the card. It is now around a 620-630. I never applied for a credit card during the time either. Now, I feel the need for a credit card, not for big spending, but for things I might need sometimes like renting a car, etc. I'd like the option of having a card that I can use if/when I need it. I know I would never overuse it and pay my payments on time. (My mom just put me in a bad-looking situation SMH)

Lastly, would closing the card be my only option? I am aware you should try and keep your oldest credit cards open, but since the bank closed it, can it be re-opened? Or am I better off starting off fresh with a new card.

CLIFFS:
- Opened credit card in 2007
- $3500 in debt, never paid on time, etc. (Card closed by bank)
- Credit damaged, and just finished paying off the debt by monthly payments.
- Asking for Credit Card options for next card and/or options on improving score more.

Thanks NT.

Did you actually sign the application for the account, or did your mom put in all of your information with your signature too?  Did you ever use the card for anything?

I would have a serious talk with your mom.  That's pretty much financial child abuse if she opened up the card to make the purchases for herself and not make the payments.

Your best bet is to try and negotiate a deal with the bank to lower the amount owed (if you can't get your mom to pay it back for you).  Stop making payments in the mean time.  Yes, it'll damage your credit score, but you can eventually get them to negotiate it for about 50 cents on the dollar.  In the mean time, start stacking up cash so you can pay the offer that you agree on.  DO NOT make any payments until you have the offer in writing.  Only then should you send the payment via certified mail so you have proof that they received it.

 

[crcballer55]

Originally Posted by Retrosniipes

Excuse my lack of knowledge on CCs, but had a few questions about my situation.

My mom opened up a credit card for me(under my name) which had a $4000 limit back in 2007. I only had a debit card at the time and was fine just using the money I had deposited in that account. I never needed or wanted a credit card unless I knew I could pay off the payments, so I never bothered applying for one. Well, my mom used my card for two very expensive transactions that totaled about $3500 total. She told me she would pay it off immediately, and I was off in college at the time, so I just assumed it was all good. At the time, I was unaware of how credit cards worked, and didn't really look after it since I thought my mom would take care of it. Several months pass and I find out it wasn't being paid for, and my credit score had been damaged to below 600. The card was closed, and I had to try and slowly pay it off. I have been paying increments at a time, sometimes the minimum or big amounts. Sucks paying for money you never enjoyed.

Fast forward to now, I am about to pay it off fully, and am wondering what my options are now as far as my next credit card? Do I even have a chance on getting a regular credit card, or would I have to apply for a secured credit card? I want to raise my credit score as much as I can. I am aware the delinquency marks will be there, but there's not much I can do now. The last time I checked, my score raised as I started sending payments to the card. It is now around a 620-630. I never applied for a credit card during the time either. Now, I feel the need for a credit card, not for big spending, but for things I might need sometimes like renting a car, etc. I'd like the option of having a card that I can use if/when I need it. I know I would never overuse it and pay my payments on time. (My mom just put me in a bad-looking situation SMH)

Lastly, would closing the card be my only option? I am aware you should try and keep your oldest credit cards open, but since the bank closed it, can it be re-opened? Or am I better off starting off fresh with a new card.

CLIFFS:
- Opened credit card in 2007
- $3500 in debt, never paid on time, etc. (Card closed by bank)
- Credit damaged, and just finished paying off the debt by monthly payments.
- Asking for Credit Card options for next card and/or options on improving score more.

Thanks NT.

Did you actually sign the application for the account, or did your mom put in all of your information with your signature too?  Did you ever use the card for anything?

I would have a serious talk with your mom.  That's pretty much financial child abuse if she opened up the card to make the purchases for herself and not make the payments.

Your best bet is to try and negotiate a deal with the bank to lower the amount owed (if you can't get your mom to pay it back for you).  Stop making payments in the mean time.  Yes, it'll damage your credit score, but you can eventually get them to negotiate it for about 50 cents on the dollar.  In the mean time, start stacking up cash so you can pay the offer that you agree on.  DO NOT make any payments until you have the offer in writing.  Only then should you send the payment via certified mail so you have proof that they received it.

 

[losalmighty]

keep the card, closing accounts sometimes hurt you. apply for another one if you want and use it for small purchases then pay it off right a way.

 

[losalmighty]

keep the card, closing accounts sometimes hurt you. apply for another one if you want and use it for small purchases then pay it off right a way.

 

[hizzle]

I don't know if I could even speak to my mother if she ever did something like that to me. I take my credit so %@#%!%* serious.

 

[hizzle]

I don't know if I could even speak to my mother if she ever did something like that to me. I take my credit so %@#%!%* serious.

 

[fdub]

Originally Posted by Ayipapi

^ believe it or not it will actually hurt your score...I would suggest not paying them off but rather paying them down...keep maybe $100 or $50 balance on each and pay the minium every month...again credit is a measure over time..if your not paying anything your not demonstrating your ability to pay back...

don't accept ALOT of cards...depending on your income...your should have maybe three to four credit cards active on your profile...anything more then that can hurt your debit to income...cause even though you may not be using them...it would still be considered debt because you have the ability to use them....

Your car loan is repairing your credit with each payment...if your loan is with Cap One..get a Cap One credit card..make sure your USE the card..because you need to establish history to offset the negative history that is already present...

So paying my balance in full would hurt my credit???? Never heard that before...