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Milestone Gold mastercard and open sky

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Just wanted people to know who's trying to rebuild their credit. I got approved for an unsecured credit card called milestone gold master card. It was on my credit karma recommended card. My scores are pretty low, TU FICO 601, credit karma-597, credit sesame 604. Its just a sub prime card, with a low limit of $300 and $75 annual fee. Also got approved for open sky secured card with 200$ limit and $29 annual fee. Already saw a bump in my credit karma faco score by 6 pts due to open sky.

 

If I got approved for the milestone card, I think anyone can with low scores. Am not going to apply for anymore cards, I just wanted some open TL showing while am working to get all or most of my baddies off my CR. 

 

https://www.milestonegoldcard.com/get-your-gold-card  . First they do a soft pull to see which card rate your approved for.

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Why is it so important to you to get a card secure? It is costing you more to get one, than to wait it out.  There is no advantage to having a decent credit score unless you are going to be making a major purchase in the next year such as a house or auto.  I have lived 3 years with no credit, and I keep getting unsecured offers, but I shread them as soon as they come in.  I don't need it.

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If you feel like you need to establish a current history of credit, in preparation for applying for an auto loan or a mortgage, one card that you PIF monthly will help, as will a savings account loan from a bank.

 

But, unless you need a nice car for something, try to figure out how long your current vehicle will last, what you'd pay monthly for a car loan (figure on at least 7% for less than stellar credit) and then start saving that amount monthly, so you can have it as a bigger down payment. Other than that, I kind of agree with Shellie; use as little credit as you can, and always PIF on a monthly basis.

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I keep a secured card (Cap 1) for car rentals and such.  I don't like using my debit card given security issues like Target.  I deposited +$1000 in my account over a year to cover gas and groceries and I PIF after I make the purchase.  That limits my exposure and gives me credit history.  No I don't get interest on the money I deposited, but I think it's a small price to pay for the firewall erected between my bank account and the merchant.  I don't really mind having a secured card.  If you have to add funds gradually, you can do that until you get to the credit line you need.

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My understanding is for most car rentals they will not accept a secured credit card or a debit card (and of course not cash when rent).  Some say that explicitly. Although I don't know how they would know if a credit card is secured or not.  They can somehow tell that it is a debit card it seems, even if it doesn't say so on the card.

 

The only major rental car companies I have identified so far that will take a debt card vs unsecured credit card are Budget and Alamo.  

 

The reason I believe is if you damage the car and of course don't use their expensive insurance coverage/waiver, they can charge your credit card for thousands and then you try and get reimbursed by your own insurance auto coverage for rental cars, less your deductible.  However, I believe they only put a "hold" on the estimated cost of the rental and don't know what your credit limit is.  Of course this hold if you have a low limit could prevent you from using it for your hotel or other expenses.  Being able to have a credit card hold at least assures them of that much - but as I understand it refuse to take cash up front even if you then pay in cash for the rental cost when you return the car and they release the hold on your card (which may take a few days!)

 

It would be interesting to know of others experience.    

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First of all, the $75 over $300 credit line makes available only $225. that's miniscule.

Secondly having a $200 credit line with $29 annual fee is ok, however, keep in mind this has happened to me with an opensky CC limit of $300.

Beginning year 2nd with Opensky cc, the annual fee jumps to $50 and penalty rate applies if

a) You fail to make any payments by the date and time due

B) Exceed your credit line (this has happened to me by $1 once in the last 12mos upon their adding their own interest charges which is $1 at minimum)

c) Payment is returned Unpaid;

d) During their first 8 payments cycles since account opening, if you make a payment in/within 3 days of the payment due date, they have a hold on your payment upto & until 4 days. eg. Your payment is due on 6/28; if you made payment online and listed payment date as 06/25-06/262014 , within the first 8 payment cycles they will take upto 4 days (depending on weekday or weekend) to credit your account. They will have withdrawn that money from your bank account however it will not reduce the available balance by the amount of payment until almost 4 days. So if you are maximizing the usage of $200 credit limit card n expect OpenSky to credit your account immediately in their first 8 billing cycles good luck to you. The amount you paid will be on hold for nearly 4 days. What that also means is the Penalty APR applies if payment is late or over the limit. (or even Non-Sufficeient funds).

OpenSky Secured cc is a Sub-Prime credit card. the only advantage is they report to all three CRA's. They do not look into your ChexSystems or have a hardpull on your credit report. You have no option of your credit line becoming UNSECURED at any stage whatsoever with Capital Bank/Openskycc.

 

 

Knowing all this,  I am thinking about closing out on OpenSky credit card and moving on to another Secured Credit card. I have until July 15th to do so or else pay the $50. I have established 12 mos of history with them, mostly with balances near the maximum of $250. I have paidoff the final balance before my $50 annual fee kicks in.

Here are some sugestions I have had.

 

First National Bank of Omaha (does EX credit check/ChexSys).

Harley Davidson/US Bank (No annual fee)

Merrick Bank

USAA secure card. (I am a member).

DCU Secure Card.

 

 

Without really having any luck with an unsecured credit card and having really low limits on Secure card, my question really is how long of a payment history is enough for a secure card. I have atleast 12 mos so far. Only on time payments made, nearly maxed out 9 out of 12 times (only once exceeded the limit). Is that good or bad?

Is it really on-time payments that matter most or the usage and pay it off? which carries more weight. I have just so much yet to learn from all of this. My FICO at end of June 29th, 2014 is 610 on CreditKarma.

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I would not bother with Credit Cards anymore they are more of a problem than a solution into acquiring what you want.  I rather save.  Right now I have 2 semi-large debt with CC and 1 small CC debt.  However I want to try to save one for an emergency.  I have a friend who did that.  She was taken to court and sued by a CA for a CC debt.  Yet she was able to save one for emergency only.  I decided enough is enough I feel CC are debt traps.  One never knows what can happen in the future and unable to make payments like me.  So I rather deal with CASH only.

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