Store Credit Card or CD Loan (and a delinquency question)?

Credit and mortgage advice Forums Consumer Credit Improve credit Store Credit Card or CD Loan (and a delinquency question)?

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    • #217601
      Anonymous
      Inactive

      Hello, first time poster here. I have a couple questions to help build my credit. First a quick history:

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      I’m in my mid-20s, live downtown so I don’t own a car and rent my apartment (without a desire to purchase either of those). I make approx. $4000/month, have $6000 in (non-retirement account) savings, and a USAA credit card (going on 7 years) with a $3000 limit. My credit score is listed in the 660-680 range on Credit Sesame and Credit Karma, with all on-time payments on my CC, 4 inquries, and one $200 Accounts Receivable from 2008. The inquiries are from 9/09, 11/09, 8/10, and 5/11 (all denied). With the latest one, I applied for a credit card and was turned down specifically b/c I don’t have enough credit and not enough open accounts (I have never closed an account).

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      Basically, I have fairly okay credit in, just not enough of it, and am in the catch-22 where I can’t get more until I have more. My questions:

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      -Is a CD Loan or a store credit card better for building credit, or both?? I have the money for a CD loan, but wouldn’t want to use it if the impact is negligible. I’d want to make sure that both types report to all 3 agencies, and that the CD loan doesn’t require a hard pull.

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      -If I go with a store credit card, which one should I go with? I was thinking of trying Macy’s, but it appears that it doesn’t report your CL any longer, and any CLIs are going to require a hard pull.

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      -Is there a better way to build credit than a CD loan or store card?

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      -Will paying the $200 delinquency help my credit at all? The agency won’t settle for less than $185 (after haggling with them), and will only change the status to Paid in Full (refuses to remove it completely). I’m worried that 1) Paying it won’t help as it is still a bad account listing on my CR and 2) Having the status changed may restart the 7 year clock, and I’d rather have it go off my report in 2015 than be slightly better but not get removed until 2018.

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      Thanks for your help!



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