by footloose » Sun Jan 16, 2011 02:57:29 PM
Obtaining a credit card, whether it be secured or unsecured, will have no effect on your credit score. Once an application is made for a credit card, the credit grantor will pull a credit report on you. In a worst case scenario, that inquiry may drop your current credit score from 3 - 5 points. But your credit score will fully recover to its original level within 4 - 6 months. Remember, hard inquiries ( i.e. those from lenders and credit grantors ) only affect your credit score for the first 12 months. Any hard inquiries that appear after 12 months have no effect on your credit score. They only appear for the sole purpose of informing future readers of your credit report to whom you have applied for credit.
Any offer for a "pre-approved " credit card is only a marketing gimmick. Credit Card companies purchase mailing lists from various sources. If a credit card company wishes to do a mailing campaign that targets individuals whose income ranges from say, $40,000 to $75,000, or individuals whose credit scores range from say, 700 to 760, they will purchase these lists and send out advertisements to these individuals claiming that they have been "pre-approved" for a credit card. It means nothing. Once an application has been received by the credit card company, the individual is subject to the same checks as everyone else. I have seen and heard many times where an individual has received a "pre-approved" credit card offer only to be declined after the application has been submitted and reviewed.
If you currently have no credit cards, I strongly urge you to apply for an unsecured credit card. You have enough credit history to warrant the issuing of an unsecured credit card to you. Always put some charge on the card every month, even if it is only $10 for groceries and then pay it off by the due date. This way, you will be helping to build your credit score. Fair Isaac Corporation developer of the FICO score has stated many times that a good mix of credit ( i.e. instalment and revolving credit ) will help to build your credit score. In fact, they give it a weight of 10% in the overall determination of your credit score. If in the off-chance that you are declined for an unsecured credit card, definitely apply for a secured credit card. You are guaranteed a secured credit card providing you make the required deposit. Capital One offers a secured credit card for as little as a $75 deposit for a $300 limit.
Good Luck Anthony. I hope things go well for you. .