Points/Miles-earning cards with poor credit?
 

Early this year, two of my creditors made separate, but serious errors in reporting to the credit bureaus- funny how fast they showed up and how slow they are to correct, but don't get me started. The result is that my credit was severely compromised, and it's taking a really long time to repair the damage, even though it wasn't my mistake. My attorneys, armed with the proof that these are in fact errors, are working on the credit bureaus and the creditors to get the matter resolved, and they're hoping to have everything repaired by the end of the year.

If all goes well, the errors will be erased (one has been erased from two reports, but still appears with the third credit reporting agency) and my credit will be back to normal by the end of the year, and I can refinance and apply for the credit card of my choosing. But in the meantime, I'm afraid to apply for credit cards because I don't want to be turned down and damage the credit even further. And it really, really bothers me to know that every dollar I spend using my debit card could be earning points if I only had a points-earning card (especially since we're remodeling a kitchen and I could put the appliances on a card, darn it!).

So my questions are:
- Are there any cards that will still accept me now, if my credit is still compromised?
- Is there anthing I can do (e.g. write a letter or call the company to discuss even a lower credit line or any way to build up the credit with them)?

Even though it wasn't my error that caused the problem, it's been a source of some embarassment to me. I can't believe I'm even sharing this on FT, but at the same time, if someone can help me with this problem (with more than a "be patient" response, LOL), it will have been worth sharing.

TIA for any advice.

GG

I would think, at minimum, and at risk of not fully addressing your question, you could get a UA debit card at Chase or I am sure CO and NW have their own debit cards.

No idea otherwise but I thought I'd chime in here with this.

Good luck with the credit bureaus and especially with the remodeling.

The safest thing would be to get a mileage debit card - depending on which airline / alliance you want miles and which banks you have locally there are quite a few choices - the best being the Premium Check Cards for American (Citibank), Continental (Chase) or Northwest (US Bank) which give 1 mile for each dollar spent otherwise there are plenty of debit cards that give 1 mile per $2 spent.

The other option is the Korean Airlines Skymiles Secured Card but since your credit is only temporarily down I would stick to the Check Cards.

My Site has a big table with all the US issued Airline/Hotel Credit & Debit cards for easy comparison and quick links (see http://www.andrewcram.com/frequentflyer.html )

Andrew, thank you very much! I've just been approved for a Citibank checking account and will have to wait for the number to get the AAdvantage debit card, but that's exactly what I need to get me through until I get the credit issues cleared up. Thanks!!!

GG

Glad to help - make sure you get the $65 version with 1:1 miles :)

GG: -- A turndown 'in hand' might work to your advantage; you could reasonably argue that the continued foot dragging caused demonstrable damages... and a bit of 'infliction of emotional distress' too :D

Run it past your Legal Beagles -- looks like a 'lemons to lemonaide' opportunity ^
Good Luck.
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Most credit cards only check one credit bureau, usually their local bureau. Thus, most east coast companies check Equifax, most midwest-based cards go with Trans Union, and most west coast-based cards check Experian.

Call the credit card company you're most interested in and ask them which bureau they check. Then apply for a credit card that checks your best score. :D

Credit scores needed for approval
 

The last thing anyone wants on their credit report is a turn down. Does anyone have a feel for the min scores needed for a miles/point card? I am sure an Amex/SPG requires a higher score than a Continental Chase.

Thoughts?

You can always play it safe and get debit card (no credit inquiry).

Or the Korean Air Skypass Secured VISA (guaranteed approval as long as you aren't bankrupt).

Otherwise it all depends on the bank. Obviously the credit requirements for the classic cards are lower than platinum which is lower than signature etc etc. Can't comment on the minimum FICO for any particular card. I would hazard a guess that if you have to ask the question you shouldn't be applying for a card.

My comparison table list virtually all the cards available in the US so you can get an idea of the hierarchy of cards from any particular airline.

You can call the issuer of the card and request the specific criteria for approval. They will more than likely have to pass you around a bit to get you to the right department that has the information but that will save you 12 points on your FICO score by not having a regular inquiry done.

Bank of America
 

Has debit cards that get you US Airways, American West or Alaska Airline miles.

Does anyone know of a debit/check card that gets Delta miles or Hilton points?

Short answer is: NO

Medium answer - see my Credit Card comparison table for all currently available airline check cards in the US (find on page for 'check') - there are no Hotel check cards.

Hey! Andrew! THANK YOU!

I just started using my Citibank Aadvantage Debit Card and I'm finally resting easy again. Thank you so much for the advice. I just got a new copy of my credit report and one of the big errors was changed, but the change is wrong, too! First it said I was late on my student loan payment (I wasn't) and now it says I'm in deferral (I'm not- just made another payment two weeks ago). ARGH! Looks like this is something I'm going to have to deal with for awhile longer. :rolleyes: Sigh.

Thanks again for the advice! :)

GG

Glad to help.

Don't be suprised if you get more than a few welcome calls from Citibank asking how you found opening the account and trying to get you to apply for overdraft protection or a credit card (neither of which you want of course) - unfortunately they tend to be rather insistant Indian gentlemen who suggest that it can't hurt to apply (which of course it can as it is a credit inquiry) - just screen the calls and you won't have to worry.

Otherwise Citibank seems fine, the miles post every month without a problem, and online banking works fine etc.