Is it a good idea to apply for Credit card from my mortgage bank or auto bank ,or it is better to go to a different bank ?

Asked over 1 year ago - Los Angeles, CA

Does it really matter? I have a Mortgage for a few years now and a new car and I pay my bills on time but my credit wasn't that good a while ago,so i am trying to rebuild it , I wanna apply for a credit card so which is a better to do it through my Mortgage or car bank or go to a different one ?

Attorney answers (3)

  1. Michael Raymond Daymude

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Answered . I don't think there is any right answer. If you're credit challenged I would apply for a secured card first. Some banks are tougher than others. If you do a search, you should be able to discover which cards are easier to qualify for than others.

    One caution: Unless you are certain you will make all your payments on time, etc., some banks will treat default on one obligation as a default on all others. In that case, it is certainly better not to have your credit cards associated with other loans. Additionally, because of the bank’s right of set-off, credit challenged holders should not hold credit cards issued by the bank where they have deposits.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  2. Kathryn Ursula Tokarska

    Contributor Level 16

    2

    Lawyers agree

    Answered . I don't think it matters where the card is from as far as rebuilding your credit. What matters is what kind of credit terms are being offered. Some links you might find useful: http://www.consumer.ftc.gov/articles/0332-credi...
    http://www.ftc.gov/bcp/edu/microsites/moneymatt...
    The one thing that concerns is that Credit Unions stick in these ugly cross-collaterization clauses so I would generally stay away from them if you have a car loan or mortgage with them, but of course this is only a problem if you overextend yourself.

    I am not YOUR lawyer. Don't rely on answers to questions as legal advice. For legal advice contact a Bankruptcy... more
  3. Robert E. Vosburg

    Contributor Level 10

    1

    Lawyer agrees

    Answered . Go with the financial institution that offers you the lowest interest rate.

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