Earlier in the week I engaged in a string of comment replies with a reader who had paid some old collection accounts and is working on rebuilding his credit and improving his FICO score. We exchanged some comments about getting approved for a First Progress secured credit card as a tool to start rebuilding his credit. I asked him to submit his experiences (as he was so thorough in his comments) so we can start a new page.
You can read the original comment exchange about paid collections now on his credit reports. What follows are Jason’s own words about his experience researching the First Progress secured card, and what lead him to choose that card over others.
Here’s the whole story!
Declined for an Unsecured Credit Card
Michael, thanks for the suggestion! I did try Cap One and they declined and provided me with my credit score on the low end mentioned above (521). I went online and researched the Better Business Bureau and found a secured card by First Progress (Synovus Bank) Rated A+.by BBB. I carefully read all reviews, complaints and resolutions and got a good grasp of not only how they operate but how they respond to complaints.
I learned a lot about the ins and outs of working with them. A lot of the complaints [about the First Progress card] revolved around insufficient knowledge of methods of payment, times to process payment , length of time it takes to process an application, etc. I’ll leave it to the reader to research on their own via the BBB website.
I did go ahead and apply and fund the First Progress card. The $200 security deposit is quite a lot to me, but might be worth more than many times the investment over the long term. They do report to the three major credit bureaus unlike some outfits such as Fingerhut. They do caution that this also means NEGATIVE behavior is also reported.
I called customer service and even though I was not yet a customer, I was able to ask pointed, directed questions regarding the application, approval and monthly payment process. The Synovus rep was very helpful and courteous and confirmed what I had read in the BBB reviews as to their company practice. If I am not approved, they will return the $200 via ACH (mine was $200 but amounts can vary from under $100 to as much as $300); generally according to the rep, unless you have open fraud on your record or open bankruptcy most are approved. We will see.
The bottom line is you have to do research and I am planning for the day when I get better to be able to have a more positive credit rating so I can get back on track again. This entire experience has been a lesson and your pages have been invaluable.
Review of First Progress Secured Credit Card
I checked and read through most of the comments, complaints and resolutions about the First Progress secured card. An A+ by the BBB rates highly in my book and I don’t mean to seem like an advert! The First Progress website is available online and I am not here to advertise.
My initial read through of the home page was rather straightforward. It explained how the process works and that they do report to the three credit bureaus and who the underlying bank issuer is.
The “About the Program” section goes a bit deeper into the weeds and requires careful reading. This could stand to be cleaned up a little. How to apply explains the three classes of cards credit cards they offer with a lower annual fee and a higher APR to a higher annual fee and lower APR; it does state if approved for one, you are approved for any. As always, read the important disclosures.
The FAQ page is generally helpful, the one thing lacking is a well defined and easy to define customer service number as they gear heavily toward written or online customer service. Fortunately, the BBB web page customer service number is valid and is listed as (866) 706-5543.
Upon calling, I had to navigate the ever popular IVR and enter 0# repeatedly when it prompted for a card # to get routed to a rep. Once I reached a rep, I stated I was not yet a customer but had applied and both times I called, I was treated well, respectfully, courteously and the rep went in to check the status of the application. Using the questions and points garnered from the BBB complaints/resolutions I asked the same questions and received consistent answers.
One important fact (discovered from reading BBB issues) is they rely on mailed in payments or payments over the phone for which there is a $10 charge (for phone). They heavily promote bill pay transactions instituted from your bank (for which there is no charge and no hold period). There is a 10 day hold period on crediting mailed in payments which has resulted in some unexpected late charges, so folks want to MAKE SURE THEY ACCOUNT for that. ***you may want to verify this as I am digesting A LOT of information*** I am certain this probably was instituted because the company was burned by NSF check charge backs; so they wait for the check or payment to post and clear. In terms of complaints received by BBB regarding this they seem to willingly reverse late charges/negative credit impacts, despite these being spelled out in the terms/agreements somewhere.
Credit Rebuilding Takes Time
Another issue revolves around the application process time. This was brought up in the BBB complaint section. I think a lot of folks apply when they really need some money and don’t realize that the process takes time.
Two different reps indicated that the credit department mails in requests to the bureaus and waits for responses, and there is a big difference between “No credit history required” as stated on the page where the choice of cards is offered and the fact that while that is true, they most certainly do run your credit report, and if there is additional information required that may also add to the time. Federal laws come into play here which the banking industry is bound by. Obviously providing correct contact information is critical and since this updates credit bureau files with new tel# and addresses, some folks may be leery of this, fearing a barrage of new collection activity. Some get tired or impatient and wind up complaining to the BBB this is a “scam” but most if not all of the responses from this organization resulted in a cancellation of the application and an initiation of an electronic refund.
I would recommend you also thoroughly review the BBB complaint/resolution section for a complete grasp of the issues.
Nonetheless an A+ rating carries a lot of weight and a lot of issues are from folks not understanding the terms and conditions. They do seem to work favorably for the customer once aware of the situation.
Debt Collection and Financial Setbacks Happen
As for my story, its one of ignorance basically. I was in a good job and with a hostile takeover in 2002 was laid off. Going from $50,000 a year to unemployment resulted in a mess, culminating in Chapter 7 in 2005. I got a new much lower paying job and had services established prior to filing Chapter 7 and all debts were discharged.
Well, my credit is trashed I thought. I didn’t check it. My spouse and I had joint accounts for water, insurance, power, utilities, the works. In 2011, I took a new job in another state. I left three months earlier to get established, find a place to rent, my spouse was to finish packing, close out the accounts and join me in the new state. I was able to get services there immediately as nothing in the old state was in delinquency. I set up house, opened a new bank account there and my spouse would close the old one. What I did not know was:
- -My spouse over drafted the old state checking account at the credit union by $25.27 and did not tell me; although the CU rep called 5x and wrote 5X to my spouse. It would have been easy to fix in 2011. It went into charge off for $280 (rounded). Since I had opened a new account prior to this, there was no issue, but later, when relocating to IL in 2016 (after the marriage ended and after suffering a debilitating illness) my SSN was blocked due the charge off. I couldn’t open a bank account. I called the former state’s CU and spoke to the rep who had handled the case herself in 2011. Federal law, penalties and interest. No way to settle for less she said.
That’s when I pulled my credit report. Dish network was left unpaid, the old state power bill was left unpaid (it was a budget bill and totaled nearly $700) , the Banfield account was left unpaid, TWC Internet was left unpaid. These were all accounts where I was the primary SSN and account holder.
My Responsibility for Credit Clean Up
Fortunately, we still had a joint bank account and I made it clear, I would be paying these debts out of that account and would reimburse 40% to my former spouse because I had done the work in contacting and settling and was not told these accounts were left unpaid. I was responsible though as my SSN was listed as primary and I could have taken advantage of the free annual credit report in the intervening years.
Despite my current situation; it would have been overkill to file a new Chapter 7; opening another 10 year window, when the total debt owed was minor overall.
I researched your website among others, read form letters requiring “debt verification” on some sites and how debt validation works, but also learned it can sometimes do nothing but rearm the creditor for a lawsuit since they are now in possession of the facts needed to file one and indicate an active interest in credit repair making them less apt to negotiate.
I considered the reporting age off, and how these accounts would remain on file to almost the end of the decade and by that point, I would hopefully be better off, and will be needing a car, a place of my own and a job. Weighing those options, vs the debt amounts, for me the choice was clear. Clean up the negative. Otherwise if I was well within a year, I would likely find it difficult to find a job (if they pulled credit), find an apartment (if they pulled credit), find a car-even used- or even private party sale used and get a good insurance rate.
I also knew that simply cleaning up the negative credit was just a part of the problem. I had to establish a record of good credit. Despite a stellar payment history to all Missouri utilities and not one NSF in 4 years; these are not reported to the credit bureaus.
Even having settled, unsecured credit card companies wouldn’t touch me yet. I had:
- “Too soon since negative item payoff”
- “Serious delinquency record of collection action filed”
- “Time since derogatory record or collection is too short” – all variations on a theme.
I researched. I could do Fingerhut Webbank, but they don’t report positive info. I then looked into “secure credit cards”. That led to a wide variety of selections, some with very poor records; (BBB), some with misleading terms, some who did not report positive info.
What I needed to do was find a secured card where I could afford a lump sum security deposit (as painful as that was) to where I could charge a small amount, co-pays, meds, a cell bill, etc. I also learned not to charge and pay right away as that does not establish a payment history. Rather, charge and pay the minimum amount due+ for several months, then pay it off, charge anew and repeat. Over time, this builds a positive history and as the negative info recedes and falls off; your score will improve. Don’t blow this chance though, don’t be late, or don’t fail to pay. You’ll be back to negative credit which will eventually morph into no credit-which is just as bad–and this time the secure credit card companies might just not give you that next chance.
Thanks Jason! That is a great contribution to the site. Hopefully you will subscribe to the comments and offer more of your feedback, and let people know how you progress on your credit rebuilding journey. If anyone has questions or concerns about using the First Progress unsecured credit card, or other accounts designed to improve your credit after collections, and other set backs, post in the comments below for feedback.
Joshua Demaray says
I just wrote the longest Post in the world refuting everything that this novelist just wrote. I’m not going to sit down and do it again right now. I didn’t put in my name and email the first time when I went to post it it said I was required to put in my name and email so I tried to go back and everything was erased. Let it be known, I will.submit it again when I have the time. You bad credit having people out there though, don’t believe a word of this. Just because a company spells out in the fine print that you will be treated like crap, no phone number listed in that fine print and the fact that they literally will stop you from paying your bill on time, doesn’t mean it’s ok. Also the only reason he is getting professional phone service is he must have the ability to wait 45 minutes to hold on the phone. If you can get a different secured card jump on it. Like I said I will rewrite one going into detail what I’m talking about but for now just be aware of this company.
Jason J says
My dates are incorrect, everything should be backed up a date Feb 20->19, 18->17!
I did get the card in the post this week and called to activate it. I went online to the FP web site and created my online account. I also called the customer service line and here is a tip, don’t enter your account number or your chance of getting a rep is very low. I entered the number 0# and it finally defaulted to a CSR. I verified the balance which, for me was $39.00 for the annual fee. I asked some questions on bill pay; apparently the minimum monthly payment is $38.00 for my $200 secured card. Differing lines of credit or card types may vary. I was also told that their systems update at midnight Mon-Fri night (or Tuesday through Saturday morning at 12:01, technically). The representative indicated he only has access to balance information that I can see online.
I went to my bank website and set up online bill pay. The information for FP was not one of the already pre-set up payees like a major bankcard, but with my account number, the FP mail-in-a-payment address and CS number I was able to establish it.
I scheduled a transaction straightaway for $39.00 that night (Feb 18) but did not set it up yet as recurring. I wanted to be sure there were no outbound local bank glitches or inbound FP glitches. I called my bank’s online bill pay department, and asked about the “printed check” issue (see prior post). She indicated FP was an electronic payee and it would be electronically transmitted to them that night. (For my bank, “paper” checks are mailed for local utility companies and the like. My first payment was not due until 3/24, but I did not want to wait until the last minute to discover any banking hiccups.
The next day, I logged on to my local bank account and found the amount debited and the online bill pay status “delivered”. FP of course still had the prior day’s information and no payment data and the CSR at FP could not “see” it yet.
Today (Feb 20) I logged on to the FP web site and the payment is indeed shown and credited. I went back to my bank’s online bill pay site and set a recurring payment date 7 days prior to my due date to cover any long weekends, bank holidays and 24-48 hour processing times at FP. That way I can know I won’t be late. I’ll wait a few days and charge a small amount to the card such as a cell bill or doctor co-pay, enough so that the next auto pay pulls at least the minimum payment 3/17.
Michael, a question for you. I’ve been getting conflicting responses on this and maybe you’d be the have the most qualified to answer. Is it best to 1) Charge and carry a small balance each month for a few months (1-2) pay it down to zero and repeat or (2) Charge and pay in full each month? Which builds a better payment history and improves credit the most? Obviously charging up to nearly the max and making minimum payments for several months before paying it down might do more harm than good. I know debt to available credit factors in to credit history too.
Finally, as a further step, later on, should I apply for a self-funded type secure loan (or line of credit) if my bank offers it? Would this type of activity serve to boost my positives as well?
If it were me I would use the card at will, but pay it down to less than 10% utilization every month.
I would definitely look to add an additional revolving balance account that will show on my credit report. Starting with asking your bank what they have that can help you rebuild your credit is a good start. I do think Capital One will be a good alternative for you to apply to again,in say 6 months.
Let me know what you bank can offer after you talk to them.
Just a quick update. I called FP today and inquired about my account. Once again, I was treated courteously and respectfully. I’ve yet to receive my card and with today a bank holiday there will be no post delivery. I specifically wanted to know if they could see my account, what my due date would be and inquire about their preferred method of payment which is bill pay initiated through your own bank.
I was told my due date would be on the 24th. I was worried about this because the account is now active with the annual fee of $39 charged, and I’ve yet to receive the card there is no way to go online and make a payment. Even a mailed in payment tomorrow would not be credited in time based upon the “10 day hold” policy the company has when it comes to mailed in payments.
Not to worry the rep said, your first due date is March 24, “We’re not here to set you up for failure.”
I asked what specific information my local bank would need to setup online bill pay. She told me the account number (which I don’t have yet) and the payment address, which she provided me. The rest will depend upon local bank policy–if there were any questions, call back with the specifics, whatever the bank needed.
A word about online bill-pay setup and this came from the rep without prompting from me:
THE FIRST time you set it up and initiate it, she has seen some, in fact, many banks draft “laser checks” (her term, not mine) as a form of cross-checking account data/verification.
IF your bank does this and you’ll have to ask your bank if they do (I can’t today for the reason mentioned above) you wan’t to allow for the holding period the first time out. In other words, don’t wait until less than 10 days from the due date to set up/initiate the online bill pay method for the first time if your bank does this (laser check). I for example, would be creating a potential problem if I waited until March 17 to begin my first online bill-pay and the account is not credited until March 27.
What I’ll do is as soon as I get the card (should be this week or next at the latest) is I will begin the online bill pay process that same day for the amount of the $39.00 so that is all settled/set up long before the first due date of March 24.
She also went on to tell me to be sure to set up the online bill pay transaction date at least 48 hours or two business days before the actual payment due date to ensure no “snags” in the system from the banking end cause a late payment. She also said that provided we see you’ve really made the effort, they are more than willing to negate any late payments/credit dings due to errors of these sort, especially when you’re set up with their preferred method which is online bill pay. She said in general, they are quite forgiving with regards to customer misunderstandings at the start, no matter the method of payment the customer chooses.
Anyway..more FYI.
Just a quick update. I placed a call to FP this morning, Once again, I asked the Customer Service Rep the same questions I did in late January and I received the same consistent answers. I was also treated with respect and courtesy just as before.
I was transferred to the “credit approval department” as the CSR could no longer “see” my application. This department told me as of yesterday I was approved and the account is being created. The card will be mailed within the next two business days. When I receive the card and call to activate it then I can be told what my billing dates are (apparently FP has four usually)..
I had checked my Experian Credit Report last night there was a “hard pull” or “public pull” by “1STPROGRESS/1STEQTY/TSYS” with an address of PO Box 84010 Columbus GA and a phone number listed as (866) 706-5543 which matches with the FP customer service number and address listed on the BBB website.
I’ll post a further update when I get the card, let everyone know how that part of the process goes and how the billing payment processing system works. Of course I’ll keep you updated as my credit repair journey goes forward!
Thanks Michael! I hope my mistakes help others avoid making the same. I learned never take anything for granted –this applies single or not–and to take advantage of the free annual credit reports offered under U.S. law. Nothing else withstanding ID theft is an issue and we all need to monitor our credit as much as we monitor our blood pressure 🙂
I’ll post over time and let you know how my progress goes!