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New Member
Posts: 5
Registered: ‎02-05-2013
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New to Credit Cards, just approved for Discover IT! Questions!

Hey guys, new to the myFICO forums and just had some questions for you more "experienced users" regarding my new credit situation. 

 

I just recently decided it was time to start building my credit as I am 22.  I decided to start looking in to the best possible cards to go with and decided on applying for a Discover IT card.  I was instantly approved for a $3,000 credit limit and 14 months no APR etc. Up till opening the card the only possible credit that I knew I had was just being issued student loans and being apart of a local credit union, so the credit limit I think surprised me and everyone else I know.

 

I have a couple questions;

- Initially everything I put on the card I was going to pay in full at the end of the month, I just dont do any type of debt I hate it its why I have paid everything in full. Since the card comes with the 14 months 0% interest though, should I put a major purchase on the card something around $500-$1200 and just let it sit there and revolve for 14 months? Would that utilization be better for my credit? If I did put a purchase on there would it be better to not pay on it at all?

- I have read that of your total credit limit you should only use about 30% of your credit, it appears better. Is this true?

- Also does checking your credit score in fact hit your credit? If so checking it once every 6-12months is ideal?

 

Thanks a ton for the future replies!

Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
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Re: New to Credit Cards, just approved for Discover IT! Questions!

So - checking your credit is a "soft pull" and cannot be seen by others and does not impact your credit score. However, allowing lenders to check your credit through a "hard pull" or inquiry does affect your credit.

Utilization only matters when you are trying to have your credit score look perfect for others to see. I never carry a balance, because that incurs interest, but I let a balance report every month unless I am applying for new credit. You should feel free to do whatever you want. But if you are going to apply for new credit, make sure the card is paid down BEFORE THE STATEMENT DATE.

In terms of making a purchase and letting it revolve, feel free to do so since its a 0% card. But only if you will be able to pay it off within the 14 months, and only if you aren't applying for new cards (as I mentioned above).

Congratulations on the new card! And welcome to the forums. Stick around to read and learn!

In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600

Last App: April 2, 2014
Frequent Contributor
Posts: 411
Registered: ‎05-01-2010
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Re: New to Credit Cards, just approved for Discover IT! Questions!


SnackTrader wrote:

In terms of making a purchase and letting it revolve, feel free to do so since its a 0% card. But only if you will be able to pay it off within the 14 months, and only if you aren't applying for new cards (as I mentioned above).


And only do it if you need to. Making a purchase and letting it sit under the 0% APR won't help your credit score (nor will it hurt it as long as your Util isnt too high). My recommendation -- use the card for whatever you normally would buy and PIF every month.

New Member
Posts: 5
Registered: ‎02-05-2013
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Re: New to Credit Cards, just approved for Discover IT! Questions!

Excellent, thanks for the feedback guys it is very much appreciated.  I will probably pay it in full, I just never see myself making purchases unless I actually have to money ready to pay it off. Thanks a ton!

Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
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Re: New to Credit Cards, just approved for Discover IT! Questions!

Great way to live, IMHO. 


In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600

Last App: April 2, 2014
Frequent Contributor
Posts: 371
Registered: ‎12-30-2012
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Re: New to Credit Cards, just approved for Discover IT! Questions!

Yeah like others said if you need the reports to look great at a certain time, dont have a balance that is huge. Having said that, like an idiot I ran my discover up to $2000 for a whole year and just payed minimum or more but kept the same balance pretty much and paid a bunch of interest. I did however get an auto CLI every six months even with the util. Im pretty sure thats why my chase is at such a low limit because I apped with high util. Im surprised I even got it. So I dont know if discover would have given me those raises without as much util, but if you want to have an interest free loan, be assured it shouldnt hurt your chances of getting a CLI.


CSP-$8700, Amex BCE-17.2k, Chase Freedom-$5700
Discover It-$6600, USAA MC-$5900 Ink Bold- $18k
EQ-742 EX-702 TU-737
Established Contributor
Posts: 638
Registered: ‎09-18-2011
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Re: New to Credit Cards, just approved for Discover IT! Questions!

I would recommend to use and pay in full every month as well. Dont be worried about the introductory 0% APR.

 

 


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

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Established Contributor
Posts: 638
Registered: ‎09-18-2011
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Re: New to Credit Cards, just approved for Discover IT! Questions!


E150GT wrote:

Yeah like others said if you need the reports to look great at a certain time, dont have a balance that is huge. Having said that, like an idiot I ran my discover up to $2000 for a whole year and just payed minimum or more but kept the same balance pretty much and paid a bunch of interest. I did however get an auto CLI every six months even with the util. Im pretty sure thats why my chase is at such a low limit because I apped with high util. Im surprised I even got it. So I dont know if discover would have given me those raises without as much util, but if you want to have an interest free loan, be assured it shouldnt hurt your chances of getting a CLI.


I am curious to know what your starting limit is with Discover and how much CLI did you get with such utilization?


Starting Score: EQ=665,TU=618 on Oct 9,2010
EQ=702,TU=725 on Apr 11, 2012 EQ=705 on Oct 31, 2012 Current Score: EQ=702, TU=714 on Dec 8, 2012
Goal Score: 750

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Frequent Contributor
Posts: 371
Registered: ‎12-30-2012
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I started with 3k and while the increases started small,...

[ Edited ]

I started with 3k and while the increases started small, they have been getting bigger and I have had the card almost 2 years. Right now I am at $6100 and I think I should be getting another CLI soon based on past performance. Of course now i have not used it in a month and its paid off. I am not going to use it for another couple of months while I pay off the USAA card and start with a fresh slate. The last increase was $1k just FYI


CSP-$8700, Amex BCE-17.2k, Chase Freedom-$5700
Discover It-$6600, USAA MC-$5900 Ink Bold- $18k
EQ-742 EX-702 TU-737
Epic Contributor
Posts: 24,407
Registered: ‎10-23-2007
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Re: New to Credit Cards, just approved for Discover IT! Questions!

Well yes we all know many ways to hopefully continue to drive your credit score up and be approved for anything you might want or need at a moments notice but really unless about to buy a car or a house I would not worry about the 0% and or your util. if you are using it each month or let something sit because it's 0%  Guess what you got approved for the Discover it card with $3k limit before you started worrying about half of these things above and the fact is including me and possibly some others on the board, You got approved and I didn't so don't all of a sudden get caught up in the constant worry of balance, when statement closes, and not paying before or paying after statement to mess up util. and carry or not carry just for use of the 0% or to make Discover want to give you more credit.... 

Take your $3k, Do as you have done since you turned 18 when it comes to your credit and worry a little more about the nitty gritty of util. and stuff later when you get ready to really make some life changing dealings.

 

SUPER CONGRATS!

Fico Scores: EQ- 670., TU 705 Sync, EX 728 SoFi(05/04/15)
I'm just trying to catch up to RON1
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
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