100k Liquid Assets - No Credit History - First CC - What should I do?

[DMarc0]

Hey Everyone!

I could use some advice on what to do to build my credit using a Credit Card, here is a little about me.

Age: 22

Salary: 100K

Assests: 100k Liquid

History: None

Not a Student

Spending Habits: I live well below my means and don't spend much, I save a lot and don't buy stuff, eating out is pretty much the only thing I spend money on outside of expenses.

Objective: Maximize credit the best I can, I'd like to get the Chase Saffire Preffered Plus Card in the futyre. Also I'd like to have the best reward options avialable, I'd like to travel more, but more than anything I'd like the best bang for my buck. If possible I'd like to get the largest credit line I can.

BofA
Based on my research a secured credit card that graduates may be the best way to go, namely BofA Secured with adding the Cash Rewards, it seems the max they allow on this card currently is 4900.00 It's my understanding that once the card graduates the collateral is then returned, is this correct?

SDFCU

Another card that seems like it could be a good secodary choice would be SDFCU, the downside is that this card reports always as secured and I don't know longterm if I really want a secured card. Also I'm not sure if the CL can be increased outside of what is deposited.
Unsecured

I haven't really looked into unsecured cards at the lower end because I don't know how likely it is I'll be approved, and because the CL will be slim and it ay take longer to get to better CC with higher CL.

What Should I do?

If you have any advice I'd greatly apprecaite it, right now I'm leaning to maybe do both the BofA, and SDFCU (with small CL) or maybe just the BoFA.

If there are better strategies or my thinking is wrong I'd love to know, I'll look at all suggestions.

Thanks!

Note: I asked this question nearly 18 months ago and never did anything, it was stupid of me. Basically I set up my llife to have as limited a footprint as possible as I deal with security and just went overboard. Long story short I wasted a lot of time.

[creditconcept]

Unless the application says "What is the current balance of [these accounts]" They dont take liquid assets into consideration when determining credit limit, only income.

That being said:

• Determine your monthly expenses, and multiply by 10x ---> This should be your crdit limit
• Go to a local credit union or a flexable bank like BoA or TD Bank, and get a secured card with a crdit limit that you just figured out [deposit required]
• Use the card to pay montly expenses, and you will always stay below 10% util
• let it report for 6 months, and always pay in full if you can
• After that apply for other cards such as Chase Freedom, Discover IT, Amex BCE (Whichever suits your needs better)
• use these new cards and let them report and PIF in a similar manner
• After 12 months, ask to have your first card unsecured, and get your deposit back (If it is BoA ask to unsecure and convert it to the Cash 123 card)
• Responsible use build good history
• Repeat responsible use, PIF, Report indefinitley

Hope that helps!

[maksimfa]

Can anyone add you as an Authorized User?

Otherwise... do a secured card, if you have a bank account, say at Bank of America or Capital one. Maybe even a credit union.

Then just start building up.

Assets matter in the real world, however for credit, they mean relatively nothing unfortunately.  Just be happy in the fact that you are way ahead of the game than most.

An alternative, and if you want, shoot me a pm, you can do a securities backed loan, that would report, fo up to 50% of assets.  

[vladrad]

There is a special program from BofA in San Francisco Bay Area. 

If You are working for one of top companies (or even contracting for them) you are going to get credit card without history or secured card. 

My wife did same way. First limit was $6700 and she has credit card cash back.

[newhis]

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@DMarc0 wrote:

BofA
Based on my research a secured credit card that graduates may be the best way to go, namely BofA Secured with adding the Cash Rewards, it seems the max they allow on this card currently is 4900.00 It's my understanding that once the card graduates the collateral is then returned, is this correct?

---

You can put up to $10,000. I know online it say 4900. My DW started with $500, then added more to $1000 (at the bank, we didn't know it was a HP each increase), then $5000 (online) and they graduated the card early (9 months) and now she has a Visa Signature card. Another forum user has a Visa Signature secured card at 5K.

If I were you, I'll open a BoA checking or savings account, and apply for the secured card and put as much as you can. I tested the other path, instead of putting 5K into the card I asked for early graduation with my 1K card. Asked for a CLI and only got 2.1K my biggest reported limit at that point (Discover at 2.5K skipped a statement so BoA didn't know about that limit). My DW now has 5 cards and 3 are at 5K with only 12 month history.

You can use 1 card for 6 months then apply for Discover, Amex, Citi, I bet you get good limits. With Amex you can get 3X CLI pretty fast. Then next year apply for Chase. Chase loves to see some history before giving good limits and low APR, once you apply is almost impossible to lower your APR with Chase.

With BoA I was able to lower my APR from 20.x to 16.99% with a 2 min call. Also I was able to call and remove the AF a couple of months before the hit. I asked for the cash rewards card even before I got my regular card and the cash back I got was more than the AF. Bankamerideals is a good bonus for me.

With Amex you lock the MSD year and then apply next January for other card to get 1 year backdate (will show open 01/15 instead of 01/16), that will help a little with your account age and AAoA. It will help more down the road when you open another Amex in 5-10 years (if they don't change this, of course).

Some people recommend a secured loan. Don't know if you want to do that. With it at least your credit profile will say 1 cc and 1 loan.

[newhis]

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@creditconcept wrote:

Unless the application says "What is the current balance of [these accounts]" They dont take liquid assets into consideration when determining credit limit, only income.

That being said:

• Determine your monthly expenses, and multiply by 10x ---> This should be your crdit limit
• Go to a local credit union or a flexable bank like BoA or TD Bank, and get a secured card with a crdit limit that you just figured out [deposit required]
• Use the card to pay montly expenses, and you will always stay below 10% util
• let it report for 6 months, and always pay in full if you can
• After that apply for other cards such as Chase Freedom, Discover IT, Amex BCE (Whichever suits your needs better)
• use these new cards and let them report and PIF in a similar manner
• After 12 months, ask to have your first card unsecured, and get your deposit back (If it is BoA ask to unsecure and convert it to the Cash 123 card)
• Responsible use build good history
• Repeat responsible use, PIF, Report indefinitley

Hope that helps!

---

Good information.

I was able to get the Cash Rewards secured card after they sent the regular secured card. I did it by chat without problems (almost a year ago). I read other posts that people that can get the cash rewards also most recently and sometimes they say they can't add the rewards program to it, just try again the next day until you get it.

I got my Freedom at 8 months after BoA/Discover and both reporting the new limits 2.1/2.5 and got 3.5K, my biggest limit at that point but the APR is 22.99%. Only 6 weeks after I got the Freedom I got by mail a pre-qual for the Freedom at 18.99%. They said they can't lower the APR because that's what I got when I applied. That's why I recommend waiting 12 months for any Chase card.

[Anonymous]

I believe that my net assets were one thing that got my AmEx BCE application approved last year.

My income was (and still is) modest, but I had high five figure assets available and declared them on the application (most CC applications don't seem to ask). It was my first instantly-approved CC application.

[lord_kinbote]

You posted this same question about 8 months ago. You still have not applied for anything?

[Anonymous]

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@akula wrote:
You posted this same question about 8 months ago. You still have not applied for anything?

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Agreed.. I just saw that.  Let see what his response is.

http://ficoforums.myfico.com/t5/Credit-Cards/Need-advice-on-getting-a-credit-card-with-no-history/td...

[DMarc0]

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@DMarc0 wrote:

Note: I asked this question nearly 18 months ago and never did anything, it was stupid of me. Basically I set up my life to have as limited a footprint as possible as I deal with security and just went overboard. Long story short I wasted a lot of time.

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Akula - I never followed up after I asked on 6/30/13 more than a year and half ago, I just wanted to make sure nothing changed since then.

newhis - Thanks for the information, I'm not sure what loan you and maksimfa are referencing? Also I'm not aware what an "HP increase" is?

vladrad - Unfortunately I'm not in the bay area, I'm in the Midwest.

maksimfa - I'm not able to be an authorized user, I'll need to do this on my own. I'll send you a pm about the loan.

creditconcept - Thanks for such a great summary, very helpful.

Gaff/ Yes-Its-Me and everyone who commented thank you for your assistance really great feedback, I'll be opening up the BoA tomorrow afternoon. I think I'll just do the one card instead of going for SDFCU as well, unless you guys see any value in it.

I was thinking of doing 6k on the BoA when opened initially, although I may do the full 10k, I just don't like the idea of 10k not even bearing interest for 12 months.