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OP, QS1 is the QuickSilver One. It has the same 1.5% cash back as the QS, but carries a $39 annual fee and is targetted to people who have a middling credit rating. The uber discount also applies to the QS1. If you apply for this (and get it), you don't need to drop the deposit on the CapOne secured card and can just close that card right away. Or, you can put the deposit down and leave it open without using it for more than token spend for a year, in order to build your credit history.
I'm a little surprised you got the Freedom, but it goes to show that people here in general, and you in particular, are too driven by the negative effects of HPs. They go away after two years, and if you aren't willing to reach for cards that your profile may not entirely support, you may never get your foot in the door.
While others are cautioning OP to slow down, I think that this is the right time to go fast. He doesn't have anything to lose by picking up new cards. They will only add to his credit history and speed the initial process. So long as OP uses his cards responsibly, paying them off in full EVERY month and not spending outside his means, he won't be at risk of bankruptcy. However, I will caution OP that when you start getting rejections, it's time to stop apping. That will probably happen fairly soon, as your report doesn't have any data and thus doesn't really support you having lots of cards.
I am also shocked you were approved for the Freedom, albeit a small limit, but your in with Chase and that's something I haven't done yet. Congrats on the approvals and if I were you I'd cool it with the apps for 6 months to let those new accounts age and show some good history. With a good strategy you can have an Amex in 6-12 months.
@Anonymous wrote:
Well I think I'll apply for the Cap one QS1 just so I can use that card for Uber. Is having 3 HP inquiries bad on my report? After that card I'm done applying for awhile. Even a $300 limit I'm fine with that. Annual fee on that card does SUCK!
So, 3 HPs on your file will probably be a big dent, because you don't really have anything positive going on. However, you're also not applying for a car loan or mortgage any time soon, so it doesn't matter. As time goes by, the impact of the HPs goes down, until it disappears entirely after 1yr (it stays on your report for 2, but stops affecting your score after one). Meanwhile, your average age of accounts (AAoA) will go up, and you'll be showing responsible use, so your payment history will be established.
Another way of thinking of it is that the HP impact is a temporary necessity to gain the benefits of having the card.
The annual fee sucks, but you don't pay it for the first year (I think) and you can probably get it waived after that if you should good use. You'll need to spend $7800 per year to break even over having the Freedom. However, if you're using the card for Uber, you only need to spend ~$190 to break even, since Uber gets 20% off for using the QS1.
Awesome on the Freedom approval! I'm not sure why people were pushing secured cards so hard... they're a good option if you can't get or don't want an unsecured card, but I know plenty of people who got their first unsecured CC right out of the gate, usually by going with whoever they bank with.
Yeah the secured route is okay for people who have burned banks in bankruptcy or for people who cannot get approved for unsecured. But with the many options for entry level cards it seems unnecessary to go with the secured route. Cap 1 almost always approves people for the platinum and if you're a student getting a CC is even easier with the Journey or Discover student cards.
+1 to Tony and Petrovius.
I'd consider backing out of the secured card and NOT apply for any cards for a couple reasons:
Concentrate your spending and banking with Chace. That's what they want, and if you give it to them they will treat you very well (and that's coming from a credit union guy!).