Applying for which Credit cards help build my score?

[RUG]

I have mad considerable amount of growth since joining this forum.

(6 months of progress)

TU: 406 to 596

Ex: 504 to 630

EQ: 508 to 584

I have completely gotten of debt.; however, I do have a student loan and a car note that is paid on time every month. My question is what credit cards do I apply for with o% or low APRs?  or what steps can I take to build my credit portfolio?  My goal is to purchase investment property and buy a car and a home.  I don't know anything about credit card and how they work.  Also,  I've read in the forum of many people receiving low amount on some CC.  Is that standard practice and is their a way to raise those amounts?  I know I have a low score and that maybe part of getting accepted by most credit card companies.  Should I wait longer to apply?

[Wolf3]

Yes, you need a few CC to build your credit.  Generally, you should not wait.

Tell us more.

Are you under 21?

Do you have negatives on  your report?

Why do you need low APR, are you planning to carry debt on them?

[jforsyth]

I wouldn't worry too much about APR, as you'll probably want to pay your balance in full each month when you're starting out with credit cards. You won't be paying any interest by doing so, so your rate is irrelevant. 

How old are you and what is your income? Your approval for most cards is determined by your FICO scores, but your credit limit is usually determined using your scores and your income. Generally speaking, yes, your first cards will have lower limits, but you can request limit increases over time (usually every 6 months of responsible payment history).

In term of deciding whether or not you want to wait to apply, that really depends on what type of card you want. If you're willing to get a secured card where you put in a deposit equal to your credit line (no risk to the creditor), then you'll probably be alright. However, I wouldn't go for an unsecured card until you get those scores up to at least 650 across the board. You won't want a subprime unsecured card with no benefits and a tiny limit (and a potential ridiculous fee). 

[RUG]

I'm 38 yrs of age.  I  don't plan to carry any debt.  I plan to use them only for emergency purposes only and pay it off next pay period.  My income is $35.25 an hr.  Is there any benefits to having an American Express card and paying the $450.00 memebership fee?

[Wolf3]

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@RUG wrote:

I'm 38 yrs of age.  I  don't plan to carry any debt.  I plan to use them only for emergency purposes only and pay it off next pay period.  My income is $35.25 an hr.  Is there any benefits to having an American Express card and paying the $450.00 memebership fee?

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Since your goal is to improve your credit history for car loans and mortgages, you need about 2 or 3 credit cards with positive history.    You should use them regularly and PIF every month.  I don't think high credit limits or 0% APR is that important from a score building point of view.

The American Express $450 fee may be worth it if you travel a great deal.    It is of no benefit in improving your score.

[jforsyth]

If you aren't planning on carrying any debt from month to month, your APR won't matter. You won't be paying the bank any interest charges.

I would advise you against applying for a card simply for emergency purposes. I don't know how many "emergencies" you're going to have, but if it's a once every couple months type of thing, then you probably have the wrong idea . You're going to have to use the card regularly to boost your scores and give your creditor a reason to keep your account open.

Don't  make it up to something it isn't, though. It's not difficult.  If you're just trying to steadily build credit, buy a tank of gas and/or some groceries and then pay off the balance well before the statement posts. Make sure you stay below your limit and pay in full BEFORE the due date, so that the balance posts as $0 to the CRAs. Do this for a couple months until you get more comfortable. Just doing that will boost your score over time.

The Amex Platinum Card has its benefits if you're traveling a lot, renting a lot of cards, booking a lot of hotels, and pretty well off. Personally, I think $450 for an AF is absolutely ridiculous. I'm against pretty much ANY annual fee on any card. Also, the Platinum Card is higher end. Not something anyone would be starting with.

If I were you, I would keep up your timely payments for your car and loan and try to get an introductory card that you make a few purchases on each month. Just pay in full, keep track of your purchases, and be responsible. It's nothing to live in fear of as long as you're responsible.

[smc733]

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@RUG wrote:

I'm 38 yrs of age.  I  don't plan to carry any debt.  I plan to use them only for emergency purposes only and pay it off next pay period.  My income is $35.25 an hr.  Is there any benefits to having an American Express card and paying the $450.00 memebership fee?

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All American Express cards have a calculated "break even" point where you must spend a certain amount in order for the benefits to outweigh the annual fee.  I can guarantee you (no offense), that $35.25/hr won't give you the spending power to hit the break even point on the Platinum.

Aside from that, you wouldn't get approved for Platinum with your scores.

You may have an outside chance for the Zync, though (I think you should get a secured card for 6 months before going unsecured), which at $25/yr, you certainly have the income to spend enough to make the benefits break even on the Annual Fee.

[Anonymous]

 if you really want to pay 0%

PAY in Full every month

Then No Interest Rate is applyed

It's also a myth to carry a balance to build credit