Credit Cards

[goodygoody]

Hi there,

I wrote a message a little while back asking for opinions on which card my husband and I would want to move up to from Capital One.  We've been happy with Cap 1, but our limits are really low ($500 each) and haven't been increased in at least a year (they started out at $350 when we had mediocre credit scores in the 500's due to lack of credit).  We both have scores a little over 700 now, so we figure it's time to get better cards with higher limits.  We aren't credit crazy or anything, but it drives me nuts having to make sure to keep the balances below $50 on both these cards all the time to make sure our usage is low. 

Here's some other relevant info:

Current cards: We both have the cap 1 cards with limits of $500 each.  We each have Walmart cards, limits of $400 each.  I have a Children's Place store card, limit of $250.  My husband has an auto loan with a balance around $10,000.  Everything paid on time - no lates on anything.  Only negs on our CR's are 1 library fine on DH's from 2007 and 1 paid medical collection for $155 on mine that I have been trying to have removed for the last 2 months (!) because it was paid by insurance and should never have been sent to collections at all.  Last inquiries on our CR's are from a year ago from the Walmart cards.  DH's score is currently 704 according to Walmart's TU real FICO.  Mine is 698.

We'd just like one decent card (for each of us - or one we can have jointly reported on our CR's) with a nice limit (maybe $1500/$2000?) and decent interest rate.  Importantly, we don't want to apply for something we are unlikely to be approved for, so hoping someone here has a good suggestion.  As far as rewards and stuff go, that's not hugely important to us, because we are mostly using the cards to build up our scores for a mortgage application next year (another reason we want to apply for new cards now - so the inquiries will be over 12 months old when we apply for a mortgage).  But most important is the higher limit and having a high chance of qualifying so we don't have to do multiple inquiries in order to get new cards.

Alternately, if the info I've provided here indicates that our scores aren't high enough yet for this, please let me know!!

Thanks so much for the input!

[goodygoody]

Oh, also, our current utilization on all cards is under 10%.

[Koop10010]

Have you considered an Amex charge card?  Their internal spending limits grow quickly with responsible usage and you don't have to worry about throwing off utilization.  You can then add a backdated Amex credit card later.  There is also always the local credit union option.  Frankly a 700 FICO can get you quite a few decent credit cards and people's credit needs vary, you'll just have to find one that fits your needs and spending patterns.

[goodygoody]

I guess I've thought of AMEX being difficult to get? 

I just read on another forum that a Chase Freedom card might be good and is appropriate for a 700 score.  Anyone? 

I know credit needs vary, but we're just looking for suggestions, and especially don't want to apply for something we won't be approved for.  Thank you!

[goodygoody]

Also, do they not report spending limits?  Is that why you don't have to worry about utilization with AMEX?

[LS2982]

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goodygoody wrote:

Also, do they not report spending limits?  Is that why you don't have to worry about utilization with AMEX?

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CRA's do not factor AMEX charge card utilization in their scoring (other than TU98 the one you get from here)

[Koop10010]

Amex credit cards are fairly difficult, but charge cards aren't, with a 700 you should qualify for one.  Since they don't report credit limits, they generally do not affect utilization.  The exception to that is that the TU98 FICO model, sold here, uses the high balance to factor utilization.  Newer TU FICOs and all the rest do not count charge cards in utilization.

Chase Freedom is a good card and is likely attainable with a 700 FICO.

[goodygoody]

Thank you!  I'm confused now - so are NO credit cards counted toward utilization?  I thought the whole point was that high utilization lowers your credit score??  My score went up 40 points the month after I paid all my cards down below 10% UTI, so I've been making a point of keeping all our cards at that level...

[Chris123nTx]

I think that you could get a chase freedom. Their initial credit lines can be as lo s 500, but they also can be five figures. They seem to have reasonable approval criteria with scores like yours seemingly able to qualify. I would not think either the collections or inquiries would be any kind of issue. They may or may not give you the credit line you want though, just because of the other cards limits that you have. Either way though, it is a great card, great rewards, and a bank that you can grow with. Just my opinion. I have a chase freedom signature so i may be biased. Oh and a library collection?? Man they ever come after me for a book i found a couple years back and i would be toast. My daughter had one out from when she was about five. She is almost 23 now.

[Creditaddict]

I would apply for American Express Zync, Probably each of you getting one also!

Then I would look at Discover or Citi... if those don't really interest then I would look at a Barclay (they do always pull TU, and have an amazing recon or increase limit within minutes of app)

I'm not a fan of Chase or BofA

and then you already are in with Walmart so you could do other GE cards but I would probably try to get other credit cards first like I listed above and get the Walmart limit up more and have higher limits reporting then go for other GE if you have a purpose and possibly end up with the Visa or whatever that store offers with GE above the store card.