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New Member
Adam715
Posts: 8
Registered: ‎08-13-2010
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Building credit on 2 cards

[ Edited ]

I recently got approved for my 2nd credit card (AMEX Zync). What is the best way to build credit on my 1st card? I plan to use my Zync exclusively because I plan to get the Clear card after 6 months so I would like to prove my loyalty. My 1st card is a credit card and the Zync is obviously a charge card.

 

Whats the best way to build credit with a charge card? I know how it doesn't have a true CL and I hear it will read your highest monthly balance as the max. What happens if I charge $100-$200 on it every month? Is it going to think my CL is $200 and reading 100% utilization each time?

 

Should I just bill one thing to my first credit card and just pay it off right away? Does it matter the amount?

 

Thanks!

Epic Contributor
Creditaddict
Posts: 22,064
Registered: ‎10-23-2007
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Re: Building credit on 2 cards

that's what I would do, is just have something very small bill to first one, amount does not really matter but like you say I rather exclusively use the Zync. congrats on it

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Building credit on 2 cards

 


Adam715 wrote:

I recently got approved for my 2nd credit card (AMEX Zync). What is the best way to build credit on my 1st card? I plan to use my Zync exclusively because I plan to get the Clear card after 6 months so I would like to prove my loyalty. My 1st card is a credit card and the Zync is obviously a charge card.

 

Whats the best way to build credit with a charge card? I know how it doesn't have a true CL and I hear it will read your highest monthly balance as the max. What happens if I charge $100-$200 on it every month? Is it going to think my CL is $200 and reading 100% utilization each time?

 

Should I just bill one thing to my first credit card and just pay it off right away? Does it matter the amount?

 

Thanks!


 

Check this post for an explanation of how American Express charge cards are treated in scoring. Basically, it's a non-issue except with the older version of TU that we have (for now), but that is used by fewer and fewer lenders.

 

I know you want to impress AmEx, but what's wrong with your other card? You do want to keep both open, of course, unless the first one's a stinker and you get to replace it one day.

 

Who issues the first card?

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Member
Adam715
Posts: 8
Registered: ‎08-13-2010
0

Re: Building credit on 2 cards

[ Edited ]

The first card is issued with my bank. It is a great card with a low interest rate @ 12.9%. The drawback is the CL is only $500. I will likely never close that card. I have had it exclusively for 4 years. I would like to get an increase and use it along with the Clear card when I do get that. For these next 6 months I would like to use the Zync mostly so I can get the Clear card. Once I get the Clear card I plan to use the Clear and my bank's credit card the most. Should I wait to apply for an increase on my credit card until I get the Clear? AMEX said going for the Clear after 6 months with the Zync will only be a soft pull. The increase on my bank card will be a hard pull.

 

What I can't decide is if I should close the Zync upon received the Clear. I wouldn't mind keeping it along with the Clear IF it didn't have an annual fee. I don't know how much my credit score will be affected if I cancel the Zync upon getting the Clear though.

Regular Contributor
jforsyth
Posts: 164
Registered: ‎05-01-2010
0

Re: Building credit on 2 cards

[ Edited ]

I'm in a similar situation. I have a BofA MasterCard and I recently got Amex Zync. I'm just splitting up my spending down the middle. Both reward systems are about the same and neither have bonus categories. From the 1st to the 15th, I'm using my BofA card (closes on the 25th, payment on the 16th). From the 16th to the 31st, I'm using my Amex card (closes on the 7th, payment on the 1st). I'm not worrying about letting small balances post on the BofA card because I'm not applying for anything anytime soon. In other words, both cards are PIF before the closing date so $0 posts on both accounts.

 

 

Amex is pretty consistent in approving people for their revolving accounts after 6 good months on their charge cards. I wouldn't completely forsake your other card. They'll probably still approve you for Clear if you split your spending up, assuming there are no blemishes on your reports from now until application time.

 

Best of luck.

___________________________________

EQ FICO: 740 (09/04/11)
TU FAKO: 756 (06/07/12)
BankAmericard Cash Rewards | Amex Zync | Citi Forward
Epic Contributor
Creditaddict
Posts: 22,064
Registered: ‎10-23-2007
0

Re: Building credit on 2 cards

 


jforsyth wrote:

I'm in a similar situation. I have a BofA MasterCard and I recently got Amex Zync. I'm just splitting up my spending down the middle. Both reward systems are about the same and neither have bonus categories. From the 1st to the 15th, I'm using my BofA card (closes on the 25th, payment on the 16th). From the 16th to the 31st, I'm using my Amex card (closes on the 7th, payment on the 1st). I'm not worrying about letting small balances post on the BofA card because I'm not applying for anything anytime soon. In other words, both cards are PIF before the closing date so $0 posts on both accounts.

 

 

Amex is pretty consistent in approving people for their revolving accounts after 6 good months on their charge cards. I wouldn't completely forsake your other card. They'll probably still approve you for Clear if you split your spending up, assuming there are no blemishes on your reports from now until application time.

 

Best of luck.


I would make sure you at least let some sort of balance report to BofA or your credit report will look like your not using credit

 

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Regular Contributor
jforsyth
Posts: 164
Registered: ‎05-01-2010
0

Re: Building credit on 2 cards

[ Edited ]

 


Creditaddict wrote:

 


jforsyth wrote:

I'm in a similar situation. I have a BofA MasterCard and I recently got Amex Zync. I'm just splitting up my spending down the middle. Both reward systems are about the same and neither have bonus categories. From the 1st to the 15th, I'm using my BofA card (closes on the 25th, payment on the 16th). From the 16th to the 31st, I'm using my Amex card (closes on the 7th, payment on the 1st). I'm not worrying about letting small balances post on the BofA card because I'm not applying for anything anytime soon. In other words, both cards are PIF before the closing date so $0 posts on both accounts.

 

 

Amex is pretty consistent in approving people for their revolving accounts after 6 good months on their charge cards. I wouldn't completely forsake your other card. They'll probably still approve you for Clear if you split your spending up, assuming there are no blemishes on your reports from now until application time.

 

Best of luck.


I would make sure you at least let some sort of balance report to BofA or your credit report will look like your not using credit

 


 

 

Recent payments show on the reports. The balance will be $0 at the end of the month, but it will show that I made a payment for X amount that month, which would indicate that I used it. 

___________________________________

EQ FICO: 740 (09/04/11)
TU FAKO: 756 (06/07/12)
BankAmericard Cash Rewards | Amex Zync | Citi Forward

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