AEtoTravel,
Hello and welcome to the forums. I moved your post here because I thought it would get better results. Yes, you need revolving accounts and the gurus in here know all about that stuff.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Thanks for all the info, AEtoTravel, and welcome to the forums!
You actually have some pretty good stats there, but you are missing revolving activity so you need to start slow. What worked for me when I had no credit cards (but scores in the low 700s and an AAoA of 4 years) was to apply for 1 card and PIF and manage my utilization to optimal levels for 6 months. After that, I applied for Citi, Amex, and Chase and received instant approvals. Things are all pretty easy for me right now. To be honest, this looks like a strategy that would work well for you too.
So first thing is first - are you familiar with the concept of utilization? Managing this will be important once you get credit and start looking to apply for other cards.
Next - no matter what others say on here, my opinion would be to start slow. As I mentioned, find one card and use that for as long as possible before getting others. Showing responsible usage on that will set you up for instant approvals and higher limits later on. If you apply for 6 cards tomorrow, you might get approved, but all the limits might be $1,000 or less.
So here we go: A credit union would be a good start. Many credit unions outsource their card processing and applications to other vendors, for example my CU uses Elan. In that situation, approval is a little more difficult, but shouldn't rule anything out. All you need is a way to get started.
If you don't want to take that route, my first card was a Capital One. Having a Capital One card has many ups and downs - but I would say that it has been a positive experience for me. You should wait until your baddie falls off for this card because they tend to pull all 3 bureaus.
A buddy of mine recently was approved for a Discover It with a $5,500 limit for his first card. All he had reporting was college loans and a car. They gave him an auto CLI less than 90 days after his account was opened. So, it seems that Discover is willing to be a first credit card in a person's portfolio. That is another option for you.
Like I said, the first one will be the hardest. 6 months later they will be knocking down your door.
Good luck, and keep the questions coming!
You actually have some pretty good stats there, but you are missing revolving activity so you need to start slow. What worked for me when I had no credit cards (but scores in the low 700s and an AAoA of 4 years) was to apply for 1 card and PIF and manage my utilization to optimal levels for 6 months. After that, I applied for Citi, Amex, and Chase and received instant approvals. Things are all pretty easy for me right now. To be honest, this looks like a strategy that would work well for you too.
So first thing is first - are you familiar with the concept of utilization? Managing this will be important once you get credit and start looking to apply for other cards.
Next - no matter what others say on here, my opinion would be to start slow. As I mentioned, find one card and use that for as long as possible before getting others. Showing responsible usage on that will set you up for instant approvals and higher limits later on. If you apply for 6 cards tomorrow, you might get approved, but all the limits might be $1,000 or less.
So here we go: A credit union would be a good start. Many credit unions outsource their card processing and applications to other vendors, for example my CU uses Elan. In that situation, approval is a little more difficult, but shouldn't rule anything out. All you need is a way to get started.
If you don't want to take that route, my first card was a Capital One. Having a Capital One card has many ups and downs - but I would say that it has been a positive experience for me. You should wait until your baddie falls off for this card because they tend to pull all 3 bureaus.
A buddy of mine recently was approved for a Discover It with a $5,500 limit for his first card. All he had reporting was college loans and a car. They gave him an auto CLI less than 90 days after his account was opened. So, it seems that Discover is willing to be a first credit card in a person's portfolio. That is another option for you.
Like I said, the first one will be the hardest. 6 months later they will be knocking down your door.
Good luck, and keep the questions coming!
@AEtoTravel wrote:Thank you Shogun, and thank you SnackTrader for the advice.
I'm familiar with utilization from reading on here and creditboards, but Im not clear on what a good percentage would be, I read differing views on this.
I am with you on this whole slower start strategy. I am up for whatever betters my profile. I don't feel any need to go on an app spree really, being stuck with bad credit for so long has changed me to be more long-term minded.
I would like to understand more about the difference between PIF every month vs. making regular payments for 6 months and what effects those have.
Also, like I was saying, I was planning to get financed for a used car (one that I can pay off in 6 months). Normally I wouldn't do this until later, but my current car which has been paid off for years is starting to have quite a bit of problems and it's getting very difficult to justify holding onto it, so I don't know if this will help or harm me. I suppose I can try to put it off another 6 months, but it's going to be tough.
A Credit Union is for sure the best way here.
They will usually pre aprove your for a Credit Card, Personal loan and a Car loan all at the same time. and you pick which one you want.
Some CU would however HP for membership and HP for any credit app.
Then Discover has been pretty good for people with no credit lately.
Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Utilization isn't an exact science, and it is my theory that a perfect utilization differs for everyone. Anything above zero and below ten percent should get you an approval , assuming everything else checks out on your credit profile. I tend to stay under 5% when I apply for something new. But just stay away from reporting all $0.
PIF is all you ever need to do. That would be considered optimal financially (avoid interest charges), but as long as you pay the minimum payment each month that "OK" will continue to show up on your credit reports. That's really what matters as you start out.
I don't think you need to wait on the car, but the way you get financed will make a difference. Typically, when you get financed at a dealer, they will run your credit through every lender they do business with. That could put upwards of 10-20 hard pulls on your account - and who knows if they will even offer you the best interest rate. Their incentive is to offer you a deal that pays them good money. A different way to do this is to get pre-approved at a credit union or bank that offers low interest rates, and go to the dealership prepared to write a check to purchase the car. The dealer won't like this much, so it takes some finesse to continue to work the car to the lowest possible price when financing isn't going through the dealer. But this strategy will reduce the INQs on your reports, and probably even get you a better rate.
So decide if you want to do car or credit card first, or even where you want to do these. Some CUs will use the same HP if you get financing for both the card and the car there, but that is by no means guaranteed. Just make sure wherever you are applying isn't pulling EX until that baddie falls off.
PIF is all you ever need to do. That would be considered optimal financially (avoid interest charges), but as long as you pay the minimum payment each month that "OK" will continue to show up on your credit reports. That's really what matters as you start out.
I don't think you need to wait on the car, but the way you get financed will make a difference. Typically, when you get financed at a dealer, they will run your credit through every lender they do business with. That could put upwards of 10-20 hard pulls on your account - and who knows if they will even offer you the best interest rate. Their incentive is to offer you a deal that pays them good money. A different way to do this is to get pre-approved at a credit union or bank that offers low interest rates, and go to the dealership prepared to write a check to purchase the car. The dealer won't like this much, so it takes some finesse to continue to work the car to the lowest possible price when financing isn't going through the dealer. But this strategy will reduce the INQs on your reports, and probably even get you a better rate.
So decide if you want to do car or credit card first, or even where you want to do these. Some CUs will use the same HP if you get financing for both the card and the car there, but that is by no means guaranteed. Just make sure wherever you are applying isn't pulling EX until that baddie falls off.
Wow, that's impressive! I hope my next year is half as fruitful.
BTW does anyone know any tricks to finding out which CRA a particular credit union pulls? One of the local CU that I might go with doesn't show up in the creditboards credit pulls database, and some googling didn't turn up any clues. I suppose I can wait a month until my last negative falls off of Experian if there's no other way to find out. Can I just call and ask? 
@AEtoTravel wrote:Wow, that's impressive! I hope my next year is half as fruitful.
BTW does anyone know any tricks to finding out which CRA a particular credit union pulls? One of the local CU that I might go with doesn't show up in the creditboards credit pulls database, and some googling didn't turn up any clues. I suppose I can wait a month until my last negative falls off of Experian if there's no other way to find out. Can I just call and ask?
You can certainly ask, but be aware that many of the staff might not know (more of an underwriter type of thing). Also, you should never rely on them only pulling one (although for CUs that might be more likely) as in borderline cases they may pull two or three.