Help me select where to apply

[Anonymous]

- 21 years old (with a degree)

- 3 years at job

- make $70k per year. (family business if you are wondering how a young cuss got so lucky.)

- no personal credit.

- 3 AU Tradelines ($10k BoA, $3.5k Chase, $1k CapOne; all 3+ yrs old, $0 bal, no lates, open)

- paid cash for college, car and own expenses 

- no derogs, no SL's, no auto loans (paid cash). 

- have checking & savings at BoA. 

- pulled myFICO here, 779 TU and 773 EQ.  CreditCheckTotal.com shows me with Experian 779 (fako).    

My parents will not co-sign on any loan or card, and I don't expect them to and wouldn't ask. 

I have $15k cash and am thinking I might go the secured card route somewhere that allows for a larger limit, like $5-10k.

I have a reliable car that has years left on it (own outright). 

So where should I start to get on the best path?  I don't really want to go the builder card route, it at all possible. 

I went to AMEX and did the preapproval offers thing.  They said "congratulations" and claimed to offer Gold, Green and one other card, so I applied.  Bad mistake.  Denied.  After reading here I see the error in my decision and wished I could take that application back.  Lesson learned.

Thank you in advance for any and all input.

(by the way, if you wonder on my screen name, that was my nickname growing up.  My older sister loved the Jungle Book and dubbed me "man cub" from day 1 - she was 2 years old.)

Message Edited by mancub on 07-03-2009 08:28 AM

[Anonymous]

Congrats on your responsible handling of finances.  I have a daughter in college who could learn from you.  The problem in this environment is that most banks don't want to be the first to "jump in the water".  My suggestion, like many others, is find a small, local credit union in your area.  You have a great story to tell, and at a CU you'll get someone to listen.  I think you'll qualify for an unsecured CC considering your respoonsible behavior and income.

Good luck.

[marty56]

I would also look at a CU.  I would avoid BofA,AE,BofA,BofA.  I would look at a store card (IR sucks but you will be PIF'ing unless 0%), Sams Card, or a Gas card.

[Anonymous]

STOP

Ok lets talk.

basically as long as you have employment at 1 year with the family business I do not see you with any problems getting your credit more established.... with these things to remember

- your young age and a thin (young not a lot of mix) file is a huge negative

-anyone can have a 700 plus score, in fact with a relatively thin file and no negatives most people have scores in that range

 The question then becomes are they "experienced" with handling money

Do not expect to start out with 25K cards right now.

And honestly you do not need to have secured card.

In most cases if you had a local bank or credit union and deposited $10,000 of your 15K in cash you would get approved for a high limit. (That is anectdotal advice as to be hones I do not know where you live and what your local banks are like.)

If you have any family members in the military or who were in the military and they were members of NFCU I would ask them to sponsor you into membership, you would be surprised the credit lines you would get.

I would recommend (and some people will find fault with this) but getting a store credit card (somehere you actually use) to round out you mix. Charge on it occasionally, pay it off in full.

What actually is you robjective I must ask?

Are you trying to aquire high CLs? Or a good overall mix of credit for FICO and card experience. Or are you trying to apply for the "best" rates and/or rewards programs?

Message Edited by usmc58555 on 07-03-2009 10:49 AM

[Anonymous]

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@Anonymous wrote:

STOP

Ok lets talk.

basically as long as you have employment at 1 year with the family business I do not see you with any problems getting your credit more established.... with these things to remember

- your young age and a thin (young not a lot of mix) file is a huge negative

-anyone can have a 700 plus score, in fact with a relatively thin file and no negatives most people have scores in that range

 The question then becomes are they "experienced" with handling money

Do not expect to start out with 25K cards right now.

And honestly you do not need to have secured card.

In most cases if you had a local bank or credit union and deposited $10,000 of your 15K in cash you would get approved for a high limit. (That is anectdotal advice as to be hones I do not know where you live and what your local banks are like.)

If you have any family members in the military or who were in the military and they were members of NFCU I would ask them to sponsor you into membership, you would be surprised the credit lines you would get.

I would recommend (and some people will find fault with this) but getting a store credit card (somehere you actually use) to round out you mix. Charge on it occasionally, pay it off in full.

What actually is you robjective I must ask?

Are you trying to aquire high CLs? Or a good overall mix of credit for FICO and card experience. Or are you trying to apply for the "best" rates and/or rewards programs?

---

Thanks for the replies.

USMC - to answer your questions.

1.  I want to establish and improve my credit for future options (such as when I do get married or buy a home).

2.  I want to use my own credit, rather than my parents (though I appreciate their generousity)

3.  I would like to have reasonably high limits, since I am accustomed to the use of the AU accounts I now have.  This was part of the reason I was considering the secured route, to use my savings as a springboard on credit. 

4.  I do have family that are or were in the military, and belong to NFCU.  Come to find out my parents belong as does my grandfather and uncle.

I guess I feel like I somewhat missed the bandwagon by 3 years.  Had I established personal credit, in addition to the AU accounts I had, I would have 3 years established accounts and history. 

I just always have avoided debt and I had adequate access to credit through the AU's so I never went looking.  Using cash just felt better. 

Now I want to think longer term on the practical and necessary uses of credit as well as such things as "rewards."  I have tons of opportunity to expense or use cards for monthly recurring, so I don't want to throw that away anymore (though I guess my parents have been getting rewards I think).

[Anonymous]

---

@Anonymous wrote:

USMC - to answer your questions.

1.  I want to establish and improve my credit for future options (such as when I do get married or buy a home).

OK

2.  I want to use my own credit, rather than my parents (though I appreciate their generousity)

You need to accept the fact that you do not have access to lines of credit they do then. You have to crawl before you walk.

3.  I would like to have reasonably high limits, since I am accustomed to the use of the AU accounts I now have.  This was part of the reason I was considering the secured route, to use my savings as a springboard on credit. 

See above. A secured line will only give you what amount you have in security. NFCU will probably approve you for 10K plus.

4.  I do have family that are or were in the military, and belong to NFCU.  Come to find out my parents belong as does my grandfather and uncle.

Have them sponsor you. And see if they were members of USAA and ask for sponsorship into that NFCU is very Hi8gh credit line friendly to people who qualify. USAA is very conservative but a good choice for your insurance needs.

I guess I feel like I somewhat missed the bandwagon by 3 years.  Had I established personal credit, in addition to the AU accounts I had, I would have 3 years established accounts and history. 

I just always have avoided debt and I had adequate access to credit through the AU's so I never went looking.  Using cash just felt better. 

Now I want to think longer term on the practical and necessary uses of credit as well as such things as "rewards."  I have tons of opportunity to expense or use cards for monthly recurring, so I don't want to throw that away anymore (though I guess my parents have been getting rewards I think).

---

Things to remember: you are 21 and need to build credit.

Your name does not end as a Hilton, Gates, or Buffet.

 People will have differing views on this, but mine is:

You may want a store card you use (ie Target) and you may want to use it occasionally and pay it off.

You may want to "Pay to Play" with NFCU and open an installment loan  say 4K, pay 3K of first month then pay it all off over next several this will get you, for the cost of the interest you pay, a Paid installment trade line.

You may want to no prepayment penalty  finance your next vehicle.

If you can get USAA sponsorship  try for credit  through them.