Just approved for an Amex Everyday, my first credit card in about 10 years, now what??

[Zaphod]

Ok, I just got my first card. Its been a while since Ive had one and quite frankly I've been paranoid even applying since they want to look at tax returns. Anyway, Hurricane Sandy arrived in all her glory and I hit boatloads of overtime. I applied about two weeks ago to some Amex literature that came in the mail and went for it. They looked at the last quarter of of 2012 and my 2013 returns. Slam dunk!

Now I know you take a few point hit when you apply for cards. I also know Amex isnt accepted everywhere. Should I go for another card now while everything looks good. I'm looking to bump up my score a bit. 

Although I'm good with computers I have no idea what the proper search terms would be for anything in the credit card industry.

What are the games to get my limit raised?

if I get a $1,000 limit -> I want to keep my spending to $300 and pay it off every month (Yes/No)

Thank-you in advance!

[longtimelurker]

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@Zaphod wrote:

Ok, I just got my first card. Its been a while since Ive had one and quite frankly I've been paranoid even applying since they want to look at tax returns. Anyway, Hurricane Sandy arrived in all her glory and I hit boatloads of overtime. I applied about two weeks ago to some Amex literature that came in the mail and went for it. They looked at the last quarter of of 2012 and my 2013 returns. Slam dunk!

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Just confused about this!  So did they send you a 4506-T so they can get the returns from the IRS?  I thought 2013 returns aren't available yet.  And how did they look at last quarter of 2012, pay stubs or something?

[Zaphod]

A 4506-T appeared with the application but I did everything online. I'll check the email in case I misread something.

[takeshi74]

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@Zaphod wrote:

Now I know you take a few point hit when you apply for cards. I also know Amex isnt accepted everywhere. Should I go for another card now while everything looks good.

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Your call to make based on your needs/wants/goals/etc.  Do you need a non-AmEx card?  Rewards on spend that aren't covered by your Everyday?

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@Zaphod wrote:

Although I'm good with computers I have no idea what the proper search terms would be for anything in the credit card industry.

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What are you looking for?  Have you looked through the stickies?

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@Zaphod wrote:

What are the games to get my limit raised?

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Read the 3x CLI thread for AmEx.  There really are no "games" -- it's all about your credit, income and the creditor's criteria.

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@Zaphod wrote:

if I get a $1,000 limit -> I want to keep my spending to $300 and pay it off every month (Yes/No)

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There really isn't a direct causal relationship like you're assuming.  Your utilization and usage play roles but they're not the only factors at play so limiting your spend won't necessarily lead to a CLI.  The usual advice for utilization applies regardless of creditor.  Keep it under 30%.  See if you can optimize by allowing only one balance to report at 10% when you apply for credit.

You don't have to limit spend to manage reported utilization.  You can also pay down balances just before they report.

[Zaphod]

Takeshi74, Thank-you for the post. I guess I want a credit history. At some point I will need to get a mortgage. So any payment history has to be better then no payment hisyory. Rewards realistically, I have no idea what to do with them. Like a dog who chases cars. Maybe at some point I'll find them interesting. I'm in contruction so I am in and out of work often. And I don't like bills coming in when I'm unemployed. I don't even want this card but I see the necessary evil of it. Like my brother and I have a mortgage. I got in on it through a "no income verification" so I have gotten squat for the last 17 years on it. A 17 year picture perfect payment history would be nice to have. My brother got all the great credit history out of it. So for me, the industry is flawed and it's unfortunately a "game". Basically if I need something I save up and buy it. Which is clearly wrong in creditors eyes.

I guess I need to start putting stuff on the card. Like diesel and food. Maybe reocurring bills like Pandora. I have a pathetically cheap mortgage payment. My half is about $575 a month. I'd kill to put that on my card and be done with it. 

"There really isn't a direct causal relationship like you're assuming.  Your utilization and usage play roles but they're not the only factors at play so limiting your spend won't necessarily lead to a CLI.  The usual advice for utilization applies regardless of creditor.  Keep it under 30%.  See if you can optimize by allowing only one balance to report at 10% when you apply for credit".

When you say "One Balance" do you mean if I had 2 credit cards let one carry a 10% balance. Or if I have 1 card keep a 10% balance running when I try for another credit card?

I'm sorry I've never been so "green" on a subject.

I'll have to go through the stickies, please don't think im being snippy but the whole industry gets me flustered.

[GooseGirl]

Since you were approved for an Amex then you definitely want to read the Amex 3X CLI sticky. If your main goal is to build a solid credit profile/credit score then the experts on these boards recommend 3 revolving bank cards for the best FICO impact.

With regards to the balance that reports each month on your card, the common advice is utilization reporting at 1 - 9% is best and it should not exceed 30%. I manage that by making a payment on my cards multiple times a month. I was incredibly nervous about getting my first credit card when i got to that point in my rebuilding. For me, I treat my CC exactly like i did my debit card. My spending habits haven't changed at all, i just use a different card. I started with a single credit card to become comfortable with using it and developing good habits. Only after I accomplished that did I add additional cards. It means my credit rebuilding process is slower but I am much more confident in the skills I have developed than i would have been if I rushed.

There is a LOT of information in the stickies that you can always use for a little light bedtime reading