08-15-2012 11:33 PM
Hello, MyFico this is my first post ever on this site. However, I have been stalking the forums for the past few weeks trying to soak up as much info as I could about building credit the right way. I finally succeeded today in getting approved for my first credit card ever, a Capital One Platinum card ($500 CL), which I applied for today at a branch. I have no credit history so I guess it's a suitable CL for now. I'm trying to build some good credit history, and I've heard that I'm not supposed to spend more than 30% of max limit, which would be $150. I've learned that it's better to pay in full each month than to carry a balance. This card in particular has no annual fee for the first year, but after that it would require me to pay an annual fee of 19$ a year. I was hoping to get a card with no annual fee, but it seems that was unavoidable.
Before I had applied for the Cap One card, I applied to several other credit cards. I have a checking account with TDBank for over two years, so I figured I could apply for them. I got declined. I had applied for a Discover student card twice and I got declined both times. And I also, I applied for Citibank Forward Student card, however, they're having trouble with my establishing my identity, so I'm waiting currently 7-10 days for a letter from them to send them a copy of my Social Security card. I did all of this in a month. After reading some more info on this forums, it seems the general consensus would have been to wait a while before applying for anymore credit.
1. However, in my case I have no credit history, so my question is will it negatively affect me that I applied for so many cards in such a short time span with "no credit history"?
2. This card also has an annual fee of 19$ a year after my first year, I've heard that Cap One isn't particularly fond of giving CLIs to customers so I dont plan on expecting to grow with them, so I'm wondering would it be wise to close this card after a certain duration? (Since I plan on advancing to other credit cards that has no annual fees anyway).
3. After using my Cap One Platinum Card wisely for up to 6 months to a 1 year, which credit card would be best to apply for after that? (AMEX Zync, Chase Freedom, Discover More Student, Citibank Student Cards?)
4. Is it better to have a balance remaining on the card that is either at 1%- 9% utilization, or have no balance at all (meaning I pay in full before the statement date?)
5. Around what time would I be able to see this credit card start reporting to the bureaus or when would I be able to see a "FICO" score and things like that? Keep in mind I have absolutely no credit history.
Thanks for the help guys, I'm always willing to take advice and learn more!
08-16-2012 04:32 AM
Congratulations on your new yourd Cap 1 was my first CC to. They won't grow with you but they will give you some history to start with, and it seems you may be approved for Citi Forward upon ID Verification I would see if i can get that 1 nice card to have. It will not affect you to app spree with no credit history your inq's fall off in a year and that's good cause you app'd around same time for all. If you can get a secured card where you can put 1k or more on that would be nice. 1 store card as well, Fico likes the variety of diff cards fore scoring purposes. I would keep the Cap 1 after the first year for the AAOA having a card with a long history helps alot. It takes 6 months for your credit to get updated with the Berue's so when that time comes I would go for Zinc it's Amex's lowest Requirment card. However if you can get store card and secured card now then i would hold off for a year on apping completely. The uti you gotta play around with when you get
more cards have one at 1 to 9 percent uti and all others at 0. I've heard some get best results at 1 to 2 percent uti and others at 7 so ymmv. Good luck
08-16-2012 05:45 AM
08-16-2012 05:47 AM - edited 08-16-2012 05:48 AM
You should try to apply for another entry-level credit card that grows faster. That way, you will have a higher combined credit limit. Plus, if you do get a better credit card with better benefits and perhaps no AF, then you can immediately cancel the Cap 1 card.
08-16-2012 10:02 AM
Thanks guys. I appreciate the advice, and yeah hopefully I get approved for the citibank card. I'll let you guys know for sure!
08-16-2012 11:51 AM
Just do not get sucked in and become overly zealous with apps.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.