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Established Contributor
lithium78
Posts: 929
Registered: ‎07-30-2011
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Re: My first card! Now what?

I would stay away from AMEX, at least for the time being.  They are very conservative and you don't want to run the risk of taking a hard pull without getting the card.  I second the notion of getting a Discover student card.  Discover is a fantastic card with excellent rewards and benefits.  I highly recommend building a relationship with them.


Starting Score: TU: 566
Current Score: TU: 741 (Discover FICO); EQ: 755 (MyFico) EX: 774 (FAKO)
Goal Score: 800

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Revelate
Posts: 8,956
Registered: ‎12-30-2011
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Re: My first card! Now what?

The advice of taking it slow and steady doesn't hold when one is establishing files to get out of thin file status.

 

Lovie: add another card or two immediately is my suggestion, then simply sit on your hands for a year with regards to credit applications.  It really doesn't matter what they are as long as they report, building payment history is key from where you're at now.  Putting off further applications just delays your building of positive tradelines for future FICO goodness.

 

Where folks tend to go wrong are either:

  • Not establishing enough accounts out the gate (2-3 is fine)
  • Establishing a decent set of accounts, and then continuing to apply for a bunch of other things which likewise delays recovery

While indeed credit building is a long-term process, there's no need to drag it out longer than is necessary.  

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Regular Contributor
loviedovie
Posts: 206
Registered: ‎12-20-2012
0

Re: My first card! Now what?


Revelate wrote:

The advice of taking it slow and steady doesn't hold when one is establishing files to get out of thin file status.

 

Lovie: add another card or two immediately is my suggestion, then simply sit on your hands for a year with regards to credit applications.  It really doesn't matter what they are as long as they report, building payment history is key from where you're at now.  Putting off further applications just delays your building of positive tradelines for future FICO goodness.

 

Where folks tend to go wrong are either:

  • Not establishing enough accounts out the gate (2-3 is fine)
  • Establishing a decent set of accounts, and then continuing to apply for a bunch of other things which likewise delays recovery

While indeed credit building is a long-term process, there's no need to drag it out longer than is necessary.  


Revelate,

 

thanks so much as ALWAYS for the wise advice. I forget who it was on here that asked why I was in a rush and I have to say- I'm not in any rush. I don't really care about credit cards and I definitely do not get the feeling of "the app itch" that everyone here seems to talk about (though more power to those that do- it sounds like kind of a rush!). 

 

Everyone has their different reasons and goals, but I am interested in building credit for 2 reasons only:

 

1. When my roommate and I applied to rent our new house I was told that because of my non-existent credit history I would need a CO-SIGNER to get on the lease, and was unable to get any utilities in my name (this is incredibly embarassing at age 33)

2. When I bought my car over the summer the guy at the dealership told me was getting "crushed" on interest, the worst rate he had seen anyone get all year. He said it would probably cost me nearly five thousand over the life of the loan vs. what I would pay with a normal interest rate. 

 

So after 6 weeks on myFico I have refinanced down to 3% on my car, gotten one card from a respectable bank and am happily on the way to becoming an actual grown-up. 

And again, I really, really really appreciate the advice Revelate (and others). It is a good feeling to know that I will be able to get simple things like ELECTRICITY when I need them from now on!! :smileyhappy:  This is all I really need from the credit world. 


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
Goal Score: 740
New Contributor
knightlynews
Posts: 81
Registered: ‎01-29-2013
0

Re: My first card! Now what?

Congrats! Just curious, how did you raise your score 100 pts in 6 weeks?  I'm new to this credit thing also, any tips?


Starting Score: 548
Current Score: EX686EQ682,TU???
Goal Score: 760


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Regular Contributor
loviedovie
Posts: 206
Registered: ‎12-20-2012
0

Re: My first card! Now what?


knightlynews wrote:

Congrats! Just curious, how did you raise your score 100 pts in 6 weeks?  I'm new to this credit thing also, any tips?


First, I got my only two delinquencies removed by Verizon and Macy's via goodwill requests over the phone (both on Christmas eve, not sure if the reps were just in the holiday spirit). Then I paid down the balances on my revolvers from 80 to 10% (the only reason I was carrying balances in the first place was I thought that would help me build credit- such a fool!). Then I traded in my car with the 10% loan for a better car, which resulted in a paid auto loan (not to mention a new loan with a third of the interest). So, those three things are what did it for me. But my main problem was not delinquencies, it is lack of history. So I think I can make a faster comeback than someone who has a BK or chargeoffs, etc. 


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
Goal Score: 740
Established Contributor
westo12
Posts: 579
Registered: ‎07-20-2008
0

Re: My first card! Now what?

 

I think at the 1-year mark, you should have a very good chance of approval for a prime lender, such as the Discover IT card or the Chase Freedom. 

 

 


Is Citi not considered a prime lender?

2014 Starting-618, current TU638 (DiscTU 8/20) / Ending Goal score: 720 / 26 Positive TLs / 1 Negative: Unpaid $312 med CA placed 2010 / reported Install Bal/Lim: 17885/28512 | reported Revolving Bal/Lim: 12475/21082=59%util.

**IN the garden until I get some auto CLI's on major accts**
Regular Contributor
loviedovie
Posts: 206
Registered: ‎12-20-2012
0

Re: My first card! Now what?

Bump.

 

(is that how I do that.. just also have the same question- I thought Citi was a prime lender...)


Starting Score: EXP 615 | TU 610 | EQ 635
Current Score: EXP 719 (lender pull 10/15) | TU 707 | EQ 700 (lender pull 10/25)
Goal Score: 740
Senior Contributor
john398
Posts: 3,517
Registered: ‎01-19-2009
0

Re: My first card! Now what?


loviedovie wrote:

Bump.

 

(is that how I do that.. just also have the same question- I thought Citi was a prime lender...)


I consider Citi a Prime lender and also could be harder to get than Freedom or Discover

Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
0

Re: My first card! Now what?

Yes, I was surprised at that comment, Citi is certainly in the same class as Chase and Amex

 

Re converting from student to normal: as Revelate said this usually doesn't really matter as the cards are the same benefits etc.  In this case, the non-student Citi Forward is no longer available, so probably not an option anyway!


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