My first time applying for cc results

[Anonymous]

I recently applied for a handful of credit cards in the last month. Never have had a credit card before, and having very poor credit (FICO scores ranging from 549-563 and 5 accounts in collection). Here are my results:

Not approved: Orchard Bank, Walmart (GEMB), Fred Meyer Mastercard, Capital 1, Old Navy (GEMB)

Approved: State Farm Bank Visa ($500 CL) Amazon Store Card (GEMB) ($300 CL)

I found it odd that GEMB denied me my first two applications but approved me for my third. Anyways, I am very excited to have been approved for these cards and to start out buiolding my new, good credit life. 

[Anonymous]

Welcome to the forum sharktooth ~

Congratulations on your new ccs.  Now, use your new ccs and PIF (if you can) before the due date (if you want to let them report your balance) or before the closing date (if you want them to report your balance as zero).  You can do it! 

[tinuviel]

Congrats to you! bunnyrabbit just gave you some very good advice. In addition, I would recommend that you make sure to stay well below your CLs so that you don't risk going over. Try to pretend that you only have half of the available CL that you actually have. The collections will eventually age off and will no longer factor into your credit score. PIF, nevery be late, and stay within your CL and you'll develop a strong history. Good luck!

[tray]

Congratulations on your new cards, you just started on the road to credit rebuilding just pay your bills on time and be patient and before you know it credit scores will climb up and any cards you desire will come your way, just look at my siggy I can remember when my cs was in the 500's had no cc's neither started out with my first card a secured BOA card and then my baddies started falling off my credit reports, scores started to get higher and now I have plenty of Prime cards and you can do the same too.  Good Luck

[Anonymous]

tinuviel, thanks for adding the info. 

sharktooth, yes it is important to keep your balance/util low as much as possible.  Try to keep it lower than 10% of CL.   Util wise, if I were you, I will PIF on the one cc before its closing date and does not use until after the new billing cycle start.  And keep the balance below 10% of CL on other cc by its closing date (if you've charged more, pay it down to below 10% of CL), and then PIF the balance before the due date.

Example:

CL  $500    Balance  $50

CL  $300    Balance   $0

Util will be 6.25%

CL  $500   Balance    $0

CL  $300   Balance  $30

Util will be 3.75%

[waqaszm1]

do you know which report was pulled by State Farm?

are you already a State Farm customer or do you have any of their products?

which State Farm card is it?

[Anonymous]

Thanks guys for the welcome! Ive been reading this board for a week or so now and have learned alot. I plan to keep my utilization on the lower end. Its rare I buy anything on Amazon so that card I plan to keep below 10% uti. My state Farm card I planned to just use it to pay my insurance, that would give it 21% util. Do you guys think this is too much? I figure if I use it just for that its a bill I pay already every month so I can just pay off the card every month. But if we are talking keeping it at 10% maybe I will just pay another bill, electric perhaps? 

waqszm1 - I believe they pulled Transunion, only because I have checked my EQ and EP reports and there were no H.I.'s from State Farm. I dont know my TU score though, so I couldnt tell you excatly what it took to get it, but I doubt its any better than my other two scores. Also, I got the Crystal Rewards Card. It does come with an Annual Fee ($30) but I don't think thats too bad a price to be approved for my first card with my credit.  

[Anonymous]

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@Anonymous wrote:

Thanks guys for the welcome! Ive been reading this board for a week or so now and have learned alot. I plan to keep my utilization on the lower end. Its rare I buy anything on Amazon so that card I plan to keep below 10% uti. My state Farm card I planned to just use it to pay my insurance, that would give it 21% util. Do you guys think this is too much? I figure if I use it just for that its a bill I pay already every month so I can just pay off the card every month. But if we are talking keeping it at 10% maybe I will just pay another bill, electric perhaps?  

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That's good.

It's OK to charge up to the limit ... just make sure to PIF the balance before its closing date and put it away until new billing cycle is starts.

[JayRizzo]

Generally, I discourage anyone from charging up to the limit -- same deal with BTs.  You'll always want to give yourself enough cushion space just in case some crazy out-of-left-field stuff happens.  I've seen posts where members didn't plan for their AF to hit or a return didn't credit in time, unexpected fees or interest... basically, any other hokey-dokey event that will push their account over the edge.  For those I've been mentoring for building and/or rebuilding, I have them assuming half of their limit is their NEW limit.  If by chance they need to exceed that, then their absolute cap is $100 less than their true credit limit.  By that time, they have to put a dollar in the "I went over my halfway mark" jar of shame.