New to credit, should I apply for CapitalOne? And other questions...

[Gotham10012]

Hi everyone, 

I have some questions regarding my new credit life and I hope you will give me your ideas and opinions about choices I should make. 

I got approved last week for Discover It with no credit history (3 days old SSN) I originally applied because I was interested on getting offered a secured version of their card since I was new to credit.  I eventually got approved the following day (after faxing a copy of my Green Card, social security card and utility bill) with $1,000 CL - 3.99% intro APR then 22.9%. 

I would like to get another credit card (Visa or MasterCard this time) before I stop applying for credit cards.   

Since I was a little too excited about my Discover It approval, I applied today at the register for a Macy’s store credit card (NOT the Amex version).  Friends and forums kept saying that I should start with it so I really thought I would be ok even with $100 credit limit but I got denied faster than a knife fight in a phone booth! 

As of today, I have 2 goal cards: Amex PRG (really like the idea to not carry a balance) and Citi AAdvantage World MC (I always fly AA or BA).

Now that you have a full picture of my situation here is my questions. 

I thought it will be easier if I made a list so everyone can choose to answer one or all of them. 

1. Should I apply for a CapitalOne credit card before they see the Macy’s HP?

If yes, can I directly try the QuickSilverOne Rewards (the MasterCard version, 22.9% APR and $39AF, not the Visa Signature version) or I need to consider the Classic Platinum or Platinum directly.

They all are listed as “Average Credit”.

I remember my friend applying for the Classic Platinum with a 3 weeks old SSN last year and she got approved with $300 CL.

2. Can I call Macy’s reconsideration line (if they do have one) and ask if I got denied based on no credit report available?  

I won’t be able to get the denial letter, the cashier forgot to enter my apartment number. 

3. Will Macy’s HP show up even if I don’t have any credit report available as of today?

4. Can I go 4 HP (Discover/Macys/CapOne/WF Secured) or I should directly apply for a secured CC and keep 3 until I apply for Amex PRG? 

5. I have read that creditors use the “too many hard inquiries” excuse only if it has been 6 months or so but it stays on file for 2 years, so is that another urban legend like the one Macy’s accepting virtually anyone with no baddies or people with no SSN? (yup, I’ve read that at least 3 times!) 

Is that something you can easily explain when you get denied for that reason and you call reconsideration line explaining that you’re not really looking for credit but more for the benefits?

6. Am I being a little obsessive about my hard inquiries and should instead stay focus on credit card utilization and paying on time?  

7. Is that already a good step that Discover will show up on my credit reports or not necessary better than any secured credit card I would only have?

8. Do you have a better idea instead of CapOne?   Maybe Barclaycard Rewards?

I know credit cards approvals are not an exact science but I am really looking forward your thoughts to get an overall idea and stop making mistakes like my Macy’s application today. 

Before starting this post, I was thinking applying for a Capital One and if I got denied I would apply for Wells Fargo secured CC.  So a total of 4 HP before “gardening” for 8 months and try my first goal card application, Amex PRG.  

Thanks for reading me!  I’ll obviously keep you posted!

Will. 

[NoAnchoviesPlease]

Hi Gotham10012. 

My understanding (from asking similar questions) is that an inquiry (HP) shows up almost immediately on your record. So if you've been denied it will probably show up already. And you'll have at least two HPs somewhere out there, the Discover one and the Macy's one. 

Note that it only shows up on the credit report for the CRA they pulled from; you can probably call macy's CS or recon to find out which CRA, and to even request reconsideration. 

Most creditors won't panic over 1 HP/inq but as you aptly said, it's not an exact science. If you're really worried about this, consider applying for another card that usually pulls in your state from another CRA (there's a site Google can find you that deals with "credit pulls" but I can't give you a link to it)... and hopefully someone here can advise on new-credit-friendly cards. 

However, you might have better odds if you let your Discover It card grow a few months, and build up a credit history on all three CRAs. A secured card or two might be a good stopgap if you have the cash to secure them with, or check with a local credit union for options. I live in an area with a lot of immigrants and non-native people making a lot of money, and my CU even gives classes for people new to the US to learn about credit and citizenship and other topics. 

Best wishes on the adventure, and keep us posted. We're here to help and cheer.  

[simi_go]

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@Gotham10012 wrote:

Hi everyone, 

I have some questions regarding my new credit life and I hope you will give me your ideas and opinions about choices I should make. 

I got approved last week for Discover It with no credit history (3 days old SSN) I originally applied because I was interested on getting offered a secured version of their card since I was new to credit.  I eventually got approved the following day (after faxing a copy of my Green Card, social security card and utility bill) with $1,000 CL - 3.99% intro APR then 22.9%. 

I would like to get another credit card (Visa or MasterCard this time) before I stop applying for credit cards.   

Since I was a little too excited about my Discover It approval, I applied today at the register for a Macy’s store credit card (NOT the Amex version).  Friends and forums kept saying that I should start with it so I really thought I would be ok even with $100 credit limit but I got denied faster than a knife fight in a phone booth! 

As of today, I have 2 goal cards: Amex PRG (really like the idea to not carry a balance) and Citi AAdvantage World MC (I always fly AA or BA).

Now that you have a full picture of my situation here is my questions. 

I thought it will be easier if I made a list so everyone can choose to answer one or all of them. 

1. Should I apply for a CapitalOne credit card before they see the Macy’s HP?

If yes, can I directly try the QuickSilverOne Rewards (the MasterCard version, 22.9% APR and $39AF, not the Visa Signature version) or I need to consider the Classic Platinum or Platinum directly.

They all are listed as “Average Credit”.

I remember my friend applying for the Classic Platinum with a 3 weeks old SSN last year and she got approved with $300 CL.

 The HP is instant. So they will see it.  I would garden what you have for 6 months. 

2. Can I call Macy’s reconsideration line (if they do have one) and ask if I got denied based on no credit report available?  

I won’t be able to get the denial letter, the cashier forgot to enter my apartment number. 

Not sure if there is a Macys recon line. But if there is call them. Can't hurt. Maybe they will approve you after all. 

3. Will Macy’s HP show up even if I don’t have any credit report available as of today?

it will show up. This HP may be what prompts the CB to create your file. 

4. Can I go 4 HP (Discover/Macys/CapOne/WF Secured) or I should directly apply for a secured CC and keep 3 until I apply for Amex PRG? 

Like I said personally I would garden for 6 months. 

5. I have read that creditors use the “too many hard inquiries” excuse only if it has been 6 months or so but it stays on file for 2 years, so is that another urban legend like the one Macy’s accepting virtually anyone with no baddies or people with no SSN? (yup, I’ve read that at least 3 times!) 

Different companies have different policies. All INQ's will stay on your report for two years but their effect on your credit will dwindle with time. 

Is that something you can easily explain when you get denied for that reason and you call reconsideration line explaining that you’re not really looking for credit but more for the benefits?

6. Am I being a little obsessive about my hard inquiries and should instead stay focus on credit card utilization and paying on time?  

Focus on UTIL and payments. Don't apply too much and you won't have to deal with too many INQ's

7. Is that already a good step that Discover will show up on my credit reports or not necessary better than any secured credit card I would only have?

Discover is good. It will look better than a secured card. 

8. Do you have a better idea instead of CapOne?   Maybe Barclaycard Rewards?

Hate to sound like a broken record but garden for 6 months. 

I know credit cards approvals are not an exact science but I am really looking forward your thoughts to get an overall idea and stop making mistakes like my Macy’s application today. 

Before starting this post, I was thinking applying for a Capital One and if I got denied I would apply for Wells Fargo secured CC.  So a total of 4 HP before “gardening” for 8 months and try my first goal card application, Amex PRG.  

Thanks for reading me!  I’ll obviously keep you posted!

Will. 

---

[Gotham10012]

@NoAnchoviesPlease and @simi_go  Thank you VERY much for your thoughts!

I really appreciate it. 

I have a silly question though, you both stated that my hard inquiries are probably "available" somewhere, which makes sense, but how come I can't see any credit report then?  All 3 bureaus stated that they don't have any informations concerning me 2 hours ago.  I'm not trying to contradict you at all!

I think I might go for Capital One since they offer a secured version if they don't approved. 

Unless I find a credit union around me.

I know I should let Discover grow but I already spend around $800 a month on daily purchases (reminder my only CL is $1k) and I think 80% credit utilization even paid off will look bad, right?

Maybe I misunderstood something. 

I know BofA also offers a secured credit card version if they do not approved but since they are prime, I know I would get denied automatically.  

Thanks for reminding me creditors doesn't necesarry pull the same CRAs!

[NoAnchoviesPlease]

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@Gotham10012 wrote:

@@NoAnchoviesPlease and @@simi_go  Thank you VERY much for your thoughts!

I really appreciate it. 

I have a silly question though, you both stated that my hard inquiries are probably "available" somewhere, which makes sense, but how come I can't see any credit report then?  All 3 bureaus stated that they don't have any informations concerning me 2 hours ago.  I'm not trying to contradict you at all!

I think I might go for Capital One since they offer a secured version if they don't approved. 

Unless I find a credit union around me.

I know I should let Discover grow but I already spend around $800 a month on daily purchases (reminder my only CL is $1k) and I think 80% credit utilization even paid off will look bad, right?

Maybe I misunderstood something. 

I know BofA also offers a secured credit card version if they do not approved but since they are prime, I know I would get denied automatically.  

Thanks for reminding me, creditors doesn't necesarry pull the same CRAs!

---

All valid questions, no worries about contradiction. I can't explain the credit report thing, except that you probably have to have a TL reported before a CR is available. If you google for "it is possible to not have a credit report" you'll find Experian saying "If you have no credit accounts, or have opened an account or accounts with lenders that do not report the payment status to a credit reporting company, you will not have a credit report."

So when Discover reports your first statement balance, you'll have a report available. I don't know exactly how the HPs show up, before a report is generated, but you'll be safest/most conservative if you assume they are visible. They probably will be. 

My suggestion would be to look for a credit union you qualify for first. ncua.gov has a credit union locator, which may be the best place to start. Be sure to check eligibility/"field of membership" to make sure you're eligible, and then just go in to a branch and talk to an associate about your situation. 

The other relief thing is that, if you're not looking for credit, 80% util on a small card isn't derogatory. Just pay it on time, and a month or two before you want to look for more credit, pay it down to under 30% and let that report (Some will say under 10%, but not to 0 if it's your only tradeline, to optimize fico score). If you want to keep it a bit lower on an ongoing basis, you could do what I do and pay every paycheck--if you spend $800/mo and get paid twice a month, put a $400 payment against the card each paycheck. Then you'll average $400ish / 40% and be at a happy medium. 

[Creditaddict]

1. Call Macy's about recon: 800-627-2909

2. you could do Capital One if you want.

3. I might go ahead and try for the Amex PRG also.

4. I would not get a Wells Fargo secured since you got discover as soon as that is 6 months old and you have a credit score your credit will be far to good for that secured card that may or may not unsecure. it's the worst secured card in my opnion of them all.

5. if you want secured card to establish elsewhere I would go for a bank of america secured card!

[newhis]

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@Gotham10012 wrote:

@@NoAnchoviesPlease and @@simi_go  Thank you VERY much for your thoughts!

I really appreciate it. 

I have a silly question though, you both stated that my hard inquiries are probably "available" somewhere, which makes sense, but how come I can't see any credit report then?  All 3 bureaus stated that they don't have any informations concerning me 2 hours ago.  I'm not trying to contradict you at all!

I think I might go for Capital One since they offer a secured version if they don't approved. 

Unless I find a credit union around me.

I know I should let Discover grow but I already spend around $800 a month on daily purchases (reminder my only CL is $1k) and I think 80% credit utilization even paid off will look bad, right?

Maybe I misunderstood something. 

I know BofA also offers a secured credit card version if they do not approved but since they are prime, I know I would get denied automatically.  

Thanks for reminding me creditors doesn't necesarry pull the same CRAs!

---

Why you say that? My DW with a new SSN opened a checking account with BofA and asked for a credit card, denied an unsecured card and then the system offered the secured card. A few weeks later I opened a savings account and directly asked for a secured credit card, I don't have a SSN and was approved for it. My DW got the cash rewards card so I asked for the same, guess the person at the branch didn't know what to put in and I saw online that they will send the regular card, did a secure chat and asked to change the card to the cash rewards, they said no problem and got a new card 4 weeks later.

I then applied for Discover IT and got $1,000 CL. Had to send ID, ITIN (can't have SSN), utility. Also 3% intro. I'll work with the 2 cards for a few months before applying for other cards.

I applied online for Capital One before BofA and Discover and got denied. I waited until day 50 to ask for my credit reports from that denial. They HP all 3 bureaus and denied my application because I didn't have a credit history. So even if you don't have a report because there is no credit file, the HP will show once the credit line is posted in your name with each bureau (I'm still having problems getting my TU report, they say they didn't find it and asked for more documents). I got my ITIN January, wanted Capital One in February, opened BofA secured card and Discover IT in March. I didn't know what to do then, so I didn't call Capital One for recon, now I have those inquiries until march 2016 (that's what my EX report say).

[Gotham10012]

Hey guys!

Just wanted to give you an update!

I called Macy's reconsideration line (2 times) and they denied me based on short credit hsitory.  

They used TU for the report. 

I applied for a second credit card with CapitalOne even if I did not want to do business with them but I wanted another line of credit on my report and since my Discover CL was a little too short ($1,000) I thought it would be a good idea to set up my cable bill on the card and set-up autopay with Cap1.

Got approved for $300 and the credit step program (which is an auto CLI after 6 months -$500-).

Creditaddict said that I could try Amex PRG now just in case (I'll be a good boy on the reconsideration line), is that going to be a big deal?

I will be more than fine with only Discover and Cap1 for awhile and evrything else is set up (cellphone, cable, utility, gym membership..) so I won't have any hard pull anymore.

I had bad exprience with Chase so I won't apply for a CC with them.

I keep reading Citi is really weird about applications so I did not plan to apply for AAdvantage until more than 1 year of credit, and I'm not dying to get that card. 

Not really amazed with BofA CCs either. 

Don't wanna sound like a broker record but I just want a charge card (with a low NPSL at first).  I've been thinking about that for awhile and I'm happy with a $1,3k credit availabe. 

I checked and apparently American Express:

- loves new US residents with short credit and low HPs.

- Hard pulls Experian.

Since Macy's did TU,  Discover did Equifax, and (of course) Cap1 pulled up everyone, does that mean that Amex will only see one HP from Capital One?

Because if they do check with Experian, they won't see 3 HP but only 1..

If (surely) they denied me, are they gonna consider their own HP as "too many credit inquiries" if I reapply in 6 months?

Shoud I reapply after 6-8 months credit history woth low balances (probably 0 with Cap1 and 10% on Discover) 

The reason why I want to submit an application is because once I get denied, I will stop thinking about it. (I'm not crazy but since it's a charge card I think a nice talk with the reconsideration line explaining why I want the card could work).

[Creditaddict]

Just apply then and wait 6 months if no ho

[Gotham10012]

Yeah I think I'm gonna do it. 

I'm really not on a credit spree anyway!

I will have a total of 4 HP after Amex, and I'm not even sure they can see all of them. 

Why do you think I could get approved?

Should I go Green instead?