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Regular Contributor
ReaLiLJ
Posts: 143
Registered: ‎09-17-2012
0

New to the Credit World, But On a Great Path

Hey everyone! Hows it going!? I'm a soph in college 18 going on 19 next month and looking for some advice, that will dictate my credit future. I'm seeking help from this community because every since I've been on here, anytime I had a question I just search it up and the answers pop up, and you guys have been awesome in giving honest opinion. Be aware I do ramble sometimes, but I love to provide the full situation and leave nothing out so you guys can give me your full judgment with all the in's and outs. (excuse my ramble, here's my situation:

 

I'm new to the community and credit world, but I have moved in the right direction, thanks to my parents having nothing but bad credit! (I'm trying to change that for many generations to come!) Anywho in the past year I have been with capital one, and I started with a limit of 300 on 10/26/2011. Its been 11 months almost a year, and I utilized the card pretty well (16% rule), and paid it in full every month! Too bad Cap1 stop giving CLI in march 2012. My new CLI since than though is a measly $500. That is the only thing that has been on my record, besides my Sallie mae unsubsidized and subsidized school loans of (2,000 and $3,500). The $2,000 loan is unsubsidized so I will try to pay it off by next year, and keep the other loan until I graduate and slowly pay it off afterwards so I don't have a credit report with nothing on it.
(Is this a good move?)

 

Also recently I did an inquiry with sprint (EQ) (trans??)-will have this removed as they promised me they would only use EQ., chase(EX.), and amex (all 3) what a bummer, they said they only did an inquiry through one bureau, they just didn't know which one they would pull from..... (sucks).., I figured since my credit scores was high, and I wanted a new phone (I been on a flip phone forever), a card with a better limit/ cash back rotating bonus(chase freedom), and a card I could always use for groceries annually (blue cash preferred) I went out on a gardening spree and applied. I got approved with sprint, and chase freedom, but amex declined me. (I will be appealing with them soon, as I feel I am a great candidate for the card) Btw: If you noticed, I tried to do one inquiry on each account but it failed miserably b/c I was lied too... -.- Amex is understandable, but still it sucks.

(Was this a bad move applying to these companies all at once?)

 

What I am planning to do but want advice for before I do it: I know DCU offers the free EQ score, so I wanted to open up a checking plus with them and also get a walmart card for the free TU. And as for Exp I am paying the 8:95 per month for the monitoring/score, as I like there service. Plus they offer the plus scores, and I know the supervisor there so he offers me disc. and all I would need to buy is my vantage score quarterly from them and I would have all my scores. (Which I am getting at a bargain). Would this be a good idea, or should I wait to do this? And if so when, or should I just do it, and then after that suffer for a year or two and stay away from seeking credit and focus on utilizing my credit cards/ continue doing what I was doing with my Cap1. As if I get my amex, and these things, I wouldn't be needing to seek credit anytime soon until next year when I apply for my car loan! (Mid 2013)

 

Lastly I know I should not be seeking out so much credit in such a short period of time, but I figured since my credit was okay/near the excellent margin, that I could use it now and get what I need; and do what I been doing, to get those points back that I lost on the inquiries further down the line! Am I in a bad mind state, and taking to big of risks, or is the process I'm trying to do common?

Thanks in advance, for taking the time out to try to help me! I know I have a lot of questions but I'm new to credit and want to move in the right direction! And please even if you can only give advice on one part of my questions please do so, as I am open to all kinds of advice/constructive criticism :smileyhappy:

20 Years & 1 Month Young; Total Income: $53k (Credit History): 1.9 years AAOA: 1.0 years
Fico Scores: Exp: 725 (12/4) EQ: 703 (11/13) TU: 736 (12/6) Total Credit Available: 89k
Wallet: AmEx Plat- NPSL | AmEx BCP $10.5K | BestBuy SC $10k | Duck Card $8k | BoFA CR Plat Plus Sig. $5k | Discover IT $6k | Chase Freedom Sig. $7k | CSP Sig. $5k | USBank Cash+ Sig. $5k | Barclays R MC $5k | Chevron Visa $5k | BR Visa $5k | Walmart Discover $4k | DCU Plat Visa $3k | QuickSilver CR $3k | Macy's Store CC/Macy's Amex $2.5k/$3k | BML $1.2k | Citi Divi Plat Visa $500
Open Loans: Sallie Mae SL: ($5.6k) (Def.) Car Loan (Red Devil FR-S): $20k/33k Remaining -Will Pay Off in 2yrs. Advice Welcomed!
Established Contributor
lithium78
Posts: 930
Registered: ‎07-30-2011
0

Re: New to the Credit World, But On a Great Path

Instead of paying $8.95 a month for an EX FAKO, why not sign up for Credit Sesame?  It's free and it's just as good as a pay service for monitoring your EX report.  You could put the payment you were making toward a subscription to Score Watch ($14.95 or cheaper if you have a coupon code) here on myfico.com and you can keep track of your EQ FICO score and your EQ report.


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

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Moderator
Revelate
Posts: 9,750
Registered: ‎12-30-2011
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Re: New to the Credit World, But On a Great Path

Welcome to the forums!

Sometimes it's hard to sift through the data, but if you are a student your best bet would be student cards. From a pure FICO perspective you don't care what the tradelines are, but you do want 2-3 cards that report, and if you are cash flush, a secured installment loan wouldn't be a bad idea either.

To clear up something: you weren't lied to. Amex does typically pull EX except in marginal cases where they pull multiple bureaus for their revolvers. I think most people on this forum would've suggested a Zync for your situation, not all FICO scores are created equally and your file is on the thinnish side and the BCE/P is a premier revolver.

Anyway I would have suggested waiting till November for a Freedom app (reported 1 year on your C1 card), and personally I would look at applying for a Zync then as I'm a big fan of future backdating and the Zync was designed for your student situation.

Finally open up the Walmart card if you want the FICO at that point, or DCU checking isn't a bad idea either and I am finding then to be a good CU to have a relationship with.

In any event you did right in my opinion using an app spree (what I think you meant heh) I think you simply did it slightly early and with the wrong targets in some cases.

Adjust your plan, take a new swing when C1 updates that October payment, and you'll be good for a while gardening.
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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Established Contributor
espnjunkie
Posts: 729
Registered: ‎12-14-2011
0

Re: New to the Credit World, But On a Great Path

While it's great to get a head start with credit, you might want to think about other factors that impact your credit. Having ahigh score early in the 'game' is different than having a few years of credit history under your belt. Amex also really wants to see income and assets available before approval. Which as a student it is difficult to show when you cannot be working full time. I would stop applying for any additional credit and garden for while. Once you finish school you will have some built up history and will have access to more premium card products. Right now just focus on getting that history under your belt.

“The real measure of your wealth is how much you’d be worth if you lost all your money.” ~Unknown
Citi Prestige World Elite Mastercard ($35,000.00), Merrill+ Visa Signature ($25,000.00), Amex BCP ($29,700.00), Amex Green (NPSL), Capital One Quicksilver World Mastercard ($10,000.00), Chase Ink Business Bold (NPSL)
TU-778 (12/03/2014))
EX (Plus) - 777 (10/21/2013)
EQ - 735 (April 2013)
Regular Contributor
ReaLiLJ
Posts: 143
Registered: ‎09-17-2012
0

Re: New to the Credit World, But On a Great Path

[ Edited ]

Sorry for the long wait, I have been very busy lately; using my new card, opening my new accounts with DCU, and signing up for all the benefits! Thank you guys so much for responding and giving your input in as they have been very helpful!

"Instead of paying $8.95 a month for an EX FAKO, why not sign up for Credit Sesame?  It's free and it's just as good as a pay service for monitoring your EX report.  You could put the payment you were making toward a subscription to Score Watch ($14.95 or cheaper if you have a coupon code) here on myfico.com and you can keep track of your EQ FICO score and your EQ report."
 
 
@lithium I would but I like the reports, and I also like to keep track of alerts that go to my other accounts (EQ, Trans) etc. And if I was to buy the EQ score and EQ report, it would only be those, and I would not be alerted when all my other accounts are hit with inquiries; plus all the other services do not offer that as a convience! In addition to that, I am already a DCU member, and they give me my EQ Fico Score every month, so buying that service will be useless! :x I did do as you said and signed up for CreditSesame, and when I ordered my Ex vantage score, it was right on par with that. It was like 6 points off, but very accurate, so I am going to be using it as a tool to keep up with what my current Ex vantage score is every month, but I will still be ordering my Ex Vantage score quarterly so I can know my actual score! Thanks for your input though, and I very much appreciate it!
 
 
 
 
 
"To clear up something: you weren't lied to. Amex does typically pull EX except in marginal cases where they pull multiple bureaus for their revolvers. I think most people on this forum would've suggested a Zync for your situation, not all FICO scores are created equally and your file is on the thinnish side and the BCE/P is a premier revolver.
Anyway I would have suggested waiting till November for a Freedom app (reported 1 year on your C1 card), and personally I would look at applying for a Zync then as I'm a big fan of future backdating and the Zync was designed for your student situation.
Finally open up the Walmart card if you want the FICO at that point, or DCU checking isn't a bad idea either and I am finding then to be a good CU to have a relationship with.In any event you did right in my opinion using an app spree (what I think you meant heh) I think you simply did it slightly early and with the wrong targets in some cases.
Adjust your plan, take a new swing when C1 updates that October payment, and you'll be good for a while gardening."
 
"a secured installment loan wouldn't be a bad idea either."
 
 
@Relevate Thanks for the warm welcoming! I did just get a big salary increase recently, so I am lowkey flushed with money (since I don't pay rent, or have any debt/ big loans out there besides my school loan! (Which doesn't need to be paid off anytime soon) As for the secured installment loan, I will look into that early next year after I pay off my (unsubsidized loan) off which acrues interest every day (Which I just realized now) hahaha. My question is after (I utilize this new chase freedom card very highly, but correctly) 29% utilization since its at 0% apr and I could afford to do so) I want to know after 6 months, which would be early next year, instead of the secured installment loan, could I take out an auto loan instead? Because I want to get ready to purchase a car soon early next year, but I want to take out my first loan, after a good six months with chase, and after I show that I could manage that decent credit limit I just got. And what would be the difference between the auto loan, and that secure installment loan?
 
Also I wish I knew that before I applied, hahaha but once these three inquries get off my record at the end of this month, and after about three months or so, I will try to follow your reccomendation and apply for the zync card, as I feel that card would better suit me, and I think I would have a way better chance of getting approved for it! I did already, and have the chase freedom card, so it's too late to take your advice as well, but even though I didn't wait I am still happy I got approved for that kind of limit, and hope the way I'm trying to utilize works as well. As with my Cap1 card, even though I payed off in full every month, I didn't use it well, because it showed I wasn't managing credit; which sucks because it feels like a waste of a year! But it did teach me the importance of using the card, so i'm glad I still got that experience!
 
I did open the walmart, and DCU accounts up, and I can't wait to start receiving those free scores!, but yeah that's what I meant an app spree hahaa, but I will definately re-adjust my plan, and hopefully everything works out in the future!!
 

"While it's great to get a head start with credit, you might want to think about other factors that impact your credit. Having a high score early in the 'game' is different than having a few years of credit history under your belt. Amex also really wants to see income and assets available before approval. Which as a student it is difficult to show when you cannot be working full time. I would stop applying for any additional credit and garden for while. Once you finish school you will have some built up history and will have access to more premium card products. Right now just focus on getting that history under your belt." 

@Espnjunkie That is true, and I totally agree with that. I have noticed that people with longer credit history's are the one's getting approved for that card, and I was mad, I didn't hear that advice earlier. Because If I knew that I would have never did the amex app! But hey sometimes you have to be hardheaded and make a mistake, before you can learn the tricks and trades of going about something. And I feel that's what happened here, but I am done app spreeing for cards, and will just manage the credit I have for now, until I'm ready to go get my car, and feel ready to apply for 1 last card (the zync card) relevate was telling me about. And I thank you for your input, and will definately go in that direction of lying low for awhile, and building my credit history while I am in school!

20 Years & 1 Month Young; Total Income: $53k (Credit History): 1.9 years AAOA: 1.0 years
Fico Scores: Exp: 725 (12/4) EQ: 703 (11/13) TU: 736 (12/6) Total Credit Available: 89k
Wallet: AmEx Plat- NPSL | AmEx BCP $10.5K | BestBuy SC $10k | Duck Card $8k | BoFA CR Plat Plus Sig. $5k | Discover IT $6k | Chase Freedom Sig. $7k | CSP Sig. $5k | USBank Cash+ Sig. $5k | Barclays R MC $5k | Chevron Visa $5k | BR Visa $5k | Walmart Discover $4k | DCU Plat Visa $3k | QuickSilver CR $3k | Macy's Store CC/Macy's Amex $2.5k/$3k | BML $1.2k | Citi Divi Plat Visa $500
Open Loans: Sallie Mae SL: ($5.6k) (Def.) Car Loan (Red Devil FR-S): $20k/33k Remaining -Will Pay Off in 2yrs. Advice Welcomed!
Contributor
Elcid89
Posts: 567
Registered: ‎10-04-2012
0

Re: New to the Credit World, But On a Great Path

Unless I am mistaken, Amex has stopped offering the Zync card.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k

Established Contributor
shakalaka
Posts: 567
Registered: ‎09-10-2012
0

Re: New to the Credit World, But On a Great Path


Elcid89 wrote:

Unless I am mistaken, Amex has stopped offering the Zync card.


No you are not mistaken. Since 10/1 the Zync is gone for new apps.

 


Amex Platinum (NPSL) | Amex BCE (33,400) | Chase Sapphire Preferred (24,800) | Discover IT (12,700) | Chase Freedom (6,300) | Walmart (4,500) | CapOne (4.000) | Alliant CU Visa | Gone for good: CapOne secured (thx for getting me started) | Amex Zync (thx for getting me into AX)

FICO: TU 758 (10/12) EQ 724 (10/22) EX 748 (12/5)

Regular Contributor
Tran92
Posts: 217
Registered: ‎09-25-2012
0

Re: New to the Credit World, But On a Great Path

 
TU 746 (10/13)
GOAL: 750+






Established Contributor
lithium78
Posts: 930
Registered: ‎07-30-2011
0

Re: New to the Credit World, But On a Great Path

Score Watch alerts you to any changes to your EQ credit report and also alerts you when your EQ credit score changes, so I think that would actually meet your needs.  You can try a free trial and see if you like it.  I've been subscribed to it for months now and it really helps a lot.


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

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