06-13-2013 04:05 PM
Alright, so Ive never really cared about credit and always paid for everything with cash but I figured it was time to start building credit incase I ever needed it.
So to start with I opened a secured credit card with USAA, 35 dollar annual fee and 2 year CD, well in two years I intend to close the account after opening a unsecured CC. However from my understanding this could be bad as I have 0 length of credit as of right now (opened the SCC yesterday) and in wo years when I cancel it my average will drop to 1 year when I open the USCC correct?
So I was thinking it may be prudent of me to open a few store cards as well to balance that average a little better when I cancel the unsecured. My thinking here, right now my credit history is 0 so adding more cards will not effect that average at all right now 0 is 0 and I won't need credit within the next 6 months or likly have any credit worth using by then so waiting for the inquiry to fall off won't hurt me(that is 6 months right?) Does this sound like a good plan or am I misguided here?
Anyways, my secured credit card I plan on using once a month for less then 10% of the max and its set to auto pay when the statement comes. I got this part right yea?
Oh and the store cards I intend to get assuming I can with a 609 experian score our walmart amazon and lowes am I likly to get approved for these?
Thanks for your time, any and all advice is appreciated even if it doesnt necessarly pretain to what I asked like I said new to this.
06-13-2013 04:08 PM
If I were you, I would not apply for anything for at least six months. And then depending on your score, you could go for an Amex, Citi or Discover. Just take it slowly and don't app for cards you don't need or want.
06-13-2013 04:15 PM
For what i understand :
I would call USAA to see if you can upgrade your secured cc to unsecured cc with them. I dont know if they will let you do that or you have to apply for the card their own.
Establish account with Credit Union or your local bank : Ask for their secured CC if denied then ask for unsecured CC and start with $1000 or more depend on your situation. Store card if you shop there and resposible for the payment every months.
Do this for at least 1 years and then go for some PRIME card ???...Hope it's help.
06-13-2013 04:31 PM
Nicholas, Only had the secured CC for a day, just thinking it would be a good idea to get other cards to not take such a hit when I cancel this one. And yes I fully intend to make perfect payments and keep my uti under 9% but as Ive only had a day I havnt had the chance but as I don't have any need to pay for things on credit this will not be diffcult. And yes it's my only source of credit ever even bought my house with cash lol.
06-13-2013 04:38 PM
Do you have any installment history? If so see what your score is. If this is the first credit product you have I concur and suggest you wait for six month until you apply for anything else. Your chances of approvals will be much higher.