Reply
New Member
Posts: 3
Registered: ‎06-13-2013
0

New to the credit world, Store card questions.

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.

Frequent Contributor
Posts: 464
Registered: ‎10-29-2012
0

Re: New to the credit world, Store card questions.

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. 

Bank of America: Cash Rewards.-1,000. 4/25/12 (CLI Increase 6/15/13), Citi: Forward- 3k. 10/27/12 (CLI on 2/8/14, SP). Discover: More- 2k. 10/27/12 (Increase 6/1/14). Amex: PRG- NPSL (closed 12/13/13). 11/24/12. Chase: Freedom. 5/1/13- 2.4k. Southwest Rapid Rewards Plus.-3.6k. 6/15/13. Amex BCE-2k. 12/7/13. Amex SPG-4k.12/8/13. Last App: 1/8/14.
Valued Contributor
Posts: 1,738
Registered: ‎08-13-2012
0

Re: New to the credit world, Store card questions.

For what i understand :

  1. you have secured CC with USAA for 2 years with perfect payment and no late ?? Uti less than 9% ????
  2. That's the only card you had ?? no loan or student loan or anything ???

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.

 


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 13k| Amex: NSPL|Dis: 9.4k|Cap: 5.5k|CAP: 2k|CSP: 13.4k| Pen:4.5k

New Member
Posts: 3
Registered: ‎06-13-2013
0

Re: New to the credit world, Store card questions.

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.

Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
0

Re: New to the credit world, Store card questions.

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. 

New Member
Posts: 3
Registered: ‎06-13-2013
0

Re: New to the credit world, Store card questions.

boomhower

 

Indeed it is my very first credit good or bad, my score is 609.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.