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No credit history: build with app spree?

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jesseh
Frequent Contributor

No credit history: build with app spree?

Hi all,

So what's your take on this situation?

21 yo, no credit history at all (no loans/cc's, only checking acct)

 

To build credit as fast as possible, do you think the best way would be to do a huge app spree right away to get as many (secured or unsecured) cards as possible and start building AAoA (and relationship with different lenders) from the start? 

The thing is, the normal disadvantage of app sprees you don't have, with no credit score they can't pull you so it won't hurt your score.

 

Or should you just start with one secured card and build slowly from that point? This would mean that later cc apps would hurt your score because of the HPs..

 

Wondering what you think of this idea.

 

Enjoy your day!

Cards: BCE 24k 5/'17 | CF 12k 10/'15 | IHG 12k 10/'15 | HH 6k 6/'18 | DS It 6k 3/'15 | TR 5k 11/'15
Scores: 760-770 | Inquiries: 0-1 | Utilization: 0-10% | AAoA: 3yrs | Bank: Ally | CU's: Navy & Pentagon
Message 1 of 27
26 REPLIES 26
Creditaddict
Legendary Contributor

Re: No credit history: build with app spree?


@jesseh wrote:

Hi all,

So what's your take on this situation?

21 yo, no credit history at all (no loans/cc's, only checking acct)

 

To build credit as fast as possible, do you think the best way would be to do a huge app spree right away to get as many (secured or unsecured) cards as possible and start building AAoA (and relationship with different lenders) from the start? 

The thing is, the normal disadvantage of app sprees you don't have, with no credit score they can't pull you so it won't hurt your score.

 

Or should you just start with one secured card and build slowly from that point? This would mean that later cc apps would hurt your score because of the HPs..

 

Wondering what you think of this idea.

 

Enjoy your day!


If you want to build to the highest CL's the fastest I think the most successful get 1 card and wait the 6-7 months for a fico score to generate and then do an app spree of 4-5 cards at that point...

Message 2 of 27
Rhaeny
Valued Contributor

Re: No credit history: build with app spree?


@Creditaddict wrote:

@jesseh wrote:

Hi all,

So what's your take on this situation?

21 yo, no credit history at all (no loans/cc's, only checking acct)

 

To build credit as fast as possible, do you think the best way would be to do a huge app spree right away to get as many (secured or unsecured) cards as possible and start building AAoA (and relationship with different lenders) from the start? 

The thing is, the normal disadvantage of app sprees you don't have, with no credit score they can't pull you so it won't hurt your score.

 

Or should you just start with one secured card and build slowly from that point? This would mean that later cc apps would hurt your score because of the HPs..

 

Wondering what you think of this idea.

 

Enjoy your day!


If you want to build to the highest CL's the fastest I think the most successful get 1 card and wait the 6-7 months for a fico score to generate and then do an app spree of 4-5 cards at that point...


+1

 

Who do you bank with because you may be able to get a CC with them?  If not, there is SDFCU where you can get a secured card without an HP.  They report to all 3 CB's.  So by Sept/Oct you should see a score and by the end of the year go for some of the cards you want.

 

Oh by the way, are you a student?  If so maybe look into that because I'm sure they give to students with no credit history.  That may be a very good option for you.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Message 3 of 27
jesseh
Frequent Contributor

Re: No credit history: build with app spree?

Thanks guys

 

I am a student, but it's not a usa accredited school.

I already filled in the SDFCU form, their terms look pretty good indeed

 

So why isn't my idea sensible actually? It just seems I would build credit faster if I would get multiple (secured) cards right away..

by the way, is there a list to see which cc issuers report to which bureaus?

Cards: BCE 24k 5/'17 | CF 12k 10/'15 | IHG 12k 10/'15 | HH 6k 6/'18 | DS It 6k 3/'15 | TR 5k 11/'15
Scores: 760-770 | Inquiries: 0-1 | Utilization: 0-10% | AAoA: 3yrs | Bank: Ally | CU's: Navy & Pentagon
Message 4 of 27
Creditaddict
Legendary Contributor

Re: No credit history: build with app spree?


@jesseh wrote:

Thanks guys

 

I am a student, but it's not a usa accredited school.

I already filled in the SDFCU form, their terms look pretty good indeed

 

So why isn't my idea sensible actually? It just seems I would build credit faster if I would get multiple (secured) cards right away..

by the way, is there a list to see which cc issuers report to which bureaus?


you can't build a fico score faster... you get one 6 months after credit starts reporting.

pretty much any and all credit is going to report to all credit reports.

you could try applying for discover student, they have been issueing some people with no credit credit lately.

American Express Blue also lately I have seen a few people get with no credit.

I would not apply for more than say 2 accounts like those listed above and if you are denied for both then use the 3rd app to be a secured card and stop... don't load up on INQ's before you even get started.

Message 5 of 27
jesseh
Frequent Contributor

Re: No credit history: build with app spree?

Right, but I called Equifax and they told me INQ's wouldn't hurt my score now as I don't have one..

Cards: BCE 24k 5/'17 | CF 12k 10/'15 | IHG 12k 10/'15 | HH 6k 6/'18 | DS It 6k 3/'15 | TR 5k 11/'15
Scores: 760-770 | Inquiries: 0-1 | Utilization: 0-10% | AAoA: 3yrs | Bank: Ally | CU's: Navy & Pentagon
Message 6 of 27
Creditaddict
Legendary Contributor

Re: No credit history: build with app spree?


@jesseh wrote:

Right, but I called Equifax and they told me INQ's wouldn't hurt my score now as I don't have one..


that's correct, but if you load up on 10 INQ's now and then in 6 months actually get a scoere and are ready to apply for good cards you will have all those INQ's that might be an issue with getting approvals... I don't usually care much about INQ's and am all for applying now over waiting most of the time but brand new credit is a little different for me.

like I said as I started to type the last post I remembered recently seeing poeple get approved for Discover and American Express BCE or BCP with no credit but I have seen some be denied too so not really sure what the difference is but you could try those 2 before secured route.

Message 7 of 27
Rhaeny
Valued Contributor

Re: No credit history: build with app spree?


@jesseh wrote:

Right, but I called Equifax and they told me INQ's wouldn't hurt my score now as I don't have one..


Yea, EQ giving credit advice.  sighhh.

 

It would be to good for you to consider both short term and long term goals.  Short term is for you to at least get a score.  Long term is whatever you want it to be.  So since it's already been said that you need 6 months to get a FICO score, why start out of the gate with a gazillion INQ's?

 

The best advice I believe has already been given to you, which is the shortest path to the best possible outcome for you.  However, it's up to you to choose whether you will or won't follow it.  

 

I can tell you a few times when I went against what has been shown over and over to be the right thing to do, how in the end I got exactly what they said I would get if I didn't follow the advice.....LOL!


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Message 8 of 27
stevenngu92
Contributor

Re: No credit history: build with app spree?

Definately do as others are saying. Try to get a card where you bank at and then wait 6 months and apply for a few more cards. The problem with applying for so much cards at once is indeed the inquiries (i'm not sure if they will show up later on your cr once it's established, most likely it would so it will be harder to get future cards and thus making your credit history shorter than it should be). Another is even if you are approved for a bunch of cards, chances are they will likely be low limit cards and will likely stay there unless you take another hp for a cli. Better to get 1 card now and wait until you can get the cards you actually want with decent limits.

Amazon Store Card ($6000) Amex BCE ($10000) Amex PRG (NPSL) BofA Better Balance Rewards ($3000) Best Buy Store Card ($5000) Chase Freedom ($2500) Chase Sapphire Preferred ($7900) Citi Prestige ($5000) Discover It ($10500) Walmart Discover ($6000) Wells Fargo CB ($4700)
Message 9 of 27
red259
Super Contributor

Re: No credit history: build with app spree?


@jesseh wrote:

Hi all,

So what's your take on this situation?

21 yo, no credit history at all (no loans/cc's, only checking acct)

 

To build credit as fast as possible, do you think the best way would be to do a huge app spree right away to get as many (secured or unsecured) cards as possible and start building AAoA (and relationship with different lenders) from the start? 

The thing is, the normal disadvantage of app sprees you don't have, with no credit score they can't pull you so it won't hurt your score.

 

Or should you just start with one secured card and build slowly from that point? This would mean that later cc apps would hurt your score because of the HPs..

 

Wondering what you think of this idea.

 

Enjoy your day!


Well you certainly don't want 10 new accounts. Normally I would say the best way to start out is with two but no more than three accounts. That would be for someone who had a credit report though. In your situation I would get a secured card to start building up history. If somehow you were able to qualify for an unsecured card I would target non-AF cards, because your going to want to keep the card for a long time and it will be the foundation of your AAoAs. The bank/credit union you bank with is probably the best place to start. Then after six months of activity I would look at adding no more than two cards and then waiting another six months. By the end of the year, assuming everything else is in order, you should be well on your way. Time and time again we see people on here who rush out and get a bunch of credit cards with useless limits and really set themselves back. A ton of store cards or cards with toy limits. Focus on quality over quanity. Every single app should be thought out carefully to determine the value to you. This is more chess than checkers. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 10 of 27
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