I have a Discover and an AMEX, and while AMEX has been on good behavior, I'd recommend the Discover. It's treated me the best. (of course I haven't run any money through the AMEX because I'm scared of it, partially because of these forums)
Starting Score: EQ: 665 - TU: 687
@redwhisky wrote:So let me start by saying, Ive been working on rebuilding my credit. I have no excuse for bad credit except for being a young dumb jerk.
The fico best simulation for my TU and EQ is to pay down my single credit card in a span of the next two years. If I do my scores will be:
704-744 TU
796-836 EQ
Not to say that is guaranteed, but that's what im praying for.
I do have some bad marks. I have two that I am hoping come off in 2011 and two in 2012. At least those are the 7 year anniversaries. I also have a judgement from 2004. That was paid in full. I think that has a 7 year statute of limitation. I also have no inquires on either.
So, I've been shopping around and I plan on applying for two cards after I pay down my one card. And, my new scores posted.
I want to get the NFCU rewards card, but I am up in the air for the second.
I want either a discover or amex. I may even just get the NFCU card and wait for the next year to get the other card. I am not sure how much the new credit will lower my score.
I plan on using the cards for gas, maybe groceries and anytime i could afford to pay close to full amounts. I am just looking for the revolving credit to be reported. I am aiming for an 800 score by next year. If that's even possible.
What do you guys think? Anything will be really appreciated.
Oh, well heck, most of us have been young dumb jerks. Some of us have been old dumb jerks!
One comment about the sim saying to pay down balance over two years: that's a very confusing scenario. What it's really saying is to pay down your CC balance(s) ASAP, keep them down, and keep your nose clean for two years, building up more clean history and putting baddies in the past. Many people think it means that they're supposed to stretch their paydown over a period of 2 years. I've gotten this message with a total balance on all cards of $14. 
Same thing when you click on the options to pay X amount over 3 months, 6 months, a year, etc. --it really means pay them off, keep being credit smart, and in 3-6-9 months, your scores should be in the so-and-so range. I think from what you've written that you're planning on reducing the balance ASAP, which is good.
The Navy card is a good first step. They're generally far more forgiving that other lenders. A couple of questions:
- How old is your current card?
- When in 2011 are you hoping that the two baddies come off? And how bad are they? If they're just 30-day lates or something similar, I wouldn't worry about them. If they're something more fun like charge-offs or collections, I'd wait until they're gone, especially if they're due to drop early in the year.
At any rate, once you do feel that it's time to go for the third card, there's a good chance that you'll see little or no drop. (Same with the second card, in fact.) The scoring formula "likes" seeing 3 open revolving tradelines, aka CC's, and often people see no drop at all for the first three cards. After that, you'll more likely see a ding.
No telling where you'll be when you're ready to go for the third card, and in fact, if you do delay until 2011, allowing 6 months or more of history on the Navy card to report, there's no telling where CC's will be by then, either. They seem to change personality often, and we're seeing a lot of rewards cards get gutted. I'd just go ahead and get the Navy card, and keep it and the first card polished up, and keep doing research in the meantime. I still have a list of cards that I was drooling over when I first got started here on the forums in 2007, and I'm not sure that I'd want even one of them now. 
@redwhisky wrote:Thank you so much for the information, sir.
This site is all anyone needs.
Not sure if you're replying to me, but if so, I'm a mom of three grown kids. Around here, everyone calls me hauling or HTSU, because my screenname is so absurdly long.
But that's refreshing! Are you active duty? I'm a grown-up (mostly) Army brat, and I still miss going on post/ on base and hearing all the "sirs" and "ma'ams". Nowadays, it's mostly "Hey, you!"
Anyway, we're glad you found us, and we hope you keep checking back in from time to time.