cancel
Showing results for 
Search instead for 
Did you mean: 

Short credit history; best course of action from here?

Highlighted
New Member

Short credit history; best course of action from here?

Hello all!

 

I've had a ball browsing through these forums without posting anything recently. Looking for a bit of advice on how to continue to establish proper credit. I'm 20 years old and work a full-time salary job in the ~$30k range.

 

I opened my first secured card thru Wells Fargo in January of 2012. This gives me a total credit history of 14 months.

It has a $300 limit and a $25 annual fee. I paid this fee for the second time in 1/13. However, I'm thinking of closing this account to not only get my $300 back but to start banking with a Credit Union rather than WF, they frustrate me quite a bit.

 

I opened a Nordstrom Store Card in June and got a $2k limit. At the time, my FAKO score (CreditKarma) was posting at about 715.

 

Last night I applied for an Amazon Rewards Visa through Chase and got a temporary CL of $1,000. The official EX report from Chase said my EX score was 692, so I must assume this is accurate. The only reason I haven't paid for one through myFICO yet is that I assume the hard pull gave me an accurate reading. I do not, however, know what TU or EQ puts me at currently.

 

Here is my dilemma: what is the best course of action? I'd like to apply for an AMEX Blue Cash to have both a VA & AX card at my disposal. I'm hoping Chase gives me at least a $2k limit on the Visa card. I'm wondering if Amex will deny me; I'm also wondering if it's better to use the Visa for several months, work the score back up, and then apply for AX or if I should just go for it now since I had a hard pull yesterday, anyway.

 

I have never made a single late payment; I am obsessive about my bills. My hope is to eventually have a major card from each carrier and a score of 800+.

 

Your help is greatly appreciated!

Current Score: 4/9/13 Lender Pull EX - 692. TU/FAKO: 717.
Goal Score: 800+
Wallet: Nordstrom Card $2k, Amazon Chase Visa $1k
Message 1 of 9
8 REPLIES
Super Contributor

Re: Short credit history; best course of action from here?

Welcome to the forumSmiley Wink

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 9
Established Contributor

Re: Short credit history; best course of action from here?

Welcome!

 

As I learned here, AMEX doesnt like app sprees (new accounts open in a short period of time), I would say give your new card some reporting time, then hit AMEX.

 

Smiley Happy

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Message 3 of 9
Moderator Emerita

Re: Short credit history; best course of action from here?

Welcome to the forum! Your temporary limit with Chase Amazon will probably be your limit. If you can join a CU, that would be a good idea. Talk to them and see what cards fit. As far as WF is concerned, can you PC it to unsecured? You have already paid the fee maybe they will accommodate a fee waiver. Since your credit is new...tread lightly on apps. Each inq and new account will temp reduce your score. Let the Chase Visa report for at least 6 mos before app'ing for Amex IMO.

Good luck!
Message 4 of 9
Frequent Contributor

Re: Short credit history; best course of action from here?

DO NOT apply for AMEX Blue Cash Everyday.

If you really want an AMEX card, apply for the AMEX Green Card (safest Route) OR apply for the AMEX Blue Card (the plane, Jane Blue card that provides Membership Rewards EXPRESS points). Once you're approved for AMEX Blue Card immediately call CS and request a PC to BCE card. If you went the Charge Card route, app for the BCE card after 6 months of AMEX relationship,

 

With Wells Fargo, app for their regular credit card and after approval cancel your secured card.

As of 1/10/2014 EX FICO - 748. EQ FICO - 728. Trans FICO - 755

WellsFargo - $3,000 AMEX BCE - $18,000 Chase Freedom - $4,000



Message 5 of 9
Contributor

Re: Short credit history; best course of action from here?


GaTech wrote:

DO NOT apply for AMEX Blue Cash Everyday.

If you really want an AMEX card, apply for the AMEX Green Card (safest Route) OR apply for the AMEX Blue Card (the plane, Jane Blue card that provides Membership Rewards EXPRESS points). Once you're approved for AMEX Blue Card immediately call CS and request a PC to BCE card. If you went the Charge Card route, app for the BCE card after 6 months of AMEX relationship,

 

With Wells Fargo, app for their regular credit card and after approval cancel your secured card.


Isn't there some type of law (card act?) that makes you wait 13 months before a pc?

 

As for applying for BCE, i apped a week after i got my freedom (My aaoa was around 1.6 years). I did app for the BCE 2 months prior and was denied, so don't lose hope if for some reason that happens to you.

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 6 of 9
New Member

Re: Short credit history; best course of action from here?

To this and to every response - thank you all SO much for your responses! I agree that it is most logical for me to wait. Six months of on-time full payments on the Visa should help the score, as well as establish a better AAoA.

 

I've been into Wells Fargo twice now to ask about converting the card to a regular card. They've told me time and time again they CANNOT do that, that they have to actually close the account - which is what I was trying to avoid. I'm wondering if I walk in and tell them I'm planning to close all accounts if they may 'reconsider'. On the flipside, if I close the account, will it have a distinctly negative impact on my score or will it not do much of anything? I'm still learning about such things.

 

Thanks again!

Current Score: 4/9/13 Lender Pull EX - 692. TU/FAKO: 717.
Goal Score: 800+
Wallet: Nordstrom Card $2k, Amazon Chase Visa $1k
Message 7 of 9
Established Contributor

Re: Short credit history; best course of action from here?


gitakay wrote:

To this and to every response - thank you all SO much for your responses! I agree that it is most logical for me to wait. Six months of on-time full payments on the Visa should help the score, as well as establish a better AAoA.

 

I've been into Wells Fargo twice now to ask about converting the card to a regular card. They've told me time and time again they CANNOT do that, that they have to actually close the account - which is what I was trying to avoid. I'm wondering if I walk in and tell them I'm planning to close all accounts if they may 'reconsider'. On the flipside, if I close the account, will it have a distinctly negative impact on my score or will it not do much of anything? I'm still learning about such things.

 

Thanks again!


The only initial effect it will have on your scores is utilization factors, it won't harm your AAoA for 7-10 years, and by then you should be fine anyway.

NFCU CashRewards $13.5k | AMEX BCE $15k | Lowes $17k | Sportsmanss guide $7.6k | Chase Freedom $1k | Discover IT $4.4k |
Walmart $8k | Gordman's $2950
Message 8 of 9
Frequent Contributor

Re: Short credit history; best course of action from here?

The law only applies to cards with an annual fee.

 

Aka: If you were approved for the Blue card and wanted to PC to BCP ($75 annual fee), you'd have to wait 13 months.

 

I first apped for BCE and was denied. I waited 5 months later and apped for the Blue card (was approved) and PCed to BCE. Viola!

As of 1/10/2014 EX FICO - 748. EQ FICO - 728. Trans FICO - 755

WellsFargo - $3,000 AMEX BCE - $18,000 Chase Freedom - $4,000



Message 9 of 9