Starting my credit history, any advice?

[orestrus]

Im new to US, and trying to establish my credit in these great country. I started with secured from BofA $2k limit, Capital 1 classic platinum $300, Cap1 journey $300, US secured $300, First National secured $300. It may seem like many, but I figured that these many cards will help me to build a solid AAoA and thick credit profile. I have a huge number of enqueries now, so my question is these- with that many cards, assuming that my util will be around 5%, will I be able to apply for some major cards in 6-8 months, or its' better to wait for a year? Also, Im still wondering if Cap1 cards, especially Journey will grow with me, or they have a cap at around 3-4k? Is it advicable to use these cards heavily to trigger CLI's or 2-3 times a week is enough? Thanks a bunch!

[Anonymous]

First, thank you for your compliment regarding our country, haha. 

Indeed you are correct about having multiple credit trade lines that leads to a solid good thick file. Some people will say that Cap One does grow with you, but I wouldn't request performing a CLI every week. That would be something you view as getting new credit; wait 6 months. In about 6 months, you could pretty much qualify for AMEX, BoA, Discover, etc. They like to see good utilization and no baddies for first time applicants! 

Psst! The only reason why I held off from applying for the Chase Freedom when I hit 6 months was due to so many people (even Chase) claiming they like to see one year of credit history. 

[Anonymous]

JonathanV is right again!...  

I would have only kept the Cap1 and BofA... The others ones are too low and you don't need them.

Pay in almost full before statement closes and you're good for Amex charge product and Discover after 6 months.   Chase approved me at 6 months credit history though. 

This is my journey: 

April 14 - Applied for Discover -> approved with $1,000 (first U.S credit card!) 

April 14 - Applied for Macys -> denied 

April 14 - Applied for Amex PRG -> denied (I know...)

April 14 - Applied for Cap1 -> $300 credit step program 

July 14 - Applied for Citi simplicity - denied 

July 14 - Applied for BofA - "approved" secured account $500 (did not want to lose the HP for nothing)

August 14 - Applied for Amex PRG -> denied again

August 14 - Applied for Barclaycard -> approved on recon with $500. 

November 14 - Applied for Chase Freedom -> approved with $4,500 (0% 15 months then 22.9%)

November 14 - Applied for Amex PRG -> "rush" (ha!) approved. 

--- Cap1 credit steps CLIed me from $300 to $500 

December 14 - Asked Discover to CLI - bumped from $1k to $1.5

December 14 - Asked BofA to unsecure - 4 months 3 weeks - jumped from $500 to $1.5k and deposit returned.

-> Forget about Cap1 growing with you.. BofA will do!   

I am confused about these two small trade lines secured.  You have already the 2 Cap1 which will not grow.  (I am sorry people may not agree but I maxed out my Cap1 4-5 times a months and PIF for 6 months and they gave me an extra $200 CL..)

You should have put everything on the BofA secured and after 1 year with low utilization, and PIF before it reports you will pretty much get anything.  Espacially if you get an Amex after 6 months of credit history.

[Anonymous]

@JonathanV, you're totally ready for Chase Freedom though. 

[Anonymous]

I agree with what others have said and would wait 6-8 months and try to get the credit lines increased. Once some inquiries fall off, apply for 3-4 more cards and repeat. 

[newhis]

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@orestrus wrote:

Im new to US, and trying to establish my credit in these great country. I started with secured from BofA $2k limit, Capital 1 classic platinum $300, Cap1 journey $300, US secured $300, First National secured $300. It may seem like many, but I figured that these many cards will help me to build a solid AAoA and thick credit profile. I have a huge number of enqueries now, so my question is these- with that many cards, assuming that my util will be around 5%, will I be able to apply for some major cards in 6-8 months, or its' better to wait for a year? Also, Im still wondering if Cap1 cards, especially Journey will grow with me, or they have a cap at around 3-4k? Is it advicable to use these cards heavily to trigger CLI's or 2-3 times a week is enough? Thanks a bunch!

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I'll say wait. Don't over use your cards with low limits. Don't apply for at least 6 months. It is better to have all cards below 30%, so try to not report over $90 in your low limit cards. 

Save some money and when your BofA secured is around 7 months, put more money into it to make it at least $5000, then ask for the Visa Signature version. BTW, is your BofA card the cash rewards? If not, you can request to change your regular card to the cash rewards and get 3% gas, 2% groceries, 1% else.

I got BofA secured and Discover IT at $1000 when I first started in this country. After 8 months I asked the BofA to unsecure, then CLI and only got $2,100. Discover grew to $2,500 with a SP after around 7 months. Also at 7 months I got pre-qual for Amex and shopping card trick for JCrew. At month 8 got Freedom for $3,500. My next card is Amex ED next month.

My DW got the BofA secured and Discover Student at $500, then put money to BofA to $5,000 and now she has a Visa Signature card with BofA. Discover still $500 (I told her a HP CLI will only take her to $750 or $1000, she will wait to finish school and see if Discover give her an autocli or a SP CLI).

[jamesdwi]

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@newhis wrote:

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@orestrus wrote:

Im new to US, and trying to establish my credit in these great country. I started with secured from BofA $2k limit, Capital 1 classic platinum $300, Cap1 journey $300, US secured $300, First National secured $300. It may seem like many, but I figured that these many cards will help me to build a solid AAoA and thick credit profile. I have a huge number of enqueries now, so my question is these- with that many cards, assuming that my util will be around 5%, will I be able to apply for some major cards in 6-8 months, or its' better to wait for a year? Also, Im still wondering if Cap1 cards, especially Journey will grow with me, or they have a cap at around 3-4k? Is it advicable to use these cards heavily to trigger CLI's or 2-3 times a week is enough? Thanks a bunch!

---

I'll say wait. Don't over use your cards with low limits. Don't apply for at least 6 months. It is better to have all cards below 30%, so try to not report over $90 in your low limit cards. 

Save some money and when your BofA secured is around 7 months, put more money into it to make it at least $5000, then ask for the Visa Signature version. BTW, is your BofA card the cash rewards? If not, you can request to change your regular card to the cash rewards and get 3% gas, 2% groceries, 1% else.

I got BofA secured and Discover IT at $1000 when I first started in this country. After 8 months I asked the BofA to unsecure, then CLI and only got $2,100. Discover grew to $2,500 with a SP after around 7 months. Also at 7 months I got pre-qual for Amex and shopping card trick for JCrew. At month 8 got Freedom for $3,500. My next card is Amex ED next month.

My DW got the BofA secured and Discover Student at $500, then put money to BofA to $5,000 and now she has a Visa Signature card with BofA. Discover still $500 (I told her a HP CLI will only take her to $750 or $1000, she will wait to finish school and see if Discover give her an autocli or a SP CLI).

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+1 most of this advice,  but use the low limit cards, as your finances permit/require, If your income premits it max them out every week and pay them off. Do that for 2-3 months contact the EO and request that they unsecure your cards and/or give you a CLI to cover your expenses. Even if they say no, other lenders will see you have used your cards and see it as a possibility to earn money from you, at the 6 month mark or when ever you decide to AP for other lenders, make sure all cards report at less than 20%So lenders will see that you can and do pay off your cards. So your score is good and you are under control and not "showing seeking credit".  

Looks good on recon as well, when you have a human making the decision instead of a machine.  If they ask about your previous high balance, say its a low limit card, and I need more credit so I don't have to max the cards out all the time as it was I was paying the card weekly. I have a good income, and I would like to get the best rewards for my usage. 

[Jerry45]

Thanks for the detailed info of your Journey. It helps others

[Anonymous]

I recommend using the credit card but by the end of the Billing Cycle don't let is go over 35% of the limit on each card
Bank likes to see you use the credit and make more than minimum payment on it
Also In the Future I recommend you only get one CC from each bank to Maximize your chance to get higher limit
You should apply no more than one card per 6month
I recommend you get CC from top 4 banking institution (Chase, Citi, BoA and Wellsfargo)
Also If you have a family member with good credit
Ask them to add you as an authorized user on their better cards
But only if the cards that they keep less than 30% Cedit line usage,
Credit Limit higher the better
Older account the better
Soon it will show up on your report and Score will improve very quickly
I hope this helps Good Luck!

[Anonymous]

The Journey card can be changed to a QuickSilver after six months . You don't have to spend a lot to get a good CLI after 6 months . Just use the card as you normally would and they'll give you a good CLI if your credit report is in a good shape .