06-24-2012 12:08 PM - edited 07-05-2012 04:22 PM
Hi all, I am posting this for my DGF who has only started her credit journey less than 2 years ago. She received her first credit card with Bank of America in 09/2010 with a measley $300 CL, and added to her portfolio a Capital One Cash Rewards with a $2000 CL in 04/2012. After seeing my interest in credit, and relative sucess in the past few months, she's asked me to help her build up her portfolio. She, like many Asian immigrants, was using strictly cash/debit for most of her transactions. But after seeing her semi-wealthy relative denied a mortgage and requiring a co-signer, she has decided that that is not the way she wants to go for her credit future.
Anyways, we looked at her myfico EQ report back in April and she scored a 675 before the addition of her Capital One. I'd guess she is a few points higher now due to an addition of a 2nd credit account. I'm not too familiar with early stages of building credit so I'm looking for help. She did miss a payment with BoA by 1 day due to making a payment after 5PM. I'm not sure at the moment if it actually got reported to the CRBs but maybe we'll check the reports later.
Can someone suggest some cards for her? I think getting in with AMEX with ZYNC is a good idea for the future, but is it too early considering her file? Chase Freedom may get a low CL that would be tougher to grow. Or maybe now is not a good time to app and she needs to garden a bit.
We're just looking for suggestiions so any would be appreciated. Thanks!
06-24-2012 12:36 PM
I would recommend Zync and one Store card, somewhere that she likes to shop that is backed by GECRB.
also, don't overlook the impact that a secured installment loan will make, installment loans are viewed at as more favorable accounts to have. something as small as a 1k installment secured loan with monthly payments of $92 would help her tremendously in building installment history, which would help in car buying and in mortgages
06-24-2012 01:23 PM - edited 06-24-2012 01:24 PM
To add to the good suggestions posted, PC that BOA card to a rewards one: they're doing it for secured cards now, no reason they wouldn't tack it on for an unsecured starter card I suspect... and it turns it into a pretty nice card all things considered for the credit strata. A CLI since she's had it 18+ months might be possible too, but it'll undoubtedly be a HP to do so.
06-24-2012 01:45 PM
Walmart, Amex Zync, Barclay Visa, and a store card from GE from where you might shop.
06-25-2012 06:09 AM - edited 06-25-2012 06:13 AM
Ah, we completely forgot she has a Macy's card. She used it once when she opened it maybe 1.5 years ago. Is that backed by GE?
We may ask for a CLI with BoA which is already an rewards card but I don't want her to put too much faith in BoA as I see them take AA against many members on this forum.
I think we will app for a ZNYC. Probably won't for the Wa-Mart card because we don't shop there often, maybe once every few months. Isn't Barclay inquiry sensitive? She just got the Capital One 2 months ago so the inquiry is still fresh.
06-25-2012 08:49 PM
The Macy's credit card is issued by Department Stores National Bank ("DSNB").
I've heard of many folks having good results with CLI on the BOA card through the luv button on the online banking site. Usually 6 months is about when you could be eligible with BOA. And from what I understand Barclay's is very sensitive to Inquiries. You would probably be more likely to see AA from Barclay's then BOA IMO.
06-25-2012 11:28 PM
Can someone suggest some cards for her?
Maybe think of getting a card from each network: a Mastercard, a Visa, an Amex (Zync is an excellent idea) and a Discover. Also, don't forget about building a relationship with a Credit Union. These are all things you can do building upon her existing BOA and Cap One cards. Also, I think its a good idea to check her FICO® score again. After you get done getting some more cards, I would seek a much larger credit limit on that BOA card.
I wish you well!!!
07-01-2012 02:25 PM - edited 07-01-2012 02:27 PM
We pulled her report and FICO score today by signing up for quarterly monitoring.
Per TU, her FICO is 698. 1 late payment on BoA 4/2011. AAoA 1 year, 5% utilization and 1 inq from Capital One in 4/2012. We're kind of surprised that BoA reported her as late because she was only a couple days late, due to forgetting. She paid it to $0 couple days later when she remembered then setup autopay. Bad habbit of hers I guess.
So ZYNC is on the table, and so is Discover. Any other suggestions??
07-05-2012 04:18 PM
We just applied for AMEX ZYNC and INSTANTLY approved for NPSL. Then, after reading that if we apply for charge and credit card on the same day may result in only 1 HP, we applied for BCE. It gave us one of those 7-10 days message. I googled "AMEX application status" and entered in her information. The screen pops up and BAMMM, APPROVED FOR BCE.
Called a few minutes later hoping to get what the CL is, but they said we have to call back in at least 24 hours because they don't know yet.
Should we app for Discover before these accounts start reporting?!?!
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.