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tuffluck
Posts: 75
Registered: ‎08-18-2009
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new to the credit card world, need some hep understanding

[ Edited ]

hi all.  i have a wellsfargo account and had a secured card since last august.  paid it in full every month and got an unsecured card in march of this year.  pay it in full but didn't know the 30% credit/debt utilization rule and went over 30% twice.  i checked my fico/experian score recently on freecreditreport.com, which ironically is not free btw, and it is a 655.  i have no mortgage or car loan, just the one revolving card and have paid it in full every month by the due date.  i think the score is low because i'm new to the credit scene and because of the over 30% errors i accidentally made.

 

i applied for an amex card in april, only because my bank said my fico score they had was 700 and i figured that was good enough for amex.  i obviously didn't understand credit much because i was denied.  i have read a lot that 3 revolving accounts is good, but i don't want to get crappy credit cards.  so here are my questions:

 

1. how many points do you lose if amex/chase/whoever checks your credit when you apply for a card?

2. i like the amazon card and wouldn't mind making a purchase or two off amazon anyway while they have the 12/mo no interest as well.  should i apply for this card as a 2nd revolving account?

3. i invest via fidelity and they offer an amex card that gives you 2% back on all purchases.  i am guessing my credit isn't good enough yet for this card but i don't really know.  should i apply for this one?

 

my goal is to purchase a car around april of next year and ideally i would like to have a good enough credit score (700-720) to get a good interest rate.  but if i lose points applying for credit and simultaneously don't know if i will even get approved, but all the while knowing i might need multiple accounts to build my score, well, what the heck am i supposed to do?  it all seems like a huge catch 22.  so if you can help me understand my options and the best thing for me to do in this situation, i would appreciate it.  thank you.

Message Edited by tuffluck on 08-18-2009 02:27 PM
Frequent Contributor
MyFicoAddict
Posts: 284
Registered: ‎05-11-2009
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Re: new to the credit card world, need some hep understanding

Hey and welcome,

 

I am not much of an expert and this is just my opinion but I think you should look into getting a store card such as a Macy's or JC Penney etc. Also, look into a local credit union that you could join and apply for a CC with them - this is going to give you total of 3 CC's and you can let them grow with you. I dont know how many points you loose on inquiries but you get them back once your card is active etc.

Aim to be fiscally and physically fit...
EQ - 723 FICO as of Aug 2010
TU - 757 FICO as of Sept 2010
EX - 742 FICO as of Oct 2010 (PSECU)
New Contributor
tuffluck
Posts: 75
Registered: ‎08-18-2009
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Re: new to the credit card world, need some hep understanding

how would a macy's card be any different from an amazon card?

 

if i invest with fidelity are my chances of being accepted any better for the amex 2% back card?

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: new to the credit card world, need some hep understanding

[ Edited ]
Macy's is a store card and it adds to your mix of credit. You get a FICO boost for that. So if you are adding cards to your portfolio adding a store or gas card (you only need one) is a great idea,
Message Edited by creditwherecreditisdue on 08-18-2009 07:10 PM
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MarineVietVet
Posts: 14,919
Registered: ‎07-14-2009
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Re: new to the credit card world, need some hep understanding

i checked my fico/experian score recently on freecreditreport.com, which ironically is not free btw, and it is a 655.

 

 

This is not a true FICO score. It's what's called around here a FAKO score and is pretty much useless. No one has been able to pull their own Experian score since mid-February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com.

 

 

(myfico)
7/09        8/09
TU-742
EQ-779   783

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

New Contributor
tuffluck
Posts: 75
Registered: ‎08-18-2009
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Re: new to the credit card world, need some hep understanding

would i likely not qualify for the amex via fidelity?

 

also, what are some other gas card options?  i would use that more than a retail card.

 

thanks for the help.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: new to the credit card world, need some hep understanding

Macy's is the best store option. Reason - easy, frequent credit (guideline) increases. (They also have nice web shopping.) No point in being stuck with a gas or store card that is going to wallow forever at a few hundred dollars limit! Also, once you get a decent rewards CC you really would never use a gas card. Years ago I had a bunch of them and I don't have a single one now. I have absolutely no use for one. I'd rather allocate that slot in my portfolio for a card with some growth potential.
Frequent Contributor
Karatz
Posts: 318
Registered: ‎09-25-2008
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Re: new to the credit card world, need some hep understanding


tuffluck wrote:

would i likely not qualify for the amex via fidelity?

 

also, what are some other gas card options?  i would use that more than a retail card.

 

thanks for the help.


 

If you regularly get gas at a specific gas station, I would go in and see what they offer. I've been getting tonz of shell preapprovals and others lately, but I'd only get what you would conveniently use. They often give good incentives like cash back/gas back on purchases, but the rest of the terms like interest rate isn't what I would want to not pay in full every month.

 

Regarding the fidelity card, I would check the statement date on your current card(s) and make sure the balance is zero on that date, hopefully that's the date they report to the credit agency. When u do check your credit report, you will be able to see what balance they are reporting, if you need the score to be higher and are carrying a balance, get the balance down long enough for it to report. Reporting dates are often statement dates, but not always. You can always call the card and ask, hopefully they give you a correct answer. Once you know your score, I'd give giving them a call and faxing them a copy a shot. They probably won't say yes or no, but you can always ask if they think you'd have a decent shot at getting approved. Asking never hurts. Tell em you want as few inquiries as possible and you just wanna know what their criteria(s) are and if you are in their range or close. Asking for a soft pull to see if you could prequalify won't hurt either. You never know till you ask. Just make sure you're clear and understand what they are going to do. If you decide to apply for this, do apply to this one before the gas/dept store card as that will be 1 less inquiry the fidelity sees. You say you invest at fidelty. They should treat you well cause I know tonz of places that would if you had your money invested there.

 

Hope this help...good luck :smileyhappy:

TransUnion/Equifax
746/754
Date: 9/24/2009/10/02/2009
Frequent Contributor
CreditCard101
Posts: 401
Registered: ‎02-23-2009
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Re: new to the credit card world, need some hep understanding

[ Edited ]

To understand credit cards, I will provide you some most valuable information and personal experience about credit and credit cards.

 

#1. If you are going to use credit card, be sure that you use it responsibly. Example, use your card for purchase that you need and pay it off ON-TIME and it will pay you OFF for good credit. (Time is everything here)

#2. Live within your means and don't spend too much that you get into debt. ONce you get into debt, you will never be able to get out and eventually in trouble.

#3.  Everyone needs credit and start building credit with a good behavior, control yourself from excessive spending and shopping spree. Know your spending habits which will help you alot and your credit. SAVES YOU $$ AND TROUBLE.

#4. Your credit score will never stay the same as it is depending on your card usage (utilization), your score will always be fluctuated. Here's the key point, the more you use the more debt you get and the lower the score you will get. The less you spend, the more credit available to you, the higher score you will get. And this will change from month to month and it's all depend on your spending BEHAVIOR.

 

Summary,

To earn credit, use credit. Good credit takes time, and timing is everything all equal to your personal behavior.

 

Credit is all about you!!

 

Good Credit = Good Behavior

Bad Credit = Irresponsible Behavior

 

 

Very simple!!

 

 

 

Message Edited by CreditCard101 on 08-19-2009 06:32 AM
New Contributor
tuffluck
Posts: 75
Registered: ‎08-18-2009
0

Re: new to the credit card world, need some hep understanding

[ Edited ]

thanks for the help.  i think i will call on the fidelity card and see what they say.  the problem is that the card is via amex, so i don't know if they would give any more leniency towards fidelity customers since obviously only fidelity customers can get the card anyway.  in other words, i'm sure the card is subject to the same approval as any amex card.

 

thanks for the tips on credit.  i only use my card knowing full well i can pay it off when i get the bill, and keep it under the 30% max.

 

usually i get my statement online say 8/15 and it's due 9/2.  i pay it off a day or two after i get the bill, say 8/17.  if the balance is $500 that is what i pay on 8/17, but then i start using the card again immediately as the balance i accrue from that point is on the next billing cycle.  is there something wrong with this, should i be waiting until AFTER the due date to start a new balance on the card?

 

when talking about a macy's card, are you referring to the visa card or just the non-credit card type card they offer?

Message Edited by tuffluck on 08-19-2009 07:20 AM

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