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short credit history. good score. where to apply?

Moderator Emerita

Re: short credit history. Good score. Where to apply?

+1 to the above posts.

The classic way for a new immigrant to establish credit in the US is to get two cards, and then WAIT. Get 12 months of perfect history on each card, and then get one more card at a time, maybe at six month intervals. He can use the interim time to research cards to find the one that will work best for him.

As the others said, if he applies for more credit now, he's just going to get crap.

Having cards for the sake of having cards leads to a lot of regrets on down the road.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 11 of 18
New Contributor

Re: short credit history. good score. where to apply?

What defines a "prime" card? Why wouldn't alliant be prime? It's not like a first premier...?!

 

What defines a "superprime"? And why do we care what's "considered" prime anyway?

 

Sorry for all the quotations Smiley Wink

Message 12 of 18
Moderator Emerita

Re: short credit history. good score. where to apply?

Before the economic meltdown, these were considered prime banks/ credit card companies:

Citi
Chase
Bank of America
American Express
Discover
US Bank
(who else, who else)

semi-prime:
WaMu
Cap One
HSBC
Barclays
etc

These distinctions were made on perceptions of superior customer service. *coughs *

Credit unions and USAA (and local, small-town banks) carry slightly less weight for your FICO scores, which fries me. This is from the days where credit unions were typically local and maybe not very well capitalized. With the rise of the big nationwide CU's (and USAA!!!), I think the scoring formula needs to take another look at this. I do believe that PenFed and USAA are doing a bit better than WaMu these days. Smiley Wink

So originally people cared about "prime" cards because (1) they were a mark of progress in credit recovery and (2) they generally had superior customer service. All that has pretty well gone out the window these days.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 13 of 18
New Contributor

Re: short credit history. good score. where to apply?


haulingthescoreup wrote:
Before the economic meltdown, these were considered prime banks/ credit card companies:

Citi
Chase
Bank of America
American Express
Discover
US Bank
(who else, who else)

semi-prime:
WaMu
Cap One
HSBC
Barclays
etc

These distinctions were made on perceptions of superior customer service. *coughs *

Credit unions and USAA (and local, small-town banks) carry slightly less weight for your FICO scores, which fries me. This is from the days where credit unions were typically local and maybe not very well capitalized. With the rise of the big nationwide CU's (and USAA!!!), I think the scoring formula needs to take another look at this. I do believe that PenFed and USAA are doing a bit better than WaMu these days. Smiley Wink

So originally people cared about "prime" cards because (1) they were a mark of progress in credit recovery and (2) they generally had superior customer service. All that has pretty well gone out the window these days.

Interesting. Thanks for the info!

 

In terms of FICO carrying more or less weight depending on the issuer, is there any source to that at FICO? Haven't seen that in any documentation thus far.....

Message 14 of 18
Senior Contributor

Re: short credit history. good score. where to apply?

Wells Fargo gets no respect.
Message 15 of 18
Regular Contributor

Re: short credit history. good score. Where to apply?


smallfry wrote:
Wells Fargo gets no respect.

Wells Fargo is EVIL! I had a checking account with them about a 2 years ago and they hit me with fee after fee. The most annoying fees were when they scribed me to there billpay service (For no reason at all. Didn't even ask me. Just randomly decided to add it to my account one day. Without telling me) and started charging me $15 a month and then they started declining my debit card and I called them to ask about it and they said I had a $200 per day limit. Then when I check my account online there's a $3.50 service fee for calling them. I can't imagine what it would be like having Wells Fargo cc. EVIL!


Starting Score: 702
Current Score: 728
Goal Score: 760


Take the FICO Fitness Challenge
Message 16 of 18
Senior Contributor

Re: short credit history. good score. Where to apply?

Wow. 
Message 17 of 18
Highlighted
Moderator Emerita

Re: short credit history. good score. Where to apply?


smallfry wrote:

Wells Fargo gets no respect.

You know, I went back and forth about adding WF, but I knew I'd get heat whichever category I put them in. Smiley Very Happy

Nowadays they appear to be one of the most stable banks around. Go figure.



mrdrum18 wrote:

In terms of FICO carrying more or less weight depending on the issuer, is there any source to that at FICO? Haven't seen that in any documentation thus far.....



This is from the Big Kahuna himself (Barry, myFICO admin):

TransUnion - FICO Score (Scoring of credit union cards vs "national" bank cards)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 18 of 18