Guide Me

[JoeRo]

So this credit thing is new to me.  I'm a college Sophomore, and just opened a Capital One Secured card 4-5 months ago.  I follow the advice of the forum and keep my utilization low and pay off every month.  I also just had a student loan taken out, though it hasn't appeared on my report as of yet.  I'm looking to build my credit as much as possible for the next year or so in hopes of buying a car.  I'm not quite sure what to do next.  I just tried to open up a store card at TjMaxx, and recieved the ten day response.  So I haven't heard on that yet.

Which brings me to my tentative plan.  I'm considering opening an installment line of credit, secured of course, at my local bank branch.  Are there any other secured credit cards out there that are worth considering as well?

[pizzadude]

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@JoeRo wrote:

So this credit thing is new to me.  I'm a college Sophomore, and just opened a Capital One Secured card 4-5 months ago.  I follow the advice of the forum and keep my utilization low and pay off every month.  I also just had a student loan taken out, though it hasn't appeared on my report as of yet.  I'm looking to build my credit as much as possible for the next year or so in hopes of buying a car.  I'm not quite sure what to do next.  I just tried to open up a store card at TjMaxx, and recieved the ten day response.  So I haven't heard on that yet.

Which brings me to my tentative plan.  I'm considering opening an installment line of credit, secured of course, at my local bank branch.  Are there any other secured credit cards out there that are worth considering as well?

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Welcome to the forums !

It sounds like you are off to a good start in the credit world ~ was the Cap1 card your first line of credit ?  If so, you should be able to generate a FICO score after 6 months of credit history.     I'd keep paying on time and building positive payment history, and you should probably be able to get approved for other cards, including other store cards as well.

In terms of your student loan, it will show on your credit reports as an installment loan also.   If you are working wth the bank then you could also inquire with them about any student credit cards.

[JoeRo]

Should I wait for the Fico to generate before applying for anything else?

[pizzadude]

I don't think that it would hurt to wait a bit longer - maybe after 6 or 9 months of positive payment history you'll be more easily approved.

[RobertEG]

Are you considering opening the installment simply for FICO purposes, or is it a needed loan?

If simply for FICO purposes, I would wait.

It will most likely involve a hard-pull, coming recently after the probable hard-pull for the store card.

You already have both installment and revolving, so little to be gained in credit mix.

Multiple revolving assist more than multiple installments, as FICO wants to see your effective use of discretionary, revolving credit.

I would consider a secured CC, preferably a bank card,  before going after another installment, if FICO is your prime motivator.

[Anonymous]

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@RobertEG wrote:

Are you considering opening the installment simply for FICO purposes, or is it a needed loan?

If simply for FICO purposes, I would wait.

It will most likely involve a hard-pull, coming recently after the probable hard-pull for the store card.

You already have both installment and revolving, so little to be gained in credit mix.

Multiple revolving assist more than multiple installments, as FICO wants to see your effective use of discretionary, revolving credit.

I would consider a secured CC, preferably a bank card,  before going after another installment, if FICO is your prime motivator.

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+1 totally. A secured card would give you a revolving tradeline. You have an installment tradeline already with your student loan, and if you're planning on taking out more in future semesters, you won't really need any more installment-type tradelines.

[kimmiller112]

I'd do another secured credit card, perhaps though your bank, before doing a secured loan.  Make sure it is one that will report to the CAs.  Then in 6 months, you may want to try some of the student cards out there, like Discover More for students or Capital One Journey.  If there is a credit union close to you, see if you are eligible to join - if you are, open up a checking or savings account (or both) to get a foot in the door.  Credit unions are great places to obtain credit cards with good limits and car loans at good rates, so in 6 months, you may want to app for one of their credit cards and then next year, talk to them about financing for a car.  Once the new cards have aged 6 - 8 months, I think you would be safe in apping for Amex Zync and getting your foot in the door with them.

In the meantime, you may want to recon your TJMaxx app.  This card is backed by GE.  There is a list of backdoor numbers in a sticky at the top of the credit card section.  I'd give them a call and tell them you just applied for the TJMaxx card and got the 10-day response.  Then ask if there is any information you can give them to help them make their decision.  Sometimes, all they need is to verify information or ask a couple questions about income.  But if it is still denied, don't app for anything else until your Cap One card ages more.

It all takes a lot of patience.  You are taking the right steps at a very young age.  This forum has all of the information you will ever need to help you along the way.  If don't rush the process, you should have some nice cards and limits in a few years.  Good luck!