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New Member
shiro1030
Posts: 5
Registered: ‎01-23-2014
0

What should I do next?

Hi new to the forum and been building my credit for almost a year now. Backstory: Got my social security in November 2012. Applied for secured card at BoA on Feb 2013 with a limit of $300. Just this past November, I applied at Banana Republic and got approved with $1000 CL but then they raised it to $2500 when I received the card in the mail. Also, my secured card graduated to unsecured at the same time and they raised my CL limited to $800. What should I do next? I don't have any loans and any utility bills under my name since I still with my parents and still a student. 

 

Credit Karma: 693 (It went down lately)

Hard Inquries: 4

Late fees: None. 

Moderator
Revelate
Posts: 9,732
Registered: ‎12-30-2011
0

Re: What should I do next?

Welcome to the forums!

 

A lot depends on what your goals are, and the BOFA now unsecured card is a fine one.  As an example, with a year under your belt on a national bank card you can qualify for a bunch of the standard entry-level rewards cards (Chase Freedom / Discover It / Amex / etc); I would ask that question over in our Credit Cards forum after detailing what your spending habits are (whether you use lots of gas, purchase a lot of groceries, or proudly being able to burn toast like myself who winds up eating out all the time) and what your income is as well and if you have any negative information on your reports.  Wouldn't be a bad idea to pull the EX report from here and see what your FICO '08 is from that bureau, that is typically the best benchmark for credit cards that you can get right now in my estimation; however, from what you described I'm not seeing much issue with the entry cards from those lenders, might be able to do better though.

 

Likewise much as you built a positive tradeline on a secured credit card, it's a good idea to do similarly on a secured installment loan.

 

Finally if you have a big ticket item coming up (mortgage, maybe autoloan) in the next six months to a year I'd hold tight; however, if you don't have anything coming up I'd take the steps to thicken up your credit file and diversify your tradelines slightly.  You're off to a fine start though!

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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New Member
shiro1030
Posts: 5
Registered: ‎01-23-2014
0

Re: What should I do next?

Thanks Revelate! Unfortunately, Chase denied me back in November when I tried to apply for Chase Freedom but this was before I applied for Banana Republic and my secured became unsecured. Chase told me that they want to see my deposit at Chase longer (have a checking account there since 2011) and see more loan/credit under my name. I also tried to pull out my score through this site but since my social security number is just a year old, they cannot pull anything right now. Customer service told me it has to be 2 years or older. 

 

I've been thinking trying to apply to Discover It or Citi Bank Simplicity because of the rewards for gas and eating out (I like to eat out too!) but I'm scared to get denied again and see my score go down. Not planning on getting any kind of loan or mortgage anytime soon.

Community Leader
Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010
0

Re: What should I do next?

[ Edited ]

I'd suggest cultivating a long-term relationship with a couple of good CUs.

 

Doing so opens up possibilities not available to you via regular CCs or banks.

 

Mega Contributor
RobertEG
Posts: 18,442
Registered: ‎03-19-2007
0

Re: What should I do next?

You now have mutliple revolving lines of credit, one of which is a major bank card.

You thus have the min needed to show FICO that you are effectively using discretionary credit.

I would not be in a hurry to open new revolvings.

 

An installment loan would add a bit of credit mix, but it is minor.

If uneeded, the interest you would be paying is, in my opinion, not worth the minor affect of adding an installment loan.

I would wait until you have a legit need for an installment loan, such as the purchase of a car.

 

Being only about a year into the game, you are doing outstanding!

Personally, I would sit on what you now have, and build another year of aging, with no inquires during the next year.

I would keep the % utils low on those current CCs so that when you are ready to app for new credit, you can get both cards under 10%, which will place you in excellent postiton to get better rates and CLs.

 

New Member
shiro1030
Posts: 5
Registered: ‎01-23-2014
0

Re: What should I do next?


RobertEG wrote:

You now have mutliple revolving lines of credit, one of which is a major bank card.

You thus have the min needed to show FICO that you are effectively using discretionary credit.

I would not be in a hurry to open new revolvings.

 

An installment loan would add a bit of credit mix, but it is minor.

If uneeded, the interest you would be paying is, in my opinion, not worth the minor affect of adding an installment loan.

I would wait until you have a legit need for an installment loan, such as the purchase of a car.

 

Being only about a year into the game, you are doing outstanding!

Personally, I would sit on what you now have, and build another year of aging, with no inquires during the next year.

I would keep the % utils low on those current CCs so that when you are ready to app for new credit, you can get both cards under 10%, which will place you in excellent postiton to get better rates and CLs.

 


I'll try not to inquire anything this year. I just spoke to BoA and they switched my card to their cash rewards card. There is a slim chance that I might have to look into some kind of student loan later this year but for now, my mom and I are paying my tuition out of pocket. 


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