topic Re: Should I apply in Credit Card Applications

Should I apply

Anonymous — Mon, 29 Oct 2018 16:09:04 GMT

I really need a card . I do not currently have any CCs

Current scores EQ 713 TU 700 EX 684.

Just recently two 15.00 medical collections appeared on EX.. No late payments in over 2 years. I did have some on a secured visa 3 yrs ago which I paid off.

2 car leases Ally and GM financial $316.00 and $436.00 mortgage 1650...
Annual income of $132,000,00

Any advice is appreciated.

Re: Should I apply

Medic981 — Mon, 29 Oct 2018 16:48:59 GMT

Welcome to the myFICO forums!

Ultimately, what a person needs to improve their FICO scores and build credit are three open credit cards (secured or unsecured) in good standing and one open installment loan in good standing such as a car, home, student, personal, share secured, or credit building loan. This combination is what the myFICO score theorists here have determined is what you need for optimal credit building and FICO score. You can have more CCs and more installment loans, however, this will not increase your FICO scores.

IMO, Discover it Secured is one of the best-secured CCs for poor credit, bad credit, and no credit applicants—and one of the best gas CCs you can get with bad credit. Disco offers 2% cash back at restaurants and gas stations (one up to $1,000 in combined purchases each quarter) and 1% cash back on other purchases. You’ll need an up-front security deposit of at least $200 to apply for the Discover it Secured Card.

Capital One Secured CC requires a refundable security deposit of $49, $99 or $200 based on your creditworthiness. Make the minimum required security deposit and you'll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line. Get access to a higher credit line after making your first 5 monthly payments on time.

Bank of America's BankAmericard Secured CC is designed to help establish, strengthen or rebuild credit for an annual fee of $39. A minimum refundable security deposit of $300 is required to open this account. Your maximum credit limit will be determined by the amount of the security deposit you provide, your income and your ability to pay the credit line established. If you provide a deposit that exceeds the calculated maximum amount based on your ability to pay, a will be returned to you for the difference. BoA periodically reviews your account and, based on your overall credit history (including your account with us and other credit cards and loans), you may qualify to have your security deposit returned. Not all customers will qualify.

Next, (this is only important if you are attempting to purchase a large ticket item like a home or car) is paying in full all of the credit card balances each month, before the posting date, except one. This is called the All Zero Except One (AZEO) method. The one credit card you allow to post a balance needs to be less than 8.9% of the credit limit of the card. So using one card each month to buy lunch, letting it report and then paying in full will maximize FICO scoring. Keeping your utilization of your cards below 28.9% both individually and collectively will prevent you from incurring a FICO scoring penalty.

An installment loan will have its greatest impact on your FICO score when the amount owed is at 8.9% or less of the original amount owed which is usually in the final months before the loan is paid in full. If you don't have an installment loan you can check into Self Lender or a Share Secured Loan at a Credit Union.

Keep in mind, building credit is a marathon, not a sprint. It involves demonstrating to a potential creditor that you can handle credit responsibly. If you have open, active credit accounts that are being paid on time and pay all of your bills on time every time, apply for credit only when you actually need it and use credit cards sparingly maintaining low credit utilization, then you’re going to earn and maintain great credit scores. It would be impossible for you not to do so. This is the fastest way you can build good, solid credit.

Re: Should I apply

Anonymous — Sat, 03 Nov 2018 13:21:00 GMT

Thanks for all that information.

I applied for a Chase freedom unlimited card and was approved for $1000.00. 👍🏻👍🏻 It’s a start.

I other question. Does a secured card require a hard credit check?

Re: Should I apply

joltdude — Sat, 03 Nov 2018 14:59:52 GMT

Yes most secured cards DO require a credit check....(Hard Pull)

But if your going for a secured card.. (Which I think Discover would be great.. might be able to get the unsecured one but id try for a prequalify if you were to go that route and sign up for Credit Scorecard a few days before trying a prequal) ...

Go for one that *Graduates* (Which means those pulls will not be a waste)

There are few to no cards these days, including store cards that DONT require a HP.... (The SCT is mostly dead)...

Discover and Amex are more amicable to THIN and New files... esp if you haven't burned them in the past....

-J

Re: Should I apply

SouthJamaica — Sat, 03 Nov 2018 17:07:47 GMT

@Anonymous wrote:
Thanks for all that information.
I applied for a Chase freedom unlimited card and was approved for $1000.00. 👍🏻👍🏻 It’s a start.
I other question. Does a secured card require a hard credit check?

It's a great start. Congratulations.

Don't bother with a secured card; that would be a step back. You have just been approved for a premium card with a premium lender.

Re: Should I apply

Anonymous — Sat, 03 Nov 2018 18:50:57 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Thanks for all that information.
I applied for a Chase freedom unlimited card and was approved for $1000.00. 👍🏻👍🏻 It’s a start.
I other question. Does a secured card require a hard credit check?
It's a great start. Congratulations.

Don't bother with a secured card; that would be a step back. You have just been approved for a premium card with a premium lender.

I agree. Try Discover/Amex and Cap one. Do the prequalify beforehand just to check. But if you got a card through Chase you may be able to get one through them and not have to give them your money.

Re: Should I apply

Anonymous — Sat, 03 Nov 2018 18:55:56 GMT

I did the prequalified for Discover and it said I was pre approved. But how soo. Should I apply do you think?

Re: Should I apply

Anonymous — Sat, 03 Nov 2018 19:38:43 GMT

GIve it a shot. Discover likes thin files and you can't get any thinner than you are right now. Fingers crossed for you.

Re: Should I apply

Anonymous — Sat, 03 Nov 2018 20:20:17 GMT

Well I’ll be darned I applied for a discover card and was approved. $3300.00 Wholy cow. Thanks guys.

Re: Should I apply

Anonymous — Sat, 03 Nov 2018 20:24:57 GMT

Now I need third one but don’t want to push it 🤦‍♂️🤦‍♂️

Re: Should I apply

joltdude — Sat, 03 Nov 2018 23:25:08 GMT

Im gonna be the one who says.. Wait a few months for these cards to report usage...

You don't need 3 cards immediately...

I'd wait at least until these cards start reporting... Think about revisiting this in 3-4 months (possibly 6)... See your scores.. Since you have a few cards now... get a little bit of experience under your belt then grab the third card... Since your report still is a bit thin... In the past id be like oh go for a third now.. but no... That Chase card really needs a little bit of aging.... Some may argue and say oh you could get another card easy.... but you want it to be comparible or more than what you have now.. and some banks will try to compete on limits IF you have the experience....

-J

Re: Should I apply

Anonymous — Sun, 04 Nov 2018 00:09:03 GMT

Thanks for the advice. I will wait as suggested. The advice on this forum has been invaluable. So I’ll heed it.
Thanks everyone.

Re: Should I apply

joltdude — Sun, 04 Nov 2018 02:22:44 GMT

Still should work on the collections and trying to get off that paid off debt...

If im reading it correctly Just recently two 15.00 medical collections appeared on EX..

Some versions of FICO consider those tiny collections as "nuisance debt"... Still should try to pay them off so they arent there...

Id try to call the provider of those tiny collections and offer to pay them directly.. its a bit of a pain but i want them to recall the debt...

Now the bigger one.. that youve paid already.. Go talk to the rebuilders on the rebuilding forums... Might be able to goodwill it off or possibly dispute if theres some inaccuracy involved..

Reason im suggesting this is .. you will increase your scores. and make you look good for some Disco Auto Luv a bit after your third statement... As is anything to do with Miss Disco.. YMMV but esp with getting an unsecured disco.. Theres a chance of an auto somewhere after the thrid statement / 3 months and change....

Also making your report look better for when you app for a third card =).. Theres also still a remote possibility that Chase could give you an auto since you have one of their lower approval CLs... which happens a bit more lately.. but again.. all the more the reason to polish your report and wait a bit...

-J

Re: Should I apply

Brian_Earl_Spilner — Sun, 04 Nov 2018 02:26:59 GMT

@joltdude wrote:

Im gonna be the one who says.. Wait a few months for these cards to report usage...
You don't need 3 cards immediately...

I'd wait at least until these cards start reporting... Think about revisiting this in 3-4 months (possibly 6)... See your scores.. Since you have a few cards now... get a little bit of experience under your belt then grab the third card... Since your report still is a bit thin... In the past id be like oh go for a third now.. but no... That Chase card really needs a little bit of aging.... Some may argue and say oh you could get another card easy.... but you want it to be comparible or more than what you have now.. and some banks will try to compete on limits IF you have the experience....

-J

Solid advice as Chase will SP his credit within a week and seeing a bunch of apps could spook them.

Re: Should I apply

Anonymous — Sun, 04 Nov 2018 04:09:13 GMT

What is SP my credit?

Re: Should I apply

joltdude — Sun, 04 Nov 2018 13:06:41 GMT

Soft Pull... Many card companies will do a soft pull monthly.....and others every few months... and some just when you get the card for a bit..

They see if your getting any other cards...

Yes some card companies get jealous if you grab a bunch of cards after theirs.. Its also sometimes used for in-account scores....

Re: Should I apply

Anonymous — Sun, 04 Nov 2018 19:48:14 GMT

@Anonymous wrote:
Well I’ll be darned I applied for a discover card and was approved. $3300.00 Wholy cow. Thanks guys.

There you go. BOOM!

Re: Should I apply

Medic981 — Sun, 04 Nov 2018 22:59:19 GMT

@Anonymous wrote:
Thanks for the advice. I will wait as suggested. The advice on this forum has been invaluable. So I’ll heed it.
Thanks everyone.

I would wait 6 months, clean up your credit report during that time and then app for an Amex card.