topic Re: Maxing my Credit Score? in Credit Cards

Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 15:02:45 GMT

A little background, i'm 20 years old with 2 credit cards at the moment I have a Kohls Charge with a 300$ Limit, and a secured Discover IT with a 200$ limit. I only have 3 months worth of credit history, so this question is for when I hit the 6 month mark and generate an actual FICO.

Should I add myself as an authorized user on one of my moms Capital One cards? she just got approved for it a few days ago and the limit is low, but i'm just looking for the biggest boost in my score possible in the next 3 months so I can maybe qualify for a card or 2 that I really want in june. Would adding a 3rd card to my credit report take my score down in the interim but benifit me in a few months?

Re: Maxing my Credit Score?

sunkissed — Sun, 15 Mar 2015 15:05:36 GMT

I would not advise you to have your mom add you as AU on her card unless she intends to keep utilization low. If her credit limit is low on this card, she may have a harder time keeping utilization low. High utilization will not help you out.

Re: Maxing my Credit Score?

Marths — Sun, 15 Mar 2015 15:10:13 GMT

Agree with what sunkissed said. What you could do is possibly try for a student card, or so in your own name. If you want one that has a marginally high acceptance rate you could try for Capital One Journey. It would probably be best just to get it in your own name so you only have to worry about your own spending habits.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 15:13:12 GMT

About that, she was actually approved for 2 Capital One cards last week, so she'll have 2 cards each with 300$ limits. I'm thinking about taking her Capital One card that has no rewards and just using it for myself since my Discover Limit is so Low. I've been teaching her all about keeping utilization down and all of the basics you need to improve your score, but i'm still learning as well, which is why I'm asking here. In a perfect world with utilization being low and the statement being paid in full every month, is this benieficial? She's all for helping me short term so I can have a decent head start in the credit world.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 15:22:20 GMT

Unfortunately i'm not a student, so I don't qualify. The only reason she has these credit cards is because I told her to get them so she can start repairing her credit. She really has no interest in using them all too often with the limits so low. I help her keep her finances in order, so her keeping the utilization high really isn't a concern for me. I have a 670 TransUnion and a 666 Equifax according to CreditKarma. I would love to qualify for a decent cashback card when I can actually generate a FICO. I hate using my Debit Card for everything, it's hard to keep track of all of my spending since money is in and out all the time.

Re: Maxing my Credit Score?

sunkissed — Sun, 15 Mar 2015 15:32:37 GMT

Yes, it a perfect world adding yourself to one of her cards *may* benefit you. No guarantees. I still think it will be a struggle to keep utilization low on a $300 card. I have a $400 card. I used it and PIF, but the credit grantor (BoA) took their sweet time to report my updated balance to the CRAs. I’m not suggesting that Capitol One would do this. My point is, stuff happens. What you’re proposing will require pinpoint accuracy. In my opinion, it’s not worth the hassle. However, you may find that any potential bump is worth the hassle.

I would suggest you sit tight. Use your current cards responsibly. Keep your reported balances ultra low. Once you’ve established 6-12 months of perfect payments, go after a new card. Hopefully you’ll receive a credit limit you can use without making multiple payments to keep utilization in check. It just takes time. It’s frustrating to wait, but once it comes together for you, it will all be worth it.

This is just my opinion. Ultimately, you've got to do what's right for you. I'm rooting for your success regardless of the path you take.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 15:47:48 GMT

Thanks for the input. If I wanted to I could tell her that i'm adding myself as an AU to her card and just take her origional card from her to use, she couldn't care less. She was approved for the QuicksilverOne card with 1.5% cash back and the Capital One Classic Platinum. The idea would be i'd take the Classic Platinum and just use it entirely for myself. But maybe i'll hold off and play it safe, but this 200$ limit blows. Thanks again!

Re: Maxing my Credit Score?

JSS3 — Sun, 15 Mar 2015 15:59:43 GMT

Why not try for your own Cap1 card? They are good for builders and rebuilders. You can see if you're prequalified on their website.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 16:05:33 GMT

I'm not prequalified for anything, unfortunately. my AAoA is only 3 months, almost 4. I'm just trying to set myself up for when I can actually Generate a real FICO in june.

I have 4 HPs on my report, I actually applied for a Cap1 card last week and was declined due to no credit history.

Re: Maxing my Credit Score?

JSS3 — Sun, 15 Mar 2015 16:58:54 GMT

I had a thin file and couldn't generate a score. Took out a student loan 13 yrs ago. Closed in good standing. Then briefly had a $500 Cap1 card I closed. Never took out anything else so my history only started 2 yrs ago.

Jan 2013, tried to get a GE Amazon card and was denied(thin file).

Jan 2013, got a Fingerhut card 200 limit(I think)

Feb 2013, went to Cap1 and applied for Platinum $39 annual fee. Approved $500 limit.

Mar 2013
Went to Cap1 and applied for a Platinum $19 annual fee. Approved $500

After credit steps, $500 went to $3,500 on one and $750 on the other. Both upgraded to Quicksilver.

4 people I told about Cap1 had no credit history.
1 person bad history with fraud alerts on file.
1 person was only AU on mom's account. All appoved for either $300 or $500. All, except 1, applied for annual fee cards. The AU got $3,000 QS due to being solicited.

Re: Maxing my Credit Score?

Marths — Sun, 15 Mar 2015 17:35:56 GMT

I'm not sure if they ask for proof of enrollment for the Journey card. I got it so long ago, and I don't remember. I hear they generally accept people with little-no credit for the Quiksilver cards. In my opinion, taking a shot at your own card is better than becoming an AU on someone elses card.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 17:38:58 GMT

Marths wrote:

I was denied for the QuickSilverOne a week ago, and they even denied me for a Capital One secured card back in December. Maybe Capital One just hates me?

Re: Maxing my Credit Score?

Marths — Sun, 15 Mar 2015 17:44:07 GMT

Lol, no they don't hate you. I guess you just come off as a risk to them. Have you tried pulling up your credit report to see if one was possibly generated from something else? It doesn't really make sense why they would deny you for a secured card at that...

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 17:47:07 GMT

@Marths wrote:
Lol, no they don't hate you. I guess you just come off as a risk to them. Have you tried pulling up your credit report to see if one was possibly generated from something else? It doesn't really make sense why they would deny you for a secured card at that...

My Credit History only goes back 3 months when I was approved for a Kohls Charge Card. It takes 6 months to generate a real score right?

Re: Maxing my Credit Score?

Marths — Sun, 15 Mar 2015 17:51:38 GMT

That is correct. Unless something else possibly generated one. Although highly unlikely, still possible. It just doesn't make much sense why they wouldn't approve you for a secured card.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 17:51:12 GMT

@Marths wrote:
That is correct. Unless something else possibly generated one. Although highly unlikely, still possible. It just doesn't make much sense why they wouldn't approve you for a secured card.

Yeah I don't know. I'm happy that I was approved for the Discover IT secured though, it'll be nice when it graduates in about 11 more months.

Re: Maxing my Credit Score?

Marths — Sun, 15 Mar 2015 17:51:47 GMT

As far as I know Discover has free FICO tracking. So I guess if that were the case it would have shown you it. So I guess you just have bad luck.

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 17:54:43 GMT

@Marths wrote:
As far as I know Discover has free FICO tracking. So I guess if that were the case it would have shown you it. So I guess you just have bad luck.

Correct. This is what Discover says.

We don’t have a FICO® Credit Score for you.

Thanks for your interest in learning your FICO® Credit Score. Reasons why you may not see your FICO® Credit Score include: if you opt out; if you have key information that is mismatched or missing, as one example, an address change that has not been updated with Discover or TransUnion; if your credit history is too new; if your account status is abandoned, bankrupt, fraud, lost or stolen, closed, revoked, or charged off; or if you have a foreign address.

Re: Maxing my Credit Score?

NRB525 — Sun, 15 Mar 2015 18:16:49 GMT

@Anonymous wrote:
A little background, i'm 20 years old with 2 credit cards at the moment I have a Kohls Charge with a 300$ Limit, and a secured Discover IT with a 200$ limit. I only have 3 months worth of credit history, so this question is for when I hit the 6 month mark and generate an actual FICO.

Should I add myself as an authorized user on one of my moms Capital One cards? she just got approved for it a few days ago and the limit is low, but i'm just looking for the biggest boost in my score possible in the next 3 months so I can maybe qualify for a card or 2 that I really want in june. Would adding a 3rd card to my credit report take my score down in the interim but benifit me in a few months?

OP, congratulations on getting started with your first cards.

I would suggest not worrying about adding AU, or even the utilization on your Discover $200 limit card.

Your CK scores are not reliable, they are FAKO. You said yourself you don't yet have a FICO, so you probably know this already

If you can't get a secured CapOne (not clear from the earlier posts), no worries. If you can get a secured CapOne, do that now. Another option to consider is opening an account at PenFed, and getting their secured VISA card. I have one of those, got it because they denied me a regular CC, so building a payment history with them.

My experience with Discover is, they want you to use their card heavily, they like you to be using their card first, and they don't care if you charge up to $190 on this card, as long as you are paying in full. I say this because I've got a $5k limit, and have pushed that limit on this and a prior Discover card 3 separate times over the last few years, over 90% utilization with BT each time and large payments on that, and they keep coming back with more offers, including cash back for purchases, to get me to use the card.

Do not worry at all about the percentage utilzation on this $200 Discover card. Charge it to $190, pay it off, if it reports $190, do not worry at all. You are building a file. Your utilization will be sky high, but you won't really be hurt by that as long as you pay on time. Each month of good payment history will be gaining points in FICO so fast the utilization isn't going to be an issue. And every underwriter who looks at your file is going to realize $200 is nothing, that you can't avoid high utilization. No one is going to care that you are at $190 on a $200 limit, and after a few months, when it comes time to app for another card, after you've been using this Discover card for 7 or 8 months, app for another Discover, and you will probably find they respond with a higher limit card, with decent rewards categories like the Discover it.

And I don't know how firm that June target should be for the next app. See what your scores develop as, then decide. I really do think you will have good luck with Discover after a few more months.

Also, carefully review what the actual rewards payback amounts are, when applied to your actual spend categories. You may find that the annual amount, the annual difference in amount from a baseline 1%, is not all that great, not worth much of the effort we all spend trying to find the ideal rewards profile. When you look at a 2% card, for example, you have to consider that it's only a marginal 1%, since you can get 1% from any card anyhow.

Good luck!

Re: Maxing my Credit Score?

Anonymous — Sun, 15 Mar 2015 18:56:59 GMT

I applied for the Cap One secured card in december, they denied me with a lack of credit history. Every Card i've applied for has said that, besides Kohls. I really don't have the spare cash to get another secured card with a better limit at the moment.

Do you mean in 7-8 months re-apply for the Discover IT? Discover says that in 12 months this card will graduate.