topic Re: Credit Card Chances in Credit Cards

Credit Card Chances

Anonymous — Wed, 21 Jan 2009 15:27:01 GMT

Hello!

I was trying to get financing for a car but was denied everywhere because of my lack of credit history. I only have one credit card, an unsecured Capital One Platinum with a limit of $500. My scores are around 670 (no baddies as far as I know) give or take and I make 23K a year. I am planning to get two more credit cards as from reading around the consensus is 3-4 is optimum. I was using the "Get a Credit Card" indicator in the website and it said I would qualify for Amex Blue and some other Capital One cards. I don't really want another Capital One card, I was thinking of getting the Amex Blue and a BoA MasterCard. What do you guys think my chances are of getting a credit card. The only recent inquiry I would have is the auto loan inquiry which I did a 14 day window with (pulled by CapOne Auto, Up2Drive, Ford Motor Credit, Bank of America and Lending Tree). Thanks for any advice. I am planning to apply after March 3rd when my new statement cuts. I currently have a zero balance on my card.

Re: Credit Card Chances

wmarat — Wed, 21 Jan 2009 15:35:48 GMT

Even with relatively high FICO of 670, but short credit history, I would not advise to go for Amex. Amex has been crazy lately.

With short credit history , IMHO, the best course of action is:

1. Secured card from BOA, graduates after 9th billing cycle, grows with you.

2. Credit Union either national or/and local.

Good Luck

@Anonymous wrote:
Hello!
I was trying to get financing for a car but was denied everywhere because of my lack of credit history. I only have one credit card, an unsecured Capital One Platinum with a limit of $500. My scores are around 670 (no baddies as far as I know) give or take and I make 23K a year. I am planning to get two more credit cards as from reading around the consensus is 3-4 is optimum. I was using the "Get a Credit Card" indicator in the website and it said I would qualify for Amex Blue and some other Capital One cards. I don't really want another Capital One card, I was thinking of getting the Amex Blue and a BoA MasterCard. What do you guys think my chances are of getting a credit card. The only recent inquiry I would have is the auto loan inquiry which I did a 14 day window with (pulled by CapOne Auto, Up2Drive, Ford Motor Credit, Bank of America and Lending Tree). Thanks for any advice. I am planning to apply after March 3rd when my new statement cuts. I currently have a zero balance on my card.

Re: Credit Card Chances

oracles — Wed, 21 Jan 2009 15:49:33 GMT

I agree with Wmarat, you definitely should not apply for an Amex Blue. Due to your short credit history along with your score, I think it would be somewhat difficult to receive. You should definitely try for a Credit Union card and I do believe you may have a chance to get an unsecured card from BOA. If not they will offer you a 99/500 card or a secured card. If you receive the secured card, it will graduate in 9-12 months. Chase mayyyyyyyy be an option and if you are decline, you maybe able to reconn with them. Many have been successful with reconning with chase. Also I would try an Orchard card. They may give you a low limit, however it is still a start.

Last thing that I think would be very important is to allow your current card to report a small balance on your report (1-5%). You actually lose points for reporting a zero balance as oppose to having a small balance report. Still pay off the balance by the due date but by statement date, let it have a small balance. Since your limit is $500 dollars, I would advise you to let it report at statement date $25 dollars. Then pay it all off at due date. You will have a Util% of 5% and this will give you some additional pts on your score.

hope this helps and keep us updated

Re: Credit Card Chances

Anonymous — Wed, 21 Jan 2009 15:53:50 GMT

Wmarat,

Thanks for your quick response.

I was planning on joining two local CUs this Friday so I'll check into that. One CU is for the city I live in and the other through my employer. I got the Capital One card 30 months ago and it will hit the three year mark in July. When exactly does your credit mature from short to acceptable?

Re: Credit Card Chances

oracles — Wed, 21 Jan 2009 15:58:50 GMT

Just thought of something else as well,

you should also ask Cap 1 for an increase to your limit.

this will also give you better Utilization.

Re: Credit Card Chances

Anonymous — Wed, 21 Jan 2009 16:05:32 GMT

Oracles,

Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!

Re: Credit Card Chances

wmarat — Wed, 21 Jan 2009 16:09:21 GMT

Well, your credit history is as long as mine. My oldest account (former BOA secured card) is 30 month old.

I have 16 open revolving accounts with total revolving available credit of $150800.

I suppose, you are mature enough. Try unsecured BOA card as oracles suggested. Check out Alliant CU (ALLIANTCREDITUNION.ORG), P atelco CU, Agricultural CU.

I believe you are stuck only becouse you have 1 revolving account.

Re: Credit Card Chances

wmarat — Wed, 21 Jan 2009 16:16:02 GMT

And do not forget store/gas cards, at least 1.

Re: Credit Card Chances

oracles — Wed, 21 Jan 2009 16:16:40 GMT

@Anonymous wrote:
Oracles,
Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!

Hi Elix

I think you should charge some small amount like a candy bar on your credit card before Feb 3rd. This way, when the statement cuts, there is a small balance of $1-2 dollars. This will then get reported to the bureaus and you will have an Util of 1%. This is good, if not you will have a util% of zero and will lose some pts. Then pay off the $1 at due date and proceed again for the next month. Just always have a little balance at statement date so you can have a small util% reporting. since your statement date is Feb 3rd, it will probably take up to 10 days for your reports to update therefore i would wait until feb 13th to apply for the credit card at the CU. You can appply for membership into a CU now but dont apply for the card until feb 13th or around that time. Once you have more than 1 card, the util% game is different. You dont want more than 1/2 your accounts reporting any balance, but that is a different story. We will get to that once you have obtain additional accounts.

Re: Credit Card Chances

score_building — Wed, 21 Jan 2009 16:27:42 GMT

@Anonymous wrote:
Oracles,
Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!

and with good reason, imho you needn't bother with orchard, unless you find you are short on other options. a local cu, boa and a gas or store card should suffice.

Re: Credit Card Chances

Anonymous — Wed, 21 Jan 2009 16:39:18 GMT

Wmarat,

Wow 16? Wow. That number makes me DIZZY! I think what I will do is apply for an American Eagle or Amazon.com card since I actually would use the card from one of those stores a few times for the year without making a huge purchase on it versus say a Walmart card that I would spike, as well as a BoA card and a CU card. That would put me up to four which is enough for me to handle. The only thing about that is that that would shut down the average age of my accounts. I guess it would pay off it in the long run.

Oracles,

Will do! I need to buy a book on amazon.com so I'll just put that on it.

Thanks again you two!

Re: Credit Card Chances

oracles — Wed, 21 Jan 2009 17:02:20 GMT

@score_building wrote:
@Anonymous wrote:
Oracles,
Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!
and with good reason, imho you needn't bother with orchard, unless you find you are short on other options. a local cu, boa and a gas or store card should suffice.

Actually i agree with Wmarat and Score,

When you said short credit history, i was thinking less than a year. I dont think you need Orhard with 30 months of history. Definitely try for the CU cards. Wmarat gave some good suggestions as to what CU cards to go for. Also definitely get a store card that you shop at or a gas card (only if you have a car).

Re: Credit Card Chances

oracles — Wed, 21 Jan 2009 17:03:33 GMT

@Anonymous wrote:
Wmarat,
Wow 16? Wow. That number makes me DIZZY! I think what I will do is apply for an American Eagle or Amazon.com card since I actually would use the card from one of those stores a few times for the year without making a huge purchase on it versus say a Walmart card that I would spike, as well as a BoA card and a CU card. That would put me up to four which is enough for me to handle. The only thing about that is that that would shut down the average age of my accounts. I guess it would pay off it in the long run.

Oracles,
Will do! I need to buy a book on amazon.com so I'll just put that on it.

Thanks again you two!

No problem

keep us updated

Re: Credit Card Chances

smallfry — Wed, 21 Jan 2009 22:46:53 GMT

OP in this credit climate I would not go nuts on the applications. I would look on the BofA to see if you are preapproved for a credit card there. If you are interested in a credit union pick one. Don't try to do this all at once it will make it appear as if you are in dire need of more credit. Easy does it. Try BofA. Too many new accounts at this time is a major red flag. BofA.

Re: Credit Card Chances

Anonymous — Thu, 22 Jan 2009 19:31:40 GMT

Do you ever feel like there is just madness and no method?

Thank you SmallFry for your advice. I can appreciate the myriad of opinions in these forums. Certainly makes for good discussion. I totally see where you are coming from SmallFry. I think what I'm going to do is just apply for a BoA card and an American Eagle Card. That way it will only be two new accounts. After my Capital One account has aged to three years in July I'll try to get a credit line increase. I'm going to check out the credit union tomorrow. Let me know if there are any flaws to this plan guys. Thanks again!

Re: Credit Card Chances

Creditaddict — Thu, 22 Jan 2009 19:42:40 GMT

I would call back door number NOW for capital one, 3 years, no increase is crazy, and right now while balance is $0 would be great time.

as for Bank of America, you can do the pre-qual and see if there is a good chance they will give you a card, if they don't offer you something you have to decide if you want to go secured route with BofA, otherwise probably not worth the application.

American Eagle should be a 100% approval, it's GE, won't be that great probably, but will do the trick!

CU - sounds like a very good option. they might give you car loan too!

Re: Credit Card Chances

Anonymous — Thu, 22 Jan 2009 23:54:07 GMT

I pulled my scores and reports today...I feel this is the start of an addiction! My reports are clean, absolutely no baddies! Hurting my scores are:

1. High balance (PIF'd on Sunday but will get it up to around 6% this week...should impact scores Feb 3rd)

2. Short history

3. Two few accounts (Conspiracy!!!)

Scores are:

TransU 673

Equifax 681

Experian 703

With those scores do you think BoA is far fetched? If not, should I apply for the AE card first of second? I will definately by calling Capital One about that CLI!

Re: Credit Card Chances

Creditaddict — Thu, 22 Jan 2009 23:59:56 GMT

bank of america has a pre-qual that just does a soft pull... you can check that anytime to see if they offer you a card.

Re: Credit Card Chances

haulingthescoreup — Fri, 23 Jan 2009 00:00:51 GMT

elixandrea wrote:

I pulled my scores and reports today...I feel this is the start of an addiction! My reports are clean, absolutely no baddies! Hurting my scores are:
1. High balance (PIF'd on Sunday but will get it up to around 6% this week...should impact scores Feb 3rd)
2. Short history
3. Two few accounts (Conspiracy!!!)

Scores are:
TransU 673
Equifax 681
Experian 703

With those scores do you think BoA is far fetched? If not, should I apply for the AE card first of second? I will definately by calling Capital One about that CLI!

Do not budge until the new balances have updated! And a Cap1 CLI should help as well.

Never app for anything until you have your credit profile as spiffed up as you can get it. Not only does it increase your chances of approval, you're likely to get a better deal: lower APR, higher CL, lower or no fees, all the goodies.

Be strategic; be a tactician.

Good luck!