topic Re: Should I open a second card? in Credit Cards

Should I open a second card?

Wrigley2172 — Tue, 05 Mar 2019 07:17:23 GMT

Hi all, just wanted to get some opinions on whether opening a second credit card would be benificial at this point.
22 year old college student
-I currently have a Discover gas/food card in my name that I have had for almost 3 years with a $1500 line.
- Authorized user on Dad's cap1 platinum
-Income of $12,000 a year
-Income hasen't changed since Discover approval so may not get CL increase hence possibly opening new card to reduce utilization

Trans union score of 764 as of last month unsure on my other scores at the moment wanted opinions before purchasing full report. Looking into straight 1.5% back cards. Got pre qual on standard quicksilver card and I think i would be able to get freedom unlimited if I apply

Sorry for the long worded post its my first one. Any help is much appreciated!

Re: Should I open a second card?

Gollum — Tue, 05 Mar 2019 08:48:07 GMT

@Wrigley2172 wrote:
Hi all, just wanted to get some opinions on whether opening a second credit card would be benificial at this point.
22 year old college student
-I currently have a Discover gas/food card in my name that I have had for almost 3 years with a $1500 line.
- Authorized user on Dad's cap1 platinum
-Income of $12,000 a year
-Income hasen't changed since Discover approval so may not get CL increase hence possibly opening new card to reduce utilization

Trans union score of 764 as of last month unsure on my other scores at the moment wanted opinions before purchasing full report. Looking into straight 1.5% back cards. Got pre qual on standard quicksilver card and I think i would be able to get freedom unlimited if I apply

Sorry for the long worded post its my first one. Any help is much appreciated!

I think you should stay with what you already have until you are no longer in school and are working full-time. You're doing very well credit-wise if your TransUnion score is a FICO score. If you want to reduce your utilization percentage, I think you should do so by paying down your existing credit card debt. If you can't do that right now, that's not necessarily a big deal, depending on your job prospects after obtaining a degree: you're a 22 year-old college student. If you just want to add to your total credit limit, I think you should just stick with what you already have as stated above.

Re: Should I open a second card?

Jnbmom — Tue, 05 Mar 2019 08:47:08 GMT

I would definitely choose Chase over Capital one any day of the week Have you tried the chase prequalify?

Re: Should I open a second card?

Anonymous — Wed, 06 Mar 2019 11:15:34 GMT

Between the Quicksilver and Freedom Unlimited, I'd recommend the Freedom Unlimited. Capital One is very weird when it comes to their credit card approval process, in terms of how they decide to approve. I applied for the Quicksilver and some of the reasons they gave for denial I thought were bizarre. Some of the reasons were I don't have enough experience with high credit lines (probably refering to $5000 and up), I don't have experience with high balances. I applied for the Freedom Unlimited, denied first time, approved the 2nd time (prequalified offer from Chase though) with a then credit score of arround 690. Current FICO (Wells Fargo) is 747.

Discover does soft pulls for CLIs, just ask them. Sometimes automatic, sometimes you just have to ask.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 12:23:32 GMT

@Wrigley2172 wrote:
Hi all, just wanted to get some opinions on whether opening a second credit card would be benificial at this point.
22 year old college student
-I currently have a Discover gas/food card in my name that I have had for almost 3 years with a $1500 line.
- Authorized user on Dad's cap1 platinum
-Income of $12,000 a year
-Income hasen't changed since Discover approval so may not get CL increase hence possibly opening new card to reduce utilization

Trans union score of 764 as of last month unsure on my other scores at the moment wanted opinions before purchasing full report. Looking into straight 1.5% back cards. Got pre qual on standard quicksilver card and I think i would be able to get freedom unlimited if I apply

Sorry for the long worded post its my first one. Any help is much appreciated!

Sure, why not, either QS of CFU should work for you. You can add an amex if you want, just to get into the door of two new lenders.

Re: Should I open a second card?

Priory_Man — Tue, 05 Mar 2019 12:31:59 GMT

I'm with Gollum on this one, if you are only opening another TL to help with your UTI, your first action should be to reduce your current UTI on the Disco card, therefore negating the need for a second card.
If at all possible stay away from getting a second card until you have graduated and your annual income increases.
However, with that been said, if you have to have that second card then the CFU would be the better choice .

Re: Should I open a second card?

800FICOGoal — Tue, 05 Mar 2019 13:06:06 GMT

I also agree with Gollum. With your income I just don't see the need to risk additional credit. Address any utilization issues you have by paying down the Discover card.

Re: Should I open a second card?

HeavenOhio — Tue, 05 Mar 2019 13:08:04 GMT

Welcome, @Wrigley2172.

I think that opening a second card is fine unless you're going to see an increase in income soon. In that case, I'd wait for the increase.

With the history on your Discover card, you should have no problem obtaining either of the cards you mention. As mentioned, AMEX is another possibility. But I'd prioritize getting a Visa or MasterCard first.

I agree with asking Discover for a CLI. The worst they can do is say no. But you might be pleasantly surprised.

Don't rely on Card B to prop up utilization on Card A. If you deal with utilization at the individual card level, overall utilization will take care of itself. Given your TU score, it's probable that your current utilization is fine.

Also, don't worry about "getting in the door" with a bank. That can happen organically. Your credit report is in great shape. The only thing you need to watch out for is income. Don't apply for cards like the Sapphire Preferred or the Venture that have high minimum starting limits.

You can get a free Experian score via Discover Credit Scorecard. This is separate from the TU score you get with your Discover card and is available to cardholders and non-cardholders alike.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 13:35:02 GMT

I'd say go for it. I was going to say Chase over Cap One due to the number of hard pulls, but if this is going to be your only new credit for a bit, it really doesn't matter much. Both cards will allow you access to the cash back at any level, but chase updates each statement period whereas Cap One seems to make it available shortly after the charge posts if that's important for you.

As for the utilization, a $1500 line can be tough to keep low UTI even if you are paying in full each month. If you're carrying a balance, that's something to address, but if you're just looking at adding to your available credit so you don't hit a high UTI by charging a few bills/expenses that you intend to pay off right away, then that seems like a good move. Seeking a CLI on Disco would also be a good thing to try. Probably even better for the reasons HeavenOhio pointed out.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 13:42:52 GMT

I'd also say go for it.
After you try for a cli. With Disco. If you go capital one be aware triple hard pull.
Getting in with Chase early make sense with the 5/24 rule( you never know what you might open in next couple years.
I'd get cli. Disco if that's enough u r good if not take your pic..
Do you shop alot at Amazon? Both cards can grow quickly I know my Amazon prime store card helped my utilization got cli. After 2nd statement.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 13:43:18 GMT

My question to the OP here is what his current revolving debt is and/or what is his current reported utilization. If we're talking a single $1500 credit line, that puts a constraint on how much debt we're talking here, which likely doesn't exceed the hundreds. If the OPs only CC currently was in a bad place (nearly maxed out say) he wouldn't possess a 760+ FICO score.

As long as the OP doesn't have debt he can't currently pay off if he wanted to (or within a reasonable amount of time, say a few months) I take no issue with him scooping up another card. At his age working a bit on file thickness is a great idea and something he'll be glad he did when he's in his 30's.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 13:56:31 GMT

Yes I wish I knew about my FICO at your age. I am 31 and oldest account (a loan) is 21 months. The more lines you have now serve as a pad for aaoa in the future

Re: Should I open a second card?

Wrigley2172 — Tue, 05 Mar 2019 14:04:15 GMT

I suppose i should have specified more, my UTI is hardly ever above 10% month to month paying off statements in full but i do have the occastional large purchase such as a $900 car repair last month which then drives it up, so i was considering the second card as breathing room for when then that happens
I appreciate the response

Re: Should I open a second card?

HeavenOhio — Tue, 05 Mar 2019 14:12:10 GMT

@Anonymous wrote:
I'd also say go for it.
After you try for a cli. With Disco. If you go capital one be aware triple hard pull.
Getting in with Chase early make sense with the 5/24 rule( you never know what you might open in next couple years.
I'd get cli. Disco if that's enough u r good if not take your pic..
Do you shop alot at Amazon? Both cards can grow quickly I know my Amazon prime store card helped my utilization got cli. After 2nd statement.

5/24 is Chase's rule where you'll likely be denied if you've opened five or more cards within the past 24 months. You can easily stay at less than 5/24 by applying for a card every six months, i.e. a card in months 1, 7, 13, 19, and 25.

Stay away from store cards at this point. Consider them to fill in gaps once you have your major cards in place. That said, the Chase Amazon Visa might be an option.

Re: Should I open a second card?

Wrigley2172 — Tue, 05 Mar 2019 14:14:47 GMT

@BrutalBodyShots
My UTI month to month is rarely more than 10-15% with statements always payed in full. I was considering the second card as breathing room in my credit for the occasional large charge such as car repair

Re: Should I open a second card?

Wrigley2172 — Tue, 05 Mar 2019 15:47:44 GMT

Wanted to let everyone know i decided to call discover and they gave me an increase to $3000 with no hard pull! Thanks all very much

Re: Should I open a second card?

HeavenOhio — Tue, 05 Mar 2019 15:53:52 GMT

Contratulations. Give your increased limit time to show up on your credit reports before applying for anything new.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 16:03:14 GMT

Good for you!
That was given because of the way you use your card. Income helps but not end all be all.
Now you can relax and give yourself time for your next move.

Re: Should I open a second card?

Anonymous — Tue, 05 Mar 2019 16:18:23 GMT

Congrats on the increase but if I were you, I would add two more cards. Ideal FICO scoring can’t happen until you have 3 cards.

Then once you have 3 cards, you’re good to just let things age and grow.

Re: Should I open a second card?

FlaDude — Tue, 05 Mar 2019 16:56:27 GMT

@Anonymous wrote:
Congrats on the increase but if I were you, I would add two more cards. Ideal FICO scoring can’t happen until you have 3 cards.

Then once you have 3 cards, you’re good to just let things age and grow.

Assuming you have the financial discipline to add cards and not run up balances, I'm with this 100%. The sooner you get cards now, the better off you'll be regarding average age of accounts (AAoA) down the road.