topic Re: 5 Card Base questions, for GF in Credit Cards

5 Card Base questions, for GF

MyFault — Mon, 24 Jun 2019 17:46:36 GMT

My GF, soon to be fiance, is in her late 20's, and has an extremely thin file. She has no loans, no student debt, and only one credit card. Which is the Chase United Explorer card. She does have a couple student loans that are closed and have been PIF for a while now.

Her scores are, i believe, the 720-730s range. I'll have to confirm however, i know they're above 700.

She should have 0 inquiries in the last 24 months, but i can't remember when exactly she got the Chase United card. I do however know for a fact it's been over 12 months. It may be over 24 months, or close to it.

After the research i've done on here, and also watching YouTube videos from Ask Sebby and the Credit Shifu etc, I want to help her build a solid base to increase her scores and build a better credit profile. Plus i want to get her into using a CC to PIF every month as her daily vs using a debit card, to earn points/rewards. I'm looking for opinions, suggestions, and honestly just what you all think. I know that she'll have to apply for one every 2-4 months or so, but here's what i'm thinking of suggesting to her, in addition to her United Explorer card:

Chase Freedom Unlimited - I looked into the freedom, however looking into the last three years of the calendar 5% benefits, i don't believe she'd get much from it. I have a company car with company gas card, and her work is only 7 miles away in which she drives three days per week. If we go anywhere, i drive unless of course she has plans on her own. She barely puts 5k miles per year on her car. I pay for 99% of all our streaming services, utility bills, ect. So she would only have gotten some benefit from one quarter in the last 3 years from grocery shopping and one more for dining out. Even then we rotate randomly between each other on spending for those things. The Freedom unlimited 3% in the first year for all spend seems like a more enticing deal for her to use as a daily driver card, based upon her spending history.

Amazon Rewards Visa - She does buy a lot on Amazon, as do i. So with the $70 initial bonus, plus 5% cash back, i think this is a great idea.

Amex Everyday - She has a balance on her explorer card, which we could xfer here to pay down and pay off asap.

Costco Anywhere - I have a Costco membership, in which she's included. 4% cash back, that can be used at ALL gas stations seems like the perfect "gas only card" for her to use. Again, she doesn't drive much but this seems to be the best gas card out there with no annual fee and would again, also help her with completing her 5 card base.

Again, just looking for insight and opinions to compare against. Also if there is a better balance xfer card out there let me know. Lastly, what should be her first card to go after? The Chase Freedom Unlimited?

Re: 5 Card Base questions, for GF

Anonymous — Mon, 24 Jun 2019 17:58:02 GMT

5 cards.... 3 cards + installment loan is the ideal for maxmizing your score.

What works for one doesn't for others. 5 cards can be intimidating for someone w/ 1 to manage them and juggle them for the most benefit.

Since she has a Chase card already the best option is to check the offers when logged in and seeing if CFU is being offered pre-approved. The risk of what you're thining is too many Chase cards and no one else if they freak out.

CFU / Amazon are both Chase which still lands her in 100% Chase for CC's

Since she has a thin file... Disco Miles offers 3% for the first year as well. IF at the end of the year she wants to change it to the 5% categories version it's possible.

Amex is a good option as well because it will grow quickly.... BT to ED is appealing if it's a significant balance but under 5K as they have a cap on BT's now.

BOA would be a good option as well since you can pick you 3% catagory on the Cash cards and they do grow like a weed w/ SP CLI's like Amex does as well.

I think the order is insignifcant at this point because she hasn't opened a ton of cards... i.e. 1 card

If you go through with it with this info then:

Chase (Amazon / CFU) I would go amazon and then follow w/ Disco Miles for 3% ... you get the 5% and 3% and diversify

Disco Miles

Amex

BOA

This gets her to 5 cards and hedges some of the risk w/ lenders doing funny things.

Re: 5 Card Base questions, for GF

simplynoir — Mon, 24 Jun 2019 17:59:32 GMT

Are you looking to pool your rewards together with Chase since you have the CSP already? If that's the case then a general spend card like the CFU seems like the best approach for one of her cards since she doesn't have to juggle which card to use where.

From there I'd pick Amazon credit cards for her third card. Doesn't seem like gas earnings should be a big concern if she travels by car so little. She might have to space the app out a little between the CFU and Amazon card but it shouldn't take long for her to do it. For balance transfers assuming you don't want to eat the 3% fee the CFU has even with the 15 month 0% intro on purchases/BTs then Everyday card is a good option for that, too.

Re: 5 Card Base questions, for GF

MyFault — Mon, 24 Jun 2019 18:18:24 GMT

@simplynoir wrote:
Are you looking to pool your rewards together with Chase since you have the CSP already? If that's the case then a general spend card like the CFU seems like the best approach for one of her cards since she doesn't have to juggle which card to use where.

From there I'd pick Amazon credit cards for her third card. Doesn't seem like gas earnings should be a big concern if she travels by car so little. She might have to space the app out a little between the CFU and Amazon card but it shouldn't take long for her to do it. For balance transfers assuming you don't want to eat the 3% fee the CFU has even with the 15 month 0% intro on purchases/BTs then Everyday card is a good option for that, too.

I'm going to upgrade my CSP to CSR at 13 months, so maybe at that point she could get the CSP. I wasn't aware we could pool points together, but if we can then absolutely yes we would.

You're right about the gas card, it's insignificant. I was just thinking about a 5 card base. Could just cut it down to 4 with the Amex EveryDay to diversify.

Re: 5 Card Base questions, for GF

MyFault — Mon, 24 Jun 2019 18:25:04 GMT

@Anonymous wrote:
5 cards.... 3 cards + installment loan is the ideal for maxmizing your score.

What works for one doesn't for others. 5 cards can be intimidating for someone w/ 1 to manage them and juggle them for the most benefit.

CFU / Amazon are both Chase which still lands her in 100% Chase for CC's

Amex is a good option as well because it will grow quickly.... BT to ED is appealing if it's a significant balance but under 5K as they have a cap on BT's now.

BOA would be a good option as well since you can pick you 3% catagory on the Cash cards and they do grow like a weed w/ SP CLI's like Amex does as well.

I think the order is insignifcant at this point because she hasn't opened a ton of cards... i.e. 1 card
If you go through with it with this info then:
Chase (Amazon / CFU) I would go amazon and then follow w/ Disco Miles for 3% ... you get the 5% and 3% and diversify
Disco Miles
Amex
BOA

This gets her to 5 cards and hedges some of the risk w/ lenders doing funny things.

I agree about the loan, but i don't see the point in opening one and paying interest, just to pay it back, when she doesn't need it. She keeps going back and forth about getting a Jeep so if we trade her car in for one we'll of course get an auto loan for the difference at that time.

Chase has all the good cards!! lol. We could leave off the Costco card as i stated above, and go with the Amex ED to give her a little diversification.. I don't think the discover card is worth it for her imo, so we could shrink it to 4 cards which is more than enough to get her used to handling more than just one. It's a transition getting used to using a CC instead of debit for everyday daily transactions, so trying to take things one step at a time, but also get her base built up quick enough so that she can get it over with and just let it age and grow.

Re: 5 Card Base questions, for GF

simplynoir — Mon, 24 Jun 2019 18:29:26 GMT

@MyFault wrote:
@simplynoir wrote:
Are you looking to pool your rewards together with Chase since you have the CSP already? If that's the case then a general spend card like the CFU seems like the best approach for one of her cards since she doesn't have to juggle which card to use where.

From there I'd pick Amazon credit cards for her third card. Doesn't seem like gas earnings should be a big concern if she travels by car so little. She might have to space the app out a little between the CFU and Amazon card but it shouldn't take long for her to do it. For balance transfers assuming you don't want to eat the 3% fee the CFU has even with the 15 month 0% intro on purchases/BTs then Everyday card is a good option for that, too.
I'm going to upgrade my CSP to CSR at 13 months, so maybe at that point she could get the CSP. I wasn't aware we could pool points together, but if we can then absolutely yes we would.

You're right about the gas card, it's insignificant. I was just thinking about a 5 card base. Could just cut it down to 4 with the Amex EveryDay to diversify.

Because you both presumably live at the same address Chase allows pooling of points into one account and there are no limits as well. So you can get the CFU for your GF and when ready transfer the points over to your CSP/CSR. With you PCing to the CSR you'll gain more from it whether you're using the 1.5x mulitplier or transferring them to rewards partners.

Re: 5 Card Base questions, for GF

Anonymous — Mon, 24 Jun 2019 18:33:14 GMT

My thoughts were to diversify to prevent a complete outage if a single lender shut her down for something. It's also nice to have a backup if you lose a card(s) so you're not in a credit desert while waiting for the replacement. As to Disco Miles it's the same as the CFU 3% first year and 1.5% after that. Disco tends to grow well compared to the HP's w/ Chase.

Just offering a rounded out option in comparison to "Chase has all the good cards" because while they do it's important to think about the downside as well.

Re: 5 Card Base questions, for GF

Anonymous — Mon, 24 Jun 2019 19:29:58 GMT

@MyFault wrote:
So she would only have gotten some benefit from one quarter in the last 3 years from grocery shopping and one more for dining out.

If you are not opposed to cash back vs points, Amex BCE/BCP may be a decent one to look into depending on your spending on groceries. BCE is 3% groceries (No Fee), and BCP is 6% (with a $95 annual fee). If your spend is high enough to offset the fee, the BCP may be a good card. It also gives 6% on streaming as well as 3% fuel. This is probably my most used card.

Discover IT also seems to pretty consistently have quarters that will contain Amazon, Fuel, Restaurants, or Groceries depending on the quarter you are in.

Re: 5 Card Base questions, for GF

mikesonthemend — Mon, 24 Jun 2019 19:38:31 GMT

Agree with Disco recommendation.

You can also acheive 5% back at Amazon with the "store card" and grow the limit via Sync soft pulls while not having all eggs in the Chase basket.

Re: 5 Card Base questions, for GF

xaximus — Tue, 25 Jun 2019 13:20:06 GMT

I would also look into a general spending card - something like either Paypal 2% CB or Citi DC. I would have one of those as a backup for non-category spending. As others have stated, don't put all your eggs in one basket (Chase). It's understandable that the 5% categories may not be of the best use to you but keep in mind, you can buy gift cards and use that.

Re: 5 Card Base questions, for GF

kdm31091 — Tue, 25 Jun 2019 14:33:20 GMT

5 cards is a big jump for someone used to using only one. I would ease her into one or two more cards and see how she enjoys juggling them and such. Not everyone does.

Re: 5 Card Base questions, for GF

MyFault — Tue, 25 Jun 2019 17:57:53 GMT

These are all good points. Thanks guys.
I definitely want to get her used to using a CC to replace her debit card first. Last thing I want to do is create chaos for her, have her miss payments, and also start loading up every card.

The point will be to get her into one card to carry and use daily along with her United card, then eventually get her into some cards that stay in her safe. But can be used sporadically via online purchases (ie. One of the Amazon cards).

I told her I was doing research for her, so I will run the cards I picked out for her and some you all mentioned. We'll see what she's comfortable starting with and where to go from there.

Re: 5 Card Base questions, for GF

SouthJamaica — Tue, 25 Jun 2019 18:26:42 GMT

@MyFault wrote:
These are all good points. Thanks guys.
I definitely want to get her used to using a CC to replace her debit card first. Last thing I want to do is create chaos for her, have her miss payments, and also start loading up every card.

The point will be to get her into one card to carry and use daily along with her United card, then eventually get her into some cards that stay in her safe. But can be used sporadically via online purchases (ie. One of the Amazon cards).

I told her I was doing research for her, so I will run the cards I picked out for her and some you all mentioned. We'll see what she's comfortable starting with and where to go from there.

IMHO you should leave her alone. If she's happy with one card, let it be that way. She doesn't need more than one.

Perhaps it's safer to have a second, with a different lender. But that's enough.

Re: 5 Card Base questions, for GF

Anonymous — Tue, 25 Jun 2019 20:11:00 GMT

I’d probably just get the CFU; no reason to suspect AA would happen for the vast majority of users.

Re: 5 Card Base questions, for GF

MyFault — Tue, 25 Jun 2019 22:43:50 GMT

Leaving her alone about her credit isn't really an option. She's soon to be my fiancé, and if she wants to have her name on the mortgage of our next house then her current thin file and 720ish score isn't going to cut it.

I agree about the CFU, and probably the Amex ED or BCE. One of the Amazon cards would be good also, but that can be down the road after she's used to more than one card and has a little more experience.

Re: 5 Card Base questions, for GF

Brian_Earl_Spilner — Tue, 25 Jun 2019 22:55:48 GMT

Last I checked, you only need a 585, stable income, and a credit report to get a mortgage. The credit report doesn't even need to be clean.

Most people don't care about maximizing rewards. Don't force her if she doesn't want to or it's just gonna blow up in your face. Does she even want to get 4 more cards? My wife doesn't want to play the game and trying to get her to, just makes her angry at me. Remember, you can beat a dead horse with a tuba, but it won't drink Gatorade.

Re: 5 Card Base questions, for GF

kdm31091 — Tue, 25 Jun 2019 23:25:35 GMT

@Brian_Earl_Spilner wrote:
Last I checked, you only need a 585, stable income, and a credit report to get a mortgage. The credit report doesn't even need to be clean.

Most people don't care about maximizing rewards. Don't force her if she doesn't want to or it's just gonna blow up in your face. Does she even want to get 4 more cards? My wife doesn't want to play the game and trying to get her to, just makes her angry at me. Remember, you can beat a dead horse with a tuba, but it won't drink Gatorade.

This. Maybe she doesn't care about juggling cards or rewards. Doesn't mean she has bad credit or anything, just means she isn't interested in these things and that's fine. If she had bad credit habits that's one thing, but if she's happy with one card and using it responsibly then it's fine to just let it be.

Re: 5 Card Base questions, for GF

HeavenOhio — Wed, 26 Jun 2019 00:39:13 GMT

Don't move any faster than one card every six months (more or less). If you move a little more quickly, add in a little extra gardening time later. Where you want to draw the line is no more than five cards in a 25-month period. That keeps her below 5/24 at all times. And it should be enough to keep new accounts and inquiries from becoming denial reasons.

Figure that card #2 might result in an immediate score improvement. Card #3 may result in a decrease before her score rebounds and improves upon where she started. Card #4 will definitely result in a decrease before any increase occurs.

585 may get you a mortgage, but I'd be surprised if it gets you the best rate. Given that she has some loans to thicken her file, I think a card right now and a card in six months may be enough. If she'd like, there's no reason why she can't keep going at that pace for another card or two, provided that she gardens for a year before applying for your mortgage.

Re: 5 Card Base questions, for GF

MyFault — Wed, 26 Jun 2019 01:28:36 GMT

@Brian_Earl_Spilner wrote:
Last I checked, you only need a 585, stable income, and a credit report to get a mortgage. The credit report doesn't even need to be clean.

Most people don't care about maximizing rewards. Don't force her if she doesn't want to or it's just gonna blow up in your face. Does she even want to get 4 more cards? My wife doesn't want to play the game and trying to get her to, just makes her angry at me. Remember, you can beat a dead horse with a tuba, but it won't drink Gatorade.

Most banks require a 640 minimum. Subprime banks will loan you a mortgage with FHA at 580, but that's not and never will be an option.

A 760+ is required to get the best rate, you'll jump 0.5% with a 720. I'm not paying more on our payment because she doesn't care enough about building a solid credit foundation.

A 640 score will put you a full 1%-1.5% higher.

She may not care about maximizing rewards, however if i tell her she can get 5% back on all her Amazon purchases or 3% back on everything with the CFU, she's not going to not be interested.

Re: 5 Card Base questions, for GF

kdm31091 — Wed, 26 Jun 2019 01:30:49 GMT

@MyFault wrote:
@Brian_Earl_Spilner wrote:
Last I checked, you only need a 585, stable income, and a credit report to get a mortgage. The credit report doesn't even need to be clean.

Most people don't care about maximizing rewards. Don't force her if she doesn't want to or it's just gonna blow up in your face. Does she even want to get 4 more cards? My wife doesn't want to play the game and trying to get her to, just makes her angry at me. Remember, you can beat a dead horse with a tuba, but it won't drink Gatorade.
Most banks require a 640 minimum. Subprime banks will loan you a mortgage with FHA at 580, but that's not and never will be an option.

A 760+ is required to get the best rate, you'll jump 0.5% with a 720. I'm not paying more on our payment because she doesn't care enough about building a solid credit foundation.
A 640 score will put you a full 1%-1.5% higher.

She may not care about maximizing rewards, however if i tell her she can get 5% back on all her Amazon purchases or 3% back on everything with the CFU, she's not going to not be interested.

Or she may still not care! To many who aren't "into" these things, 3% or 5% is a trivial sounding amount, less than sales tax in most cases. I'm just saying there's some people who feel CC rewards are trivial and not really worth excitement. Whether your GF is in that camp or not, I don't know, but it's possible.