topic Re: New credit card in Credit Cards

New credit card

Nelsoul — Fri, 04 Dec 2020 16:47:24 GMT

Considering a secured card from Andrew's federal credit union. With this card there's no HP . I'm wondering how does this effect credit scores since there's no HP hit that drops my score.

Also since this will be a new account but its secured , should I wait 3-6 months before applying for another card, Is the risk assessed the same by other banks/ CU's ?

Thanks

Re: New credit card

1GaDawg85 — Fri, 04 Dec 2020 16:55:54 GMT

@Nelsoul wrote:
Considering a secured card from Andrew's federal credit union. With this card there's no HP . I'm wondering how does this effect credit scores since there's no HP hit that drops my score.

Also since this will be a new account but its secured , should I wait 3-6 months before applying for another card, Is the risk assessed the same by other banks/ CU's ?

Thanks

It will drop your score as it is a new account. It may be approved with SP and an HP will come later but it really depends on the credit union. What is in your profile (scores included, if possible) because Andrews FCU may not graduate their secure card like other lenders.

Re: New credit card

Red1Blue — Fri, 04 Dec 2020 17:10:03 GMT

There are several secured cards you can apply that will graduate. SDFCU does not do a hard inq for membership/secured card. They claim it will graduate after 12 months. US Bank has 3-4 secured cards that would gradaute after 12 months. Affinity Federal Credit Union has a secured card. There will be no hard pull but the card does not graduate. If you look around and search there are plenty of cards that eventually graduate. You can also look into FinTech companies like One Fiance, Tomo, X1 that offer credit cards with out looking at your credit reports.

Re: New credit card

HeavenOhio — Fri, 04 Dec 2020 18:15:47 GMT

@Nelsoul, you didn't say how many cards you have.

If this is your first or second card, the addition of the card will probably more than offset any age-related scoring penalties. If you have three or more cards and the newest is less than a year old, expect to be dinged a few points. If you already have some cards and you haven't added one in over a year, expect a rather noticeable penalty for resetting the age of your youngest revolver to zero.

How long you should wait depends on how many cards you have and when you last added one. If this is your first card, six months of activity will definitely position you for something better on your second card. If you have a couple of cards and haven't added anything within the last year or so, adding two will likely be about as easy or hard as adding one.

Re: New credit card

Nelsoul — Fri, 04 Dec 2020 19:14:40 GMT

My scores are between 720-745 across the 3.

AU capital one 3 years 10K 10% UTI

Joint CC PNC 7months 19K 12%

Secured card BOA 6 months $300 0%

Capital one 3 months $750 0%

Navy federal secured loan 2 weeks 3001 just paid to 8%

AAoA 10 months

Plan on a NFCU card in 3 months and want to save my HPs, that's why I was wondering by getting AFCU card (no HP) now, would hurt getting approved for Navy ?

Since my AAOA is mostly the AU , would it better letting these accounts age , then add a NFCU in 3 months ( build relationship with them) vs trying to add more accounts which will lower my age ?

I'm on a dash to build as much credit / data points as possible so I can get business funding by the summer.

Andrew's secured card is definitely no HP at all. I was told it doesn't graduate but after a year you get your deposit back and they do a card change using the same account number so you keep the history.

Re: New credit card

silver_idle — Sat, 05 Dec 2020 04:30:19 GMT

@Red1Blue wrote:
There are several secured cards you can apply that will graduate. SDFCU does not do a hard inq for membership/secured card. They claim it will graduate after 12 months. US Bank has 3-4 secured cards that would gradaute after 12 months. Affinity Federal Credit Union has a secured card. There will be no hard pull but the card does not graduate. If you look around and search there are plenty of cards that eventually graduate. You can also look into FinTech companies like One Fiance, Tomo, X1 that offer credit cards with out looking at your credit reports.

The last I recall, SDFCU does do HP for memberships unless they changed in the past year. I gotten one last year around this time (still kind of stupid for them to do an HP though)

Re: New credit card

ChargedUp — Sun, 06 Dec 2020 03:58:25 GMT

@Nelsoul wrote:
My scores are between 720-745 across the 3.
AU capital one 3 years 10K 10% UTI
Joint CC PNC 7months 19K 12%
Secured card BOA 6 months $300 0%
Capital one 3 months $750 0%
Navy federal secured loan 2 weeks 3001 just paid to 8%
AAoA 10 months

Plan on a NFCU card in 3 months and want to save my HPs, that's why I was wondering by getting AFCU card (no HP) now, would hurt getting approved for Navy ?

Since my AAOA is mostly the AU , would it better letting these accounts age , then add a NFCU in 3 months ( build relationship with them) vs trying to add more accounts which will lower my age ?
I'm on a dash to build as much credit / data points as possible so I can get business funding by the summer.

Andrew's secured card is definitely no HP at all. I was told it doesn't graduate but after a year you get your deposit back and they do a card change using the same account number so you keep the history.

Your scores really aren't bad. Your file is just thin with your own credit. Come have some fun in "The Garden" for a few and let your existing accounts age. You have Cap One and BoA reporting as your own, and if you're a joint applicant with PNC, this is the 3 you need to optimize your scores. This along with the secured loan have you on the right track. Personally I'd wait 9-12 months and you should be able to get a normal unsecured card from Disco, Amex, Navy Fed, Citi, Chase and many others.

Re: New credit card

HeavenOhio — Wed, 09 Dec 2020 12:24:56 GMT

@Nelsoul, you don't need another secured card. Go for an unsecured card from Navy. You could do that fairly soon if you'd like. Or if it'd make you feel better to let your newest stuff age a bit, you can do that too. Navy isn't particularly sensitive to new accounts or recent inquiries. And they place a lot of weight on one's history with them.

Re: New credit card

Nelsoul — Wed, 09 Dec 2020 14:30:43 GMT

The only reason I was considering another secured card was to add another card to my thin file with no HP , and take the AAoA hit now. But I think I'll try navy this week.

When do you start to count the starting age of a new card, off the HP date or when its first reported on credit report?

My relationship with navy is , one month of membership, opened a checking and saving account, added my direct deposit, and did a pledge loan.

I did read another member say Navy doesn't factor checking/saving and DD into their internal scorning system. Is that correct?

Re: New credit card

Anonymous — Wed, 09 Dec 2020 15:36:31 GMT

@Nelsoul wrote:

When do you start to count the starting age of a new card, off the HP date or when its first reported on credit report?

Neither. You count the age of an account as 0 months when it shows up on your CR with an account opened date in that month. If the account takes several weeks to show up on your report and the account opened date is in the previous month when it appears, that account is then 1 month old. Accounts age by 1 month on the 1st of every month. If you open an account on Nov 5, it turns 1 month old on Dec 1. If you open an account on Dec 30, it turns 1 month old 2 days later on Jan 1. Hopefully that helps.

Re: New credit card

Nelsoul — Wed, 09 Dec 2020 19:52:23 GMT

Yes definitely helps !

Thank you

Re: New credit card

FalconSteve — Wed, 09 Dec 2020 22:32:24 GMT

Even with a soft pull, a new account will lower your credit score by lowering your AAoA (Average Aver of Accounts) as well as the age of your youngest account.

Re: New credit card

Anonymous — Wed, 09 Dec 2020 22:48:11 GMT

@FalconSteve wrote:
Even with a soft pull, a new account will lower your credit score by lowering your AAoA (Average Aver of Accounts) as well as the age of your youngest account.

This is true above, but it's also important to note that a drop in both of those areas may or may not impact score.

Re: New credit card

FalconSteve — Wed, 09 Dec 2020 22:55:20 GMT

@Anonymous wrote:
ue above, but it's also important to note that a drop in both of those areas may or may not impact score.

True, someties they don't hurt you, but I think it's fair to say they do more often than they don't

Re: New credit card

pip3man — Wed, 09 Dec 2020 23:58:22 GMT

SDFU will HP you for membership/secured CC app. First hand knowledge from applying a few months back in August. OP u said Andrew doesn't graduate but also stated they return ya deposit after a year. Kinda self contradictory... cos the refund of a security deposit is pretty much the same as graduation. Which Andrew FCU DOES NOT do from my experience with them. You only get ya collateral back when u request to close the account without a balance. Their version of graduation looks like this - after a year of having a secured card in good standing you'll be eligible to apply for their regular unsecured cards while ur secured will always remain secured.

Re: New credit card

Anonymous — Thu, 10 Dec 2020 01:13:05 GMT

@FalconSteve wrote:
True, someties they don't hurt you, but I think it's fair to say they do more often than they don't

The important take away is that it is profile dependent as to whether or not it will adversely impact scores. It's simple enough to look at the profile data beforehand to have a pretty good idea as to what impact a new account may or may not have on it and the scores associated with it.

Re: New credit card

Nelsoul — Thu, 10 Dec 2020 15:12:55 GMT

I dont think Andrew's will be in my future anymore, also after reading about a triple HP for credit cards.

After reading for weeks I'm fairly confident in my odds of being approved for NFCU card eventhough I've only been a member for a month.

(Even if it's a low CL just want to build data points with them for funding in the summer..)All my cards have never reported above 12% even my 19K . Going to pull the trigger tonight..

A few people on YouTube talk up applying after 10:30 pm when the credit dept is closed for better approval odds.

I'm not expert but I was under the impression of the opposite, that the A.I. usually will deny you , then when people call for recon a person will override..

Any proof of this after hours applying?

Re: New credit card

FinStar — Fri, 11 Dec 2020 00:24:22 GMT

@Nelsoul wrote:
I dont think Andrew's will be in my future anymore, also after reading about a triple HP for credit cards.

After reading for weeks I'm fairly confident in my odds of being approved for NFCU card eventhough I've only been a member for a month.
(Even if it's a low CL just want to build data points with them for funding in the summer..)All my cards have never reported above 12% even my 19K . Going to pull the trigger tonight..
A few people on YouTube talk up applying after 10:30 pm when the credit dept is closed for better approval odds.
I'm not expert but I was under the impression of the opposite, that the A.I. usually will deny you , then when people call for recon a person will override..

Any proof of this after hours applying?

Apps are processed by algorithms and held in the pipeline if manual review is required. Sometimes things on YouTube need to be taken with a grain of salt and not as gospel since they are merely just theories. Folks here have applied in the middle of the night and still got denied. If this were the case, all lenders who do not have any available UW staff after business hours would be a free-for-all with approvals equivalent to the security guard falling asleep and folks sneaking through.

If an application is denied then there's an option for reconsideration provided the profile supports it, but it's ultimately up to the lending team to make the final call.

Re: New credit card

Nelsoul — Sat, 12 Dec 2020 17:35:35 GMT

I figured as much makes no sense, if you're eligible you're eligible !

As I'm building my profile one of the factors that's hurting my score is - too many accounts with balances.

I've been doing 2% UTI on my $750 and $300 CL cards. I can pay those off monthly.

My AU account 10K is at 10% and my 19K is at 12%. Those balances are being used for business expenses and have to be paid down monthly.

When I do stimulations my score is always more by keeping 2 cards at 2%

My question is- is keeping a small balance 2% better then paying off 2 the cards a month? so my report shows 2 out of 4 not carrying a balance. And even if I didn't, i would imagine UW would see such a small balance not holding that against me (us)

Re: New credit card

coldfusion — Mon, 14 Dec 2020 13:20:32 GMT

@Nelsoul wrote:
I figured as much makes no sense, if you're eligible you're eligible !

As I'm building my profile one of the factors that's hurting my score is - too many accounts with balances.
I've been doing 2% UTI on my $750 and $300 CL cards. I can pay those off monthly.
My AU account 10K is at 10% and my 19K is at 12%. Those balances are being used for business expenses and have to be paid down monthly.
When I do stimulations my score is always more by keeping 2 cards at 2%

My question is- is keeping a small balance 2% better then paying off 2 the cards a month? so my report shows 2 out of 4 not carrying a balance. And even if I didn't, i would imagine UW would see such a small balance not holding that against me (us)

Optimal scoring comes from letting a single bank card report a balance each month and then PIF. There's nothing to be gained by carrying balances.