topic Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building) in Credit Cards

Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Anonymous — Fri, 22 Jan 2021 06:53:25 GMT

Hey all!

I'm looking to get some advice on what steps to take next as far as credit cards, and what my next move should be (I probably messed up a bit as well. I'll go further into detail down below). Perhaps get advice on how to improve my credit as well along the way.

This is going to be a huge wall of text, so I do apologize in advance!

Currently this is how my credit sits at and how many cards I have

Fico 8 (Via. Experian & Discover Creditscorecard)

Experian 701 / Equifax 688 / Transunion 679

Vantage 3.0 (I know this one probably shouldn't be used as an accurate indicator of my credit score, just thought I'd throw it on here incase)

Experian 746 / Equifax 746 / Transunion 747

Current Cards (Total CL $10,200)

3% Credit Utilization Total

Annual income $60,000

Best Buy Citi Store Rewards Card - 2yrs, 1mo ($2,000)
Barclays Apple Rewards Visa - 3yrs, 3mo ($2,000)
Chase Freedom Unlimited - 3yrs, 7mo ($1,000) - CL was at $500 until I requested a CLI a few days ago.
Capital One Platinum - 5yrs, 9mo ($1,000)
Capital One Quicksilver - 5yrs, 6mo ($1,250)
Synchrony Amazon Store Card - 5yrs, 2mo (~~$800~~ Now at $2,400)
J.Crew Store Card - 4yrs, 3mo ($550)

My monthly spend currently

Dining $: $100 (Pre-pandemic = $200 - $300+. I sometimes would get the bill so I usually gain back most of what I spent occasionally)
Groceries $: $0 - $150
Gas $: $0 - $65 (Pre-pandemic = $200 - $250)
Travel $: $0 (Pre-Pandemic = Spend fluctuates since I travel for work. Big trips can net around $500 - $1000+)

So my plans for this year after WFH was to acquire a travel rewards card since I travel a lot for work, and some trips would take me internationally. I figured I would aim for Chase's Sapphire line as I do bank with Chase, and I already have a CFU (Only having just recently learned about the Chase trifecta!).

I had recently requested for a CLI on my CFU card since I've had the same CL @ $500 for about 3 years~. Chase graciously granted me a new CL of $1,000! Now this is where I think I messed up.. Afterwards, I immediately applied for a CSR (Probably a big no-no), and received an instant deny. Frustrated, I tried my hand at applying for the CSP immediately after (As you can see I was not patient at all at that time lol), which was met with a swift denial notice.

I received a notice a few days later about why I was denied.

First reason was that I had requested for too much credit with chase and/or had too many accounts (Definitely not 5/24 yet, unless HP's count with Chase?).
Second was a few past delinquencies from a few years ago for not paying on time.
- Several years ago, I was a bit irresponsible with how I handled credit, and I had a few late payments. That probably played a factor when it comes to my score. This was back in 2013-2014, so I'm assuming it'll go away later on this year?
The third being that but with a store card? So not sure if those two went hand in hand.
The last reason was that I didn't have enough on my CL since I'm only at $8,600 (I probably should've read more into the CSR as my total revolving CL was too low).

Now with all of that being said, I now have 4HP's on my account (the other HP was from a CLI request a year ago).

So now my questions are:

I was pre-approved for an Apple Card through my phone (Didn't accept yet) for a CL of $4,000. Should I go for that card now, or wait and apply for another card in the mean time?
- Would this help case later if I wanted to go CSR/CSP?
Should I call Chase recon and ask for CSP when bringing up the CSR application. What are the chances of me getting either through recon?
Should I wait a few months until those delinquencies go away before reapplying for CSR/CSP?
What CC's would you recommend I apply for instead based on my current situation. Should I even try for more cards while risking more HP's?
A separate question, but if I were to co-sign on a mortgage sometime soon, will opening up a new line of credit effect a lenders decision, or is it based on the other person's credit?
- Would this also increase my score since I really don't have any loan installments on my file?
How many CC's can you even apply and get anyways per month? Does that hurt you in the long run if you have 2+ new cards opened up within the span of 3 months? I've read people signing up for multiple without it adversely effecting their score & eligibility.
What else should I be mindful of when building up my score?

I was eyeing AMEX Gold, but I'm iffy on their acceptance overseas when I travel for work/vacation vs VISA/MC/Discover. Also not sure if I would even get an approval since I did their pre-qualifications, and nothing really showed up on my offers. I was also looking at the Amazon Prime Visa or Venmo Credit card since I also use both services frequently as well. I'm open to any suggestions!

Apologies again for the long text block. Any help would be greatly appreciated it!

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

KJinNC — Wed, 20 Jan 2021 18:23:44 GMT

Welcome to the board!

I see a mix of good and bad news. But more good than bad.

The good:
- Your accounts are all at least two years old
- Your derogatory items should drop off this year

The bad:
- Chase really does not like you right now

Chase also does not like me, for different reasons (lol/24). I have no Chase-specific advice to give, except that hopefully when your derogs age off, they would look at you differently. Inquiries do not count toward 5/24, though they make skittish lenders including Chase nervous anyway when there is a recent flurry of applications.

Most likely, you will have pretty good odds with Chase if you wait for the derogs to fall off and for the recent inquiries to age a bit.

As far as non-Chase options, some stuff you could consider would be Amex (conventional wisdom is that cobrands such as Hilton and Delta are the easiest to get, then charge cards such as Gold, then core revolvers such as BCE), and Navy Federal if you have a path to join (I joined via my father's service in the National Guard in the 1960s).

I would consider closing some of your cards if you aren't using them. But long as they don't have annual fees, they aren't really hurting anything, I suppose.

You're ahead of most rebuilders in the sense that most of us have to choose between "thin file for years" or "credit-seeking behavior for years." Your file isn't that thin and you don't need to add many accounts. All you need to do is wait for derogs to age off, I think.

What month in 2014 was your last late payment? If you don't know offhand, you can find it on a credit report, or via Credit Karma or sites like that. I would expect derogs to fall off seven years and a month later, but it can vary a bit.

Do you really only spend $315/month? Or are there large categories you didn't list, eg Amazon/merchandise?

Note that you can request a CLI on the Amazon Store Card with a soft pull.

For your questions - the Apple Card offer isn't bad IMO, so if you'd benefit from its rewards, it might be a good get. Recent accounts are not good for mortgage applications, so there is that. Also, recent accounts are not good for Chase applications. There is no actual limit I'm aware of for how many cards you can open per month, but each lender looks at such things differently, and some including Chase are sensitive to new accounts. Others such as Amex are less sensitive to that. Opening two new accounts in a month might not be advisable if you are about to apply for a mortgage or for a Chase card, but in general, is not a death sentence by any means.

Just some thoughts. Good luck!

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Aim_High — Wed, 20 Jan 2021 19:30:55 GMT

Welcome to My Fico Forums, @Anonymous, and congrats on your first post!

Note: @KJinNC beat me to the punch while I was typing, but our advice has some similarities!

Wow. A lot of questions and a lot to cover here. I may not be able to touch on all your concerns but I'll give it a shot. I encourage you to read up on the forums before making any further credit moves. You can search the archives of different threads by using the search bar and searching specific forums. Also, posting specific questions on different threads may yield a quicker response, but the context of your overall situation is helpful so I understand the "wall of text." For future posts, you might consider just posting a quick link back to this thread where you laid out your profile. (Until your membership status ages and the "NEW" seal next to your name disappears, you can't post profile information in a signature like full members.)

For example, if you had researched CSR/CSP, you would have probably seen your profile likely wouldn't be approved for either. Chase is more picky than some lenders. Even though you have a CFU, your scores are on the fence with them for their higher Sapphire line. If you had a $500 SL on CFU, you just barely passed their underwriting. Also, lenders may not want to be the first to give the highest limits, and your current highest is $2K. Your average limit is $1,228. Meanwhile, CSP is approved as Visa Signature with SL minimum of $5K and CSR is approved as a Visa Infinite with minimum SL or $10K. Honestly, I wouldn't bother with a recon at this point for either card, but do so if you like. I just think it's futile and a waste of time.

So now my questions are:

A separate question, but if I were to co-sign on a mortgage sometime soon, will opening up a new line of credit effect a lenders decision, or is it based on the other person's credit?
- Would this also increase my score since I really don't have any loan installments on my file?

Let me answer this question first, out of the order you posted. With your profile and if you're thinking about a mortgage application, you need to make no changes at all to your credit file. If you're co-signing, your credit report will be hard-pulled too. Normally, the reason someone cosigns is to help someone with a lower score or thinner credit history qualify for a loan, so usually the cosigner's score is the basis for the loan. For example, I cosigned for my daughter's first car loan when she graduated college. However, both credit reports are pulled. Who would you be cosigning for and why are you cosigning?

As for the impact on your score, adding inquiries and new accounts can temporarily LOWER your score, not raise them. Remember, you are ADDING SUBSTANTIAL DEBT, and that especially applies on a mortgage loan. As you pay down an installment loan, the impact on your score will decrease. In the long term, having paid-down or paid-off installment loans is a good thing and will positively affect your credit score. But for the short term, the affect could be the opposite. Also, keep in mind that the "Mortgage" FICO score models are different from Bankcard or FICO 8/9 or Vantage. They are usually older and more conservative models. For most people,they tend to run significantly lower. With your reported FICO 8's running about 700, you might be in the lower 600's for a mortgage score, so marginal for approval, at least at the APR rates you expect.

I was pre-approved for an Apple Card through my phone (Didn't accept yet) for a CL of $4,000. Should I go for that card now, or wait and apply for another card in the mean time?
- Would this help case later if I wanted to go CSR/CSP?

Apple card would be a good addition to your lineup ... IF you decide not to pursue the mortgage. Their preapprovals are solid. It could help (eventually) with the CSR/CSP since it's a higher limit card for you and you'd be further solidifying your credit history with other accounts. Short-term, probably not an immediate help. The rewards can be better than the cards you carry now, depending on how you use it, since you get 2% on Apple Pay purchases and 3% on some others.

Should I call Chase recon and ask for CSP when bringing up the CSR application. What are the chances of me getting either through recon?

As I said, I wouldn't bother. I would say almost 0% chance of a successful recon.

Should I wait a few months until those delinquencies go away before reapplying for CSR/CSP?

Not just a few months. Letting the delinquencies go away is a part of it. But you need to bolster your overall file before you revisit even the CSP, much less the CSR. You may be a couple of years or more away from those cards, depending on your progress.

What CC's would you recommend I apply for instead based on my current situation. Should I even try for more cards while risking more HP's?

NONE - if you plan to apply for a mortgage. If you forgo the mortgage (or once it is complete), you would still be best served to primarily "garden" as we call it. Tend to your existing accounts and let them grow without adding new credit lines or hard pull credit limit increases. Use all your accounts to make sure they show history and report, although you can continue to pay each account in full (PIF) when due. If you decide to apply for new cards, investigate them thoroughly and check with the community before agreeing to hard pulls or applications.

Some suggestions:

* American Express can be more gentle with profiles like you have than Chase. Start with the co-branded cards such as Delta Airlines or Hilton to get your foot in the door. Those would be good initial "travel" category cards. You might even be able to get a Green-Gold-or Platinum charge card, especially since AMEX is trying to keep their annual fee cards afloat during the pandemic and has sweetened the SUB offers. Stay away from the 'revolvers' (Cash Magnet, Blue Cash, etc) since they are the hardest to get.

*If you have any military affiliation or have family members including parents, grandparents, or siblings who would help you to qualify, a lot of our community has had great success with Navy Federal Credit Union. They are - by far - the largest CU in the USA and also are more gentle with thinner or less-than-perfect profiles.

*If you check with Capital One, you might be able to product change one of your cards into a Venture or Savor card which could be helpful for travel or dining. The benefit to this is you don't take a hard pull or a new account on your report. The only downside is you don't get any Sign Up Bonus offering. Here is the direct link that has been posted on other My Fico threads:

https://verified.capitalone.com/auth/signin#/esignin?Product=Card&Action=ProductUpgrade

How many CC's can you even apply and get anyways per month? Does that hurt you in the long run if you have 2+ new cards opened up within the span of 3 months? I've read people signing up for multiple without it adversely effecting their score & eligibility.

There's a HUGE difference in "CAN" and "SHOULD!" Yes, overdoing new accounts can hurt you but more in the short run than the long run. We have some members who go on App Sprees and later regret it. With a thinner file like yours, you can create a lot of damage that will take time to heal if you overdo it. Remember that building a great credit file is a marathon, not a sprint. Slow and steady wins the race. So adding about one new account every six months is usually a safe pace to stay at (or below.) The more you exceed that, the more you risk low-limit approvals, outright denials, and wasted hard pulls. As your profile ages, it can be easier to get away with opening new accounts with less impact. The people you've read about opening new accounts may have significantly stronger credit profiles than yours, so be cautious with comparisons. As many details as we share on My Fico, there can be major differences in credit profiles that aren't apparent.

What else should I be mindful of when building up my score?

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Aim_High — Wed, 20 Jan 2021 19:48:00 GMT

@KJinNC wrote:
Do you really only spend $315/month? Or are there large categories you didn't list, eg Amazon/merchandise?

Like you, I thought this was unusual also @KJinNC, so thanks for bringing it up.

@Anonymous, if you make $60K annually, why is your spend so low? Especially with credit limits only at $8,600, your super-low utilization opens some questions. Is your spend really that low? Some lenders like to see more usage of your existing limits before they give you more. And the low utilization may be keeping your cards from growing more. Using your credit lines and paying them off helps to build your scores. Right now, it really looks like you don't NEED any credit if your utilization is only 3% of low limits.

If you're using debit cards instead of credit cards for many purchases, I would suggest that you concentrate your spend on your credit cards - as long as you can be disciplined and pay them off each month. Credit cards have better consumer protections, can give rewards on your purchases, and help build your credit score. I absolutely never use debit cards.

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Anonymous — Wed, 20 Jan 2021 23:14:46 GMT

Thank you @KJinNC & @Aim_High for the wealth of information & being so welcoming as well! That was honestly incredibly helpful as I can make an informed decision on what path to take with my credit cards & what healthy credit building habits I can follow in the near future.

I obviously have to do more research with CC's & Credit building as it can get a bit overwhelming since there are so many options and variables when it comes to credit building and credit cards. For now, I'm going to stick with what I have currently, and let my accounts age a bit more while maintaining a healthy utilization rate.

I'll go through and answer some questions below since I should've included a bit more information as far as spending and my account history.

@KJinNC wrote:
Welcome to the board!

I see a mix of good and bad news. But more good than bad.

The good:
- Your accounts are all at least two years old
- Your derogatory items should drop off this year

The bad:
- Chase really does not like you right now

Most likely, you will have pretty good odds with Chase if you wait for the derogs to fall off and for the recent inquiries to age a bit.

Ah man that's unfortunate with Chase ): , atleast the good outweighs the bad haha. Question for either @KJinNC or @Aim_High , how much does chase ding for a highly utilized card? & if they don't like that either, they probably hate me right now lol. Since my card had a SL of $500, I've gone on a few occasions where it would reach higher levels of utilization levels before paying it all down. I know the utilization topic was touched on a bit below with your questions @Aim_High , so I can answer that later.

What month in 2014 was your last late payment? If you don't know offhand, you can find it on a credit report, or via Credit Karma or sites like that. I would expect derogs to fall off seven years and a month later, but it can vary a bit.

After going through my Credit Karma report, funnily enough, the last late payment in 2014 was from an old Chase credit card on October

Do you really only spend $315/month? Or are there large categories you didn't list, eg Amazon/merchandise?

This part I should have clarified on my initial post since I didn't go into detail on all my expenses since it fluctuates. For the most part, that's usually on average, but my expenditures are all over the place every month.

Larger catagories definitely include Amazon, & various store fronts online (Like B&HPhoto or Sweetwater for my equipment), but I tend to aggressively paydown all of my purchases after which leaves me with little to no balance left each month.

My subscriptions are about $182~ per month. I usually add those onto my Chase freedom card since my SL is so low, and I couldn't use the card at all without driving up utilization% (Plus it was really convenient to see total subscriptions throughout the month on my Chase app as I'm frequently on there). That's why I delegate that card to only just subscriptions for now. Perhaps there's a better way to manage subscriptions? Should I add those onto another card with less benefits now that I have a higher CL on my CFU?

Note that you can request a CLI on the Amazon Store Card with a soft pull.

Will Amazon put in a HP after receiving an increase just like how Chase does? Or is it SP through and through from request to the acceptance?

For your questions - the Apple Card offer isn't bad IMO, so if you'd benefit from its rewards, it might be a good get. Recent accounts are not good for mortgage applications, so there is that.

I might go for an Apple Card first once I get my mortgage situation handled (I usually use Apple Pay online a lot for my transactions so I figure it would definitely benefit me). For now definitely will keep an eye out. After some time, my SL on the card should go up once my accounts are healthier when I reapply for the card correct?

I'll go into pt.2 with the next comments, but thank you again for the great response @KJinNC

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Anonymous — Wed, 20 Jan 2021 23:28:10 GMT

I really like the advice that you gave out here @Aim_High , as it was a major deciding factor for my choices. I'll try to answer some questions and also bring up some of my own as well!

@Aim_High wrote:
For example, if you had researched CSR/CSP, you would have probably seen your profile likely wouldn't be approved for either. Chase is more picky than some lenders. Even though you have a CFU, your scores are on the fence with them for their higher Sapphire line. If you had a $500 SL on CFU, you just barely passed their underwriting. Also, lenders may not want to be the first to give the highest limits, and your current highest is $2K. Your average limit is $1,228. Meanwhile, CSP is approved as Visa Signature with SL minimum of $5K and CSR is approved as a Visa Infinite with minimum SL or $10K. Honestly, I wouldn't bother with a recon at this point for either card, but do so if you like. I just think it's futile and a waste of time.

Yeah I felt like I only did surface level research when looking up anecdotal experiences from other members on the forum/reddit on their approval odds, and I thought I fit the bill . Definitely need to do more research on this topic. So when a SL minimum is $5k on any random card for example, would that mean you need to have atleast a card with that amount to show the lender that you're able to handle that amount of credit responsibily? Or is it total amount of revolving credit across all cards?

I don't think I'll bother with recon at this point, and just let my accounts age in a healthy manner before attempting the CSR/CSP once everything really opens back up and I can take full advantage of travel in the next year or two+.

So now my questions are:
A separate question, but if I were to co-sign on a mortgage sometime soon, will opening up a new line of credit effect a lenders decision, or is it based on the other person's credit?
Would this also increase my score since I really don't have any loan installments on my file?
Let me answer this question first, out of the order you posted. With your profile and if you're thinking about a mortgage application, you need to make no changes at all to your credit file. If you're co-signing, your credit report will be hard-pulled too. Normally, the reason someone cosigns is to help someone with a lower score or thinner credit history qualify for a loan, so usually the cosigner's score is the basis for the loan. For example, I cosigned for my daughter's first car loan when she graduated college. However, both credit reports are pulled. Who would you be cosigning for and why are you cosigning?

Ahh that's good to know, I'll take note of that. So to answer your question about co-signing. I'm looking to purchase a house sometime soon this year. With the help of my brother we're splitting the down payment, but he'll be the one that is the primary signer for the loan. The plan was to have both our names on the title. I know he's able to secure the loan for the mortgage. I think this is where I would come in as well.

My question is, do I have to be on the mortgage as well to get on the title? Or can both be separate? Since it'll take a bigger hit on my score as you highlighted below, it might be something I have to talk to my him about. But for now, it's not 100% on what the plan is at the end. I'll definitely keep my current credit cards until the time comes when we finalize on a house.

As for the impact on your score, adding inquiries and new accounts can temporarily LOWER your score, not raise them. Remember, you are ADDING SUBSTANTIAL DEBT, and that especially applies on a mortgage loan. As you pay down an installment loan, the impact on your score will decrease. In the long term, having paid-down or paid-off installment loans is a good thing and will positively affect your credit score. But for the short term, the affect could be the opposite. Also, keep in mind that the "Mortgage" FICO score models are different from Bankcard or FICO 8/9 or Vantage. They are usually older and more conservative models. For most people,they tend to run significantly lower. With your reported FICO 8's running about 700, you might be in the lower 600's for a mortgage score, so marginal for approval, at least at the APR rates you expect.

I actually just stumbled upon my other FICO scores on the Experian app. I definitely need to do more research in this area, there's so much to learn lol.

Right now I'm at - 725 Score 2 / 652 Auto 8 / 694 Auto 2 / 698 Bankcard Score 8 / 734 Bankcard Score 3 / 747 Bankcard Score 2

I'm guessing Score 2 is home mortgage? (Just saw a little house icon on it lol)

Should I wait a few months until those delinquencies go away before reapplying for CSR/CSP?
Not just a few months. Letting the delinquencies go away is a part of it. But you need to bolster your overall file before you revisit even the CSP, much less the CSR. You may be a couple of years or more away from those cards, depending on your progress.

What are some good indicators that my score is improving based on progress? Can I just go by score alone on FICO? Or should I thoroughly examine my detailed report every few months/year to get a better understanding + researching on the forums?

What CC's would you recommend I apply for instead based on my current situation. Should I even try for more cards while risking more HP's?
NONE - if you plan to apply for a mortgage. If you forgo the mortgage (or once it is complete), you would still be best served to primarily "garden" as we call it. Tend to your existing accounts and let them grow without adding new credit lines or hard pull credit limit increases. Use all your accounts to make sure they show history and report, although you can continue to pay each account in full (PIF) when due. If you decide to apply for new cards, investigate them thoroughly and check with the community before agreeing to hard pulls or applications.

Are Auto CLI's common across what I currently have (Barclays, CapOne, Chase, Synchrony, Citi Store card?). Definitely going to be more selective on what cards to go for next as that was my initial plan. I didn't want to just go application crazy. The CSR/CSP situation was just an exception haha.

Some suggestions:

* American Express can be more gentle with profiles like you have than Chase. Start with the co-branded cards such as Delta Airlines or Hilton to get your foot in the door. Those would be good initial "travel" category cards. You might even be able to get a Green-Gold-or Platinum charge card, especially since AMEX is trying to keep their annual fee cards afloat during the pandemic and has sweetened the SUB offers. Stay away from the 'revolvers' (Cash Magnet, Blue Cash, etc) since they are the hardest to get.

*If you have any military affiliation or have family members including parents, grandparents, or siblings who would help you to qualify, a lot of our community has had great success with Navy Federal Credit Union. They are - by far - the largest CU in the USA and also are more gentle with thinner or less-than-perfect profiles.

*If you check with Capital One, you might be able to product change one of your cards into a Venture or Savor card which could be helpful for travel or dining. The benefit to this is you don't take a hard pull or a new account on your report. The only downside is you don't get any Sign Up Bonus offering. Here is the direct link that has been posted on other My Fico threads:

Thanks for the suggestions! I think having to PC one of my CapitalOne cards seems to make more sense for me given my situation. Should I PC both Quicksilver & Platinum into Venture & Savior?

Also for AMEX, are the revolving cards more difficult to obtain vs Gold/Plat?

@Aim_High wrote:
@KJinNC wrote:
Do you really only spend $315/month? Or are there large categories you didn't list, eg Amazon/merchandise?
Like you, I thought this was unusual also @KJinNC, so thanks for bringing it up.

@Anonymous, if you make $60K annually, why is your spend so low? Especially with credit limits only at $8,600, your super-low utilization opens some questions. Is your spend really that low? Some lenders like to see more usage of your existing limits before they give you more. And the low utilization may be keeping your cards from growing more. Using your credit lines and paying them off helps to build your scores. Right now, it really looks like you don't NEED any credit if your utilization is only 3% of low limits.

I only just recently got a raise to $60K this year. Around 2018 I was hired into my current occupation and initially made around $30k, then in 2019, I was at $50K annually up until 2021 at $60k! Super exciting stuff since I had the ability to pay off a lot cards with high utilization. I swore never to be irresponsible with credit again after my late payments a few years back. Also before my current job, there would be times where my credit utilization would be around 70-80%. So when I was hired, and was earning more much more than I did before, I started to pay off my debt, and then over time I slowly started to aggressively pay down all of my CC's to 0. Since then I have always kept my utilization % below 15-10%. I figured now is the time to start learning how to rebuild my credit and turn it into something amazing for my future self!

As for the spending, since the number is so volatile it is actually more, but I pay off everything in full after each month. I actually pay multiple times throughout the month as well. Would you recommend that?

I can go more in depth with what I usually spend. Since I spend a lot of time on Amazon, I usually use my store card for those purchases. The rest of my purchases are usually spread across all my cards since I feel like it'll only hurt me if I don't even use the card at all. Of course I just pay everything off in full after.

Hopefully that answers some of your questions! If you have any other tips, or any questions, I'd be more than welcome to talk about it! It's exciting to learn more about credit and ways you can build it up. Definitely will be diving deeper into this topic.

Thank you so much again @Aim_High

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

MisterWives — Thu, 21 Jan 2021 00:58:48 GMT

I only just recently got a raise to $60K this year. Around 2018 I was hired into my current occupation and initially made around $30k, then in 2019, I was at $50K annually up until 2021 at $60k! Super exciting stuff since I had the ability to pay off a lot cards with high utilization. I swore never to be irresponsible with credit again after my late payments a few years back. Also before my current job, there would be times where my credit utilization would be around 70-80%. So when I was hired, and was earning more much more than I did before, I started to pay off my debt, and then over time I slowly started to aggressively pay down all of my CC's to 0. Since then I have always kept my utilization % below 15-10%. I figured now is the time to start learning how to rebuild my credit and turn it into something amazing for my future self!

I was going to ask why your credit limits seemed a bit low for someone with a 60k income and very good age of 6 year old cards, but that makes sense if you recently got the raise this year. Hopefully you updated your income on all cards so they know it has gone up and might automatically consider doing a CLI for you.

Your questions were answered by others, so I will just say I suggest you diversify to other cards as both Chase and Capital One are not generous lenders in the beginning unless you exclusively use their cards. Both of your Capital One cards are starter cards anyways, so they generally won't receive too much love anyways going forward.

As one person mentioned it might be best to PC to the more better cards since you get to keep the history and age of the card, but know it could result in the card getting bucketed if not heavily used and you lose out on the SUB.

Maybe go towards Amex or Discover might be a good option to get better credit limits. I would say of course don't do any of this until after the mortgage process is done as they do not like changes to your credit or banking.

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Getty59 — Thu, 21 Jan 2021 06:04:53 GMT

Wow well said I think I cried a bit..... 😢

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Aim_High — Thu, 21 Jan 2021 20:38:30 GMT

@Anonymous wrote:
I really like the advice that you gave out here @Aim_High , as it was a major deciding factor for my choices.
So when a SL minimum is $5k on any random card for example, would that mean you need to have atleast a card with that amount to show the lender that you're able to handle that amount of credit responsibily? Or is it total amount of revolving credit across all cards?
Glad to help! Lenders will sometimes give you a new high limit approval above your existing cards. But if there is a "minimum" for the card to be approved such as the Visa Signature or Visa Infinite examples, it's always a safer bet to have at least one card limit at that level or higher. And no, it's not your total limits. Its' the highest single card limit.   Let's say you wanted a CSR with minimum $10K approval.   If you didn't have one card at $10K or higher, you'd probably want to have at least a couple between $5K and close to $10K. Make sense?

I'm looking to purchase a house sometime soon this year. With the help of my brother we're splitting the down payment, but he'll be the one that is the primary signer for the loan. The plan was to have both our names on the title. I know he's able to secure the loan for the mortgage. I think this is where I would come in as well.   My question is, do I have to be on the mortgage as well to get on the title? Or can both be separate?

There are separate forums on My Fico with experts on real estate and mortgages, so it might be best to visit those, read up, and ask those questions over there. My understanding is that it could be done either way, with both of you on the loan or just one of you on the loan and both on the title. It may also vary based on state or local guidelines so speaking with a local realtor or mortgage lender might be helpful.

Right now I'm at - 725 Score 2 / 652 Auto 8 / 694 Auto 2 / 698 Bankcard Score 8 / 734 Bankcard Score 3 / 747 Bankcard Score 2
I'm guessing Score 2 is home mortgage? (Just saw a little house icon on it lol)

I found this on a third party website explaining it.
"Because of the Federal Housing Finance Agency (FHFA) mandate, the only scores that can be used currently are three of FICO’s older scoring models.    Mortgage lenders must use the following versions of FICO’s scoring models:
Experian: FICO Score 2, sometimes referred to as FICO V2 or FICO-II
TransUnion: FICO Score 4, sometimes referred to as FICO Classic 04
Equifax: FICO Score 5, sometimes referred to as BEACON 5.0

What are some good indicators that my score is improving based on progress? Can I just go by score alone on FICO? Or should I thoroughly examine my detailed report every few months/year to get a better understanding + researching on the forums?

You're on the right track because you're trying to learn more about credit and how scores work. You can tell your scores are improving by simply checking their trajectory up or down, but it's smart to want to understand WHY if you want to keep them high. So studying your credit report, finding factors that are detracting from a perfect score, and slowly working to address them will help your scores go to new highs and stabilize there as long as you use what you learn. Also, reading on the forums or other websites about credit scoring can help you to see important considerations even if they aren't something currently holding you back. Just because you get a score to 850 doesn't mean it will stay there. Credit is a tool in your financial toolbox, and using it may cause it to fluctuate a little. That's fine. But if you understand the scoring factors, you can keep it within a high but comfortable range. For example, my scores vary between about 825 and 850 right now as I've been adding new accounts. That's fine and I don't worry about less-than-perfect. My scores are high enough to get the best terms.

Are Auto CLI's common across what I currently have (Barclays, CapOne, Chase, Synchrony, Citi Store card?). Definitely going to be more selective on what cards to go for next as that was my initial plan.

I highly recommend being selective and thoughtful about long-term strategy when you apply. It can be tempting to add new credit, but do it within a long-term framework.

I'm not familiar with all the lenders but you can look them up. I'm familiar with Capital One and Chase directly. Capital One is generally unlikely to give auto-CLIs but you can ask for a soft pull CLI as often as every six months. They tend to be small and CapOne wants to see good use of your credit limit. Chase will sometimes give auto-CLI if you put heavy spend on a card. You can call and ask for an increase but it's a hard pull. I don't know about CITI store cards, but on my CITI Costco card, I can ask for a soft pull CLI once every six months. I've heard Synchrony cards can grow like weeds (but they are also known to shut down cards or CLD if your profile becomes risky or during the economic downturn.) I'm not sure but I think they soft-pull.

Should I PC both Quicksilver & Platinum into Venture & Savior?
Also for AMEX, are the revolving cards more difficult to obtain vs Gold/Plat?

First, check that link to even see if either one is eligible for product change. Venture and Savor can both be good cards for the right person, but it just depends on your spending needs, lifestyle, and what else you have in your wallet. If you don't travel, Venture may not work for you and if you don't dine out or pay for enough entertainment, Savor may not be a good match. Keep in mind that they both have annual fees you must offset in your calculations about the value-added. You need to know what your spending history and/or needs will be. Don't add cards with annual fees without considering the longer-term impact. This often happens with high-AF cards with big SUBs (Sign Up Bonuses). We have members get the card and then have to plan how long to keep it before dropping it to avoid getting labeled as a churner by the lender. (Churner being someone who habitually signs up for many new cards just for the bonus.)

Yes for AMEX, the most difficult cards to qualify for are the non-cobranded revolvers like Cash Magnet or Blue Cash Everyday/Preferred.

I only just recently got a raise to $60K this year. Around 2018 I was hired into my current occupation and initially made around $30k, then in 2019, I was at $50K annually up until 2021 at $60k! Super exciting stuff ...

Congrats on your financial progess! Yes, always exciting to enter a new chapter with better financial stability.

... I pay off everything in full after each month. I actually pay multiple times throughout the month as well. Would you recommend that?

Paying off balances is good. However, letting some balances post can be a good thing if you're not applying for new credit. Look at it this way. A bank INTERNALLY sees your new charges and payment history and they are happy they are using your card. They report $0.00 balance to the credit reporting bureau (CRB) and "Paid as Agreed." But the CRB doesn't "see" any activity on your cards, so it appears to them that you aren't using your credit. And using your credit limits and paying it off is how you build your score and payment history. Also, a lender might do a manual review of your report to approve you for a new card. If it appears to them from your credit report that you don't use your existing cards, they may be hesitant to approve you because it appears you don't use credit or don't need it.

There is a technique called Azeo (All Zero Except One) that some of our members practice before applying for new credit. If you do let balances post, be careful about it before a new application. One month prior, let ONE balance post a small amount with the other cards reporting $0.00. That one balance should be a very small amount between about $5 and 1% of the credit limit. (I believe $5 is the minimum that will report.) The Azeo technique can give you a small credit score boost and show some credit usage. If you let higher balances post, your utilization rates will be higher and it will likely lower your scores somewhat.

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

Anonymous — Fri, 22 Jan 2021 06:51:56 GMT

Thanks for the insight @Aim_High ! I'll definitely do a bit more research in the appropriate sections on specific answers, especially when it comes to Mortgages and home ownership. Definitely a lot to take in once I put my feet in the waters surrounding the world of credit and credit building haha.

I think I'll do a test run with the AZEO methods to see how my credit fares in the coming months.

Another little side note, but I've also increased my CL on my Synchrony Amazon Store card from $800 to a whopping $2,400!

Re: Need advice on what path to take next with my CC's (Maybe some advice on credit building)

KJinNC — Fri, 22 Jan 2021 14:40:45 GMT

Hey, that's 3x, very nice step forward! And yes, it's SP the whole way through, at least, it has been for me.