topic Where do I go from here? in Credit Cards

Where do I go from here?

Erica1 — Thu, 23 Feb 2012 04:05:28 GMT

After cleaning up my credit substantially (went from so many negatives it was sad to look at my CR to absolutely no negatives), I am going to be building my credit the right way this time. Young and dumb before, blah, blah, blah.

I decided to wait until my CRs were completely clean rather than starting with subprime/prepaid cards. I applied for and received my first credit card in years, a Chase Freedom. I think this is a great "starter" for me, it only has a 1K limit but you have to start somewhere, right? So, to the point...I'm not sure what I should do next. My long term goal is AmEx, I've only heard great things. I have no store cards, the Chase Freedom is the only card that I have. As far as other credit, all I have is student loans which are pays as agreed, no lates, and an old car loan which shows paid in full. No current auto or mortgage loans.

Oh, I should tell you my scores. My EQ is 702 (it just dropped from 720 within the last few months. There were 2 inquiries, not for cc's, not that the reason matters. I assume that's why as nothing else has changed) and my TU is 716. I'm SOOOO proud of those BTW, you should have seen them about 3 years ago...ick.

Anyway, I've been lurking on these boards for years now and now that I'm ready to get this going I thought I'd actually participate. In order to get to my goal of higher scores, great cards, etc. and a nice AmEx, should I get a couple store cards, another cc, any other suggestions? An auto loan isn't really in the cards for me for the next year or so at least, won't be needing or wanting one until then.

Thanks in advance for any help. In my years of lurking here I've learned so much that helped me clean up my credit (glad to be moving from the rebuilding boards to this one!) and have even been able to give some good advice to friends and family so they didn't end up making credit mistakes. I love this place!

Re: Where do I go from here?

LS2982 — Thu, 23 Feb 2012 03:56:33 GMT

Where did you get your EX score at?

Also, it would be wise to garden your chase card for at least 6months then go for an AMEX charge card.

Re: Where do I go from here?

RyVision — Thu, 23 Feb 2012 04:01:36 GMT

Erica1;

CONGRATS on your success! A Chase Freedom with a 1k line is still a dang prime way to start! (a lot of people get 500 CL with them).

Very nice scores too! Starting out "rebuilding" in the 700 club is fantastic!

I doubt you'd have any problem getting AMEX within the year (I'll admit you could probably get the ZYNC or Green now even with no hassle, at least from what I read above).

Re: Where do I go from here?

Erica1 — Thu, 23 Feb 2012 04:05:08 GMT

Oops, sorry, I mistyped...it's Equifax.

I should just sit on this one or should I open a store as well? I have read that it is good to have a store card in the mix but my AAoA is only 3 years so might it do more harm than good?

Re: Where do I go from here?

Anonymous — Thu, 23 Feb 2012 04:05:48 GMT

I would wait until you have at least 6 months history with the freedom and then apply for an amex charge card, whichever one you think would best suite you. I don't see any need to apply for anything else until then, unless you have a real use for another card.

Re: Where do I go from here?

Erica1 — Thu, 23 Feb 2012 04:09:01 GMT

Thanks, Ry! I figured I would be okay on the Zync after a little research that I did here but figured I'd just wait until I might be able to get one of the Blue cards instead. Within a year sounds pretty awesome to me! I will have fun with my Chase Freedom in the meantime trying to get the most out of my rewards...I'm a dork and cheap so I will love working that to get the most back.

Re: Where do I go from here?

bichonmom — Thu, 23 Feb 2012 04:42:51 GMT

Well, I'm going to give you a little different advice than the others. You might want to consider getting a Walmart (or other GEMB) card. Of course, I'd only recommend getting it someplace where you'd use it. But the benefits of a WM card are #1, you get your free TU FICO each month and #2, GEMB (in most cases) will do a CLI every 4 months. Also, with your high score, you might qualify for the WM Discover, depending on how much weight they put on previous revolver history. I'd say your chances are pretty good that you'd be approved for one of them (It's only one app, and they approve you for the highest card and CL you qualify for.)

You probably don't need this to get an Amex within the year. But I don't think it could hurt either. It will help balance your util, which is really hard to do with one CC. The advice for the highest FICO is to have a balance report on only one CC with 9% or less. You can't really do that with only one card. So having the second CC will help with your util, if you allow your balance to report. It will also help to show two open, revolving accts with a positive history vs. one. Some CCCs actually *require* at least 2 CCs reporting for 1 year before they'll approve you. My CU required at least 2 open credit lines reporting to qualify for a CC with them.

If you don't shop @ Walmart, you can search here under GEMB or GECRB. I know there was a recent thread with a list of GE stores on it. Good luck and congrats on your new CC! I've been through what you described and it's a really great feeling when you're able to be approved for credit again.

Re: Where do I go from here?

Anonymous — Thu, 23 Feb 2012 04:50:20 GMT

@Anonymous wrote:
I would wait until you have at least 6 months history with the freedom and then apply for an amex charge card, whichever one you think would best suite you. I don't see any need to apply for anything else until then, unless you have a real use for another card.

+1 on the 6 months before AMEX. .

Store cards are good if you shop there enough to make the rewards, discounts, and deals worth your while. No need to wait on those, if you have a use for them.

Re: Where do I go from here?

LS2982 — Thu, 23 Feb 2012 10:40:30 GMT

@Anonymous wrote:
I would wait until you have at least 6 months history with the freedom and then apply for an amex charge card, whichever one you think would best suite you. I don't see any need to apply for anything else until then, unless you have a real use for another card.

Re: Where do I go from here?

Anonymous — Thu, 23 Feb 2012 13:47:26 GMT

Congratulations on your achievements. It's such a great feeling to be in the prime world again!!

Re: Where do I go from here?

Erica1 — Thu, 23 Feb 2012 22:10:20 GMT

Thanks for the advice, guys. I was pretty much planning on waiting at least 6 months on any new credit card, hopefully an AmEx Blue, but was considering the store card route and Wal-Mart was the one I was leaning towards. I like that they give you your TU score...pretty good benefit there. I may still go that way. I apped for a Wal-Mart card 6 months ago and was denied. I didn't have any cc's and there was an unpaid collection still lurking that I thought had already fallen off.

Oh and one follow up question, albeit unrelated to my original. I've seen on some posts in the forum people referring to the Wal-Mart card giving you your "TU08" score and other references to other cards or services giving you your TU-some other number..what is this referring to?