topic Re: New to credit cards, want tips/help! in Credit Cards

New to credit cards, want tips/help!

GoldenloveNY — Thu, 01 Mar 2012 05:59:11 GMT

Hello,

I am 21 years old and am new to credit cards. It has been two months since I have been approved and started using my Capital One Secured Mastercard. I have a credit of only $200, but Capital One said they will increase my limit with good payment history. It's not much, but it's a start!

I have been using only 30% of my credit and paying in full, through multiple payments spread out over the month. I have decided to apply for college and I am awaiting their responses (wish me luck!!). Anyway, by the time I should enter college I should have at least a 9 month credit history with this capital one card. At this point, I am planning on applying for another card. I have two questions:

I am looking for cash back/rewards. Do you think I should get a "student" card (Capital One Journey has a good cash back deal!) or just forget it and apply for a regular cash back/rewards card? If so, which one? I am thinking for shooting for a regular card because I am building credit history with this one, and I have been told that student credit cards offers very low limit to start. I don't want another low limit card
Will a 9 months of good credit be enough to be accepted for most regular/student credit cards? Do you think I will have a good credit score (if I used only 30% of my credit, make regular payments, and have no balance due at the end of the month)?
Can I apply for two cards at the same time? Let's say I applied for a card nine months from now, and I get aprroved. Can I go ahead and apply for a different card and approved too?

Thanks!

Re: New to credit cards, want tips/help!

Anonymous — Thu, 01 Mar 2012 06:03:05 GMT

I do believe I gave you advice on another forum? Welcome to myFico! And if you aren't that person, then here is my advice:

When I had started building credit, I instantly applied for the Journey card, with no credit history. I was approved and then 5 months later they gave me another $250 since I was enrolled in the credit steps program.

About a month after getting the CLI I app'ed for the BofA Student Platinum Plus and was given $600 and that was in August. So its been less than 6 months now. Recently I went into my account, and started a Chat, and even though it hasn't been 6 months, they were able to bump be over to a 1, 2, 3 Cash Rewards card, with no HP required.

So since YMMV, If I were you, I might try for the Capital One Cash Rewards card, there are two of them. One has a $39 AF that is made for Average Credit, and the other has a $100 Cash Back bonus after spending a certain amount in a certain time. However, that one is for people with Excellent credit. Both are MasterCard's. With the exception, the one for excellent credit is a World MasterCard, so the starting limit would be $5,000. Similar to the Visa Signature.

Re: New to credit cards, want tips/help!

GoldenloveNY — Thu, 01 Mar 2012 06:12:42 GMT

Yes, Thank-you. It seem like the other forum requires mod approvals for EVERY post...LOL!

By the way, is it possible to apply for two cards at the same time and be approved for both?

Re: New to credit cards, want tips/help!

Anonymous — Thu, 01 Mar 2012 06:11:26 GMT

Yes, that is what is very frustrating about that forum, and limited advice. Here there are a lot of users that give a lot of helpful advice. As far as applying for two cards at the same time, that is not possible. From what I understand you have to apply for a credit card one at a time. Each card has different requirements and different limits. So each application needs to do its own credit pull.

Re: New to credit cards, want tips/help!

Anonymous — Thu, 01 Mar 2012 06:12:18 GMT

@GoldenloveNY wrote:
Hello,

I am 21 years old and am new to credit cards. It has been two months since I have been approved and started using my Capital One Secured Mastercard. I have a credit of only $200, but Capital One said they will increase my limit with good payment history. It's not much, but it's a start!

I have been using only 30% of my credit and paying in full, through multiple payments spread out over the month. I have decided to apply for college and I am awaiting their responses (wish me luck!!). Anyway, by the time I should enter college I should have at least a 9 month credit history with this capital one card. At this point, I am planning on applying for another card. I have two questions:
I am looking for cash back/rewards. Do you think I should get a "student" card (Capital One Journey has a good cash back deal!) or just forget it and apply for a regular cash back/rewards card? If so, which one? I am thinking for shooting for a regular card because I am building credit history with this one, and I have been told that student credit cards offers very low limit to start. I don't want another low limit card
Will a 9 months of good credit be enough to be accepted for most regular/student credit cards? Do you think I will have a good credit score (if I used only 30% of my credit, make regular payments, and have no balance due at the end of the month)?
Can I apply for two cards at the same time? Let's say I applied for a card nine months from now, and I get aprroved. Can I go ahead and apply for a different card and approved too?
Thanks!

I suggest you might want to increase your deposit since you have to pay several times a month, (Assuming you have the extra funds). A bigger deposit can help get a bigger limit on future cards. Wait the 9 months and then apply for a Capital One card. Try the prequalification and pick one from what they offer. Your good history with Capital One will help you get something decent with them.

Use the card as much as you want but PIF every month to avoid interest and to establish a pattern of payment. IMO, using only 30% is not much help, especially on a secured card. Although I do recommend getting your reported utilization down when applying for new credit.

Re: New to credit cards, want tips/help!

Anonymous — Thu, 01 Mar 2012 06:27:25 GMT

I don't know if your work is associated with a credit union or if maybe one of your folks is a federal employee or have access to a local CU but that can be a really good door to get a foot into.

As far as rewards cards, CapOne on their average card is very lenient in terms of opening accounts but the CLIs come infrequently if at all. But the rewards are good and fast.

Re: New to credit cards, want tips/help!

GoldenloveNY — Thu, 01 Mar 2012 06:49:04 GMT

Thanks!

Re: New to credit cards, want tips/help!

RyVision — Thu, 01 Mar 2012 09:28:14 GMT

GoldenloveNY;

In addition to the above;

Since you're 21, going into school and, from what I read, have no prior credit problems; you might want to consider looking into the option of applying for an AMEX ZYNC around November. The reason I say this is it will lock in your original Membership date with AMEX for life. The card was originally geared towards college students so has a low AF of $25. AMEX is the ONLY credit card company to give card members a starting date perk like that and it can be a big deal years down the road.

If you don't already know, I should mention AF= Annual Fee, CC= Credit Card, CCC= Credit Card Company, CL= Credit Limit, CLI= Credit Limit Increase. Those are just some starters for "shorthand" you'll see around here if you haven't already noticed and might be unsure what some of them mean. There's a guide to it somewhere but not sure where off hand, believe me, you'll run across it if you browse here enough LOL.

You're also considered a "Builder" not a "Re-Builder" if you ever run across those terms and wonder. A builder is new to credit or building credit with no real negative history, a Re-Builder is someone doing just that, re-building after having some issues with their credit in the past. So right now, you're working with a clean slate. DO NOT get lured in by promotions to apply or accept sub-prime products like First Premier, Orchard, Credit One etc or others that have high fees, annual and otherwise, you do not need them. Cap 1 isn't a bad company, they work for both Builders and Re-Builders for the most part without the outlandish fees of the others.

ALWAYS research here before you apply for something you might find interesting, you'll never regret doing so. You'll no doubt get offers (if you haven't already) in the mail for products (CCs) you just don't want in your credit file.

By the time you're ready to apply for another card, you'll have learned a LOT here if you visit and read on a regular basis. By coming to MyFico at such an early stage of your credit journey, you've made a very good choice with which to understand and navigate the credit world before ever hitting any bumps or running into the ditch. Very wise on your part and there are a lot of people here willing to share their experiences, wisdom and advice. Not that we agree on every little detail LOL but that's usually related to which company, not the general advice about credit

And; Welcome to MyFico btw

Re: New to credit cards, want tips/help!

LS2982 — Thu, 01 Mar 2012 11:28:15 GMT

@GoldenloveNY wrote:
Hello,

I am 21 years old and am new to credit cards. It has been two months since I have been approved and started using my Capital One Secured Mastercard. I have a credit of only $200, but Capital One said they will increase my limit with good payment history. It's not much, but it's a start!

I have been using only 30% of my credit and paying in full, through multiple payments spread out over the month. I have decided to apply for college and I am awaiting their responses (wish me luck!!). Anyway, by the time I should enter college I should have at least a 9 month credit history with this capital one card. At this point, I am planning on applying for another card. I have two questions:
I am looking for cash back/rewards. Do you think I should get a "student" card (Capital One Journey has a good cash back deal!) or just forget it and apply for a regular cash back/rewards card? If so, which one? I am thinking for shooting for a regular card because I am building credit history with this one, and I have been told that student credit cards offers very low limit to start. I don't want another low limit card
Will a 9 months of good credit be enough to be accepted for most regular/student credit cards? Do you think I will have a good credit score (if I used only 30% of my credit, make regular payments, and have no balance due at the end of the month)?
Can I apply for two cards at the same time? Let's say I applied for a card nine months from now, and I get aprroved. Can I go ahead and apply for a different card and approved too?
Thanks!

I would recommend gardening the account to a year history and making a deposit to the secured card to take it up to 1K before going after any unsecured credit.

Re: New to credit cards, want tips/help!

GoldenloveNY — Fri, 02 Mar 2012 06:23:31 GMT

Thanks for the tips!

RyVision, a special thanks to you!

Re: New to credit cards, want tips/help!

Anonymous — Fri, 02 Mar 2012 07:49:51 GMT

@GoldenloveNY wrote:
Thanks for the tips!

RyVision, a special thanks to you!

GoldenloveNY, you've been given very good advice. You'll find a lot of people on these boards that have learned their way around the credit game and are all too happy to share their knowledge and experience. The only things that I wanted to add are 1) welcome to the forums and 2) good luck with your college application!