topic Re: Where do I start? in Credit Cards

Where do I start?

Anonymous — Mon, 17 Sep 2012 19:11:15 GMT

I want to start building my credit help insure that I get the lowest rates and advantages to having good credit. I am recently out of college, but have had some established credit over the last few years, more so than the average college grad. I will be getting married next year, and wanting to get into a new house/car not long after.What is the best way to raise my scores? I have no significant outstanding debt(ie student loans) and 2 credit cards with a combined 2500 limit. Would going after store cards with high limits be a good move? I almost never fail to pay my cc balances in full at the end of each month, and have no dings from late payments of any kind from any tv, utility company, etc. To the best of my knowledge, I have good credit. What direction should I be moving? Thanks for the input.

Re: Where do I start?

DaveSignal — Mon, 17 Sep 2012 19:16:31 GMT

I would try to get CLIs on your current cards and then apply for one more card. If you need a car now, you could get one now and then after that + your three cards have been reporting for over a year, you will probably be great for further loans. Of course, if you don't need a car now, you could probably get by with just the 3 revolving accounts.

Re: Where do I start?

Duncanrr — Mon, 17 Sep 2012 19:17:07 GMT

Welcome. FIrst thing you need to do, if you havent already done so is go to annualcreditreport.com and get copies of your free credit reports. This will give you an idea of whats on your reports. Id also suggest getting your FICO scores from this site so we can know what scores you have right now. Our recommendations will depend on what bad accounts (lates), collections, charge offs, bankruptcies, liens and/or judgments you have on your reports.

Also, there are some really good sticky threads on this site you should read.

Re: Where do I start?

Anonymous — Mon, 17 Sep 2012 19:39:28 GMT

Ok, I just did finish registering, I have a 687 Equifax. With the only bad thing being my length of credit history, which I knew would by my biggest obstacle. I have no bad accounts or any negative marks on my credit report. I do have a couple thousand dollars on a jewelry store card that is 9 mos 0% interest, from a recent purchase. That makes 3 accounts, with 2 of the 3 having a current zero balance. Only 1 credit inquiry on a CLI from WF that I requested back in 02/2012. That is pretty much it...

Re: Where do I start?

Duncanrr — Mon, 17 Sep 2012 19:58:04 GMT

@Anonymous wrote:
Ok, I just did finish registering, I have a 687 Equifax. With the only bad thing being my length of credit history, which I knew would by my biggest obstacle. I have no bad accounts or any negative marks on my credit report. I do have a couple thousand dollars on a jewelry store card that is 9 mos 0% interest, from a recent purchase. That makes 3 accounts, with 2 of the 3 having a current zero balance. Only 1 credit inquiry on a CLI from WF that I requested back in 02/2012. That is pretty much it...

I would app for American Express Zync. Given your age, thin file (as long as you have had card 6months to year you are ok), and credit score you are the ideal candiate for this card. (Amex designed the card for your profile.) If you are instantly approved for Zync you may want to try applying for one of their co-branded cards like the Delta Skymiles cards. If you are declined it will only be a soft pull. Additionally, I would app for Walmart Discover card (you can get CLI every 4 months) and Chase Freedom/Discover More card.

Those cards should set you up and then you can farm them for a year.

Re: Where do I start?

gettnthere — Mon, 17 Sep 2012 20:00:50 GMT

@Duncanrr wrote:
@Anonymous wrote:
Ok, I just did finish registering, I have a 687 Equifax. With the only bad thing being my length of credit history, which I knew would by my biggest obstacle. I have no bad accounts or any negative marks on my credit report. I do have a couple thousand dollars on a jewelry store card that is 9 mos 0% interest, from a recent purchase. That makes 3 accounts, with 2 of the 3 having a current zero balance. Only 1 credit inquiry on a CLI from WF that I requested back in 02/2012. That is pretty much it...
I would app for American Express Zync. Given your age, thin file (as long as you have had card 6months to year you are ok), and credit score you are the ideal candiate for this card. (Amex designed the card for your profile.) If you are instantly approved for Zync you may want to try applying for one of their co-branded cards like the Delta Skymiles cards. If you are declined it will only be a soft pull. Additionally, I would app for Walmart Discover card (you can get CLI every 4 months) and Chase Freedom/Discover More card.
Those cards should set you up and then you can farm them for a year.

that sounds like a great start! good advice

Re: Where do I start?

Anonymous — Mon, 17 Sep 2012 20:01:16 GMT

@Duncanrr wrote:

I would app for American Express Zync. Given your age, thin file (as long as you have had card 6months to year you are ok), and credit score you are the ideal candiate for this card. (Amex designed the card for your profile.) If you are instantly approved for Zync you may want to try applying for one of their co-branded cards like the Delta Skymiles cards. If you are declined it will only be a soft pull. Additionally, I would app for Walmart Discover card (you can get CLI every 4 months) and Chase Freedom/Discover More card.
Those cards should set you up and then you can farm them for a year.

This all sounds like solid advice, however, when are you planning to buy a house? You shouldn't apply for any new credit for at least a year in advance of the mortgage applications.

As for the recommended cards, you probably don't need that many. Are you interested in getting in with Amex? If so, the Zync is the way to go. I would forego the Walmart Discover, and just try for a Chase Freedom/Discover More card for the cashback!

Re: Where do I start?

Duncanrr — Mon, 17 Sep 2012 20:05:27 GMT

@Anonymous wrote:

This all sounds like solid advice, however, when are you planning to buy a house? You shouldn't apply for any new credit for at least a year in advance of the mortgage applications.

As for the recommended cards, you probably don't need that many. Are you interested in getting in with Amex? If so, the Zync is the way to go. I would forego the Walmart Discover, and just try for a Chase Freedom/Discover More card for the cashback!

He stated in original post he was looking to buy house after he got married in a year. So the apps should be fine by then.

I suggested Walmart Discover because he wanted to grow CL. This is probably the best card for that (well Delta Skymiles with 3x CLI in 61 days after activation).

Re: Where do I start?

Anonymous — Mon, 17 Sep 2012 20:15:33 GMT

@Anonymous wrote:
@Duncanrr wrote:
I would app for American Express Zync. Given your age, thin file (as long as you have had card 6months to year you are ok), and credit score you are the ideal candiate for this card. (Amex designed the card for your profile.) If you are instantly approved for Zync you may want to try applying for one of their co-branded cards like the Delta Skymiles cards. If you are declined it will only be a soft pull. Additionally, I would app for Walmart Discover card (you can get CLI every 4 months) and Chase Freedom/Discover More card.
Those cards should set you up and then you can farm them for a year.
This all sounds like solid advice, however, when are you planning to buy a house? You shouldn't apply for any new credit for at least a year in advance of the mortgage applications.

As for the recommended cards, you probably don't need that many. Are you interested in getting in with Amex? If so, the Zync is the way to go. I would forego the Walmart Discover, and just try for a Chase Freedom/Discover More card for the cashback!

At this point, I won't be buying a house within the next 30 mos. That should give me at least a year and a half before I need to not apply for more credit, correct? Is the goal to rack up as much credit as possible with the highest CL and best UTL? Or at some point does it not help anymore. Aftew reviewing some of my new found info, I realized that the jewelry store card, which I see now is actually backed by Wells Fargo (where I have my other CC and checking/savings) I was approved for 10,300. So essentially, I have a card with the jewelry store with a 10,000 limit. Once I pay that new ring off, my UTL should go through the roof. I may have a much better score than I realize in the next couple months. Am I on track here or am I missing something?

Re: Where do I start?

Anonymous — Mon, 17 Sep 2012 20:19:56 GMT

@Anonymous wrote:
@Anonymous wrote:
@Duncanrr wrote:
I would app for American Express Zync. Given your age, thin file (as long as you have had card 6months to year you are ok), and credit score you are the ideal candiate for this card. (Amex designed the card for your profile.) If you are instantly approved for Zync you may want to try applying for one of their co-branded cards like the Delta Skymiles cards. If you are declined it will only be a soft pull. Additionally, I would app for Walmart Discover card (you can get CLI every 4 months) and Chase Freedom/Discover More card.
Those cards should set you up and then you can farm them for a year.
This all sounds like solid advice, however, when are you planning to buy a house? You shouldn't apply for any new credit for at least a year in advance of the mortgage applications.

As for the recommended cards, you probably don't need that many. Are you interested in getting in with Amex? If so, the Zync is the way to go. I would forego the Walmart Discover, and just try for a Chase Freedom/Discover More card for the cashback!
At this point, I won't be buying a house within the next 30 mos. That should give me at least a year and a half before I need to not apply for more credit, correct? Is the goal to rack up as much credit as possible with the highest CL and best UTL? Or at some point does it not help anymore. Aftew reviewing some of my new found info, I realized that the jewelry store card, which I see now is actually backed by Wells Fargo (where I have my other CC and checking/savings) I was approved for 10,300. So essentially, I have a card with the jewelry store with a 10,000 limit. Once I pay that new ring off, my UTL should go through the roof. I may have a much better score than I realize in the next couple months. Am I on track here or am I missing something?

Maybe "hit rock bottom" would make more sense.

Re: Where do I start?

DaveSignal — Mon, 17 Sep 2012 20:21:38 GMT

The idea is to have a longer length of history among multiple accounts and a very low utilization percentage at the time you are applying for your mortgage.

Re: Where do I start?

Duncanrr — Mon, 17 Sep 2012 20:22:59 GMT

Nope you are on track. The utilization does bring up an other matter. Some credit card companies may be hesitant to give you new credit if your existing utilization is too high. You might want to do some searching on here for more information on that.

EDIT: Prior to applying for home mortgage your utilization should be between 1-9%.

Re: Where do I start?

Anonymous — Mon, 17 Sep 2012 20:30:35 GMT

@Duncanrr wrote:
Nope you are on track. The utilization does bring up an other matter. Some credit card companies may be hesitant to give you new credit if your existing utilization is too high. You might want to do some searching on here for more information on that.

EDIT: Prior to applying for home mortgage your utilization should be between 1-9%.

At what point in applying for a new CC would my UTL be an issue? With my current UTL being almost 30%, would it be better to wait for UTL to drop, then apply to try to get a higher starting CL, or should I go ahead and apply, take what I get, and try to grow the CL from there. My UTL should significantly drop and my be in that 1-9% window by the end of 2012, so waiting wouldn't be a huge problem, but since my main issue right now is LOC, I guess I feel rushed to go ahead and get all the credit I can, so that when it does come time for a major purchase, I will have no account that would be considered new.

Re: Where do I start?

Duncanrr — Mon, 17 Sep 2012 20:53:03 GMT

@Anonymous wrote:
@Duncanrr wrote:
Nope you are on track. The utilization does bring up an other matter. Some credit card companies may be hesitant to give you new credit if your existing utilization is too high. You might want to do some searching on here for more information on that.

EDIT: Prior to applying for home mortgage your utilization should be between 1-9%.
At what point in applying for a new CC would my UTL be an issue? With my current UTL being almost 30%, would it be better to wait for UTL to drop, then apply to try to get a higher starting CL, or should I go ahead and apply, take what I get, and try to grow the CL from there. My UTL should significantly drop and my be in that 1-9% window by the end of 2012, so waiting wouldn't be a huge problem, but since my main issue right now is LOC, I guess I feel rushed to go ahead and get all the credit I can, so that when it does come time for a major purchase, I will have no account that would be considered new.

Utilization of 30% isnt too bad. I was thinking it was higher. You should be fine for most cards with that but I'm not really an expert on that (I keep mine below 9% and just dont worry about utilization. I would probably app now as you want more time between your apps/new cards and when you get mortgage.

Re: Where do I start?

jamie123 — Mon, 17 Sep 2012 21:03:53 GMT

Like another poster said, I would recommend you apply for the AMEX Zync. It is a charge card and MUST be paid in full every month. If you are approved for the Zync immediately apply for one of the co-branded cards. You might get the 7-10 day message and will need to call them.

If you get the Zync you will have your foot in the door with a really good prime lender. Your only problem now is your lack of history so the sooner you start history with a prime lender the better.

Good luck!

Re: Where do I start?

Anonymous — Mon, 17 Sep 2012 21:22:54 GMT

If your goal is to have the highest FICO score in a few years.

Then Do not apply for any more credit, you have enough with 3 cards. Any new cards will lower your AAoA.

Also, when application time comes around, pay down your balances for best utilization to maximize your score, Don't worry about it now.

On the other hand, if you want more CC, best do it now to minimize the damange to AAoA.

Re: Where do I start?

LS2982 — Mon, 17 Sep 2012 21:36:08 GMT

I would also vote for the Zync, but only if you can get your util down below 10%.