topic Re: Need advice before applying for 2nd credit card in Credit Cards

Need advice before applying for 2nd credit card

Anonymous — Mon, 04 Mar 2013 01:32:47 GMT

Hi Everyone,

I have had a discover card for the past 7 months. Never missed a payment, always was under 10% of total credit, leading to a credit increase upto 1.5K. I was wondering whether anyone would have any recommendations for a good 2nd credit card with rewards points.

I applied for Citi thankU preferred, but they rejected me on account of a limited credit history. I checked my FICO scores here and it was 729.

Thanks

Re: Need advice before applying for 2nd credit card

jacquelinemay9 — Mon, 04 Mar 2013 01:36:27 GMT

You could try the walmart card. Free TU score with paperless billing. They seem pretty lenient and GM is good with CLIs

Re: Need advice before applying for 2nd credit card

BrokaToe — Mon, 04 Mar 2013 01:39:30 GMT

@Anonymous wrote:
Hi Everyone,

I have had a discover card for the past 7 months. Never missed a payment, always was under 10% of total credit, leading to a credit increase upto 1.5K. I was wondering whether anyone would have any recommendations for a good 2nd credit card with rewards points.

I applied for Citi thankU preferred, but they rejected me on account of a limited credit history. I checked my FICO scores here and it was 729.

Thanks
EP

Not sure how the rest of your credit profile looks, but the Chase Freedom compliments Discover nicely on rotating categories. Or the Amex BCE or BCP, although BCP's rewards are awesome, there is the AF thing.

Re: Need advice before applying for 2nd credit card

Anonymous — Mon, 04 Mar 2013 01:50:47 GMT

All the cards mentioned are excellent suggestions. OP I recommend you take a look at your spending and see which bonus categories would benefit you most. If you spend a lot on groceries then Amex BCE/BCP is a good choice. If you spend a lot on gas then BofA Cash Rewards is a little better for that. If the Discover card you have is rotating 5% categories then you might want to get a non-rotating card for your 2nd card, since the categories can overlap or be irrelevant to you sometimes.

Re: Need advice before applying for 2nd credit card

BrokaToe — Mon, 04 Mar 2013 01:55:33 GMT

@Anonymous wrote:
All the cards mentioned are excellent suggestions. OP I recommend you take a look at your spending and see which bonus categories would benefit you most. If you spend a lot on groceries then Amex BCE/BCP is a good choice. If you spend a lot on gas then BofA Cash Rewards is a little better for that. If the Discover card you have is rotating 5% categories then you might want to get a non-rotating card for your 2nd card, since the categories can overlap or be irrelevant to you sometimes.

Have to agree about the BOA Cash Rewards. I use it for the 3% on gas during the quarters that Chase or Discover doesn't have gas at 5%. That way I'm always getting at least 3% on gas. Plus the 2% on groceries isn't too bad either.

Re: Need advice before applying for 2nd credit card

2011beginnings — Mon, 04 Mar 2013 01:56:56 GMT

Yeah. BofA cash rewards is awesome for gas

Re: Need advice before applying for 2nd credit card

Anonymous — Mon, 04 Mar 2013 02:30:04 GMT

Sorry, I am newbie here, but what does GM mean? I will try the Walmart. But here is the issue: since I just got rejected by one credit card company, would it be wise to wait for a few months?

Re: Need advice before applying for 2nd credit card

Anonymous — Mon, 04 Mar 2013 02:34:13 GMT

I am a grad student at the moment, so my income and hence spending is limited. However, I am looking for an auto loan, and have always been regular in my payments. Would you guys have any suggestions to improve my credit score and diversify it to qualify for an auto loan?

Re: Need advice before applying for 2nd credit card

Revelate — Mon, 04 Mar 2013 02:36:40 GMT

@Anonymous wrote:
Sorry, I am newbie here, but what does GM mean? I will try the Walmart. But here is the issue: since I just got rejected by one credit card company, would it be wise to wait for a few months?

I think the poster meant GE (General Electric Credit backs the Walmart card) rather than GM which traditionally has stood for General Motors.

Personally if it were me, while you can apply for additional accounts right now, but I think I'd wait till my current one ticked over the one year mark since you're already at 7 months. That opens up a number of other options (Chase as an example) and likely improves your Amex revolver chances as well.

Longer term it doesn't matter, but the salient thing holding you back is the lack of history; unless you have some big ticket purchase coming up within the next call it 18 months, I'd wait for a bit and then open another 2-3 cards. If you have an auto or mortgage potentially in the near future, apply now for a few things as a number of reasonable options have been suggested and get the new cards aging ASAP.

Re: Need advice before applying for 2nd credit card

Revelate — Mon, 04 Mar 2013 02:38:46 GMT

@Anonymous wrote:
I am a grad student at the moment, so my income and hence spending is limited. However, I am looking for an auto loan, and have always been regular in my payments. Would you guys have any suggestions to improve my credit score and diversify it to qualify for an auto loan?

When are you seeking the auto loan? Do you have student loans on the report in addition to the Discover?

Also student cards are incredibly useful, don't discount those.

Re: Need advice before applying for 2nd credit card

Anonymous — Mon, 04 Mar 2013 11:52:41 GMT

I agree the Freedom is a great card for rewards and so is the Cap1 Cash Rewards card for average credit. If you don't get approved for the Freedom (it is a possibility as you don't have at least a year of revolving history...however, this isn't a golden rule YMMV), then try for the Cap1 card.

Re: Need advice before applying for 2nd credit card

Open123 — Mon, 04 Mar 2013 15:33:14 GMT

Travel rewards with only 7 months history? I'd say the Amex PR Gold for 50K sign up bonus with first year fee waived is your best bet. I'd certainly take a shot, and the sign up is worth the inquiry.

For travel rewards cards, Chase, Citi, BofA, and Amex (except charge) will likely reject you.

After 12 months, more options open.