topic Re: Trying to improve my credit, should I get another card? in Credit Cards

Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 05:25:16 GMT

Hi! First time posting. I'm a 21 year old student who has been an authorized user of a card for 5 years so I have good credit and intend to keep it that way. EX=746 EQ=764 TU=768 all from myfico. I have a CC with a $4500 limit (the one Ive been authorized under) and MY own credit card from BOA cash rewards which has a limit of $1500 (I got it in August 2013 and they gave me an increase from $700 in mid November). I have 1 inquiry in the past year on each of my three scores. My scores are pretty good, for a 22 year old but I want them higher. Im very goal oriented and 800 is that target number for now. I have great habits including never spending more money than I have and always paying ON TIME and IN FULL. My credit limit is $6000 and applying for another card would increase it (so I can decrease credit utilization) and that would be nice. Although I keep my utilization at maximum at 10%

Im not really sure if I should apply for another one since I have 1 inquiry on all three scores. I guess one more inquiry doesn't hurt in the long run, and my CL will go up which will decrease utilization and increase new credit. Do you think I should apply to get another card? I stopped using the $4500 limit card because it's not cash rewards. I use it barely just to keep it active.

I was eyeballing the new better balance rewards card from BOA. I hate carrying a balance but it seems like some easy money as long as I keep a small balance and pay it off each month.

Yall are the credit experts, how do I increase my credit more effectively!

Thanks

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 05:29:10 GMT

Yes im literally that competitive I compare the scores for my age to the scores of people a year older than me...

Re: Trying to improve my credit, should I get another card?

MrFlower — Sat, 30 Nov 2013 05:46:33 GMT

I am in a simmilar boat as you (recently turrned 22) with high 700's. I was a little better off with my AU's from parent's account and actually opened my first BoA cc in 2009 and a few more since then.

My personal Goal recently has been to aquire cards from all the major lenders that best suit my wants (cash back).

The better balance is an interesting card but it all depends on your spend. I've easily earned >$100 in 2 quartes with the 5% bouns from my Discover IT (and have absoluetly loved the card).

As such it depends on your usage and where you spend. If you spend inside the 5% catagories that Discover/Freedom offers you could easily beat $25 a quarter.

(I actually didn't know about the Better Balance until you mentioned it and recently PCed my Power Rewards PPV to a Cash Rewards; I reallly should have pced it to the Better Balance since I only use that card as a monthly service card.)

Re: Trying to improve my credit, should I get another card?

Revelate — Sat, 30 Nov 2013 05:52:41 GMT

Welcome to the forums!

I would highly encourage you to look at credit building as a long-term proposition. You do need your own tradelines, and 4 total is about the minimum when we're talking getting over some underwriting hurdles. Doesn't include any AU's in those 4 tradelines either.

I'd open another card or two right now, and if I had an expected car purchase at graduation I'd just wait and get that as the third or forth tradeline; otherwise I'd suggest doing something like a Credit Builder loan from a CU, cheap way to get an installment tradeline if you can swing the payments.

Inquiries don't matter after a year, but you're basically a thinnish file now and that's not really where you want to be by the time you graduate college in my estimation.

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 05:56:30 GMT

Thanks for the replies, what does "AU" mean? What are "tradelines"? Why are some people's goals to have cards from every bank? Is it bad to have CC from the same bank? Thanks

Re: Trying to improve my credit, should I get another card?

MrFlower — Sat, 30 Nov 2013 06:01:11 GMT

http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/td-p/88458

Opening cards with other creditors is just a personal thing for me; and no it is not bad to have multiple cards from the same lender.

Re: Trying to improve my credit, should I get another card?

Revelate — Sat, 30 Nov 2013 06:03:54 GMT

@Anonymous wrote:
Thanks for the replies, what does "AU" mean? What are "tradelines"? Why are some people's goals to have cards from every bank? Is it bad to have CC from the same bank? Thanks

AU = Authorized User.

Tradeline = any reporting revolving (credit card) / installment loan / similar to the bureaus: there are some underwriting hurdles around mortgages and similar where less than 4 tradelines can be a problem.

Not sure on the rationale for having cards from every bank; I don't see any reason at all to get a card from Wells Fargo for example personally, or any number of others which don't have competitive credit card products.

The issue with having all of your credit cards from the same bank, is if that one bank gets spooked or otherwise something happens to your account, you can find yourself without credit access at least temporarily and sometimes worse. I'd certainly recommend branching out to different banks, my primary ones are BOFA, Chase, and Amex personally, with a handful of others (USAA, pair of credit unions) for various services.

In general though, while you have a good score, your best bet for future credit goodness is to go establish a few accounts now by leveraging what you do have already. Short term goal would be 3-4 cards and maybe an auto loan at some point; longer term will depend what your needs are from a rewards or other financial categories (mortgage for example).

Re: Trying to improve my credit, should I get another card?

Creditaddict — Sat, 30 Nov 2013 06:03:14 GMT

AU = authorized user

yes... putting all your "eggs" in one basket can be an issue... i dont' know what happened to my last post but it failed to go through.

I was saying I think you are focusing on the credit score number a little to hard right now...especially when you are young and have such a "THIN" File... 1 credit card with a $1500 limit that is yours and 1 AU at $4500 is a VERY thin file and although it's great to have that high 700's already... you might find if you don't take on some more credit cards with other banks that you have a harder time growing that bank of america further.

I would branch out and get 2-3 more cards with other banks that you don't currenlty have and cover all your reward basis.

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 06:12:45 GMT

Ok, so where do ya'll reccomend I apply to for more cards? I like the chase freedom with the $200 signing bonus, but there isn't a chase bank in my state! The capital one quicksilver has 1.5% cash back, that seems nice. Again, I only spend money I have, so usually my credit card is charged about 500-1000$ a month (yes I make payments several times a week to keep revolving money low). I dont really pay attention to interest rates because I only spend money I own at the moment, therefore I wont be paying interest until probably several years later in life.

How many CC should I apply for? Should I apply tomorrow? Or wait a little bit? This is probably an obvious question but should I go for the chase freedom for that 200$ signing bonus, even though they dont have a bank nearby? Should I go for a rewards card, or a low interest card? These things are confusing to a young man haha! We're not taught this stuff in school.

Yall are great, you reply so quick, and very informative, thanks.

Re: Trying to improve my credit, should I get another card?

Creditaddict — Sat, 30 Nov 2013 06:15:35 GMT

1. don't need a bank in state to apply for the card when it comes to chase... I would apply for the Chase Freedom.

2. Capital One has a great pre-qual on the site you can go and see if they offer you something and apply if you get an offer for Quicksilver.

3. How about American Express Blue Cash Preferred? If you go through Creditcards.com and get an offer it will give you $250 sign up bonus!

there you go... 3!

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 06:21:01 GMT

Wow man, you rock! thanks! I totally forgot, I spend about $200 per month on gas and groceries at costco, should I get their costco version amercian express?

And this may sound obvious, but, how do you pay a credit card from another bank? With my BOA I just use the app via mobile and its so easy, how do I do this for Chase for example?

Do you reccomend I apply for 3 cards now? I only spend about 1000$ per month, do I need three more cards? And should I split everything 25%? Ah! so many variables!

Re: Trying to improve my credit, should I get another card?

Creditaddict — Sat, 30 Nov 2013 06:29:55 GMT

@Anonymous wrote:
Wow man, you rock! thanks! I totally forgot, I spend about $200 per month on gas and groceries at costco, should I get their costco version amercian express?

And this may sound obvious, but, how do you pay a credit card from another bank? With my BOA I just use the app via mobile and its so easy, how do I do this for Chase for example?

Do you reccomend I apply for 3 cards now? I only spend about 1000$ per month, do I need three more cards? And should I split everything 25%? Ah! so many variables!

1. I would just use the blue for costco purchases and gas if at costco or depending on rotating probably get 3 or 5% on BofA or chase.

2. is your checking with BofA? you would use your bill pay online to input the payment address and account number and you can pay through that and takes just a couple days.

3. I would apply for all 3 at once so they age all at the same time and you take the hit all at once and recover at once.

4. I would split how the rewards work out the best for you... we have chase freedom and we go entire quarters (3 month periods) with no use.

I use amex blue cash preferred for grocery

capital one is good for everything that isn't earning 2% or more.

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 06:31:04 GMT

I took your advice and didnt get prequalified for the quicksilver card at capital one (although it said "I may be interested in it") but I did go through creditcards.com and I got paired with the quicksilver card, is that 250$ bonus only for the AMex blue cash preferred?

It was kind of wierd, credit cards.com paired me with first time credit cards advertising 300$ limits and it paired me with Visa Platinums saying "need excellent credit"... I guess Mid 700s for a 21 year old is unual..

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 06:31:26 GMT

unusual**

Re: Trying to improve my credit, should I get another card?

Creditaddict — Sat, 30 Nov 2013 06:34:45 GMT

@Anonymous wrote:
I took your advice and didnt get prequalified for the quicksilver card at capital one (although it said "I may be interested in it") but I did go through creditcards.com and I got paired with the quicksilver card, is that 250$ bonus only for the AMex blue cash preferred?

It was kind of wierd, credit cards.com paired me with first time credit cards advertising 300$ limits and it paired me with Visa Platinums saying "need excellent credit"... I guess Mid 700s for a 21 year old is unual..

the thin file doesn't work very well with the pre-qual sometimes.

you would just apply directly at americanexpress.com and I think it's $150 bonus not $250.

you could try the pre-qual on chase or just straight out apply for freedom if you like that one.

and last if you have good success with those 2 just straight out pick the quicksilver you like and apply... you don't have to be pre-qual. for any of them... doesn't always mean anything especially when thinner file.

Re: Trying to improve my credit, should I get another card?

Anonymous — Sat, 30 Nov 2013 06:37:42 GMT

Thanks man, I want you to know you're time answering these posts will lead to better decision making in my life and thus a more positive future, thank you for that!

Re: Trying to improve my credit, should I get another card?

Creditaddict — Sat, 30 Nov 2013 06:40:52 GMT

Thanks... just what I enjoy doing... especially since I haven't/dont always make the best choices

Re: Trying to improve my credit, should I get another card?

HiLine — Sun, 01 Dec 2013 01:57:21 GMT

@Anonymous wrote:
Wow man, you rock! thanks! I totally forgot, I spend about $200 per month on gas and groceries at costco, should I get their costco version amercian express?

And this may sound obvious, but, how do you pay a credit card from another bank? With my BOA I just use the app via mobile and its so easy, how do I do this for Chase for example?

Do you reccomend I apply for 3 cards now? I only spend about 1000$ per month, do I need three more cards? And should I split everything 25%? Ah! so many variables!

If you find yourself spending a significant amount at Costco, definitely consider the Amex Costco True Earnings!

BofA has a very nifty eBills function. Or you can set up an online account with the other bank and link that card to your BofA checking account. Both ways are easy.

I do recommend 3 more cards, preferably without annual fees so you can keep them to perpetuity. How you split the purchases doesn't matter; at your current level of spending the rewards are minimal, and you only need to spend a minimal amount on each card every few months or so to keep them all open.

In terms of which 3 cards, I'd recommend Chase Freedom, Amex Costco, and Discover It.