topic Re: Should I get a second CC? in Credit Cards

Should I get a second CC?

Anonymous — Tue, 13 May 2008 20:20:49 GMT

Hi everyone, I'm a 23-year-old grad school student with 3 years left before I graduate. I just checked my Equifax credit score at the end of April '08 and it's 751 (down from 772 in July, probably because I now have 2 student loans totaling $14,500). I will be taking out more loans in the next few years for school. I do own my car outright, and I pay off my balance on my VISA CC each month (CL of $11,250 - it's my oldest account on record and was opened almost 4 years ago). I am wondering if it would be wise to apply for a second credit card now so that my credit looks good in the next few years as I consider buying a home and perhaps a new car. This isn't a huge issue obviously, since I don't really need the credit - I just want to be proactive and would love some insight. Thanks in advance! PS If anyone thinks I should get a second card, what do you recommend? I would be looking for cash back and was considering the Discover More card, but there are so many different cards that I'm kind of lost.

Re: Should I get a second CC?

Anonymous — Tue, 13 May 2008 21:12:18 GMT

Yes.

Make sure you do your research on which card to get because you don't want to apply for a lot and generate too many inquiries. Check sites like http://www.bankrate.com; http://www.whogavemecredit.com; http://www.creditcardwatcher.com; and http://www.cardratings.com.

There also is a Bank of America site where you can see what you would be qualified for without them actually running your report and generating an inquiry; sorry I don't have the url for the site handy.

Good luck!

Re: Should I get a second CC?

Anonymous — Tue, 13 May 2008 21:21:52 GMT

I agree. Opening another CC account should help your scores some. Some lenders (like Hooters) will only approve if they see multiple positive revolving tradelines on your reports, and I think that the scoring model likes to see 2 or more.

With your scores, you could try Amex, BOA, and Chase. I'm not sure, but I think Citi may like to see multiple trade lines. You might also try for a Discover.

Happy Apping!

Message Edited by FretlessMayhem on 05-13-2008 02:21 PM

Re: Should I get a second CC?

Anonymous — Tue, 13 May 2008 22:08:07 GMT

Ok, so I have another question. I was looking at a Chase Freedom card, but that's a VISA. Since I already have a VISA, would I be better served to get a different type of card (Mastercard, Amex, Discover, etc.)?

Re: Should I get a second CC?

Anonymous — Tue, 13 May 2008 22:14:23 GMT

Doesn't really matter.

But do make sure you get a card that FICO will recognize as a revolving credit card, rather than an open charge card. Otherwise they won't report the credit limits which can wreak havoc with your credit.

The Chase Freedom Signature card and the AmEx Green card are examples of the cards you DON'T want to get.

Re: Should I get a second CC?

haulingthescoreup — Tue, 13 May 2008 22:57:08 GMT

The card categories to watch out for are Visa Signature and World Mastercard. Both allow you to go over your limits, and they're marketed to those with good histories and scores, so you'll probably be seeing a lot of them, so tiptoe around, as mas advised.

I'd go for a good rewards card like Chase Freedom*. Learn how to work the points system for you. Discover More is good too, if you're willing to put up with the changing categories and all. But they have a good site for getting extra points off your purchases, and I love that there's cash back. (Points kinda wear me out.) Discover customer service is unbeatable.

edit: *but not the Freedom Signature. Bump down a level--it's a lot less hassle.

Message Edited by haulingthescoreup on 05-13-2008 03:57 PM

Re: Should I get a second CC?

Anonymous — Tue, 13 May 2008 22:59:47 GMT

@Anonymous wrote:
Doesn't really matter.

But do make sure you get a card that FICO will recognize as a revolving credit card, rather than an open charge card. Otherwise they won't report the credit limits which can wreak havoc with your credit.

The Chase Freedom Signature card and the AmEx Green card are examples of the cards you DON'T want to get.

Ouch that's like a slap, the first card I ever had after my BoA Secured Card was an AMEX Green.

I have 2 cards now and a GEMB/WalMart. I guess I'll apply for another.

Message Edited by ericksond on 05-13-2008 06:59 PM

Re: Should I get a second CC?

unknown_entity — Tue, 13 May 2008 23:01:12 GMT

pez478 wrote:

Should I get a second CC?

Get a store card and within the next 12 months add 3 new revolving credit accounts in 6 month intervals starting now. With your scores you can get prime cards like B of A, Chase, Citi and AMEX. Then, don't get anything else for two years before you buy a house unless it's an auto loan. Your score will take a drop because of the reaging of your accounts, but you will gain that back as the account ages in good standing. In my opinion, it's better to take the score hits now so the accounts will be older and more established when the time comes to get your house.

Re: Should I get a second CC?

haulingthescoreup — Tue, 13 May 2008 23:05:50 GMT

@Anonymous wrote:

@Anonymous wrote:

Doesn't really matter.

But do make sure you get a card that FICO will recognize as a revolving credit card, rather than an open charge card. Otherwise they won't report the credit limits which can wreak havoc with your credit.

The Chase Freedom Signature card and the AmEx Green card are examples of the cards you DON'T want to get.
Ouch that's like a slap, the first card I ever had after my BoA Secured Card was an AMEX Green.

I have 2 cards now and a GEMB/WalMart. I guess I'll apply for another.

The green falls into another category, the classic charge card. They're not supposed to be factored in util at all, although sometimes there's a brisk and extended battle with the CRA's to get them to report right. They're fine to have, but OP needs another card that will report as revolving, rather than as charge.

The Signature and World cards aren't charge cards. Their problem is that since they don't report your CL (since you're allowed to go over it), they report your highest-ever balance. Unless at one point you had a whopping great charge, almost as big as your credit limit, these cards will always report as if they were a low limit, and your normal balances make you look maxed-out or nearly so.

Re: Should I get a second CC?

Anonymous — Tue, 13 May 2008 23:57:05 GMT

Thanks for all the responses - they've been very helpful. So one last question: as I'm looking into both the Chase Freedom Visa and Mastercard, I see that they first consider you for the Signature/World and if you don't qualify, they bump you down to the Freedom Platinum. Does anyone know if it's possible to apply for the Platinum right off the bat? I don't want to apply for the Signature/World and get accepted since it sounds like the Freedom Platinum is the way to go. Any thoughts?

Re: Should I get a second CC?

Anonymous — Wed, 14 May 2008 00:24:29 GMT

pez478 wrote:
Thanks for all the responses - they've been very helpful. So one last question: as I'm looking into both the Chase Freedom Visa and Mastercard, I see that they first consider you for the Signature/World and if you don't qualify, they bump you down to the Freedom Platinum. Does anyone know if it's possible to apply for the Platinum right off the bat? I don't want to apply for the Signature/World and get accepted since it sounds like the Freedom Platinum is the way to go. Any thoughts?

Call Chase and ask to apply over the phone. Explain to the Chase representative that you'd prefer the Platinum version rather than the Signature/World card. Do not let the rep talk you into a no preset spending limit version of this card: Many reps are unfamiliar with credit line reporting issues.

Good luck. Let us know how it turns out!

Re: Should I get a second CC?

Anonymous — Wed, 14 May 2008 15:38:14 GMT

ericksond wrote:

Ouch that's like a slap, the first card I ever had after my BoA Secured Card was an AMEX Green.

Didn't mean it as a slap. I had an AmEx Green for 19 years before I wised up and asked them to convert it to a different product (AmEx Blue). I don't want to even think about how much I paid in AFs for all those years ...

Re: Should I get a second CC?

Anonymous — Wed, 14 May 2008 16:24:19 GMT

@Anonymous wrote:

@Anonymous wrote:

Ouch that's like a slap, the first card I ever had after my BoA Secured Card was an AMEX Green.

Didn't mean it as a slap. I had an AmEx Green for 19 years before I wised up and asked them to convert it to a different product (AmEx Blue). I don't want to even think about how much I paid in AFs for all those years ...

LOL no offense taken.

Holy crap, you could actually do a product change from Green to Blue? Do they do an FR or hard pull on it??

Re: Should I get a second CC?

Anonymous — Wed, 14 May 2008 16:29:43 GMT

Many people have been able to change products. Depends on your credit and your history with them. All you gotta do is ask!

They did a hard pull.

Re: Should I get a second CC?

Anonymous — Sun, 18 May 2008 22:29:51 GMT

I applied for the Chase Freedom Visa Platinum (not Signature!) over the phone last Tuesday, and the rep told me I would hear back in about 10 to 30 days. I got a bit impatient and called their automated app status line today and found out I was approved! The APR is pretty high but I always PIF so I'm not too concerned - plus, my CL is 2000. I'm hoping to get my 'welcome package' in the mail within 7-10 days. Thanks for all the advice everyone!

Re: Should I get a second CC?

Anonymous — Sun, 18 May 2008 22:35:14 GMT

Nice limit

Re: Should I get a second CC?

Anonymous — Mon, 19 May 2008 03:01:15 GMT

Congratulations, pez478!