topic Re: This is my strategy to get a good credit score, what do you think? in Credit Cards

This is my strategy to get a good credit score, what do you think?

Anonymous — Sat, 26 Apr 2014 05:11:57 GMT

Hi everyone!

I wanted to share with you my plan to quickly end up being approved for a prime credit card (as of today CSP or AmEx Gold is my goal).

Just got my SSN and I was planning on doing this, let me know if you think I am wrong!

Step 1/ Apply for a secured WF CC with $750 deposit
Step 2/ Apply for Discover It CC knowing I'll get denied and hopping they offer me the secured version
Step 3/ Apply for a department store CC.

Step 4/ Wait 8/12 months and trying a regular Amex charge card

I plan to use my secure CC for everyday purchases (which is around $750 a month) and pay in full (obviously I don't wanna pay interest on my own money!).

I have 2 questions though..

- Does CC companies treat a CC that shows up as a "secured" on my credit report as not good as a real credit card?
The reason why I want the DiscoverIt is because it shown is a regular CC, plus rewards program and no annual fee!

- If I decide to apply for department store CC, should I go Macy's? Don't want to be annoying but I am more Barney's. Do they have the same requirement or Macy's is def easier?

I have a friend who tried the Secured from BofA and it doesn't really sound cool to me, that's why I wanted to go WF along with a new checking account.

I also don't want to do any business with Capital One.
I know they easily give $300 or $500 CL but apparently it NEVER increase, their credit card for "newcomers" is really ugly, I'd rather pay with my debit card honestly. Plus $500 won't be enough for monthly groceries, restaurants...

Should I do it anyway just to have credit available? I wanted to have 3 hard inquiry MAX before trying prime land!

Thanks for your help!

Re: This is my strategy to get a good credit score, what do you think?

trumpet-205 — Sat, 26 Apr 2014 05:24:36 GMT

My first credit card is actually Captial One. It is not a secured card. Back then no other lenders will give me a card but Capital One gladly approved me for $500 (later CLIed to $750). $500 is actually enough for grocery, you simply pay before the statement. In other words, empty out the balance couple times per month.

If I were you, I would do step 1 and forget the rest. I am doubtful that Discover would offer secured version of IT to someone with no credit history. Blindly apping card, especially when you are starting to build credit, would only do more harm than good.

Re: This is my strategy to get a good credit score, what do you think?

Kenny — Sat, 26 Apr 2014 05:36:36 GMT

3 months or so of secured then you might can apply to Capital One and get a low limit card and at that time get a store card -- maybe Wal-Mart for the free TU FICO score?

Re: This is my strategy to get a good credit score, what do you think?

Ghoshida — Sat, 26 Apr 2014 05:49:12 GMT

How about opening your first credit card with a credit union?

Generally they have better terms and it is easier to develop a relationship with them as against a big bank (my personal opinion).

My first card (with no credit history) was a CU and it helped me enough to get approvals for other, mostly good cards from big lenders.

Re: This is my strategy to get a good credit score, what do you think?

Kenny — Sat, 26 Apr 2014 05:50:10 GMT

@Ghoshida wrote:
How about opening your first credit card with a credit union?

Generally they have better terms and it is easier to develop a relationship with them as against a big bank (my personal opinion).

My first card (with no credit history) was a CU and it helped me enough to get approvals for other, mostly good cards from big lenders.

Really great idea, OP, if you have a membership at a CU.

Re: This is my strategy to get a good credit score, what do you think?

Anonymous — Sat, 26 Apr 2014 05:53:38 GMT

Ok!

I remember I've read that last year. Thanks for the reminder.

I really wannta stay below 3 hard iquiries before applying for a "cool" card that's why I am a little hesitant.

Don't wanna trick the system but I was thinking about applying for BofA secured CC with no SSN and then update my infos with my SSN?

Or am I just being crazy about hard pulls?

Re: This is my strategy to get a good credit score, what do you think?

Themanwhocan — Sat, 26 Apr 2014 05:57:26 GMT

Just obtain a secured credit card. You don't need the rest of that, its just counter productive. Select a better bank than Wells Fargo though.

Ideally you would use that one card lightly for just under 12 months, then apply for a few good cards that are relatively easy to obtain (Discover It, maybe a bank card like US Bank, etc). then maybe a few months later you should be golden for the BCP if thats what you really want. If you are gonna jump the gun and get cards with small limits and probably poor rewards, thats probably just going to slow your progress down.

A Secured card is not a detriment to have on your credit report.

I started with a $1000 secured card from US Bank. 2 days shy of a year, I applied for a US Bank platinum card and was granted a $8500 limit. Its been all good things since then.

PS: It is kinda annoying when people base their plans on "what cards can I get?". You should decide "What cards are BEST for me?" and then proceed with a reasonable plan to attain those cards (easier ones first, of course). Rinse and repeat.

Re: This is my strategy to get a good credit score, what do you think?

Anonymous — Sat, 26 Apr 2014 05:58:37 GMT

@trumpet-205

Oh no! I was excited with this DiscoverIt card!

Who would qualify though?

Rebuilding credit?

Little credit history?

Re: This is my strategy to get a good credit score, what do you think?

Anonymous — Sat, 26 Apr 2014 06:04:46 GMT

@Themanwhocan

Thanks for your advice.

I know exactely what I want in my wallet but I also know I need credit history to do so.

As of today, CSP is the best credit card option with 2x points on travel and restaurants (that's where I spend 75% of my money) and No foreign transaction fees is ideal since I travel a lot.

Then a charge-card from Amex (prob Green or Gold) is a good tool to pay off my everyday purchases.

Re: This is my strategy to get a good credit score, what do you think?

Themanwhocan — Sat, 26 Apr 2014 06:05:01 GMT

@Anonymous wrote:
@@trumpet-205

Oh no! I was excited with this DiscoverIt card!
Who would qualify though?

Rebuilding credit?
Little credit history?

Discover It is relatively easy to obtain. I applied for mine as the third app during the first month of applying for unsecured cards (after having the one secured card for a year). My first card was a $8500 limit, second was $4500 limit, and the third card was the Discover It which gave me a $2000 starting limit. I worked on that discover limit, so 10 months and 2 HP CLI's later it was at $5000. Its a useful card, but only in certain quarters.

Re: This is my strategy to get a good credit score, what do you think?

Anonymous — Sat, 26 Apr 2014 06:09:33 GMT

I've seen that Discover was offering secured options for those who did not qualify for a regular card. That's why I got "excited". I might be wrong but I thought Discover was as hard as AmEx to get at some pont. Maybe (surely) not anymore?

@Themanwhocan wrote:
@Anonymous wrote:
@@trumpet-205
Oh no! I was excited with this DiscoverIt card!
Who would qualify though?
Rebuilding credit?
Little credit history?
Discover It is relatively easy to obtain. I applied for mine as the third app during the first month of applying for unsecured cards (after having the one secured card for a year). My first card was a $8500 limit, second was $4500 limit, and the third card was the Discover It which gave me a $2000 starting limit. I worked on that discover limit, so 10 months and 2 HP CLI's later it was at $5000. Its a useful card, but only in certain quarters.

Re: This is my strategy to get a good credit score, what do you think?

trumpet-205 — Sat, 26 Apr 2014 07:07:36 GMT

@Anonymous wrote:
@@trumpet-205

Oh no! I was excited with this DiscoverIt card!
Who would qualify though?

Rebuilding credit?
Little credit history?

The secured version of IT is generally offered to someone who at least has some credit history, mostly those with some delinquencies.

If you maintained on time payment for your first CC for 12 months then Discover is more likely to give you IT card (secured or unsecured). I too started out with $2K CL and over time Discover upped the CL to $6.8K.

Re: This is my strategy to get a good credit score, what do you think?

newhis — Sat, 26 Apr 2014 15:21:01 GMT

@trumpet-205 wrote:
My first credit card is actually Captial One. It is not a secured card. Back then no other lenders will give me a card but Capital One gladly approved me for $500 (later CLIed to $750). $500 is actually enough for grocery, you simply pay before the statement. In other words, empty out the balance couple times per month.

If I were you, I would do step 1 and forget the rest. I am doubtful that Discover would offer secured version of IT to someone with no credit history. Blindly apping card, especially when you are starting to build credit, would only do more harm than good.

My wife got her SSN in January this year, opened a checking account with BofA and got a secured credit card with them as a counter offer because they denied an unsecured card when she was applying at the branch. A couple of days later she applied for a Discover IT student card and got approved for $500. We are "new" in the USA, only 1.5 years living here but visiting together before we got married 20 years ago.

I can't apply for a SSN and got an ITIN this January also. I opened a savings account at BofA a few weeks after my wife; I didn't know I'll be in a position to open a secured card without SSN but give it a shot. I got the secured credit card and applied for Discover IT. Be not in a position to fill the online form because they don't accept ITIN online, so I called. Even speak with an assesor in Spanish and explained my situation, they asked for ID and address verification, then I was approved for $1,000 but without the 0% intro they offered at the first call.

BofA opened my account without my ITIN. I found out because I was not able to create my online account. Went to the branch and asked to add it to my account.

Re: This is my strategy to get a good credit score, what do you think?

capitalkid — Sat, 26 Apr 2014 15:48:35 GMT

I started with shark cards, however I had read enough by the time it was time for my husband to start his re-build(or build as there was 0 on his report but his name and address) we did an experiment with his side, and it achieved more than we hoped for .

June of 2010 his report became clean. I had already researched and picked out the card for him to begin with, he apped for Kays Card, was approved for 300$. It is a jewelery card, and a respected card for starting purposes. we skipped the whole capitalone thing with him, and went straight for the good stuff. we did plan it.

6 months later he apped for Chevron Store card (gas is useful and and an oil card in the portfolio looks good as well for insurance purposes for some reason). approved 500$

1 Yr later.

kays Auto CLI on Anniv to 900. Chevron has grown to 1150. We signed him up for OPT IN. The Targeted offers start rolling in, Discover More 14.99%, BOA 1,2,3 10.99%, Citi Diamond Preferred 13.99%- He apped them all and got every one of them.

Citi-5500 (Now 7.8K)

BOA 2500 (Now 5K)

Disc-2000 (Now 5K)

Kays-1.7K (auto)

Chevron 2500 (Max CL for store side)

His score stays between 720-745 at any given time , normally dropping when he apps for a while but not in a destructive fashion.

Starting with a respected Jewelers card was the ticket for him, wish i would have skipped the ordeal with capitalone and all those bottom feeder cards i had and it would have saved me much time and INQ on my report.

Good luck in your build!

Re: This is my strategy to get a good credit score, what do you think?

Chris679 — Sat, 26 Apr 2014 20:42:55 GMT

Don't be so quick to dismiss Captial One. This forum is a great resource but sometimes ideas get spread around like gospel that aren't really true for everyone. Capital One gives cards to people with less than ideal credit. That is exactly why they are so great for someone who is building credit. Unlike the vultures (First Premier, Credit One, etc) they will give cards with reasonable terms that will grow. My current $6000 QS started as a $500 Platinum.

Re: This is my strategy to get a good credit score, what do you think?

Ghoshida — Sat, 26 Apr 2014 22:25:34 GMT

@Chris679 wrote:
Don't be so quick to dismiss Captial One. This forum is a great resource but sometimes ideas get spread around like gospel that aren't really true for everyone. Capital One gives cards to people with less than ideal credit. That is exactly why they are so great for someone who is building credit. Unlike the vultures (First Premier, Credit One, etc) they will give cards with reasonable terms that will grow. My current $6000 QS started as a $500 Platinum.

They do behave much, much better than the shark cards. My 2k QS also started as a 500 platinum.

I started with a credit union, followed by Cap One, then Citi, Discover, US Bank, Amex, Sallie Mae, and finally Chase. I have moderate scores and a total history of less than 2 years.