topic Re: 40 yrs old & 1 CC(!) Need advice in General Credit Topics

40 yrs old & 1 CC(!)

Anonymous — Wed, 10 Jun 2020 19:14:32 GMT

Long-time reader who fiiinally joined the forums today. I needed some general advice. For background, I grew up being taught to only pay for what I could actually afford (no cash available? Don't buy it. Want to buy something? Work another job and save up).

I never had a credit card until 2 yrs ago (I know, crazy!) and I'm 40. I've had debit cards until then and was satisfied. Low-key is fine by me. I'm a newly-single parent right now (my spouse walked out, but I always handled the bills even when we were married) so need cards with the least headache as possible.

My kids are elementary-school age and we've had great conversations about budgeting and debit vs. credit card, but thankfully they're not big whiners (for new toys and fads. If they want something badly enough, like a toy- we discuss it and they save up, with me possibly chipping in after we look at family budget).

Anyway, I wanted to start building credit and possibly dabbling in getting points or cash back, so opened my first CC 2 yeats ago. Scary step, but so empowering! Got a secured Discover It. I.love.it. Their app is SO clear and their customer service is superb every single time.

I graduated to unsecured after a few months. Started credit line at $300, and now credit line is raised by them every few months. It's small, about $3,700 and I'm ok with that. Rent, electric, food, car payment and car insurance are basically our monthly bills.

FICO is 720 TU now (via Discover app). Revolving util is around 1-7% usually. No inquires (I guess the car lease pulled from a diff company than TU).

I always pay my bill on time and only use my card at a supermarket if I have the cash to pay for the bill. Otherwise, the card stays home.

My small dilemma is that places like Costco don't take Discover, only Visa. I'd like cashback when shopping there for groceries 1x month. Is the BOA Cash Rewards worth it? I got a pop-up on my BOA debit account I was pre-selected.

Looking for low-key, but something decently worth it.

If I apply, is there a decent chance I'd be approved? I know this isn't the Centurion, but remember, this will only be my 2nd CC in my life, so I'm wary and going slow

Alternatively..is there a different one I should apply for (no annual fee please)?

I'm hoping to do AZEO with these 2, to raise my score.

I have 2 student loans I took out 15 yrs ago, so have that as my track record so far, and a car lease that's 10 months ago (first lease ever).

Thank you all in advance.

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 19:12:48 GMT

I have screenshots of my FICO score info (TU 8 via Discover) and the pre-selected BOA banner from my BOA app if that helps anyone with what I wrote, above^

Trying to figure out how to upload them 😅

Re: 40 yrs old & 1 CC(!) Need advice

AllZero — Wed, 10 Jun 2020 19:19:40 GMT

@Anonymous. The BoA Cash Rewards is a great choice. Selectable cash back categories. It'll be a Hard Pull inquiry on Experian or Transunion depending on your region.

Was the pre-selected offer showing a solid APR and not a range. e.g. 13.99 - 23.99%?

Re: 40 yrs old & 1 CC(!) Need advice

AllZero — Wed, 10 Jun 2020 19:28:59 GMT

@Anonymous wrote:
I have screenshots of my FICO score info (TU 8 via Discover) and the pre-selected BOA banner from my BOA app if that helps anyone with what I wrote, above^

Trying to figure out how to upload them 😅

I think you have to rank up to member before being able to attach images.

Alternatively, you can link it if you have a free image hosting site such as Imgur.

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 19:34:30 GMT

Hmmm, all I see is this:

0% Intro APR† for 15 billing cycles on purchases and any balance transfers made in the first 60 days.

After the intro APR offer ends a Variable APR that's currently 17.99% will apply. A 3% (min. $10) applies to all balance transfers.

Those not in the Preferred Rewards program earn 3% cash back in the choice category, 2% at grocery stores/wholesale clubs and 1% on all other purchases. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%.

Re: 40 yrs old & 1 CC(!) Need advice

AllZero — Wed, 10 Jun 2020 19:59:29 GMT

17.99% appears to be the APR. It's a good sign. It's not a guarantee on approval. Having an account may or may not work in your favor, it's a relationship none the less.

The Cash Rewards also has a $200 SUB Sign Up Bonus which is nice.

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 19:55:09 GMT

Its not entirely clear from you earlier comments but you have a banking relationship with BofA, correct?

The Cash Rewards is an excellent card but I'm not so sure that BofA is as amenable to thin credit profiles like yours as other lenders (A pre-selection is not the same as a pre-approval). I'd also suggest taking a look at the Blue Cash EveryDay card from American Express which is a similar 3-2-1 card to the Cash Rewards, except the 3% and 2% categories are flipped and there's no option to select your 3% category as with the Cash Rewards. At least check Amex's website for pre-approvals and see what pops up.

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EDIT: Since Costco doesn't accept Amex it wouldn't suit your immediate need but I'd look at it anyway as the BCE offers 3% cashback on groceries.

Re: 40 yrs old & 1 CC(!)

Girlzilla88 — Wed, 10 Jun 2020 19:59:14 GMT

Since you plan to use them for Grocerys you can also look up points/cash back for a higher category grocery spend too! See if Costco offers a Card that may help out as well or do some research on what cards offer 3 or so percent for Grocery instead of 3 percent for gas, and only 1% for Grocery (for example). There are lots of cards out there and the fact yours is at the 2 year mark and your score is sitting over 7 is a great sign for you. If you plan to utilize AZ 3 cards would be best, but if you do only end up with 2 be sure your balance reported is on your BANK credit card and not a different type card ^^

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 20:35:32 GMT

That makes more sense now, ty!

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 21:09:59 GMT

@Anonymous Yes, I've been with BOA for 2-3 yrs now. Just 2 tiny checking accts + attached debit cards

Re Amex BCE everyday-- since I'm still so new to this..when I check Amex's site for pre-approval, do I sign in first? What am I inputting/how will they know my credit scores and is it a hard-pull (sorry for the seemingly-dumb question)?

Alsooo, is there a better time to sign up for CCs in general, with more bonuses?

I should add that I get household odds and ends at Target, Walmart etc. Kids need clothing and shoes when they outgrow, so I'm not just buying groceries, but we aren't big spenders overall. The occasional Carvel for my kids. Parking meters. So it's little charges.

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 20:46:24 GMT

Its not possible to sign in unless you're already an Amex member.

Try this link for possible pre-approvals from Amex:

https://www.americanexpress.com/us/credit-cards/check-for-offers/

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 20:55:32 GMT

@Anonymous Ty for explaining that. I forgot that I was an authorized user on a relative's Amex account until he closed it (he offered to put me on, knowing that I was thankfully responsible).

1- I wonder if that would help?

2- If he closed the card (he switched to Chase Visa. Forgetting the name. It's the metal card if that helps), could that be why my score isn't rising much? I guess AU is a double-edged sword as I'm learning.. :/

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 21:11:09 GMT

@AllZero Ty for the fine-print explanation. If I hope to never owe money if I can help it (I treat CCs like debit cards), can I assume APR shouldn't mean much to me?

Re: 40 yrs old & 1 CC(!)

Anonymous — Wed, 10 Jun 2020 21:08:52 GMT

@Girlzilla88 That's a great trip for looking for a card that gives me back more in the grocery category. I do shop at Target, Amazon, Walmart, Carvel etc (clothing for the kids when outgrown, household odds & ends, an ice cream treat here and there), Black Friday a tiny bit (kids clothing and maybe tiny stuff for the house. Under $200 max), Home Depot & Michael's when we need stuff for crafts 3x a year, so it's not just grocery stores, but we really don't spend a lot elsewhere. Just wanted to clarify.

Also, thank you for the reassurance that being in the 7s,at the 2 year mark, is a good sign. Whew! I don't get that validation anywhere, so it really did make my day to read that. I work SUPER hard on being responsible with how I handle cards and purchases, so it's a relief to hear that cheering TY!

Also, ty for the tip on making sure it's the bank card that's reporting a balance. It's tips like this that really make a difference to newbie-ishs! Does it matter how much of a balance is there when my account cycles, or even a dollar is fine?

Re: 40 yrs old & 1 CC(!)

Girlzilla88 — Wed, 10 Jun 2020 21:13:14 GMT

@Anonymous You don't want it to be so low that it reports it at 0% but a good place to report to Statement is 8.9% or below 9% if you are wanting it that way but you still want to make sure you use your card too, don't not use it thinking that will help you more and possibly end up with a CLD (credit limit decrease) or a Closure for nonuse. ^^

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 21:19:19 GMT

Your relative probably has the Chase Sapphire Reserve or Chase Sapphire Preferred card.

If you were previously an AU on an Amex card they'd already have some information on you and that would make an approval much likelier.

Re: 40 yrs old & 1 CC(!)

Anonymous — Wed, 10 Jun 2020 21:26:58 GMT

@Girlzilla88 Gotcha, I usually report at 1% with my Discover It (I leave small amounts like $20 for when it cycles. Then pay immediately. I hope I'm doing it the correct way).

It once cycled at $170, because I had just stocked up on groceries 2 days prior and the charge hadn't hit my account when I paid the other charges..and that sent it up to 9%.

Other than that, I think I'm getting a handle on making sure I stop using my card for purchases a few days before it cycles (I'm sure there's a term for that ) to make sure I don't carry too large of a balance when it cycles, and bump my credit utilization up too much.

PLEASE LMK if it sounds like I'm doing this correctly.

Re: 40 yrs old & 1 CC(!) Need advice

AllZero — Wed, 10 Jun 2020 21:46:52 GMT

@Anonymous wrote:
@AllZero Ty for the fine-print explanation. If I hope to never owe money if I can help it (I treat CCs like debit cards), can I assume APR shouldn't mean much to me?

@Anonymous . That's a good method to treat it like a debit card.

If you're a transactor, then APR might not be too relevant.

On a pre-qualification page, it's a way to gauge your creditworthiness with the lender without applying. In general, the lower the APR, the better.

Re: 40 yrs old & 1 CC(!) Need advice

Anonymous — Wed, 10 Jun 2020 21:54:53 GMT

@AllZero wrote:
@@@
If you're a transactor, then APR might not be too relevant.

On a pre-qualification page, it's a way to gauge your creditworthiness with the lender without applying. In general, the lower the APR, the better.

Cool! I learned a new term today, transactor!

So if I pay in full (bec I treat like debit), but I carry a tiny balance when my card cycles, is that good?

I was under the impression you want that so it doesn't look like your card is dormant (keep in mind I was never taught anything about CCs, so whatever I know is from hours spent poring over articles and forums. If I'm totally off with understanding anything, PLEASE feel free to steer me the correct way).

Re: 40 yrs old & 1 CC(!)

Girlzilla88 — Wed, 10 Jun 2020 21:55:33 GMT

@Anonymous So you can use up to your CL don't be scared to use it as long as you make Larger than the Payment Due (I usually make a few large payments randomly then pay it off on Payment Due date, then add a small bit after to report for statements (which I do NOT touch until after everything has cleared) Then I go back to spending So if you limit is 200 don't be scared to use 198 as long as you can afford to knock that off then add a small amount, or down below 9% that same month. Don't stretch yourself to thin trying to show you can use your whole limit ^^. But I noticed doing it that way that I have done it I had the largest jumps in CLI faster (even automated CLI) and was offered more than when I wasn't. YMMV of course but it worked wonders for me when I did it and I do plan to go back to doing that once I get other things squared away