topic Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do? in General Credit Topics

Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 16:26:29 GMT

Hi everyone,

I'm 26 years old living in New York and currently have a credit score of 674. I don't have any debt except student loans of 10k. There is nothing else on my credit history. I never applied to any credit cards. I have 0 hard pulls. I've only used debit cards (only 1) since I was 18 and currently have a stable job making 55k a year. My credit score has been 674 for the past years (it doesn't move at all). I want to start building my credit score up and eventually get to 750-800 area. I want to get a credit card but I'm not sure which one I should get (I don't want to get denied). Is it better to get only 1 now or get 2 right away so the hard pull doesn't negatively affect me the second time I apply for the second credit card. If I want to build my credit score up the "right way" do you recommend I only apply for 1 card or for 2?

My 2 future goals 2-4 years from now is having at least 2 Amex cards and collect membership rewards points using mostly Amex cards and maybe a chase card. My second goal is having about 30-60k+ in available credit in total between all the credit cards I would have by then. Those are my 2 ultimate goals.

If you have any suggestions about what card I should apply for and what else I should do please let me know. I appreciate all the feedback and thank you in advance for everything.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Rogue46 — Sat, 18 Mar 2023 16:46:47 GMT

If you're looking at Amex they have a pre-qualification page on their site to see if you're eligible. It's not a 100% thing but pretty solid. Same goes for Chase.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 16:48:47 GMT

Do you think it's best I get a discover it card and a second basic credit card and build my credit with those for the next 6 months to a year? If so, what second credit card do you suggest I get? I'll definitely get a discover it card as I think I will for sure be approved for it. The main thing is I don't want to get a hard pull and get denied as then I'll end up having to apply again and therefore get another hard pull

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Rogue46 — Sat, 18 Mar 2023 16:56:19 GMT

Discover would be a great first card. Ideally for the best credit building strategy you'll want to have 3 cards. Keep in mind if your shooting for a Chase card they have what's called a 5/24 rule which means they will deny you if you've opened more then 5 cards in 2 years so if you want a Chase card I would prioritize that.

I wouldn't worry too much about inquiries unless it's an excessive amount. Also they drop off after 2 years so no long term effect.

Discover also has a pre-qualification page so you can check that before applying

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 17:06:28 GMT

Thanks for replying. I would prefer Amex to chase but I know that both Amex and chase don't like accepting people with 0 credit history. I've never had a credit card and my credit scores been the same for the past years 674. I want to start building a credit profile. Besides the discover card, do you recommend a second credit card I would most likely be approved. I was thinking of starting with a capital one card in addition to the discover card. Any cons of getting both the discover it card and the capital one platinum card? Is there an easier/starter capital one card that I should get instead of the platinum by capital one? Thanks in advance

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Thomas_Thumb — Sun, 19 Mar 2023 15:54:33 GMT

@Traveler24 wrote:
Do you think it's best I get a discover it card and a second basic credit card and build my credit with those for the next 6 months to a year? If so, what second credit card do you suggest I get? I'll definitely get a discover it card as I think I will for sure be approved for it. The main thing is I don't want to get a hard pull and get denied as then I'll end up having to apply again and therefore get another hard pull

Yes - Better to get 2 cards starting out. Having a 2nd card adds flexibility and provides a back-up. It can also help to have aggregate CL higher than a single card CL Fico scorewise.

Discover IT is a great starting card and a long term keeper. Relatively easy to build credit limit over time with solid payment history. I'd suggest applying for a Visa or Mastercard from a bank or Credit Union where you currently have an account when considering a 2nd card.

Then, after 1 year of use on both cards, apply for an AMEX. At that time your score could be above 720.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

GZG — Sat, 18 Mar 2023 17:28:44 GMT

@Traveler24 wrote:
Thanks for replying. I would prefer Amex to chase but I know that both Amex and chase don't like accepting people with 0 credit history. I've never had a credit card and my credit scores been the same for the past years 674. I want to start building a credit profile. Besides the discover card, do you recommend a second credit card I would most likely be approved. I was thinking of starting with a capital one card in addition to the discover card. Any cons of getting both the discover it card and the capital one platinum card? Is there an easier/starter capital one card that I should get instead of the platinum by capital one? Thanks in advance

Amex will allow you to apply with no Hard Pull if you are declined, find the card you want, find the "apply with confidence" language and apply.

The pre-qualification tool is here and might help as well: https://www.americanexpress.com/us/credit-cards/check-for-offers/

if approved, great, take your offer.

if not, I would definitely check the preapproval pages of Discover and Capital One to see what you're being offered, I don't think you need to start at a platnimum given your student loan history

https://www.capitalone.com/credit-cards/preapprove/
https://www.discover.com/credit-cards/

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 17:45:31 GMT

Just wanted to say thank you to everyone for responding. Looking forward to reading more comments and suggestions

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 17:57:35 GMT

Thank you for responding. I appreciate it.

I will 100% get a discover card. I bank with TD bank. I wanted to ask, in your opinion are there benefits to me getting a credit card from td bank where I have my checking account vs getting the second credit card from capital one or a credit Union?

thank you again and I look forward to reading your thoughts. I really appreciate you guiding me through this and sharing your thoughts . Idk if you're receiving my reply but this is for you @Thomas_Thumb

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 17:58:53 GMT

Thank you for sharing this. I'll definitely use this tool from Amex. If it shows I won't get approved then I'll apply for the discover card and a second card. Regarding the second card, do you suggest I get the td bank credit card (this is the bank I have a checking account with) or do you suggest I get capital one ?

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Thomas_Thumb — Sun, 19 Mar 2023 15:48:28 GMT

My daughter, now 28, did the 2 card approach her senior year in college with $10k part-time income. She had no problem getting a Discover IT and a card from WF where she has a checking account. Key point at the time was to avoid annual fees and get keeper cards with 5 figure CL potential.

The WF card has been a good back-up with ok cash back. She also liked the convenience of having both a checking account and bankcard with WF. She always practices PIF so APRs were not a factor in the decision process.

If you might carry a balance from time to time, shop for a low APR card from a credit union. Some card issuers may offer 0% APR for 12 months as a sign up incentive but have stiff APRs thereafter. Not a fan of Cap One but, that's just me.

Side note: some banks and airlines (such as Alaska Air) offer AMEX cobranded credit cards.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

GZG — Sat, 18 Mar 2023 18:05:53 GMT

@Traveler24 wrote:
Thank you for sharing this. I'll definitely use this tool from Amex. If it shows I won't get approved then I'll apply for the discover card and a second card. Regarding the second card, do you suggest I get the td bank credit card (this is the bank I have a checking account with) or do you suggest I get capital one ?

TD has a good 2% card if you plan on staying with them, there's no guarantees of approval however

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Traveler24 — Sat, 18 Mar 2023 18:19:34 GMT

Thank you for this suggestion. I think this td card will be harder than the

TD Cash Credit Card.

I think the td cash credit card will be easier to get but I could be wrong. Do you know if you can upgrade from one to another or no? Would you suggest getting the capital one card instead of a td bank credit card which i bank with

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Heatt99 — Sat, 18 Mar 2023 22:19:31 GMT

When starting your journey, try to grow your profile as fast and steady as possible.

Go for pre-approvals or secured cards that will unsecure.

Go for 2 cards. It will benefit you with more on time payments at their 1 year mark. I particularly like to grow cards together ( 2 or more)

Discover, Discover and Discover. Great secured or unsecured card.

Capital One is good when beginning. Then move on to cards that suit your spend.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

iowe — Sat, 18 Mar 2023 22:37:33 GMT

My experience having both Discover and Cap One cards for several years now.

Discover is an excellent choice. It isn't hard to grow the limit on it if you treat the card right. If I were to start over again, Discover would be my first card. I haven't had much success with Cap One. For me, it's hard to grow the limit.

They will, however, be willing to approve you for a credit card with a thinner file, in my observations.

Amex is great, probably as good as Discover. I'm not sure what the stats are of people getting approved for their Blue Cash Everyday card, but that would be another great one that can grow to a five figure limit pretty quickly, if you can get in with Amex.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

SouthJamaica — Sun, 19 Mar 2023 04:16:17 GMT

@Traveler24 wrote:
Thank you for responding. I appreciate it.

I will 100% get a discover card. I bank with TD bank. I wanted to ask, in your opinion are there benefits to me getting a credit card from td bank where I have my checking account vs getting the second credit card from capital one or a credit Union?

thank you again and I look forward to reading your thoughts. I really appreciate you guiding me through this and sharing your thoughts . Idk if you're receiving my reply but this is for you @Thomas_Thumb

I don't think there's any benefit to getting a card from TD Bank. They won't take into account your banking with them. And their credit card offerings are not great. A credit union would be a better choice in my opinion.

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Horseshoez — Sun, 19 Mar 2023 13:21:08 GMT

@SouthJamaica wrote:
@Traveler24 wrote:
Thank you for responding. I appreciate it.

I will 100% get a discover card. I bank with TD bank. I wanted to ask, in your opinion are there benefits to me getting a credit card from td bank where I have my checking account vs getting the second credit card from capital one or a credit Union?

thank you again and I look forward to reading your thoughts. I really appreciate you guiding me through this and sharing your thoughts . Idk if you're receiving my reply but this is for you @Thomas_Thumb
I don't think there's any benefit to getting a card from TD Bank. They won't take into account your banking with them. And their credit card offerings are not great. A credit union would be a better choice in my opinion.

Hmmm, I have to disagree, TD definitely took into account I was banking with them when they granted me my TDCash card right after my Chapter 13 was discharged. I received the card in July of 2020 and have since received two auto-CLIs bringing my CL up to $11,300; while I cannot be absolutely sure the CLIs were due to my banking relationship with them, I'm reasonably certain that played into the limit bumps.

There are a few other benefits for obtaining one of TD's cards if you bank with them:

The ease for making transfer payments
Getting a replacement card, mine got chewed up by my son's dog, I walked into my local branch and five minutes later I had a new card in my wallet, less than an hour after the dog chewed up the original

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

stw715 — Sun, 19 Mar 2023 13:29:04 GMT

@Traveler24 wrote:
Hi everyone,

I'm 26 years old living in New York and currently have a credit score of 674. I don't have any debt except student loans of 10k. There is nothing else on my credit history. I never applied to any credit cards. I have 0 hard pulls. I've only used debit cards (only 1) since I was 18 and currently have a stable job making 55k a year. My credit score has been 674 for the past years (it doesn't move at all). I want to start building my credit score up and eventually get to 750-800 area. I want to get a credit card but I'm not sure which one I should get (I don't want to get denied). Is it better to get only 1 now or get 2 right away so the hard pull doesn't negatively affect me the second time I apply for the second credit card. If I want to build my credit score up the "right way" do you recommend I only apply for 1 card or for 2?

My 2 future goals 2-4 years from now is having at least 2 Amex cards and collect membership rewards points using mostly Amex cards and maybe a chase card. My second goal is having about 30-60k+ in available credit in total between all the credit cards I would have by then. Those are my 2 ultimate goals.

If you have any suggestions about what card I should apply for and what else I should do please let me know. I appreciate all the feedback and thank you in advance for everything.

Don't you already have AmEx BCP and CapOne's Venture One? And a Discover charge-off?

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Where-to-start-Can-t-get-above-680/m-p/6507213

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Thomas_Thumb — Sun, 19 Mar 2023 15:18:41 GMT

@Horseshoez wrote:
@SouthJamaica wrote:
@Traveler24 wrote:
Thank you for responding. I appreciate it.

I will 100% get a discover card. I bank with TD bank. I wanted to ask, in your opinion are there benefits to me getting a credit card from td bank where I have my checking account vs getting the second credit card from capital one or a credit Union?

I don't think there's any benefit to getting a card from TD Bank. They won't take into account your banking with them. And their credit card offerings are not great. A credit union would be a better.
Hmmm, I have to disagree, TD definitely took into account I was banking with them when they granted me my TDCash card right after my Chapter 13 was discharged. I received the card in July of 2020 and have since received two auto-CLIs bringing my CL up to $11,300; while I cannot be absolutely sure the CLIs were due to my banking relationship with them, I'm reasonably certain that played into the limit bumps.

There are a few other benefits for obtaining one of TD's cards if you bank with them:
The ease for making transfer payments
Getting a replacement card, mine got chewed up by my son's dog, I walked into my local branch and five minutes later I had a new card in my wallet, less than an hour after the dog chewed up the original

Ha! - sounds like a dog ate my homework story. Does that really happen?

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Horseshoez — Sun, 19 Mar 2023 15:29:22 GMT

@Thomas_Thumb wrote:
@Horseshoez wrote:
@SouthJamaica wrote:
@Traveler24 wrote:
Thank you for responding. I appreciate it.

I will 100% get a discover card. I bank with TD bank. I wanted to ask, in your opinion are there benefits to me getting a credit card from td bank where I have my checking account vs getting the second credit card from capital one or a credit Union?

I don't think there's any benefit to getting a card from TD Bank. They won't take into account your banking with them. And their credit card offerings are not great. A credit union would be a better.
Hmmm, I have to disagree, TD definitely took into account I was banking with them when they granted me my TDCash card right after my Chapter 13 was discharged. I received the card in July of 2020 and have since received two auto-CLIs bringing my CL up to $11,300; while I cannot be absolutely sure the CLIs were due to my banking relationship with them, I'm reasonably certain that played into the limit bumps.

There are a few other benefits for obtaining one of TD's cards if you bank with them:
The ease for making transfer payments
Getting a replacement card, mine got chewed up by my son's dog, I walked into my local branch and five minutes later I had a new card in my wallet, less than an hour after the dog chewed up the original
Ha! - sounds like a dog ate my homework story. Does that really happen?

LOL, if you've ever spent any time around a Labrador Retriever you'd understand; they have a tendency to chew stuff, and his dog loves things which are brittle and can give her some "crunch".