topic Re: New to credit- need advise please in General Credit Topics

New to credit- need advise please

Onix — Wed, 03 Apr 2024 18:54:27 GMT

I am new to the credit world.

I've got 40K in "debt"

26K finishing up an auto loan

13ishK for some student loans.

I have a score approaching 680. Just got my first card, a simple cap1 quicksilver with CL of 500.

Only thing that isn't "good" or better is my credit history. My oldest account is 8ish years old and an average age of around 5 years with this new card opened.

Should I continue to just keep utilization low and PIF on my quicksilver for now, or go ahead and look for another card or two to increase my overall credit limit, and ultimately credit history average as they all age together?

Re: New to credit- need advise please

Horseshoez — Wed, 03 Apr 2024 19:28:55 GMT

@Onix wrote:
I am new to the credit world.
I've got 40K in "debt"
26K finishing up an auto loan
13ishK for some student loans.

I have a score approaching 680. Just got my first card, a simple cap1 quicksilver with CL of 500.
Only thing that isn't "good" or better is my credit history. My oldest account is 8ish years old and an average age of around 5 years with this new card opened.

Should I continue to just keep utilization low and PIF on my quicksilver for now, or go ahead and look for another card or two to increase my overall credit limit, and ultimately credit history average as they all age together?

I would look for one, possibly two more cards. Why? Due to some idiosyncrasies on how the FICO scoring is done, it is best to have three cards, one of which reports a trivial (say $10) balance per month while the other two report a zero balance. In your shoes I'd be looking at Discover for a second card, and a credit union for the third.

Re: New to credit- need advise please

Thomas_Thumb — Wed, 03 Apr 2024 20:21:32 GMT

@Onix wrote:

I have a score approaching 680. Just got my first card, a simple cap1 quicksilver with CL of 500.

Should I continue to just keep utilization low and PIF on my quicksilver for now, or go ahead and look for another card or two to increase my overall credit limit, and ultimately credit history average as they all age together?

Get a 2nd card. Discover is a good choice . I'd suggest applying after your new card shows 3 months of use. Given you have only 1 card, let a small non zero balance post on the statement and then PIF before the due date.

What's a small balance? Anything under 9% ($45) of the card's $500 CL. If that's too much of a hardship atleast keep the reported balance under 29% ($145).

Showing some activity on the new card along with responsible revolving credit management could boost your current score 20 points. That may help you get a higher SL on a 2nd card.

Re: New to credit- need advise please

Onix — Wed, 03 Apr 2024 20:21:21 GMT

@Thomas_Thumb @Horseshoez

Thank you both.

Kind of my thought.

Also, why Discover over say.. trying for a Chase or Amex?

And what is the thought behind a credit union card?

Sorry just not super familiar with them yet.

Re: New to credit- need advise please

Thomas_Thumb — Wed, 03 Apr 2024 20:41:30 GMT

Discover often gives +$1000 starting limits for those new to revolving credit and allows for soft pull CLIs every 6 months. If/when Cap One acquires them all bets are off. Discover also has a nice 5% revolving category cashback.

Actually, a revolving AMEX credit card (not charge card) is a good option as well. I almost mentioned it but wasn't sure of the card name - blue cash preferred or something like that. It offers 6% cash back on groceries and streaming plus 3% on gas. You can find out if you qualify and will be approved with no impact on credit score.

As for a Chase starter card, forget about it -IMO. Nothing wrong credit union card but, I'd put it in 3rd or fourth place.

Re: New to credit- need advise please

Onix — Wed, 03 Apr 2024 20:59:23 GMT

Blue cash everyday card?

What's chances I get approved at that score? Should I call recon, If I was to?

Would it be worth trying to do the Discover and AMEX cards after a few months with the Quicksilver?

Final question- Should I hold off on anything with Chase until I get into the low/mid 700 range, and more history?

Re: New to credit- need advise please

SouthJamaica — Wed, 03 Apr 2024 21:23:06 GMT

@Onix wrote:
Blue cash everyday card?

What's chances I get approved at that score? Should I call recon, If I was to?

Would it be worth trying to do the Discover and AMEX cards after a few months with the Quicksilver?

Final question- Should I hold off on anything with Chase until I get into the low/mid 700 range, and more history?

1. You do have a decent chance of getting approved for the Blue Cash Everyday. That would be a good card for your next card.

2. Sure it would be worth trying for a Discover or the Amex after a few months with Quicksilver.

3. Yes you should hold off on Chase. Don't apply there until you've had a year of history with your other card(s).

Re: New to credit- need advise please

Onix — Wed, 03 Apr 2024 21:29:12 GMT

Thank you, and everyone else for the help.

I've got a solid income. Would it be worth opening a Chase checking account in the mean time. Just to have history and shows transactions with them over the next year or two?

Any advise with the recon call, if I had to for the Amex blue card?

Re: New to credit- need advise please

FicoMike0 — Wed, 03 Apr 2024 21:35:54 GMT

The amex blue everyday pays 3% max, no af $200 sub for $2000 spend in 6 months. The blue preferred pays 6% max, $95 af (first year deferred), $250 sub for $3000 6 months spend. Preferred sub has been $400. If you can do the $3000, I'd go preferred, you can downgrade in 11 months.

Re: New to credit- need advise please

Onix — Wed, 03 Apr 2024 21:47:43 GMT

Apologies, could I get this in layman's terms?

I'm following but what does "$250 sub for $3000" mean?

Re: New to credit- need advise please

moto4man — Wed, 03 Apr 2024 22:23:32 GMT

@Onix wrote:
Apologies, could I get this in layman's terms?
I'm following but what does "$250 sub for $3000" mean?

You get a $250 credit if you put $3000 of spend on the card in the first 6 months.

Re: New to credit- need advise please

FlaDude — Thu, 04 Apr 2024 01:17:36 GMT

@moto4man wrote:
You get a $250 credit if you put $3000 of spend on the card in the first 6 months.

SUB is "sign up bonus".

Re: New to credit- need advise please

SouthJamaica — Thu, 04 Apr 2024 01:56:15 GMT

@Onix wrote:
Thank you, and everyone else for the help.

I've got a solid income. Would it be worth opening a Chase checking account in the mean time. Just to have history and shows transactions with them over the next year or two?

Any advise with the recon call, if I had to for the Amex blue card?

in my experience getting a checking account would be meaningless

Re: New to credit- need advise please

citymunky — Thu, 04 Apr 2024 02:10:15 GMT

@SouthJamaica wrote:
@Onix wrote:
Thank you, and everyone else for the help.

I've got a solid income. Would it be worth opening a Chase checking account in the mean time. Just to have history and shows transactions with them over the next year or two?

Any advise with the recon call, if I had to for the Amex blue card?
in my experience getting a checking account would be meaningless

This and the Chase Checking account has a ton of fees, and their saving account offer a very low APY (like 0.01%) .

Re: New to credit- need advise please

FicoMike0 — Thu, 04 Apr 2024 04:23:10 GMT

Sorry I was cryptic. I'm a big sub fan. Wells Fargo has a decent deal. Open checking for $325 sub. Open active cash visa for $200 sub on $500 spend in 3 months. Card pays 2% on everything. Checking fee can be avoided, nuisance. Wf picky about recent inquiries for credit approval. Seem to favor existing customers in credit approval, hence do checking first. Gives free fico 9, if you care.

Can get an idea which bureau they will pull here

https://ficoforums.myfico.com/t5/General-Credit-Topics/Which-Report-Will-They-Pull-Part-2/m-p/6379773

Re: New to credit- need advise please

Onix — Fri, 05 Apr 2024 15:25:35 GMT

@FicoMike0 @citymunky @SouthJamaica @FlaDude @moto4man

Thank you all for the help.

Another question if you have time..

If I keep utilzation low for a bit with quicksilver, and my score enters the low 700s after a bit.

Would it be worth going after Venture X as a second card?

For a two card cap1 setup? I've got solid income, and I've heard there's better odds for Venture X earlier in your credit card journey.

Re: New to credit- need advise please

SouthJamaica — Fri, 05 Apr 2024 19:20:14 GMT

@Onix wrote:
@FicoMike0 @citymunky @SouthJamaica @FlaDude @moto4man

Thank you all for the help.

Another question if you have time..

If I keep utilzation low for a bit with quicksilver, and my score enters the low 700s after a bit.

Would it be worth going after Venture X as a second card?

For a two card cap1 setup? I've got solid income, and I've heard there's better odds for Venture X earlier in your credit card journey.

My 2 cents are:

1. I wouldn't want to have both of my cards with a single issuer; I would diversify.

2. I'm sure that what you've heard about Venture X is not true. I'm sure that a seasoned profile would have a better, not a worse, chance at approval.

Re: New to credit- need advise please

Onix — Fri, 05 Apr 2024 19:30:31 GMT

Makes sense, not arguing that. I've just heard that Cap1 tends to like cardholders earlier in their journey, if they also appear to be reponsible parties.

Had a friend who is 790-800 range with a 16 card setup currently, and his only denial last year was on Venture X.

I concur on diversification though. Still having trouble deciding on a credit union card, or AMEX/Citi/BoA for a 2nd card.

Re: New to credit- need advise please

FicoMike0 — Fri, 05 Apr 2024 20:18:41 GMT

I agree with sj, I'd diversify. Also, vx has a big af. I also agree that having 3 cards min seems to boost score. If your main goal is score Increase, read the explanations below your score on myfico. If it says "not enough accounts..." , you need more accounts. If it says "no installment loan..." ,look up ssl trick. If you don't understand what it says, come back here and ask, there are some real wizards offering free advice. They've helped me.

You mentioned utilization, there are points to be had there. Search myfico, lots of info. Simple outline, utilization has no memory, today's score is based on today's utilization. Utilization is not what you carry month to month (hopefully zero), it's what's reported to cras, almost always once a month, when the account posts. Best if it's less than 5%, never zero. Also best if only one account posts a balance, others zero, see 'azeo'.

Re: New to credit- need advise please

Onix — Fri, 05 Apr 2024 20:45:42 GMT

My student loans count as installment I believe.

I need more revolving, and more history.

So just trying to figure out best options for cards 2 & 3.

Also best route to approval for those, and timeline to pursue those.

Thanks to everyone on this thread for the help so far!