topic Help Building New/Strong Credit Profile in General Credit Topics

Help Building New/Strong Credit Profile

FromNYtoDubia — Fri, 24 Jan 2025 14:38:08 GMT

Newbie here and want to say Thanks in advance for reading and commenting. I have read a lot of forums here and have learned a lot of knowledge already. But would trully appreciate any suggestions I can get.

So I am 33 years old and just now starting to learn and realize that I need to have a strong credit profile. I currently have a clean report and would love some guidance on how I should start creating a strong profile for myself.

- I Bank w/NFCU and just recently opened their Nrewards secured card with a $300 balance. I read that this can take 3-6 months to see if eligible for CLI.

- Applied for a DiscoverIT card and "said" I got approved for $1K SL. Still waiting to see if this is even real! (I'm shocked)

- Will either PIF/month or keep my utilization rate under 3%

- Plan on opening up a SSL of $5k for the 5 year mark. (Paying down to 8.9% and setting up auto-transfer for the remaining to let it sit on my profile)

- Just opened up a Chase account to hopefully get a cc with them in the future.

- Have currently (2) family members that said they will place me as AU on their accounts to help me out. They have a good credit score

My question is what should I do next to build a strong profile in the next 1-2 years. How should I go about applying for credit cards and achieving the ultimate goal of approval? I currently have plans on getting a really nice car for my bday next year at the end of the year. What should be my best plan to achieve this car with low intrest? I'm starting a new business this year, What bank should I choose to do business with?

Thank you'll again, and any advice will help!

Re: Help Building New/Strong Credit Profile

Patient957 — Fri, 24 Jan 2025 15:44:41 GMT

@FromNYtoDubia wrote:
- Will either PIF/month or keep my utilization rate under 3%

You can do both. Usually, PIF means to pay the statement balance in full, not necesarily the current balance. Paying the statement balance is important, because it allows you to avoid paying any interest. Ideally, you never, ever, want to pay credit card interest.

@FromNYtoDubia wrote:
What bank should I choose to do business with?

There are many options. Amex has a 30K MR bonus with its Biz checking right now. I recently opened one and I like it. I'm sure others will have other recommendations also.

In general, I think you can spend 6-12 months using the 2 credit cards you have, and then reassess your options for opening a third credit card at that time. You're off to a good start.

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Fri, 24 Jan 2025 16:25:32 GMT

Thank you so much for your response! I wasn't sure if I could do both, but I know for certain I don't want to pay any interest. I don't want them to ever close my card out so I thought keeping at max 3% on all cards moving forward (paying before statement closing date) should keep me in a good ballpark. I also read something about AZEO but I know I'm not there yet! lol

And also copy on the AMEX biz account. I will give them a look today!

Re: Help Building New/Strong Credit Profile

GZG — Fri, 24 Jan 2025 17:24:17 GMT

@FromNYtoDubia wrote:
- I Bank w/NFCU and just recently opened their Nrewards secured card with a $300 balance. I read that this can take 3-6 months to see if eligible for CLI.

In 3 months, you'll likely get a $300-$500 CLI with no needed extra deposit and in 6 months, you'll very likely be graduated to $2k and get the 1.5% cashrewards card. I would recommend once that happens calling/messaging navy federal to disable automatic credit line increases to make sure you are in control of your credit line increases so you can get the maximum amount.

~181 days after you graduate, ask for a credit line increase on the card either on the website or in the app, and you should receive a CLI to $6k so your card can be upgraded to be a 2% card!

- Applied for a DiscoverIT card and "said" I got approved for $1K SL. Still waiting to see if this is even real! (I'm shocked)
Congrats!! great card, take advantage of those 5% categories, they are 10% in the first year up to the $1500 quarterly cap.

- Will either PIF/month or keep my utilization rate under 3%
Pay your statement balance in full by the due date. You can feel free to pay down balances prior to the statement date, but you don't have to.

Showing that you pay your credit cards balances in full is a good thing for your credit profile. (it's more impressive if the bank can see "hey, this guy spent $500 and paid it off the next month" as opposed to "hey, this guy charged $3.50 and paid it in full".

- Plan on opening up a SSL of $5k for the 5 year mark. (Paying down to 8.9% and setting up auto-transfer for the remaining to let it sit on my profile) You only need to do $3,001, which is what I would recommend if you are lower income < $30k or you have other high outstanding debts/rent relative to income, but it doesn't look like you do.

- Just opened up a Chase account to hopefully get a cc with them in the future.
I'd probably apply for a Chase Freedom Flex in about a year, maybe perhaps a Chase Sapphire Preferred, do this after your car loan.
- Have currently (2) family members that said they will place me as AU on their accounts to help me out. They have a good credit score Make sure they aren't reporting high usage on these cards, would do you more harm than good.

My question is what should I do next to build a strong profile in the next 1-2 years. How should I go about applying for credit cards and achieving the ultimate goal of approval? I currently have plans on getting a really nice car for my bday next year at the end of the year. What should be my best plan to achieve this car with low interest? go a year without applying for anything new would absoutely maximise your chances atrr a low interest rate, building a relationship with navy federal with deposits and making them your main deposit bank would give you a great place to lend from for your car loan too. otherwise, if you go a year without appplying, your credit score will be in the best possible place to apply anywhere else. earlier is fine, but the highest chance at a low apr will come from being 0/12 (0 applications for new credit in the last 12 months)

I'm starting a new business this year, What bank should I choose to do business with?
Chase and Amex are probably where I would start, they're the most likely to approve you with ~1 year of total credit history with both a biz checking and a credit card.

Re: Help Building New/Strong Credit Profile

SouthJamaica — Fri, 24 Jan 2025 21:31:13 GMT

@FromNYtoDubia wrote:
Newbie here and want to say Thanks in advance for reading and commenting. I have read a lot of forums here and have learned a lot of knowledge already. But would trully appreciate any suggestions I can get.

So I am 33 years old and just now starting to learn and realize that I need to have a strong credit profile. I currently have a clean report and would love some guidance on how I should start creating a strong profile for myself.

- I Bank w/NFCU and just recently opened their Nrewards secured card with a $300 balance. I read that this can take 3-6 months to see if eligible for CLI.
- Applied for a DiscoverIT card and "said" I got approved for $1K SL. Still waiting to see if this is even real! (I'm shocked)
- Will either PIF/month or keep my utilization rate under 3%
- Plan on opening up a SSL of $5k for the 5 year mark. (Paying down to 8.9% and setting up auto-transfer for the remaining to let it sit on my profile)
- Just opened up a Chase account to hopefully get a cc with them in the future.
- Have currently (2) family members that said they will place me as AU on their accounts to help me out. They have a good credit score

My question is what should I do next to build a strong profile in the next 1-2 years. How should I go about applying for credit cards and achieving the ultimate goal of approval? I currently have plans on getting a really nice car for my bday next year at the end of the year. What should be my best plan to achieve this car with low intrest? I'm starting a new business this year, What bank should I choose to do business with?

Thank you'll again, and any advice will help!

1. Welcome to the forum.

2. I don't think you need to do anything else, I think you're doing fine as is.

3. Utilization is based on the reported balance. With both of your cards the statement date is the report date. It is advisable that you pay in full each month. If you want to maximize your scores you can probably eke out a few points by letting one card report a zero balance (i.e. paying it off before the statement date).

4. Since you were able to get 2 cards on your own, I don't think you should get involved with AU cards.

5. If you have any other installment loans, then you don't need the SSL.

6. It can't hurt to have the Chase deposit accounts, but in my experience Chase doesn't really care.

7. My favorite business bank is Chase. My least favorite is TD Bank.

8. My particular approach to car loans has always been to let the dealer shop it.

Re: Help Building New/Strong Credit Profile

Thomas_Thumb — Fri, 24 Jan 2025 22:43:56 GMT

If you want a 3rd personal card, I'd recommend an AMEX blue cash everyday. Recommend waiting 3 months before applying.

I recommend Chase for business. Their Chase Ink card served me well.

Not a fan of AU accounts as a means of artificially inflating credit scores. However, getting a SSL is a good tactic for boosting score since you have no open installment loans. I'd open it in May after getting a 3rd card and pay it down to 9% in June. If you don't want a 3rd personal card, no reason to delay on the SSL.

Once you get your car loan, the SSL becomes useless as a score building tactic. The open auto loan will be the controlling factor.

Re: Help Building New/Strong Credit Profile

Realist — Sat, 25 Jan 2025 15:27:21 GMT

So you are young enough, and intelligent enough to know that a solid credit profile matters, and I think you are in a great place to make this happen based on what you are offering. Depending on your timing in life, it will read differently.

How many loans, or recently paid off loans do you have on your credit profile? The reason I ask this, is that lenders want to see your back up against the wall, payments that are made on time, along with the diversity weight of the portfolio debt. Credit cards are only one aspect of a portfolio. Autos another. Mortgage another. Personal loans another. Energy efficient loans, etc, etc, etc.

There is an accepted concept that holding only two or three credit cards, can create an excellent enough credit profile, and I can agree. It can take you upwards of 850 FICO score as some have mentioned. But, at the end of the day I personally find that to be a light credit profile myself. Even with the advantage of age among the three, it paints an excellent picture, but doesn't offer a vast and diverse profile picture.

First and foremost, you should seek out loans as you need them in life, or simply use them strategically. Use them when they make sense. Add in a healthy credit card profile, and you start to develop a vast profile of a heavy weight. Should you decide to get creative and utilize CC SUBs, and banking SUBs, these help to amplify the CC portion of your overall credit card portfolio, in which not only reward you with opportunity, but also provide a very solid payment history when you make your payments on time.

While I can't easily convey how I arrived without much time investment, understanding possibilities available to them are helpful for those up and coming. While its hard to share a concept or scenario without sounding a bit boastful, it's necessary to convey to paint a picture. I currently hold well over 40+ accounts closed, probably closer to 50, many very diverse, and about half in credit card lines still open. This is a running cycle over ten years, that's just how it works for everyone. In time, if you don't keep up, your "weight" may slip due to accounts falling off the report. Knowing is half the battle.

Today, I play with numerious SUBS both in CC's, and banking because it's a hobby, and it's fun. The hard line in the sand, is at six+ hard inquires for credit cards. So, what happens to someone with a VERY solid credit profile meets six or more hard inquiries? I'll tell you. At first your score goes up, and then it goes very slightly down. And then it goes up noticeably. Why? Because not all credit profiles are weighted the same, and scores do not reflect the same. If you don't believe it, I challenge to simulate the scenario I speak of, and observe. I may defy the accepted calculations of those on the forums today, that don't carry the same weight of a credit profile.

If your credit profile is built like a paper tiger, then your score will fluxuate more than average. If your profile is built reasonably well, then it can withstand more. But, if your credit profile is built like a tank, it will stand up like a tank even during disadventagous times. The only caveat to this, and I have openly stated this, are the quantity of hard inquiries. Even with a score of 800-850, they will have this weakness. "You shall not pass" can appear even with the best scores, and while seeking out new credit card lines.

Know the game and abuse it responsibly. But if you don't know the game, you will want to learn it first.

Re: Help Building New/Strong Credit Profile

Kforce — Sat, 25 Jan 2025 17:29:15 GMT

@SouthJamaica wrote:
1. Welcome to the forum.
2. I don't think you need to do anything else, I think you're doing fine as is.
3. Utilization is based on the reported balance. With both of your cards the statement date is the report date. It is advisable that you pay in full each month. If you want to maximize your scores you can probably eke out a few points by letting one card report a zero balance (i.e. paying it off before the statement date).
4. Since you were able to get 2 cards on your own, I don't think you should get involved with AU cards.
5. If you have any other installment loans, then you don't need the SSL.
6. It can't hurt to have the Chase deposit accounts, but in my experience Chase doesn't really care.
7. My favorite business bank is Chase. My least favorite is TD Bank.
8. My particular approach to car loans has always been to let the dealer shop it.

^^^^^ This

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Tue, 28 Jan 2025 00:37:54 GMT

@GZG (Thank You and appreciate you commenting.)

- Copy on your message with NFCU. I recently paid my bill so my statements read a 3% utilization rate. Will update of coarse on graduation/CLI timeline, and received message on 181 days on requesting CLI once graduation.

-My DiscoverIT card did in fact come in the mail, so as of now I have a unsecured card w/ a CL of $1K. (Will use responsibly) I also signed up and actived the 5% cashback for this month!

- Question regarding my Billing Statement. My due date is the 2nd and my statement date is the 5th. When should I post my bill. I currently paid it leaving a small balance. But was wondering should I wait till it post on my statement? I'm a little confused.

-I just thought 5K would make it longer with NFCU, but if $3,001 is enough. I will do this after I apply for a new cc. Follow up.

-Correct no outstanding balance or debt!

- I will go a year without applying for anything new. My birthday is in the last quarter of the year so I have way over 15+ months until. I do however plan on starting a new business and need a vehicle for it. Tried to get a Auto loan for 15K but due to no credit history I was denied. So I'm kinda stuck now on starting the business due to my vehicle issue. Unless I wait a few months to save to put down.

- Haven't started the business yet but when I start do you recommend I bank with Chase Day 1 or wait until I get some revenue coming in first to possibly capitalize on SUB's?

Re: Help Building New/Strong Credit Profile

SouthJamaica — Tue, 28 Jan 2025 17:35:39 GMT

@FromNYtoDubia wrote:
@GZG (Thank You and appreciate you commenting.)

- Copy on your message with NFCU. I recently paid my bill so my statements read a 3% utilization rate. Will update of coarse on graduation/CLI timeline, and received message on 181 days on requesting CLI once graduation.

-My DiscoverIT card did in fact come in the mail, so as of now I have a unsecured card w/ a CL of $1K. (Will use responsibly) I also signed up and actived the 5% cashback for this month!

- Question regarding my Billing Statement. My due date is the 2nd and my statement date is the 5th. When should I post my bill. I currently paid it leaving a small balance. But was wondering should I wait till it post on my statement? I'm a little confused.

Not sure what you mean by "post your bill". You should pay your bill in full as soon as possible. No you should not leave a balance.

-I just thought 5K would make it longer with NFCU, but if $3,001 is enough. I will do this after I apply for a new cc. Follow up.

-Correct no outstanding balance or debt!

- I will go a year without applying for anything new. My birthday is in the last quarter of the year so I have way over 15+ months until. I do however plan on starting a new business and need a vehicle for it. Tried to get a Auto loan for 15K but due to no credit history I was denied. So I'm kinda stuck now on starting the business due to my vehicle issue. Unless I wait a few months to save to put down.

- Haven't started the business yet but when I start do you recommend I bank with Chase Day 1 or wait until I get some revenue coming in first to possibly capitalize on SUB's?

IMHO you should open a Chase business checking account as soon as you start your business.

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Tue, 28 Jan 2025 23:42:30 GMT

@Thomas_Thumb I was interested in obtaining a 3rd (unsecured) card and was trying to see when would be the next time to do so. I plan on doing business with Chase but I did however wanted to ultimately get to AMEX cc as well. I will definitely take your recommendation on waiting at least 3months before applying for another card.
-Should I apply for the AMEX personal cc or Chase ink for business?

-Copy on your message on waiting to get the SSL loan until after I get a 3rd card. Also would me being placed as an AU hurt me in the future? This is something I wasn't doing for certain yet, due to me not nothing the damage it could cause.

- Also I have a question. If I get a car loan for 15K for roughly 3 years. And I pay that off within a year. Will that effect me applying for another car loan later next year? (For my bday?) Sorry. Trying to plan ahead with all the credit "hits".

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Tue, 28 Jan 2025 23:53:33 GMT

@SouthJamaica

Sorry it too a minute to respond. I'm still learning the forum, but:

1/2: Thank You, and I appreciate this!
3: Does it matter if I wait till I get my billing statement to pay it, or can I pay it before my billing statement?
4: Okay, I'm hearing this a lot. I might not go the AU route.

5: I don't have anything on my profile. Waiting eagerly and patiently for the next 90 days to past so both my secured & unsecured cc can be the first (2) things on there!
6: Copy on you thinking Chase not really carring

7: I opened up a Chase checking account and they have a SUB where I deposit $500 and get $300 back. So I have that and will wait to open the business account once I actually start making revenue from the busines.
8: And okay. I might have to do this approach. I'm scared to have so many hard pull on my credit.

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Wed, 29 Jan 2025 00:02:54 GMT

Hey @Realist ,

Thank you for commenting, and yes! I have some basic commen since and now realizing that credit is extremely important!

- I currently don't have any type of loans on my credit profile. 0 -paid off 0- on my report.

I can't agree with you more that having a great diverse and aged proflio will help those viewing/taking a chance with me to have something back to look at. I'm just in the bad/good spot where I have nothing there. So no baddies or anything ever delinquent, but I am now actually trying to build as if I was 17 again! lol. I am in no rush because this indeed is a marathon (that I don't mind running,) but I just want to make I'm taking the best steps possible to credit-freedom. I learned a lot all from discovering this forum and I am stoked!

I am currently gaining on the SUB with my DiscoverIt card (5% back on certain items this quarter) and Chase banking $300 with opening an account! So I'm trying to learn! But thank you so much for your response!

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Wed, 29 Jan 2025 00:07:26 GMT

@SouthJamaica

Correction. I meant to ask you:

-Do I have to wait to pay my bill untill the billing statement comes, or can I pay it sooner? (Sorry, I am aware to never leave a balance. If I do it will be at or below 3%)

-Copy on opening up the Chance Business when I start to operate and gain revenue!

Re: Help Building New/Strong Credit Profile

SouthJamaica — Wed, 29 Jan 2025 14:49:38 GMT

@FromNYtoDubia wrote:
@SouthJamaica

Sorry it too a minute to respond. I'm still learning the forum, but:

1/2: Thank You, and I appreciate this!
3: Does it matter if I wait till I get my billing statement to pay it, or can I pay it before my billing statement?
You can pay it before
4: Okay, I'm hearing this a lot. I might not go the AU route.
5: I don't have anything on my profile. Waiting eagerly and patiently for the next 90 days to past so both my secured & unsecured cc can be the first (2) things on there!
6: Copy on you thinking Chase not really carring
7: I opened up a Chase checking account and they have a SUB where I deposit $500 and get $300 back. So I have that and will wait to open the business account once I actually start making revenue from the busines.
8: And okay. I might have to do this approach. I'm scared to have so many hard pull on my credit.

Re: Help Building New/Strong Credit Profile

SouthJamaica — Wed, 29 Jan 2025 14:50:53 GMT

@FromNYtoDubia wrote:
@SouthJamaica

Correction. I meant to ask you:
-Do I have to wait to pay my bill untill the billing statement comes, or can I pay it sooner? (Sorry, I am aware to never leave a balance. If I do it will be at or below 3%)
You can pay it sooner
-Copy on opening up the Chance Business when I start to operate and gain revenue!

Re: Help Building New/Strong Credit Profile

DebbsSeattle — Sat, 01 Feb 2025 19:03:53 GMT

Ex car biz family here...just chiming in on the car part...Your car loan will be a first time buyer, thin file app. You may not need to wait long to get started. BUT... Lenders will want to see you walk before they allow you to run. When you say "really nice car" I hope you are not envisioning a BMW or Mercedes or Lexus or Audi...please picture an Accord or a Camry or better yet a Civic or an Elantra. Envisioning a nearly new over new is beneficial and most likley...lenders will want to see an "every man car" something easily resold/unloaded if you default and they need to repo it. Your best bet is buying the car you do not want, cheaper, 20k-40k miles, great practical commuter car with 20% down. Shop your rates not just the car. Consult a Credit Union, then allow dealers to shop your loan. Do this all in the same 15 days. Do not let anyone run your credit until you are actively shopping and land on THE car. You will benefit from driving this car, paying this loan perfectly for 12 months. Then you go shopping for your ideal car that fits your income after that 12th payment reports. You could then expect that a 10% down equity position will suffice to get you bought. You will need your scores to be 660+, but your responsible credit use will bring you higher than that easily if you are not already there. Great news is, you can go car "shopping" now and begin to familiarize yourself with what you love, like, hate. Just be strong and DO NOT fall for the salesman spiel of "what if I could get you bought today." There are still some old dog natural born salesmen out there that can pull you into the ether and make you believe anything. In fact...take your most practical friend or a parent with you to keep you safe from falling under their spells. Trust me on this...I saw a pregnant lady drive off in a two seat convertible instead of a minivan. The threat is real. Good luck!

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Thu, 06 Feb 2025 17:13:33 GMT

@DebbsSeattle thanks for your input.

so I'm in a little of a pickle now. I applied for both a personal loan (5k) and a car loan for (10k) and was denied due to low or no personal credit. The 15 day window has passed so now I'm stuck on what's to do. It seem like I won't be able to get a car until I get a credit score. And when I call the credit companies they informed me today that I don't have a report due to me not having no credit. She informed me that it can take up to 6 months to get a report and score. So now do I just wait and go 6 more months without a car. Uber is killing me. I do have my cc's but the first one just made its first statement and the second is still only 2-3 weeks old.

I'm not sure what to do but pay all my bills on time! lol. Please help lol

Re: Help Building New/Strong Credit Profile

DebbsSeattle — Thu, 06 Feb 2025 21:12:52 GMT

Here is what I suggest...look for a cash car. They are hard to find in decent running condition. Your best bets are grandma and grandpa cars. The ones that none of the young folks want to drive...boring, plain even downright unattractive with gold paint (we call it grandpa gold in our house). Depending on your area and how far you drive, when you drive and whether or not you're a defenseless woman or a 6'7" big guy will tell you how reliable it needs to be.If you drive 7 blocks downtown or 40 miles each way in bear country will matter. Can you wrench your own rig or cannot even change a tire?

If you have $5k you will find something. If you do not, another choice is a "Buy Here Pay Here" lot. They work with those with no credit and bad credit. They are your lender, you make payments to them. They typically sell low end, starter cars. They typically install ignition/engine disablers. You fail to pay by your due date, they remotely disable the car. They have gps locators, they can come hook it and take it if you do not hold up your end of the bargain. They still require a down payment. I would guess that $2-$3k could get it done. Make sure they report to the bureaus...some do, some do not. Get a pre-purchase mechanical inspection done by a reputable mechanic before you sign any paperwork...probably $150'ish. Get a car fax even if you have to pay for it...a lot of flood cars, and rebuilt titles out there. Do not buy a rebuilt title car ever, they have no future value at trade in. Let your nose tell you a story inside the car, pull the seatbelts all the way out. There could be mold all the way in there that would tell you it was a flood car. If it has all new seat belts, that is a clue too. Look at all the paint closely, feel it touch it...if a panel has a different shade or texture, it has had work done. Spend some time watching YouTube vids for how to evaluate used cars. Again a boring 1997 Ford Taurus was even boring in '97 and mainly purchased by conservative older folks. You might be ahead also if you can drive a stick shift because so many cannot anymore. And then save money like a madman for the next steps in your journey.

Re: Help Building New/Strong Credit Profile

FromNYtoDubia — Sun, 09 Feb 2025 21:13:38 GMT

@DebbsSeattle Thank you so so much for a very much detail response. I am very much taking all this in due to me not having really no-one I know that knows this stuff. So thank! (And everyone else who commented.).

Now let me answer.😅😅

So I don't mint driving a "grandpa" car AT ALL! lol. I actually thought and loved the concept is having a old car that dingy for now. I just need something to take me back and forth to work realistically. However.... I have this business idea I want to do and it does require me to have either a pick up truck or something that I can attach to a car to transport the equipment. So that's the pickle for "old car". If I go the "car" route I'm sure I can find something that's 5K or under. But with the pick up truck up I didn't want to spend more then 10K for one. Now that I will be using and driving back and forth from different locations.... so I don't know what to do... But with whatever I do I will definitely get a carfax and I am not sure what "rebuilt tittle car" mean? I will get a mechanic to check it out, will play close detail to what I buy. (I will actually take notes from this and make sure I check those boxes) lol.

Also just a little update. My secured NFCU cc started reported to the credit bureau and my credit score one TransUnion is now 670. So I'm happy about that! (Still low) but happy on movement. Reported with a 1% utilization. Hopefully next month my Discover card will report because I have a higher limit with that. And roughly in 2 months I'm going to open up a SSL w/ NFCU for 5K to help my profile out!