Approved For Cap 1 Secured Card - First CC.

[Anonymous]

I am 28 with no credit. Never had a loan, CC or a bill go to collections. Learned nothing growing up about credit or CCs. It wasn't bad info. Bad info would be max out CCs and never pay them. I was taught to pretty much to stay away. After getting interested in what my credit score was I decided to apply for a CC. Been with chase for 6+ years and thought that might help. It did not. After doing research a secured credit card was the best option. After comparing the ones available I went with Cap 1. Was approved with only the $49 security deposit. I take it that a $49 instead of $99 or $200 deposit means I haven't had my identity stolen? Am now waiting for my card in the mail and excited to start my journey to good credit.

A question I have is about using your CL and keeping a balance. From what I understand it is best to use under 30% of your limit and leave a tiny balance month to month. Is that right?

[Anonymous]

Congrats on getting your very first card! Getting the initial $49 deposit required was the best case scenario for their secured card.  Since it's your only card, I really don't know the best route - either PIF with a zero statement balance or having a small balance report.  Maybe someone else on these forums can guide you on this one.  

But, I do know that you need another card.  Your file is thin, so there are companies out there who will find you desireable.  Again, I'm not as knowledgeable as some others in this area. I do know that you need to keep your inquiries at a minimum. 

 If there is someone who can help, VicVega, with his questions, and recommend to him the credit card issuers who like new builders and thin files, thank you for your help.

Good luck to you! 

[geekmama]

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@Anonymous wrote:

I am 28 with no credit. Never had a loan, CC or a bill go to collections. Learned nothing growing up about credit or CCs. It wasn't bad info. Bad info would be max out CCs and never pay them. I was taught to pretty much to stay away. After getting interested in what my credit score was I decided to apply for a CC. Been with chase for 6+ years and thought that might help. It did not. After doing research a secured credit card was the best option. After comparing the ones available I went with Cap 1. Was approved with only the $49 security deposit. I take it that a $49 instead of $99 or $200 deposit means I haven't had my identity stolen? Am now waiting for my card in the mail and excited to start my journey to good credit.

A question I have is about using your CL and keeping a balance. From what I understand it is best to use under 30% of your limit and leave a tiny balance month to month. Is that right?

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Standard advice to build your score is to have three cards with only one reporting a balance of less than 10%.  You don't need to carry a balance, you would just let the small balance report on the statement and then pay it immediately so you don't incur interest.  Someone else may be better able to advise you as to the timeframe of getting the three cards. I think that if you're in no hurry, I'd wait maybe three to six months and apply for another card. You may also want to try the Discover pre-qualify page. They have a secured card, however, it's a one-to one relationship with your deposit so you might want to wait until you build your file a bit.

It sounds like you are doing a good job with your research. 

With no baddies pulling you down, you will see your score rise in no time. 

[Anonymous]

Congrats! I started with capone secured Plat. I used the card and sometimes paid in full and other times carried a balance (keeping g utilization in mind ofc). They bumped my credit limit up after 6 months and it has opened SO MANY gates for me. You're on your way...enjoy and goodluck!

[Anonymous]

Thanks for the well wishes guys!

I think I now know what it means when they say to carry a balance. It means to not pay your balance UNTIL you get a statement and then paying in full? I was confused, thought they meant keeping a balance month to month.

[Anonymous]

Started with the same (see sig). I just used the hell out of it and paid purchases off several times throughout the month never carrying over a balance in excess of 10% and paid statements in full. I was able to get the Quicksilver 1 about 3 months later and then change that to a regular quicksilver (no anual fee) shortly after that. Would definitely recommend staying within Capital one with such a thin file. Worked out great for me.

They like to see frequent usage of the card. Both using it for purchases and making payments frequently.  I think a lot of people are confused and  think they need to use the card for 30% of its limit and then pay that 30% off @ due time. I would use it for EVERYTHING and just make payments regularly treating it like debit. I was spending like 1k/mo on it and it was only a $200 limit card at the time.  I went from a $200 secure to 5k in only 6 months with Cap1 using their card(s) this way.

Note: I added more money to the secured card, putting down a total of $99. The more you put down the more credit you will have to work with. You get it back anyway when you close the card so why not.

[KSK1912]

Congrats on your approval. Some nice advise here already. What i would like to add is - as to my knowledge - Cap 1 Secured cards do not graduate, unless they changed it recently. I had one too, witht the highest allowed deposit of $3K. Waylater i realised that i had made a big mistake by not going with Bank of America secured card. It is the fastest to graduate that i know of. As early as 6 months. For the best fico scoring, you would like to have 3 revolving acounts. I would rather try to get the 3 accounts sooner than later so that your AAoA don't get effected when you open new accounts down the road. You have a very thin file, so adding a new account will impact your score more.Since you are new to credit world, i will give you an example.

Lets assume you add a second card 6 months down the road, and one more 6 months after the second one. In 12 months, you will have 3 accounts which will bring your AAoA to 4 months. It does not really matter how much the secured account is for at this moment. It is just getting them opened sooner than later so that your accounts age together and you build a solid file. Since you don't have any other accounts at the moment and probably not even a credit score, IMHO, now would be a good time to get a little head start and just watch your accounts grow. Good luck with your Credit Journey.

[Anonymous]

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@Anonymous wrote:

I am 28 with no credit. Never had a loan, CC or a bill go to collections. Learned nothing growing up about credit or CCs. It wasn't bad info. Bad info would be max out CCs and never pay them. I was taught to pretty much to stay away. After getting interested in what my credit score was I decided to apply for a CC. Been with chase for 6+ years and thought that might help. It did not. After doing research a secured credit card was the best option. After comparing the ones available I went with Cap 1. Was approved with only the $49 security deposit. I take it that a $49 instead of $99 or $200 deposit means I haven't had my identity stolen? Am now waiting for my card in the mail and excited to start my journey to good credit.

A question I have is about using your CL and keeping a balance. From what I understand it is best to use under 30% of your limit and leave a tiny balance month to month. Is that right?

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Its never too late.. At least you are starting the right way, you're on the right path.

As for some of us here.. We had to learn the hard way..

Good Luck on your journey. Be like a sponge and absorb all the useful info in this forum that had helped so many including me, and still learning.

[EAJuggalo]

Assuming you have the ability to put the money down on both of them, I would add a small discover secured and the BOA secured now.  Then all three of your cards will graduate to unsecured and you will get your money back as long as you don't do anything foolish with them.  As long as they are secured I wouldn't put all that much through them, maybe half the limit each month and pay it off after the statement cuts.  Your first goal is to show those three lenders responsible use before you even start worrying about utilization and scores.  Once you have a score, which will take six months to generate, then you can start worrying about your numbers and looking for what types of cards fit your profile best.