Getting my first unsecured CC

[Anonymous]

Hello everyone,

Long time lurker here looking for some advice. I have been living in the US for almost 3 years now and my only line of credit is a secured card from Capital one (limit $651) that I got 1 year 3 months ago. I have been using it exclusively to build up a good credit score so my utilization has rarely gone over 8% (and most of the months has stayed on 3-4%), and I always pay my balance before due date and in full (not very difficult when you see how much credit I have).

The negative point on my file is my credit inquiries. Ignorance is not an excuse, but I did not know that such a thing as a credit score (and therefore credit inquiries) existed, and during my first year here I accumulated 3 inquiries (2 for CC with my bank and one with a phone company). After these, I did some research on my situation and got a secured CC on February 2015. From that date, I have not made another attempt to increase my credit and now 2 of my 4 inquiries have dropped, and a third one will next September. According to credit karma, my TU score is 706 and 712 in Equifax.

Although I am in no need for extra credit, I would like to get a card for regular use with a higher limit to keep building a healthy score. So my questions are:

1) I have been viewing the Amex Blue Cash Everyday as a good candidate: no annual fee, nice cash back, and I have always paid my balances in full (before and after coming to the US). Would you recommend it to me or is there any other that would suit me better with the info I provided?

2) Should I wait till September to apply for this CC so my third inquiry expires or is it ok to do it now? As I said, the bulk of my inquiries were made in the period between Oct 2013- Sep 2014, and as of today, I have made not single hard pull on my credict for 1 year 3 months.

I hope I have provided enough info to get some advice. If you think that I miss something, please let me know. I am still learning and I want to do it right. Thanks!

[Anonymous]

Have you checked the AMEX website to see if you have any prequalifying offers? This is how I got my AMEX BCE. 

[Anonymous]

Hi,

Thanks for your response. Yes, and no, they have not found any pre-qualifying offers for me, athough the offer the BCE as an option.

That means I don't have any chance of getting approved?

[Anonymous]

I can't say for sure, but it seems that the thought process is if you have pre-qualifying offers, you're more likely to be approved. I had 2 and I was approved. Maybe wait a little bit and try again. 

[Anonymous]

If it were me I would reach out to Capital One and see if they can graudate your card to unsecured card with a higher limit. I have also heard that the lender may still keep a partial secured amount but extend additional credit beyond what is being secured. It is worth a shot to talk to Cap One about it.  For Amex, I see a lot of folks get the Delta Sky Airmiles card. People with low scores seem to be getting approved. The BCE is a 2nd choice from what I read on the site. I would also talk to my own bank in branch and see if they can offer anything.  Please tell us your progress.

[Anonymous]

What type of spend are you using your card for? Grocery, dining out, gas, general, etc.

You probably should also pull your real fico 08 scores and see where they stand. You can get the $1 trial at CCT and cancel it before the seven days are up.

Also, check Chase, Citi and Capital One to see if you are pre-qualified with any of them. Report back and there are lots of folks who can help from there once we have more information.

[Anonymous]

FYI, credit fun4dave, capital one secured cards do not graduate - you have to apply directly for an unsecured product.

[Anonymous]

That was my understanding to with respect to the secured cards. Regarding going to my current bank, I am looking into changing banks soon. My accounts are on the Santander Bank, and the conditions on my checkings are changing in June. 

ksb1, I just make a small charge on the card every month in order to not get over the 3-6% usage (it is not difficult to do it with just a $651 credit limit). So it is usually something like groceries or drugstore purchases. I have seldom used it for a small clothing or cosmetics purchase. I will do as you recommend and check my real fico score and I will get back to you.

Thanks!

[Anonymous]

Thank you KSB1! I was not aware of that with Cap 1.

[Themanwhocan]

Inquiries do not affect your FICO score once they are a year old, and newer inquiries affect it more than older ones. So your old inquiries do not matter at this point.

I would suggest applying for a couple of cards, preferrably those that can grow with SP's. The American Express BCE is a good choice, and perhaps a Discover IT (though they dont grow all that fast the first year). 

If you are trying to grow your FICO score, and if you do not have any open credit besides credit cards, you may want to try the Alliant Credit Union installment loan trick:  http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

Controlling how much credit card utilization appears on your credit reports is also a useful trick.  http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-...

You can find some good cash back credit cards here:  http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

Good luck, and remember to ask any questions before you apply.