I Need A Credit Card, where to Start?

[Anonymous]

My Fico 8 is 648. The myfico simulator is saying I could possibly get 70 points added to my score if I add a bank credit card. The only revolving credit card I have is a kohl's department.

Basic Questions

1. Should I get a secured card first? Would this increase my score the same as an usecured card -- is there a difference on how it could potentially increase my score. To me, it sounds like a secured card is more or less a debit card ...
2. Is there a place I can sign up and have offers come to me without me looking at them all individually myself?
3. I can have 12 different bank card companies run soft checks and it won't effect my FICO score, correct?

[Anonymous]

1 ask your primary bank if they can offer you a cc

2 look for prequaled offers from lenders

3 secured cards may work if you can't get unsecured.

4 don't apply for more credit for a while

[Anonymous]

@User9721

1 ask your primary bank if they can offer you a cc

Good Idea. I will do so on Monday.

2 look for prequaled offers from lenders

Very ineresting, can you please expand on this. What do you mean lenders? Is that different from banks (banks lend money).

3 secured cards may work if you can't get unsecured.

Would you say unsecured could raise my score better? If even by 1%, then I'll go for unsecured.

4 don't apply for more credit for a while

Only do 1, correct?

[Anonymous]

Just go to your bank and ask if you're prequaled

If not, look at other Banks

I'd stay away from secured or store cards completely if possible. And yes, get one card, hold it for a year. Get another. Hold it for 6 months then maybe add a third

[Anonymous]

Hey, IE. The world of credit can be confusing, huh -- where to set down one's foot, and where not.

My suggestion is check some prequal offers, but don't overdo it because once your scores jump you'll be eligible for better cards (who might not want you if you overdid it earlier). Make sense?

Here's some prequal links; knock yourself out, it doesn't hurt to look:  

Amex

BoA

BBVA Compass

Citi

Chase

Discover

USBank

Any others you have an interest in, just Google the name + prequalify. Also, be sure your prequal answer uses the word "prequalified" or "preapproved" and not "recommended for you." That last one means the SP didn't prequalify you. Also, if they offer you a particular interest rate, versus a range (i.e., 15.99 - 21.99%), your prequalify offer is much stronger. 

You probably want to spend a couple of days reading threads around here before launching your app spree. Like the old saying goes, "an ounce of prevention is better than a pound of cure."

Good luck. 

[aircobra]

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-a-Card-70-points-to-FIC0-CC-Recom...

You got some good advice from the topic you started yesterday. Why did you feel the need to create another one?

[Anonymous]

@User9721

Thanks. I'll ask them that. It looks like they offer a card with no annual fee so I'm happy with that. Many of the other ones I looked at all had fees. 

May I ask why you would stay away from secured cards?

[Anonymous]

@James_A

Hey James, yes, it is. I'm wrapping my head around things, little by little.

I hope to get a card through my bank, if I can't I'll shop around and find the one with the best terms.

There is a disclaimer that some credit companies might change the prequalifed terms based on what comes up in the hard FICO inquiry. While this makes sense, I have to wonder how often this happens. Couldn't they make any excuse, and raise the interest rate? After all, we just took a 5 point hit, how many people will decline and get other opinions?

Or, will mulitiple HARD inquires be excused insofar as they are within a month of opening a single credit line?

One other thing, can someone explain the transaction fees I see. It's like $5 or 3% transaction fee (which ever is larger). Does this mean, each time I use the card, it will atleast $5 to use the credit, even if I pay it back within a month?

Addendum, to build credit, staying at zero balance is good, using it it good, paying before any interest is accrued is good, OR, is it better to actually pay a small amount each month to show responsibility making payments on purchases?

[Anonymous]

@AC

I did. I could have.

I asked new questions in this one and value the extra input: the more the better. I asked a lot of questions in that thread. I think quite a few weren't answered, probably pushing my luck with too many in one topic, so I split the discussion to a new thread focusing on one topic with less questions.

[Anonymous]

My bank would require proof of income from a tax return so they cannot approve a bank credit card.

I'm self employed and haven't filed for taxes in years. I now make around 15k a year, verifiable only through paypal balance sheet and the monthly deposits in my bank.

I make 15k a year, but that is all net income. I don't have any other bills or mortgages. All 15k goes in the bank.