Need Help with building credit profile

[Anonymous]

I need help deciding between growing credit vs gardening. I am very confused as to how to proceed.

First, I am new to creditcards. 

- I currently have two credit cards:  Discover it ($2000). Age: 9 months] and CapitalOne ($300). Age: 4 months

- Credit Scores: Experian: 706 | TU: 704 | EQF: 698 

                            Credit Utilization: 3%

                            No missed payments or collections or Bankruptcy

- My goals:  1) get new creditcards for cash back and 0% Intro and 2) creditscore of 750+ in the next 12 months 

My Plan: 

- I am planning on applying for 2 credit cards in the next 2 months.  First card is Amex Blue Cash everyday. I am already prequalified but have not applied. The next card on my list is Chase Freedom Unlimited. I am worried that my thin file makes this a long shot, as a prequal on their website showed no offers. So as a backup, I have PayPal Cashback Mastercard, Wells Fargo Platinum card. 

Questions? 

- Should I apply to 2 credit cards in the next two months or space them out? or just apply to 1 or 3 cards? Whats the ideal strategy?

- Should I keep applying to new credit cards to increase my credit profile or just leave the cards to grow my creditscore? 

[KLEXH25]

Hi @Anonymous and welcome to the forums!

For a new, thin file, you have started out well! There is no real right way to apply, especially when you're starting out, but there are certain things to do to keep things moving in a positive direction. My first suggestion would be to space out your applications. Wait until your youngest card is 6 months old and then apply for AMEX. After 90 days (after your 3rd statement) you should be eligible for a credit limit increase (up to 3x of your starting limit). After another 3 months, when your AMEX is 6 months old, I would apply for Chase. I believe your credit age will be around 1.5 years and you'll have a better shot of being approved with a better limit. If Chase doesn't work out, you can go for the PPMC (or you can do both anyway).

[Anonymous]

Hi  @KLEXH25, thanks for your advice. Spacing between card application sounds like a good plan. The Amex credit limit increase in 3 months would be similar to a new card in terms of its effect on credit score. That would help me achieve my goals. 

[seattletravels]

You're actually eligible at 61 days with Amex.

[KLEXH25]

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@Anonymous wrote:

Hi  @KLEXH25, thanks for your advice. Spacing between card application sounds like a good plan. The Amex credit limit increase in 3 months would be similar to a new card in terms of its effect on credit score. That would help me achieve my goals. 

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Sure, no problem! I also suggest trying a CLI with Discover once in a while. It's typically a SP (so no inquiries) and you can usually get something from them every few months. If you haven't done so yet, try one today. The Capital One is likely "bucketed" because it's a starter card with a low limit (I had the same one) but heavy use may help get a little more from them until you get better cards. Just try to keep utilization low by paying it off a few times between statements. It's not hard to max out a $300 card so it won't look good for applications unless you pay it down, but you'll get there!! I've come a long way in just the past 2 years and you will too. 

[KLEXH25]

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@seattletravels wrote:

You're actually eligible at 61 days with Amex.

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Even better! I probably mixed it up with another card. I only have a charge card with them so no CLI for me lol. 

[Anonymous]

Kinda in the same boat you're in.

Datapoints: 6.5 AoOA. 3 cards (a secured WF that graduated to a Platinum, Apple Card that only reports to TU, and CreditStacks that only reports to EQ). Six figure salary. CU always at 1%. EX FICO9 727.  CreditKarma FAKO scores are 690-720.

The remaining half of my 1 year plan to jumpstart my file:

- Apply for the Amex BCE between now and the 8th month mark.

- Apply for the Chase Freedom once my AoOA hits 1 year.

[And sometime before my 2 year mark, apply for the Citi DC]

I've read here that Amex is one of the most accepting when it comes to thin files. They almost always pull EX so I'm not worried about them seeing my recent Apple Card HP. Chase and Citi usually like to see a year of history, so that's why you're probably not getting any Chase prequals yet. Once you hit 1 year, you should be able to get in with Chase since their Freedom Unlimited card is one of their two easiest cards to get.

In summary, I recommend you go for the Amex BCE now > wait for your oldest account to hit 1 year > and then go for the Chase Freedom Unlimited. Good luck! Let me know how it goes!