@Anonymous wrote:Hi all,
I'm a newbie. At the age of 45, I have always been against getting a credit card and have never had one. However I'm learning this can in the long run hurt you rather than help you. I am in the process of purchasing a new build home and all looks good and have no hits against my credit score but it's low because I have no revolving credit. I took out a secured credit card for $1,000 just so I can show a credit card on my credit report, but it's only a month old. My home will not be completed for another 6 months, so my lender is telling me that I need to take out another credit card to bump my credit score up. Credit cards are so foreign to me and I don't even know where to start or to determine what type of card I should get. Any help, assistance would be appreciated.
EQ - 669
TU - 676
EX - 673
I would look into your personal bank depending on how long you banked with them you may have some offers for you or who ever you car loan is with if they offer credit cards I would check them out also. Best of Luck on your mortgage keep us updated!
@Anonymous wrote:Hi all,
I'm a newbie. At the age of 45, I have always been against getting a credit card and have never had one. However I'm learning this can in the long run hurt you rather than help you. I am in the process of purchasing a new build home and all looks good and have no hits against my credit score but it's low because I have no revolving credit. I took out a secured credit card for $1,000 just so I can show a credit card on my credit report, but it's only a month old. My home will not be completed for another 6 months, so my lender is telling me that I need to take out another credit card to bump my credit score up. Credit cards are so foreign to me and I don't even know where to start or to determine what type of card I should get. Any help, assistance would be appreciated.
EQ - 669
TU - 676
EX - 673
1. You don't specify what scores those are. Are they FICO 8 scores? What are your mortgage scores?
2. It will hurt your mortgage scores to take out a new credit card; it will not bump your scores up. You have been given incorrect information in my opinion.
3. If you follow the advice you have been given, your scores are not high enough to assure that your application will be granted, so I would recommend that you get a second secured card, preferably from Discover or from a credit union, and once you have the card I would recommend letting one card report a small balance each month while the other reports a zero balance.
@Anonymous wrote:I'm just as surprised as well as it goes against everything I ever thought about the lending process, but according to their simulator me taking out a CC will bump me to the next lower interest rate level...but like you, what do I know. I feel like it's a stupid game to play in my opinion.
- Who is your secured card with? - Discover IT with a $1,000 limit
- Have you tried any of the prequalifications? - Yes, with Capital One. I prequalified for the Platinum and Quick Silver card, but found teh interest rates were ridiculous at 26.49%.
- What do you spend on most and what would you be looking for? Cash back? Rewards towards travel? - I'm not a believer in CC's, so just plan to do minimal spending to show some activity. I usually spend more money on general purchases, so guess I would be looking for a decent interest rate with cash back rewards.
Hope this helps, and thank you for your help...I'm like a fish out of water when it comes to CC's and the best one's to work with.
Don't worry about the interest rate; you're not going to be paying interest. Just get the Quicksilver, let a small balance post each month, then pay it right off. Let the secured card report a zero balance. [or vice versa]
