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New To Credit Building & Looking For Advice, 3rd Card?

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project21
Member

New To Credit Building & Looking For Advice, 3rd Card?

Hi All,

 

Scores (from MyFico)

Equifax: 756

TransUnion: 734

Equifax: 734

_____________________

Hi guys and gals

 

I recently signed up for myFico. I'm new to building my credit. (Haven't used credit in years/ pay cash for everything mentality). I have been reading the forum and honestly don't know where to begin.  The only credit card I have is a Chime credit builder card (I know it's not true credit).  I had one or two low-limit credit cards when I was younger (15 to 20 years ago) that were charged off. I've had student loans and a few auto loans in the past as well. Currently no auto loans. My first objectives:

  • Obtain 3 tradelines
  • Obtain 5k in total revolving credit
  • Preferably obtain credit cards to use for general day-to-day expenses (groceries, paying bills, amazon purchases) Generally, all-purpose cards

After reading the forums, I've concluded (and please correct me if I am wrong) that it's necessary to obtain credit cards that I will use. I don't shop at big box department stores (use Amazon), don't use gas cards (use Uber) Credit cards with the most rewards are not that important right now (I know this will change). Quick and easy/easier approval is the current goal.

 

Looking for any helpful information to reach my initial objectives. My long-term goal is to build personal and business credit. 

 

Thanks in advance

 

 

Message 1 of 14
13 REPLIES 13
MySunrise271
Established Contributor

Re: New To Credit Building & Looking For Advice

Welcome to MyFico😊,

 

If I were starting, I would look at where I'm currently banking. Major banks ( Chase, Citi, BofA, Cap1, WF, US Bank, etc.), regional, or credit unions. Credit unions tend to be most helpful to those new to credit, so just having an initial deposit account could prove fruitful in the long term. For your everyday spending cards, credit unions generally have some 'plain vanilla' cards or essential rewards for the spending you mentioned; you can start with those and look into upgrading once you have more experience and your lifestyle changes in that direction. Of course, you can keep it super simple and start with a 2% everything card.

 

Secondly, I'm a fan of Discover and Citi bank for beginners; from reviews here and elsewhere on the Internet, they seem very approachable in the early building stages. Pre-qualify tools with no impact on your credit appear to be the 'in thing,' so you can check for offers and go from there.

 

GL😊

Message 2 of 14
PNWRambler
Frequent Contributor

Re: New To Credit Building & Looking For Advice

It's not absolutely necessary to obtain cards that you'll use regularly. Any credit card will help your credit score even if you only post one charge every 6 months. That being said, it's definitely ideal to obtain cards that benefit you on a more regular basis.

 

Some gas cards include "transportation" like busses and uber, so you may want to look for that as well. Amazon does have a credit card that gives 5% back on all Amazon purchases plus a gift card as SUB.  That might be one to look into.

 

Your credit isn't too bad, you should be able to get a Discover or Citi to start as mentioned above, and then use that and PIF for 6 months.

Message 3 of 14
project21
Member

Which Credit Cards Do not require tax returns

Hi Guys/Gals,

 

Current Scores:

EQ: 769

TU: 734

EX: 734

_________________________

Which Credit Cards Do not require tax returns? I'm new to rebuilding my credit. (No credit cards) I can provide bank statements to prove income but cannot currently provide tax returns (in progress). What would you guys recommend?

Thanks in advance.

Message 4 of 14
FireMedic1
Community Leader
Mega Contributor

Re: Which Credit Cards Do not require tax returns

Welcome @project21 

99.5% of creditors dont ask. Discover and a few others do inquire. You have to place your income when applying. Some want to make sure you actually make what was entered when you apped. My question. What kind of accounts do you have now to have 700+ scores. What are you re-building from?


Message 5 of 14
coldfusion
Community Leader
Mega Contributor

Re: Which Credit Cards Do not require tax returns

I'm also a bit confused by the "new to rebuilding" comment given those scores.

 

A general rule of thumb is that a credit union will want to see copies of your last 2 paystubs, if you're self-employed they will outline how they want to confirm income.    They can be amenable to alternate means of income verification, but you need to work with them.

 

Discover, American Express, and FNBO are issuers with multiple reports here of having made IRS 4506-C authorization requests to review the last 2 years of your tax returns, but in reality such a request could come from just about any bank if they're unable to verify income.  You can refuse to authorize the request,  although the expectation should be that the refusal will trigger a denial of the application.

(5/2024)
FICO 8 (EX) 846 (TU) 850 (EQ) 850
FICO 9 (EX) 850 (TU) 850 (EQ) 850

$1M+ club

Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 6 of 14
SouthJamaica
Mega Contributor

Re: New To Credit Building & Looking For Advice


@project21 wrote:

Hi All,

 

Scores (from MyFico)

Equifax: 756

TransUnion: 734

Equifax: 734

_____________________

Hi guys and gals

 

I recently signed up for myFico. I'm new to building my credit. (Haven't used credit in years/ pay cash for everything mentality). I have been reading the forum and honestly don't know where to begin.  The only credit card I have is a Chime credit builder card (I know it's not true credit).  I had one or two low-limit credit cards when I was younger (15 to 20 years ago) that were charged off. I've had student loans and a few auto loans in the past as well. Currently no auto loans. My first objectives:

  • Obtain 3 tradelines
  • Obtain 5k in total revolving credit
  • Preferably obtain credit cards to use for general day-to-day expenses (groceries, paying bills, amazon purchases) Generally, all-purpose cards

After reading the forums, I've concluded (and please correct me if I am wrong) that it's necessary to obtain credit cards that I will use. I don't shop at big box department stores (use Amazon), don't use gas cards (use Uber) Credit cards with the most rewards are not that important right now (I know this will change). Quick and easy/easier approval is the current goal.

 

Looking for any helpful information to reach my initial objectives. My long-term goal is to build personal and business credit. 

 

Thanks in advance

 

 


Since you have good cards, and don't have recent inquiries or new accounts, the following would be good cash back cards for you to consider:

Amex Blue Cash Everyday

Discover IT Cash Back

Chase Freedom Unlimited

Citi Double Cash or Custom Cash

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 7 of 14
project21
Member

Re: Which Credit Cards Do not require tax returns

Hi,

 

To answer your question, when I refer to "rebuilding,":

 

Due to my "former" mentality, the last time I checked my credit was probably 7 to 10 years ago (maybe a little bit longer or shorter). Back then (even further back after college) I was heavily focused on building preferred skills, not income. (It mattered MUCH more to me to find what I truly enjoyed doing vs. climbing the corporate ladder ) Thus my income was not as consistent as I would have liked.

 

Inconsistent income = Inconsistent bill paying.

 

Due to this (and lack of credit education) my scores had always been in the 500's. They could have been higher but I just assumed that I always had bad credit so I rarely checked. I preferred to pay all cash anyway. Simple and efficient. (Or so I thought)

 

Long story short...found my skill set & passion (the fuel to my life), found my self-employed business, and found that it just makes sense to use business credit to help grow your business (why re-invent the wheel).

 

So, I obtained a Chime secured card which I have been using for about 2 years. I believe I signed up with myFICO a year later and was surprised at my scores. Maybe it's just me, but this credit-building is starting to get addictive. 

 

 

Message 8 of 14
805orbust
Valued Contributor

Re: Which Credit Cards Do not require tax returns

@project21 wow, that Is an awesome story. Congrats on your journey. Like everyone said, it won't be hard to start moving forward for you. If you like Amazon, the Chase Amazon Visa is great for the 5% off. They will offer it to you during checkout along with some sign up bonus I'm sure and I'd say you're good for a $3 - $5k approval there. 

 

Then take the advice given in the previous posts BUT, start out with only 2 cards the first round, no matter what you choose. Then in a year, look around, evaluate,  and decide what's next.  Good job btw.. on credit, and life.

 

And as far as the addictive thing is concerned... No, you are certainly not alone 🤣

 

 

EDIT:  just occurred to me.  I would recommend the Amex Blue Cash Business as card #2 so you can get going on the business side simultaneously.  



Message 9 of 14
FishingGuy
Frequent Contributor

Re: Which Credit Cards Do not require tax returns

I agree with the above and start slow....... there is no rush,  slow and steady is the very best way. 

 

Another thing that i would add is a "self lender" loan with a credit union.   It works like a holiday club where you deposit a predetermined amount monthly for 12 months or so.... and the amount (less fees) are returned at the end of the term.  So it's like forced savings, and the fees are minor in comparison to the long term benefits.

However, It reports as a loan which will greatly help increase your score & help on a long term build. ( but don't miss a payment/ deposit  )

Message 10 of 14
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