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New to Credit hoping for advice

pt3k
New Member

New to Credit hoping for advice

Hey everyone,  I just started my credit journey 9 months ago and have been reading the forums, reading articles, and watching youtube videos but unsure what I should doing in terms of maybe opening another credit card.

 

I started off by getting an auto loan with a cosign 9 months ago, 7 months ago I got a secured card from discover, and about 5 months ago I opened a card with my credit union. I refinanced my loan as I was able to lower my rate without a cosigner so now my oldest account is the discover card.  My current fico score is 714.

 

I was able to get approved for the apple card but not sure that's a card that would be most beneficial.  I'm trying to avoid hard inquiries where I get rejected and credit monitoring apps keep recommending I get another card to help my credit.

 

My question is should I be looking to add another card and which cards would you recommened I apply for?

 

Thank you

Message 1 of 8
7 REPLIES 7
FinStar
Moderator

Re: New to Credit hoping for advice

Hi @pt3k, welcome to the forums.

 

Sounds like your credit journey is shaping up fairly well.  The first thing that I would suggest is not to take the advice of any credit monitoring apps or sites.  The latter are monetized marketing schemes that get paid for dangling juicy credit carrots in front of you.

 

Also, beware of a variety of YouTube videos.  Everyone seems to want to be a popular sensation on the webz these days, especially on the credit cards front.

 

So, you have the secured Discover, Credit Union and Apple Card.  What are their limits, if you don't mind sharing with the community?  Is that FICO score from TU, EQ or EX?  What is the amount of the current vehicle loan?

 

At this point, based on what you have shared, you appear to be at an ideal place for your scores to be optimized over time based on your current credit mix.

 

Do you foresee the need for another card?

Message 2 of 8
Slabenstein
Valued Contributor

Re: New to Credit hoping for advice

It sounds like you're in a pretty good place for 9 months of credit history.  Because you do gain points for your first three bankcards on at least some FICO versions, you would probably see some point gain if you opened a third card.  However, I think it's important to point out that you shouldn't open more cards just because credit monitoring apps say that it will increase your score.  I don't know which CMS's you're using, but there are two big things to keep in mind with regards to their recommendations for score improvement.  First, most of the popular ones provide VantageScore, not FICOs.  Since most actual lending decisions are based on FICO scores, what will or won't increase a Vangate score is somewhat irrelevant.  Second, the CMS's that also recommend cards are paid by lenders for the apps that come from their sites, so they have a financial incentive to tell you that adding more cards will boost your score, even though, most of the time, it won't.

 

What I would look at is just what cards would work for you.  For most people, two is plenty, and maybe the secured Discover (which should graduate to unsecured w/ responsible use) and the CU card is really all you need.  For other people, multiple cards to take advantage of multiple rewards programs, issuer perks, and the like works best for them and CC curation is a hobby they enjoy.  It depends greatly on what your life is like, what your finances are like, how much you enjoy card management, etc. etc.  If you do think you want to open more cards, I would do some research and see what all kinds of cards are available from the major lenders, what rewards programs look the most attractive for you, etc, come up with a list of the cards you'd want, and then game plan an apping order.  For a young, thin, profile, you'll prly want to space them out, e.g. one app every 6 mos or 2-4 apps followed by a couple of years of gardening, and you'll want to pay attention to issuer quirks such as which are more open to borrowers w/ < 1 year of revolving history or have new account limits like Chase 5/24.  Imo, the best way to proceed from a thin file to a solid credit base is deliberately.

 

Also, just as an aside, closed accounts are part of your FICO aging metrics, so the original auto loan from 9 mo's ago is still your oldest account.

 

ETA: When you say that you were "approved" for the Apple card, do you mean that you were pre-approved, or that you opened the card?  If the latter, you already have three bankcards so you would only see score loss in the short term if you added another.


Message 3 of 8
pt3k
New Member

Re: New to Credit hoping for advice

Don't have the apple didn't follow through they showed me it was approved and my limit but didn't submit.  The other two are at 1600 and 1500.  Car loan is about 8900 left on it.  My secured card is getting reviewed next week hoping to graduate it as I've been keeping my utilization low.  The score is from tu. 

 

If my mix is good I don't see the need for a new card immediately just builing up age wise to get a good rewards card like a chase or the citi double cash back card

Message 4 of 8
babygirl1256
Valued Contributor

Re: New to Credit hoping for advice

Welcome to the forum . . . great advice from @FinStar . . . I'd recommend that you take your time to build your credit . . . Don't rush it.

Starting FICO 8 Score in 06/2019: EQ-625, TU-649, EX-640
Current FICO 8 Score in 06/2021: EQ-796, TU-806, EX-812
Goal FICO 8 Score in 06/2022: EQ-825, TU-850, EX-850
Message 5 of 8
AverageJoesCredit
Mega Contributor

Re: New to Credit hoping for advice

Be wary of YT and credit sites that many just want to promote ccs because they get paid to do so. Take your time , only get a card you know you can use or feel might keep awhile  ,  and try and practice pif. Just my opinion of course, as if i had to do credit all over again id keep it simple and no unnecessary apps just to get an approval. As time progresses your need will change and a card may come out that may peak your interest. Save your hp for that day lol. Good luck, again only my perspective average though it may beSmiley Wink

Message 6 of 8
SouthJamaica
Super Contributor

Re: New to Credit hoping for advice


@pt3k wrote:

Hey everyone,  I just started my credit journey 9 months ago and have been reading the forums, reading articles, and watching youtube videos but unsure what I should doing in terms of maybe opening another credit card.

 

I started off by getting an auto loan with a cosign 9 months ago, 7 months ago I got a secured card from discover, and about 5 months ago I opened a card with my credit union. I refinanced my loan as I was able to lower my rate without a cosigner so now my oldest account is the discover card.  My current fico score is 714.

 

I was able to get approved for the apple card but not sure that's a card that would be most beneficial.  I'm trying to avoid hard inquiries where I get rejected and credit monitoring apps keep recommending I get another card to help my credit.

 

My question is should I be looking to add another card and which cards would you recommened I apply for?

 

Thank you


My advice would be not to rush into adding a card. Don't pay attention to approvals and preapprovals.  Think about what your credit goals are instead.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 745 TU 750 EX 730

Message 7 of 8
pinkandgrey
Community Leader
Senior Contributor

Re: New to Credit hoping for advice

I think where you are is good at the moment. A car loan and two cards looks good. I wouldn't app for any cards that won't be beneficial for you. Just hold out with that Disco and see if you can get it unsecured! Discover is great and will treat you well. 

Congrats on your journey thus far and good luck!!

Discover It: 19.7k
Amex ED: 18k
Citi DC: 7.7k
Fidelity Visa: 2k
Apple Card: 1.5k
Message 8 of 8
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