Rebuilding and think a new card would help - which would be best for my situtation?

[JM761]

Hello all!

In March 2022, I hit finally hit bottom of slowly started digging myself out and rebuilding credit. My scores (Fico8) have gone from low 600s (with a slight dip to 590) in March/April to now, Nov/Dec: EX: 733, EQ: 719 and TU: 697

I'm trying to figure out the right card for my situation. From what I've learned, I have a thin credit file.

Mortgage (paid on time, no lates) since 2013. $2150/month

Federal Student loan: Just added to Credit report after consolidation in August, credit score bumped up 6-9 points. Not paying until pause is over in June (and expect it will be forgiven by then due to PSLF waiver at which point it will be removed from my CR and I expect a score drop)

Credit card: AU on husband's chase . No lates. CL: $11,200. open 10+ years. Util <1%

Credit card: CareCredit: opened March 2022. No lates. CL: $19,000. Util <5%.

No collections.

Unfortunately, I have some blemishes on my credit that will not drop off for another few years (2018/9 is DOFD for the 3 below)

Paid charge off - comenity. Paid June 2022. Lates reported - said "sold to another lender". Balance $0. 

Paid charge off - chase (settled for less than full). Paid April 2022. Balance $0. 

Navient/Federal student loan: new lender (due to non-payment) lates showing. 

A bunch of closed accounts in good standing.

Inquiries: TU: 1 in 3/2022, EQ: 1 in 6/2022 (this one is to be disputed, I did not agree to it)

Avg Age of Accounts:  ranges from 9 yr 2 mo to 13yr 2 mo depending on Cred bureau (this dropped b/c of new student loan)

Age of oldest: 22 yr 5 mo to  29yr 7 mo.

So, where do I go from here? It was suggested that I get another CC to have another "paid as agreed" reporting and increase available credit. 

I do not have a credit union account. 

I was kind of pre-approved for Amex Blue Everyday - they want a bankers letter verifying my address. I need to do that tomorrow. Before I do, I wanted to see your thoughts on my other options.

I did the preapproval for Discovery. It suggested

Discovery It Cash Back: 0% APR for 15 months then 5% CB (depending on schedule). 20.74 APR.

Discovery It Gas and Rest: I wasn't too interested in this one b/c we barely go to restaurants.

Cap 1 preapproval said: 

Quicksilver: 1.5% CB. 0% for 15 months then 17.99%-27.99% APR. (this seems like a big range...is that b/c I"m higher risk?)

Savor1 Rewards: 3% CB. 0% for 15 months then 27.99% APR. 

Savor REwards: not really interested b/c of high APR and annual fee ($95).

What should I do? I want to make the most of my requests and pull the trigger soon. I'm happy my scores went up a big with the student loan but worry that it will be forgiven soon (I"m in final stages and waiting for official letter) and worry that it will fall off and drop and I'll not be eligible. 

Any suggestions would be helpful!!!

[sccredit]

I'd grab both Discover and Amex, then call it a day and let things age. 

[JM761]

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@sccredit wrote:

I'd grab both Discover and Amex, then call it a day and let things age. 

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Im glad you said that...I was leaning towards them but not really sure why. It just felt more solid but I'm also worried I won't get approved for either of them. 

Are there others I should look at? I need an "easy" card since my credit is still building. 

Thanks for the guidance!

[FishingGuy]

I agree with SCCredit.... who said

I'd grab both Discover and Amex, then call it a day and let things age.   

both will grow over time, leading to higher lines and additional cards..... & No need for Capital One and a triple credit hit

[pinkandgrey]

Both Disco and Amex are good suggestions. PERSONALLY, I would take only the Discover right now. Having that one good card account will be so easy to manage and Disco cards grow really well if you use them heavily. 

Good luck either way! 

[JM761]

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@FishingGuy wrote:

I agree with SCCredit.... who said

I'd grab both Discover and Amex, then call it a day and let things age.   

both will grow over time, leading to higher lines and additional cards..... & No need for Capital One and a triple credit hit

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Thank you - this is super helpful! I didn't know Cap1 was a triple hit! I"m trying to keep things calm and quiet bc we need a HELOC in a spring and I want to build my credit but also not look like I'm going crazy looking for cards!

[JM761]

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@pinkandgrey wrote:

Both Disco and Amex are good suggestions. PERSONALLY, I would take only the Discover right now. Having that one good card account will be so easy to manage and Disco cards grow really well if you use them heavily. 

Good luck either way! 

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Thank you - this is good food for thought. I guess  my brain was thinking "get 2 cards and then let garden for a bit" (am I using the term right? I feel like I'm learning on old lady trying to use slang around my teenage niece and nephews haha)

We need a HELOC or something similar for a new roof in the spring. I guess myy choice for 1 or 2 cards will also depends on which is better at increasing my chances of being approved for the loan in a few months....ugh. MOre research!

That being said, I think I will def go for the Discovery card and hope I"m approved. I didn't know which card gave me the chance of higher CL (and more growth). It sounds like Disco is the way to go...thank you!

[JM761]

I decided to go with Discover IT CB and was approved for $9000!!!

I still don't know if I'm going to go for the AMEX AMEX Blue Cash Everyday - I would need to verify my address. I'm thinking about going through the motions to see and get familiar with the process. They said it won't be a HP unless I get the card. 

I still have a lot to figure out and I'm grateful for the help here. Considering my credit was low 600s earlier this year and I wasn't even eligible for a secured card, this is a huge step in the right direction.

Data point; they pulled Experian (my highest) and it was 733 (which is what I expected). 

I feel like I have my first REAL card in a long time. The other (care credit) is so limiting and other is an AU on my husband's chase. 

Baby steps....

[805orbust]

You're good to go with Amex. Even though you're nervous and have those negatives in the past, your score pretty much guarantees you won't get the toy $1000 limit from Amex.  Plus, your HELOC is a secured line, so your approval with favorable terms is pretty solid with scores at that level.  I'd be more worried about where rates are at by then.  Perhaps start shopping for the HELOC now?

Just my $0.02

[FishingGuy]

Congrats on your nice Discover line.   I might still go for the Amex,  you may get a very similar line to your Discover approval.  In addition, don't downplay Care Credit.... that line can grow substantially, and is great for medical, dental and vet bills..... BUT,  in time they may also increase you to a Care Credit Mastercard... which makes it's use far reaching.   ( they did that for me without even asking )