Starting out!

[Anonymous]

Hi everyone, 

I'm VERY new to this whole credit thing, I've used these forums quite a bit to get a basic understanding of what I'm doing but I'd like to get some specific advice on my particular situation. I'm hoping this is the right location as it is my first post, let me know if I'm doing something wrong!

My situation:

I have a BankAmericard Cash Rewards Secured Credit Card (my first) that I opened in September of 2014 with a $500 CL ($90 deposit). 100% on time payments, ulitization is usually around 10% at close. I pay it off as I go, I usually buy a tank of gas or go out to dinner and transfer the money by the time I get home.

I recently applied for a CapitalOne QuicksilverOne and got approved for the same $500 CL on February 28, 2015, that's in the mail. 

TU: 671, EQ: 678

My question(s):

Would it be best for me to keep applying for cards while I'm in this window of time where both accounts are very new and I have almost no history, that way the accounts can age together and the HPs will fall off around the same time? Would this be a good time to attempt to get in with AMEX at least, or should I try a few cards? Are there major things I should be considering that I'm not? Or, should I just stay with what I have and ride it out? 

Any advice is appreciated, if you need more information to help I'll do my best. Thank you all, from what I've read you are all incredibly nice and helpful people. 

[Jarnog]

First off, welcome!!

Second, grats!!!! Off to a great start.

Third, are there any derogs and such on your reports, or are you a clean slate?

If you are "clean" then:

In no particular order

• I believe I have read here that 3 cards + are optimal for FICO scoring so one more would do ya good
• You can try any of the prequal sites - Chase, Citi, Amex, Cap One and see what you get.  There are others like BofA, Discover etc but those are not reliable as you can usually put in anything as information and it will offer a card.  Chase and Cap One are pretty "golden" if you get any offers.
• I believe that Discover (again just from what I have read here) is pretty lenient with "thin" files, but don't quote me on that.
• Use that BofA secured well and you could get it unsecured (usually accompanied by nice limit increase) in as little as 6 months of having it - now I believe when they do this it will be another HP (but I have no experience with this as I have not and do not have the card).  That is just from what I have read here.
• Continue to cultivate, watch those scores rise and enjoy the ride!!!!

YAY!!! WELCOME!!

[Skye12329]

Personally im assuming your still young but i would maybe apply for 1 more card and call it good for a while. Then work on your limits, let time pass and they will grow. Just remember credit is a triathlon not a sprint. I say apply for 1 more card while or if your young because in the future you have a whole credit world out there. All your HPs would fall off around the same time too. IF you get denied do not be discouraged it happens to all of us.

[Anonymous]

Thank you! 

I suppose a third card for now would be a good idea to start growing a portfolio. Which one is the major question for me, I suppose. 

Quite a lot of folks seem to think that getting in with AMEX is a good thing to do, but is it too early for me? Should I try Chase first? 

I'm reluctant to rely on the information from Credit Karma as it just seems like they're trying to sell me something. Also, I'm worried that applying for another card will hurt me when it comes time for that BofA card to be unsecured and/or get a CLI, or will 1 not be a huge deal? 

[Skye12329]

Chase likes history first, i would suggest Amex scores might be a tad low but its a shot, or Discover.

[Jarnog]

I'd have to agree.

Amex - try the prequal first, see if it offers anything.

Discover - again they seem ok with thinner files than most.

Worse comes to worse you can see if you are pre-qualified for a cap one again, and app

And if it's really bad (which it isn't), grab another secured card (which you shouldn't have to do)

[Santi78342]

---

@Anonymous wrote:

Thank you! 

I suppose a third card for now would be a good idea to start growing a portfolio. Which one is the major question for me, I suppose. 

Quite a lot of folks seem to think that getting in with AMEX is a good thing to do, but is it too early for me? Should I try Chase first? 

I'm reluctant to rely on the information from Credit Karma as it just seems like they're trying to sell me something. Also, I'm worried that applying for another card will hurt me when it comes time for that BofA card to be unsecured and/or get a CLI, or will 1 not be a huge deal? 

---

@Anonymous to the forums! And yes, take any and all information gathered from CK with a grain of salt because the scores are FAKOs and I think they pull their "approval odds" right outta their @$$!

You're on the right track! Honestly, I think it's too early for you to attempt to get in with Chase & AMEX. Try for a Discover card because as noted above, they are lenient and tend to be more welcoming of newcomers to the credit world. In 6 months, go for Chase & Amex.

Good luck and let us know what you do!

[Anonymous]

Thank you all! 

I'm excited (and nervous) to get started. 

I suppose the Discover IT card would be my best bet due to my short history? I couldn't find too much information on an AMEX with short history other than denials even for the Green for various different reasons. 

Also, when I do have 3 cards is it best to spread usage across them? For example, if all 3 cards had a $500 limit ($1500 total) I wouldn't want to go over $450 on all of them combined. Would that mean I'd want to stay below $150 on each card? I try to stay below $100 now as it stands, and I always PIF before the closing date as I mentioned before. 

Thank you guys again, it's reassuring to have some direction in my decision process. 

[Jarnog]

---

@Anonymous wrote:

Thank you all! 

I'm excited (and nervous) to get started. 

I suppose the Discover IT card would be my best bet due to my short history? I couldn't find too much information on an AMEX with short history other than denials even for the Green for various different reasons. 

Also, when I do have 3 cards is it best to spread usage across them? For example, if all 3 cards had a $500 limit ($1500 total) I wouldn't want to go over $450 on all of them combined. Would that mean I'd want to stay below $150 on each card? I try to stay below $100 now as it stands, and I always PIF before the closing date as I mentioned before. 

Thank you guys again, it's reassuring to have some direction in my decision process. 

---

You can use them as much as you want.  Just make sure that when the statement cuts all but 1 card shows a balance.  That balance should put you at the ideal 1-9% utilization that FICO likes.  Because oddly enough if all of your cards report a 0 balance your scores will likely drop.  Just let that card post the balance and then pay it the next day or whatever.

[Anonymous]

I decided to see what credit.com said about my score, it's giving me a 735 which is nice! 

I'm trying for the Discover IT card, as stated above once I get some history under my belt I'll go for an AMEX, Chase, or maybe both. 

Thank you everyone, I'll keep you updated when everything gets back to me. Any other advice is greatly appreciated as well.