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Don't cancel the card. There is no reason to cancel this one right now. The best way to maintain a high score is to have an average of 3 credit cards. One reason to leave this card open is so that you can increase the average age of your credit card accounts (AAoA). You should be aiming to maintain a few positive tradelines on your credit report. This can be one of them. You did not make a mistake by applying for this card. There are several reasons you can give to get your credit limit raised on this card over time even if your income is not increasing. Every month that you have this card you are demonstrating an ability to manage credit and that in itself justfies a credit limit increase. If it ain't broke, don't fix it. Your situation is a good one. Be happy.
[quote]I'm not saying youre guaranteed approval...
And you said that you've had a Sam's Club card since 07, right?
You might try to get a cli on that account to say $1,000 then app for Freedom. Do you have any student loans reporting? Student loans can help you develop a decent FICO believe it or not.
They will see the inquiry, I'm sure...but one inquiry isn't going to sink you.
Imo, you've got a 70% chance of being approved for a Freedom....
Do you live at home? Or get any student loans? I know many members would advise against using household income, but assuming you're a responsible individual...I'd suggest asking your parents if you can put they're income on the app so you can build your credit... They don't have to cosign or provide their ssn's.
Idk if you've read or not but many people here app for 4-10 cards at a time... "App sprees" LOL![/quote]
Am I really allowed to do this? I live with my father who makes around $60,000-$70,000. Do you have to list that it's your parents/household income and not yours, thus making it look bad either way? Also, i just looked in my fifth third account online and the mastercard account has been added on now...
Also, i'm not sure why using a credit card that I can only spend $100 with a month will boost my credit score if I already have a sams club card with $500 and the 2 loans i've paid off. I don't see any reason for it to go up much more than it already has. The only reason i'd see my limit increase is if my income changes, which won't be for another half of a decade. I'm not looking for a credit card with a high limit to spend money I don't have. I just want it to build credit with.
sorry i'm not sure how to quote posts on this forum.
So should I keep this credit card as well as apply for the chase freedom card? Should I apply for the chase freedom card now before the hard inquiry shows up on my credit score?
The hard inquiry will have a minor effect on your credit score and thus should have a minor effect on any decisions you make. There are several ways having an additional credit card can be positive for your credit score even if you are not charging anything or very little on it each month. In fact you should have a card or two which you are keeping at a zero balance or in your sock drawer and this one can serve that purpose. I don't see anything wrong with applying for a chase freedom right now for you. The most you have to lose is a hard inquiry.
@dndandrea wrote:[quote]I'm not saying youre guaranteed approval...
And you said that you've had a Sam's Club card since 07, right?
You might try to get a cli on that account to say $1,000 then app for Freedom. Do you have any student loans reporting? Student loans can help you develop a decent FICO believe it or not.
They will see the inquiry, I'm sure...but one inquiry isn't going to sink you.
Imo, you've got a 70% chance of being approved for a Freedom....
Do you live at home? Or get any student loans? I know many members would advise against using household income, but assuming you're a responsible individual...I'd suggest asking your parents if you can put they're income on the app so you can build your credit... They don't have to cosign or provide their ssn's.
Idk if you've read or not but many people here app for 4-10 cards at a time... "App sprees" LOL![/quote]
Am I really allowed to do this? I live with my father who makes around $60,000-$70,000. Do you have to list that it's your parents/household income and not yours, thus making it look bad either way? Also, i just looked in my fifth third account online and the mastercard account has been added on now...
Also, i'm not sure why using a credit card that I can only spend $100 with a month will boost my credit score if I already have a sams club card with $500 and the 2 loans i've paid off. I don't see any reason for it to go up much more than it already has. The only reason i'd see my limit increase is if my income changes, which won't be for another half of a decade. I'm not looking for a credit card with a high limit to spend money I don't have. I just want it to build credit with.
sorry i'm not sure how to quote posts on this forum.
So should I keep this credit card as well as apply for the chase freedom card? Should I apply for the chase freedom card now before the hard inquiry shows up on my credit score?
No..no..no...NOOOOOOOOOOOOOOOOOOOO.
Absolutely, positiviely, do NOT include your parents' income on your application unless you see specific verbiage allowing you rto do so. I can't imagine a set of circumstances allowing for this - perhaps for a student card or sorts.
A lender wants to know what YOUR ability to repay is. Credit cards aren't like financial aid in college - where until you reach a certain age, you are required to include your parents' income. We're talking, for the most part, about unsecured lines of credit. Fudging income to score higher limits on cards will bite you in the bum...mark my words...so I wouldn't even think about doing it.
You really shouldn't be obsessing so much over the score. Unless you are planning to apply for a mortgage or automotive loan, it really is not a big deal to have maxed out cards. You aren't in the position right now to target cards with big sign up bonuses, so again, the score is not important right now. When I first got the Macys card I just used it and paid it off. Sometimes it was near the limit of $300, and sometimes it wasn't. I didn't know what a credit score was and didn't care. I just knew to pay the balance when the statement came. I would say in six months or a year of responsible usage of the card, see if they will raise the credit limit on it.
@dndandrea wrote:
sorry i'm not sure how to quote posts on this forum.
Click "Reply" on the post you are replying to. When you go to type your post you'll see 3 tabs above the tool bar, "Rich Text", "HTML", and "Preview". Make sure you are in Rich Text. To the right of that in a blue box you'll see "Spell Check" and "Quote". Click Quote and the post you are replying to will appear in the body of your post.
We all have to start somewhere... and this is your first card. Its your stated income (in my opinion) that prompted the low limit.
So, use it wisely, keep that card for a year and you will get better offers! Heck you may see some in 6 months, but you've already take the HP on this card, so won't do any good to close it now. Once they see how you treat your first card, they may give you an increase.