Building Credit From Scratch. Should I Apply For A 2nd Credit Card?

[Anonymous]

I am 27- Years-Old and new to building credit. I have no Debt. My Credit Score is nonexistent and shows as "No Score" on various websites since I do not have a Credit History. I applied for my first Credit Card, a Capital One Secured Mastercard, in August 2017. I received my Capital One Secured Mastercard in November 2017. My Capital One Secured Mastercard has a Credit Limit of $300.

My questions are in bold.

I received my first Statement on Dec. 3rd. I followed advice that I had read on here and on other forums that stated to keep your Statement Balance at 30% Utilization or less. So I paid most of the Current Balance off prior to the Statement being cut. I left $5 as my Current Balance that would be reported when the Statement cut on Dec. 3rd. I paid the $5 that was reported on my Statement immediately after I received my Statement, even though my Due Date isn't until later this month. I do not ever plan on "carrying a balance" from month to month! There is absolutely no reason for me to carry a balance month to month and pay the ridiculous Interest Rates when I have the money to pay my Credit Card off in full by the Due Date. To keep my Utilization low I paid almost all of my Current Balance before my Statement was cut, so that only $5 was reflected as my Statement Balance when the Statement cut. I plan to pay down my Credit Card weekly or as needed, because my Credit Limit is so small, to be able to continuously use the Capital One Secured Mastercard as my main form of payment and to maintain a low Utilization. I refuse to use Debit Cards and do not like carrying Cash unless need be.

I have read that it is suggested that you should have at least 2-3 Credit Cards open in order to help build credit.

I was looking to apply for the Discover It Secured Credit Card back in August, but I applied for the Capital One Secured Mastercard instead. If it is ideal to have at least two Credit Cards open, I would like to apply for the Discover It Credit Card since the age of my Capital One Secured Mastercard is still so new. I wouldn't want my AAOA to plunge horribly in 6-7 Months if I wait until then to apply.

Would it be a wise decision to apply for the Discover It Secured Credit Card?

I have recently spoken with Discover's Customer Service Representatives on Twitter when I had questions about the Discover Scorecard, and Discover's Customer Service Representatives on Twitter were AMAZING! They were incredibly helpful and even checked in with me the next day to make sure I had received help. The Customer Service Representatives alone make me want to apply for the Discover It Secured Credit Card because they were so quick to assist me and they were very helpful! I love that I can ask them my questions on Twitter ans they will link me to a Secured Chat so they can help me, without me having to speak on the phone. I also like that the Discover It Secured Credit Card offers the perk of Cash Back.

Additionally, does anyone know if there are any Secured Credit Cards on the Visa Network that don't have an Annual Fee attached to them? I've tried looking for a Secured Visa Credit Card but the only ones I've found have a Annual Fee attached. I would like to avoid paying an Annual Fee, but I have realised that having a Visa Credit Card is probably a good idea. I just learned that Visa is the only accepted form of Credit Card payment at a Store that I frequently go to now.

Also, since I am so new to building my credit history and it can take 6 Months before my Credit Score is generated, is there any advice that can help me continue to build my Credit Score once it appears, other than keeping my Utilization low and always Pay my Statement in Full?

[Anonymous]

See my signature link for the 11 Rules.

Get two more secured cards and the Alliant SSL loan. Then garden for 6-12 months.

Discover secured is best in industry for sure. Snag it and add future deposits until you're at $2500.

No idea on Visa secured without AF. Would be interested in hearing what others say.

[Adkins]

The VISA secured, with no fee, requires a credit union membership, with specific join guidelines. There are three VISAs on this list:

http://www.magnifymoney.com/blog/building-credit/best-secured-cards-2014/

(The link says 2014 but the list was updated this month)

Edited to add: Yes, absolutely apply for the Discover secured if you qualify! 

[Anonymous]

ABCD2199, thank you for your reply!

I found and read your 11 Rules when I first discovered the myFICO forums last month. A few of the rules don't currently apply to me, but I will keep your post bookmarked to read in the future.

What is an Alliant SSL Loan? I'm not too familiar with Credit/Loans in general, so I've never heard of an Alliant SSL Loan.

I know that I started the quest to build my Credit History really late in the game since I'm 27-Years-Old. I just always assumed it was a bad idea to have a Credit Card. And I figured how could someone even give me a Credit Card when you basically need Credit to get Credit. It's a Catch-22. I had no idea that Secured Credit Cards existed. Once I found out that Secured Credit Cards existed, I knew that I needed to apply for one because it will help me build my Credit History that I will need if I ever have to rent a house or apartment on my own.

[Anonymous]

Adkins, thank you for your reply!

Unfortunately I don't meet the guidelines to join those Credit Unions.

I assume I can always wait a year or so to apply for a Visa branded Credit Card from somewhere. In the meantime, I can always buy Gift Cards to that Store before I plan on shopping there.

[Adkins]

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@Anonymous wrote:

Adkins, thank you for your reply!

Unfortunately I don't meet the guidelines to join those Credit Unions.

I assume I can always wait a year or so to apply for a Visa branded Credit Card from somewhere. In the meantime, I can always buy Gift Cards to that Store before I plan on shopping there.

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Not even SDFCU?

You are eligible to join the SDFCU if you’re an employee of the Department of State or one of the extensive organizations with ties to the credit union (all listed hereunder “who can join”). If you don’t work for the Department of State, you may also be eligible through the American Consumer Council. You can join the ACC for only $5 if you’ve used any major consumer product or service within the past 12 months – and you probably have.

[Adkins]

I can always buy Gift Cards to that Store before I plan on shopping there.

If that store is Costco, here's a trick: their website takes all major credit cards. If you use your Discover card (when you get it) you'll get cash back on that purchase, then still be able to use the purchased cash cards in Costco. Downside is waiting to get them in the mail. 

[Anonymous]

Adkins, thank you for the information above about SDFCU and ACC.

Yes, the store I mentioned is Costco. It was surprising when they said they didn't accept Mastercard. It's weird that they only accept Visa [and formerly American Express]. I would have thought that they would have accepted all major Credit Cards in-store.

Thank you for the tip about using Discover It to buy the Cash Cards! It will be great to earn the Cash Back! Do you know if the Cash Cards expire? I could maybe buy multiple Cash Cards at a time and use them throughout the year. I visit Costco about once a month.

Also, how do I can quote another post, like you have done? I'm using the forum from my cell phone and I do not see any option to quote another post.

[mkhan1093]

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wishuponastar wrote: 

Also, how do I can quote another post, like you have done? I'm using the forum from my cell phone and I do not see any option to quote another post.

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I don't know if it's different on cell phones, but when you press "Reply" to write a new post, there's also a "Quote" button above the textbox where you write your answer. If you press that button, then the post that you're replying to will show up as a quote.

To answer your real question, it's great you're taking steps toward managing credit. The Discover Secured Card is a great one to have. As for Visa, it's really tough to find a no-AF secured card outside of CUs. How important is it to you that the card be secured? After a few months of your C1 and Discover secured cards, you should be in good shape to apply for an unsecured no-AF Visa - there are plenty of those!

[Adkins]

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@Anonymous wrote:

Adkins, thank you for the information above about SDFCU and ACC.

Yes, the store I mentioned is Costco. It was surprising when they said they didn't accept Mastercard. It's weird that they only accept Visa [and formerly American Express]. I would have thought that they would have accepted all major Credit Cards in-store.

Thank you for the tip about using Discover It to buy the Cash Cards! It will be great to earn the Cash Back! Do you know if the Cash Cards expire? I could maybe buy multiple Cash Cards at a time and use them throughout the year. I visit Costco about once a month.

Also, how do I can quote another post, like you have done? I'm using the forum from my cell phone and I do not see any option to quote another post.

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Yeah, I love me some Costco, but a single credit choice is a pita. Costco will take any DEBIT card, btw, if you didn't know that. I use my debit MasterCard there if I don't use a credit card. I don't think they have an expiration date for the cash cards. You can always call them and ask. As for quoting, I'm also on my mobile. Your browser of choice should have a "request desktop site" option somewhere. Click that, then more options will show up for use. Heads up, the font will be smaller.