@Funk-O-Meter wrote:So I'm building credit and need some advice on how many and what cards to shoot for.
Started from no credit with a "beginners Visa" a couple years ago with a low limit. Limit was doubled, I never paid late and although utilization was around 65% until I just paid it off. APR is 15 and there's a $70 annual fee.
Just got approved for a Chase Freedom Rewards card with a conservative limit that's twice my current card.
I know the name of the game is multiple accounts with low utilization and high limits.
So...
How many other cards should I get and how long should I wait between appying for them? I'm looking at the Mariott Rewards or Amex Blue Cash Everyday (to diversify brands) when I get my rating up a bit more. Or am I aiming too high with those? My score is 684 (TransRisk) and may go up when the new card and the payment on the old card get reported. My utilization will be really low until I start using the new points card.
And..
Should I cancel my first "beginner" card causee it sucks and there's an annual fee? I just read hear that It shouldn't effect my score to to cancel it but changing my overall utilization would. Should I just call them up and bluff them into nixing my annaul fee?
Welcome to the forums!!!!
I would keep the 1st VISA until the yearmark and axe it. Definitely use the freedom heavy and PIF. I would look to get a Cap1 unsecured MC and garden these accounts for 1 year. Dont go for AMEX or other primes yet, you'll get declined or low limits.
@Eschaton wrote:If you got the Freedom I'd say you're in fairly good shape.
As far as your current card with the $70 AF, I would try and see if you can PC that to something else, if you had it for a "couple of years" then I wouldn't cancel it yet as that's pretty critical to your AAoA as of right now (although I think it sticks to your CR for 10 years anyways.. not sure, someone else could chime in here)
I don't think you'd qualify for a BCE right now with the information we're given, I had a simliar senario as you except I only had 1 year with Capital One and a $750 limit. I apped for the BCE and was denied for not long enough history and not enough revolving accounts. Then I found this board and I took the same route and went with Chase Freedom and got approved for $750, several days later got approved for an AmEx Zync. I'm stopping there and gardening for a year or two before I try for a card that gives me miles.
Closing an account will not hurt your AAoA as the account will continue to report for 10 years. The only concern about closing an acct. should be how it affects your overall UTIL.
Granted, If this is your oldest and only account and you have no other account that was opened around the same time as this account it could impact you later down the road.
@Anonymous wrote:I think you could apply for 1 more card now. I don't think you'd be approved for an Amex credit card, but maybe a charge card. You could consider the Zync Card. Capitol One also offers decent cards for establishing credit. Getting the Zync now could make getting the Blue Cash Card easier later though. I'd then recommend growing these cards for a year before considering another application. As for closing your Visa, it could hurt utilization and would bring down your open credit cards to 1; I'd only close it if you're approved for another card.
I wouldn't close the visa until just before the yearmark, get all of the history you can get from it. Cap1 is a good choice to get in the door early with credit. Go for the Green cash rewards for average credit. I'd leave AMEX alone for at least 6 months and then go for the Zync.