Considering a 2nd CC, just got 1 after long dormancy

[Anonymous]

(this seemed more 'general credit' than 'rebuilding', hope I was right!)

I've done some reading around the forums, I'm still not sure what to do in my situation. I had credit issues years ago, mostly with irresponsible use of CCs in my early/mid 20s (I'm 38 now). I've not had CCs for almost 10 years. I'm not concerned with being irresponsible at this point, I am quite accustomed to living within my means. I do, however, realize that having and responsibly using credit is essential, and I'm finally in a position to do so.

Most negs have fallen off my CR, the one baddie that still remains is a paid judgment, until 2014 (I may try a GW at some point on that).

Other than that, my CR right now looks like this:

TU 712 (as of 2/4/2011)

19 years credit history

16 accounts (mostly SL/Sallie Mae, mostly consolidated)

0 balance on revolving accts

$29k consolidated SL debt

0 past due

0 accounts w/negative indicators

AU on a CC of my mom's, 10k CL, 0 bal.

After receiving some mail pre-approvals recently for the Discover More card, I decided to app for it (after much consideration).

Approved, $3000 CL, 0% APY 12 months, 18.99% after.

I've been considering a Visa, for those times/places that don't take Discover. If I do, I think the Chase Freedom looks good from what I can tell.

My goal(s) are

1. Practice using credit.

2. Quit using my debit card for everything. Not as safe as a CC, no rewards, etc.

3. Improve my scores a bit.

4. In the next year or 2, I'll likely want an auto loan. (Never had one, don't currently drive).

Do I 'dare' try apping for a Visa right now, or should I wait a year to prove myself with the Discover and wait until their hard inquiry no longer affects? Or am I just being overly cautious? I don't plan on adding any more CCs for a while, I don't see how I would need them.

[vish1]

As you are a AU on your MOMs cards you also get her credit history so you are good. Do you know what discover pulled for you? If yes, the best will be to find out a lender which generally pulls something else and apply a visa with them.

This said, I don't think you should have any problem qualifying for Chase freedom. Just stay away from some like cap 1 who will pull all 3 and then offer you something like 500$ Cl which will never grow.

[LIGHTNIN]

Welcome to the forums,

Congrads for the approval from Discover More. Your goals sound great.

About Chase......Have you ever had a CC with Chase?

I dont know if they blacklist or not. 

The search box is a very handy tool to use.Just watch the dates of the post, because information does change over time.

You will find many threads here to read about Chase Freedom.

I'm like you, just finished repairing and starting to rebuild.This is a wonderful place to learn.Glad to have you here

[Anonymous]

Thanks for the responses/welcome!

I just checked my EQ CBR (I did the 'free annual' for that one and EXP, and got TU through myfico for a score).

Discover INQ is only showing on EQ (as well as an INQ from ING from Nov when I did a Chk Acct deal).

No INQs on EXP or TU.

Good point on blacklisting, I checked a couple CBRs I had from 2006, nothing from Chase. I really don't think I ever have had anything with them.

I've searched the forums, and from recent posts, it seems that Chase 'could' pull from any CRA. I'm still searching around a bit to get a better feel of my approval chances before deciding to do it.

[Anonymous]

Since you want to be cautious, I would wait until you have 6 months of reporting on Discover. 

Also, I suggest you consider getting another card (MC or Amex?) in another 6 months.   A minimun of 3 cards is best for FICO score.   Also, having a backup credit  card considered prudent, especially when traveling.    .     

[BluMoon]

You need to keep in mind your Utilization to Credit Ratio.  Your CL is $3000.00.  You will hear different things about what is the best UTL.  Some say 50%, some say 30%.  The most conservative say 10%.  30% is better than 50%, but I'm with the conservatives which say 10% or less is the best for boosting your score.  As an example, 10% would mean, for you, that you either not charge over 300.00 per billing cycle or you play the UTL game - charging whatever you want, but paying down on your balance before the closing/statement date.  This is the date that Discover reports to the CRA.  BTW, if you go this route and, later when you have more than one card, keep at least a little (very little) bit unpaid on one card.  It's okay to pay the other(s) off.  This will help boost your score.  However, you have to stay on top of everything for this.

That being said, it's easier to get another card and raise the amount you have to spend, within your chosen UTL.  Bear in mind, they look at two factors - 1. Your UTL of overall revolving credit and 2. Your UTL of each card.  In other words, if you have a low overall UTL, but on one card you have a high UTL, it still could hurt you.

I'm glad to hear that one of your goals is to "practice using credit," and that you're cautious instead of diving right in.  I don't think you can be overly cautious when it comes to using credit.  There's a statement that I've seen - "Credit is a wonderful servant, but a terrible master," as I'm sure you know.  I wish you the best!

[Anonymous]

I'm kind of in the same situation as you, have not had any CC's in the last 5 or 6 years and I now have a few with low limits and looking for a CC with a higher limit to help out my util ratio, I just called Chase like 4 days ago to ask them specifically which reports they pull, the rep. I spoke with said that Chase pulls all three reports. So I'm not sure what to do, I have 3 CC's with 500 CL's and 1 with a 400 CL. I need a CC with a higher CL to help out my util ratio.

I have 6 hard inquiries on TU and EX and 15 on EQ 10 of which will no longer affect my score as of 3/16/2011 (the ten were from when I applied for an auto loan 3/16/2010) The dang dealership just kept hitting different lenders even after I told them to only try 3 or 4, I was approved for the loan and ended up re-financing at the CU at 4.76% I believe.

I'm just not sure what to do at this point, I feel that I need a CC with a higher limit, but don't want any more hard inquiries on my reports. My util was 43% as of Dec, I owed 834 with 1900 total avail credit, I payed 501 of the 834 last month and will be paying another 200 this upcoming Wednesday, I have only used my CC's for very small purchases (to keep them looking active) and my HSBC card to pull my TU and EQ Fico Score and Reports. So my util should be more around 9 or 10% when my creditors report my new balances to the bureaus, according to the MyFICO Score Simulator my TU score will go anywhere from 702-744 and my EQ anywhere from 722-744 and that was just paying the $501, not including the $200 I'm paying this week. So I'm hoping by this time next month I will have TU and EQ scores over 700.

[Anonymous]

Excellent points and advices @ all, thank you!

Especially about UTL, and being mindful of it. Reading around the forums, I learned how important it is to properly manage that. I'd previously just thought I'd just keep a zero balance and that's that, I know now I still basically can, I just need to be mindful what's going on when someone's looking

Anyway, I did decide to apply for the Chase Freedom. Curiosity more than anything, I think, got to me.

I got the 'decision pending' response. It's been 3 days I think, per the backdoor # it's still 'pending'.

I've not decided whether it's best to call to speak with a person to push it along or not?

[vish1]

---

@Anonymous wrote:

@Excellent points and advices @ all, thank you!

Especially about UTL, and being mindful of it. Reading around the forums, I learned how important it is to properly manage that. I'd previously just thought I'd just keep a zero balance and that's that, I know now I still basically can, I just need to be mindful what's going on when someone's looking

Anyway, I did decide to apply for the Chase Freedom. Curiosity more than anything, I think, got to me.

I got the 'decision pending' response. It's been 3 days I think, per the backdoor # it's still 'pending'.

I've not decided whether it's best to call to speak with a person to push it along or not?

---

When I applied my Chase Freedom, I called the backdoor number a few times, but failed to get any reasonable answer. Computers told me its still pending and then if I looked for human and was told the same. Once I reached a more sensible human who told me that it takes about 7-10 days. And on the 8th day (app on 18 approve on 25) when I called in the day, it said pending. I called again in the night and it said approved.

I would wait for 2 more days and then talk to a human on the backdoor number.

[Anonymous]

Sooo, I got my Chase rejection letter in the mail today, reasons being:

CBR shows total available credit on accts is too low

Insufficient amt of credit info reported on CBR

CBR shows recent delinquency or past due balances

So, I called the backdoor recon number. Verified that the 'recent' baddie is the judgment from 2007. I also explained how I've been taking a long break from credit but now am trying to rebuild, and did mention my new Discover that's not reporting yet.

Approved, for $500 CL.

Hey, I'm not going to look a gift horse in the mouth! At this point, I don't need a big CL, I just wanted *something* else.

Now I can wait a bit, let these do their reporting for a few months, and then I'll probably do AMEX (got an offer for Gold w/1 yr no fee in the mail, so I'd like to do that and then downgrade, once it's safe to app again).