Credit Card Chances

[Anonymous]

Hello!

I was trying to get financing for a car but was denied everywhere because of my lack of credit history. I only have one credit card, an unsecured Capital One Platinum with a limit of $500. My scores are around 670 (no baddies as far as I know) give or take and I make 23K a year. I am planning to get two more credit cards as from reading around the consensus is 3-4 is optimum. I was using the "Get a Credit Card" indicator in the website and it said I would qualify for Amex Blue and some other Capital One cards. I don't really want another Capital One card, I was thinking of getting the Amex Blue and a BoA MasterCard. What do you guys think my chances are of getting a credit card. The only recent inquiry I would have is the auto loan inquiry which I did a 14 day window with (pulled by CapOne Auto, Up2Drive, Ford Motor Credit, Bank of America and Lending Tree). Thanks for any advice. I am planning to apply after March 3rd when my new statement cuts. I currently have a zero balance on my card.

[wmarat]

Even with relatively high FICO of 670, but short credit history, I would not advise to go for Amex. Amex has been crazy lately.

With short credit history , IMHO, the best course of action is:

1. Secured card from BOA, graduates after 9th billing cycle, grows with you.

2. Credit Union either national or/and local.

Good Luck

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@Anonymous wrote:

Hello!

I was trying to get financing for a car but was denied everywhere because of my lack of credit history. I only have one credit card, an unsecured Capital One Platinum with a limit of $500. My scores are around 670 (no baddies as far as I know) give or take and I make 23K a year. I am planning to get two more credit cards as from reading around the consensus is 3-4 is optimum. I was using the "Get a Credit Card" indicator in the website and it said I would qualify for Amex Blue and some other Capital One cards. I don't really want another Capital One card, I was thinking of getting the Amex Blue and a BoA MasterCard. What do you guys think my chances are of getting a credit card. The only recent inquiry I would have is the auto loan inquiry which I did a 14 day window with (pulled by CapOne Auto, Up2Drive, Ford Motor Credit, Bank of America and Lending Tree). Thanks for any advice. I am planning to apply after March 3rd when my new statement cuts. I currently have a zero balance on my card.

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[oracles]

I agree with Wmarat, you definitely should not apply for an Amex Blue. Due to your short credit history along with your score, I think it would be somewhat difficult to receive. You should definitely try for a Credit Union card and I do believe you may have a chance to get an unsecured card from BOA. If not they will offer you a 99/500 card or a secured card. If you receive the secured card, it will graduate in 9-12 months. Chase mayyyyyyyy be an option and if you are decline, you maybe able to reconn with them. Many have been successful with reconning with chase. Also I would try an Orchard card. They may give you a low limit, however it is still a start.

Last thing that I think would be very important is to allow your current card to report a small balance on your report (1-5%). You actually lose points for reporting a zero balance as oppose to having a small balance report. Still pay off the balance by the due date but by statement date, let it have a small balance. Since your limit is $500 dollars, I would advise you to let it report at statement date $25 dollars. Then pay it all off at due date. You will have a Util% of 5% and this will give you some additional pts on your score.

hope this helps and keep us updated

[Anonymous]

Wmarat,

Thanks for your quick response.

I was planning on joining two local CUs this Friday so I'll check into that. One CU is for the city I live in and the other through my employer. I got the Capital One card 30 months ago and it will hit the three year mark in July. When exactly does your credit mature from short to acceptable?

[oracles]

Just thought of something else as well,

you should also ask Cap 1 for an increase to your limit.

this will also give you better Utilization.

[Anonymous]

Oracles,

Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job  (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!

[wmarat]

Well, your credit history is as long as mine. My oldest account (former BOA secured card) is 30 month old.

I have 16 open revolving accounts with total revolving available credit of $150800.

I suppose, you are mature enough. Try unsecured BOA card as oracles suggested. Check out Alliant CU (ALLIANTCREDITUNION.ORG), P atelco CU, Agricultural CU.

I believe you are stuck only becouse you have 1 revolving account.

[wmarat]

And do not forget store/gas cards, at least 1.

[oracles]

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@Anonymous wrote:

Oracles,

Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job  (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!

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Hi Elix

I think you should charge some small amount like a candy bar on your credit card before Feb 3rd. This way, when the statement cuts, there is a small balance of $1-2 dollars. This will then get reported to the bureaus and you will have an Util of 1%. This is good, if not you will have a util% of zero and will lose some pts. Then pay off the $1  at due date and proceed again for the next month. Just always have a little balance at statement date so you can have a small util% reporting. since your statement date is Feb 3rd, it will probably take up to 10 days for your reports to update therefore i would wait until feb 13th to apply for the credit card at the CU.  You can appply for membership into a CU now but dont apply for the card until feb 13th or around that time. Once you have more than 1 card, the util% game is different. You dont want more than 1/2 your accounts reporting any balance, but that is a different story. We will get to that once you have obtain additional accounts.

[score_building]

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@Anonymous wrote:

Oracles,

Thank you as well for your quick response. Here's the thing, I graduated in May and had a very hard time finding a job  (finally struck Bronze in October lol) so I had to depend on the credit card alot. I had a high balance ($440) that I had been paying down and I zeroed it out on Sunday. My next statement cuts on Feb 3rd. Are you saying I should charge something on it now even though it's paid in full or just let it report a zero balance and then charge something on it for my March statement? I will try a BoA unsecured card and see how that works out since you said if I get declined I'll probably be offered the secured card. As for the CU card do you think I should wait till March to apply for it or apply right as I join. I haven't heard very good things about Orchard so I'm hesitant but I'll definately research Chase though. Thank you so much for your advice! I appreciate it!

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and with good reason, imho you needn't bother with orchard, unless you find you are short on other options.  a local cu, boa and a gas or store card should suffice.