Credit newbie questions

[Anonymous]

Hi everyone,

I've really been enjoying reading this board but I have a few questions of my own that I haven't been able to find answers to. Seems like the crowd here is knowledgeable and could help out or at least give some advice.

I'm not so much a credit newbie, as I am new to the United States (since August). I have a Citibank Visa (from August) and another Citi MasterCard (from October). I read about credit piggybacking on here, so my fiancee, who is American, added me to her Discover card and it's on my report, but that card is pretty new anyway. I'm reluctant to have her add me to her other cards which have longer payment histories, because they have a couple of late payments (though none in the past 3 years).  Apart from my luck with Citibank, however, I've not had much luck - I tried to get an Amex and a Nordstrom card in November but was declined. Needless to say, I have nothing "bad" on my report like missed payments or collections or what have you.

I just checked my scores on this site, and I have a 706 on TU and 618 on EQ. So I guess that's okay, but my credit history is of course very short. I've started getting pre-approved offers in the mail (mostly from Capital One and Orchard), but I'm reluctant to apply because 1) I fear I'll be declined again, 2) the APRs are not that great and 3) Orchard, anyway, has both an application fee and a huge annual fee.

So to get to my question (thanks for reading on this far) - what should I do to get my scorse to increase? I can't tell if I should be trying to apply to some of these offers or just wait to build payment history and my accounts to age. I'm also not sure if getting my fiancee to add me as a user on some of her older cards would be a net positive, since they contain late payments (though evidently not many since her scores are all above 730).

Any and all advice would be appreciated. I'm not desperate for credit or anything, just trying to chart the right course to build my credit effectively and well here in the United States.

Matt. 

[haulingthescoreup]

Hi, welcome to the forums and to the US!

My advice: hurry up and wait. Your older Citi card won't be six months old until February, and the newer one won't be until April. Plus you mentioned that the Discover card isn't that old, either.

You actually have a decent collection of cards. I'd just sit back and let a positive trail of usage and payment history show. In the meantime, you might see if there is a local credit union for which you are eligible, and join them. It's generally a $5 deposit to get started, although some charge more. Most CU's offer CC's, auto loans, and personal loans, which cover most credit needs other than mortgages. They're generally good about working with those who are building or rebuilding, although they are conservative.

I would definitely shred the Cap One and Orchard offers. Cap One has a couple of decent cards, but they won't be offering them to a (US) credit newbie.

Out of curiosity, why are your FICO TU and EQ scores so different? That's a huge gap! Does the Discover card not report on Equifax? Check screen two for a list of negative and positive factors, and the Accounts tab to compare the info that they have.

edit to untangle card names

Message Edited by haulingthescoreup on 01-28-2010 04:56 PM

[Anonymous]

With limited history, I think you aimed too high for Amex and Nordstrom 

I think you should consider Cap One.   They have cards for limited credit.    Also, they do not charge a fee for international purchases, most everybody else charges 3 to 4 percent. You might find usefull.  

From experience, I would recommend not sharing credit with fiances or spouses.

Be patient, in a few years, you will have a decent credit history   

[haulingthescoreup]

Again, if there is no burning need for an additional credit card, I'd just hold off. Yes, Cap One does have cards for building/ rebuilding, but they can be annoying when they don't grow with you as your credit profile improves. Two cards plus access to an AU card is plenty. Adding more at this point won't really help scores or much of anything else.

Just IMO, after reading countless posts by Cap One holders wailing about their $300 limits and AF's that never seem to improve.

AU status (with family) is fine. Just don't ever go joint on anything other than a mortgage. That can really be a ticking time bomb on down the road.

[Anonymous]

+1 HTSU

IMO, if OP wants new relationship in credit markets, find a good credit union.  Set up checking and savings and get direct deposit to them if possible.  If you decide to app a new card, speak to the credit CSR at the credit union and get some input.  A CU will grow with you and provide much more than just CC's.  When you need auto or home, signature or educational...they will also be there for you.

IMO

[Anonymous]

Hey there Radiowave!

Welcome to the United States as well as to these forums.

For the most part, i'm a credit newb too.  I can tell you from recent experience (and thanks to haulingthescoreup, txjohn, and some others!) that joining a Credit Union has been nothing but a positive experience for me.  Lots of awesome services without many of the hassles you'd encounter at a typical bank.  A Credit Union might be the way to go for that extra boost.  Otherwise with my limited knowledge, i think "hurry up and wait" (haulingthescoreup) is really good advice.

also, i was wondering as well why your transunion score was so different from your Equifax score.  I didn't really know such a huge variance could exist within the major credit reporting bureaus.

And lastly, where have you moved from?  I hope you're enjoying America thus far.

-Jordan

[Anonymous]

Thanks guys. Sounds like sit tight and build credit is probably the best idea.

I'm not sure why there's such a discrepancy in my scores, but my guess is that a couple of those unsuccessful applications (Amex and Nordstrom) went only on Equifax and not Transunion. Plus I made the mistake of writing a letter to Amex asking them to reconsider (and explaining my situation in detail), but not only did I not have luck with that, I got dinged with another hard inquiry (once again, not on TU, just the other two). Since my history is so short, my guess is that those had an effect, since otherwise the score analysis shows the same things.

 BTW I'm from Canada. Ironically, all teh same companies exist there and do the same work, but are apparently unable to import my credit history, so I have to basically start over. I will say that Citibank has been great with me so far, they've even given me a credit line increase (!) even though my account is hardly 5 months old.

[Anonymous]

Just Curious,

Did you have credit cards when you lived in Canada?   Did you have to give them up when you moved?    

[Anonymous]

Sure, I had cards (or I guess still have), but the problem is that there's no easy and/or inexpensive way of shifting money back and forth between my accounts in the States and Canada. So there's little sense in continuing to use them when it's so difficult to pay them. So I didn't give them up, I just paid them all off and no longer use them or carry them around in my wallet. I wonder if the banks will close them for me after a period of non-use.

[Anonymous]

Thanks Radiowave,

I can see now how there would be such a difference, i just had no idea that could happen.  I'll know to watch out for that.

Where in Canada?  Beautiful place (the parts i've been too!), choc full of hockey players too, i'm getting excited for the games in Vancouver!