@Anonymous wrote:
Now the questions:
Now utilizing 3% of my card limit seems like an overkill to me. Does spending $10 get on the wrong side of say Amex or Discover resulting in slower CLI love or APR reduction?
Do I need a third card to build and should I get the BOA Secured card? (The others are unsecured and hate AF's)
Now, my APR isn't the greatest, Do I go after lower APR after six months or CLI increases?
Also, does Discover CLI increase or APR reduction depend on higher purchase and pay off before statement date?
Ditto for Amex and their CLI increase or APR reduction.
I could have four or five additional credit lines as AU from someone with a high 700 score reporting.
Do I add all of them as AU or ship the store cards?
Does that credit owner's credit utilization hit my rapid score increases goal with the low utilization goal I have?
Also, do I garden for six months and get another prime to make it three?
Gardening tips or any other suggestions are welcome.
Addendum:
For others in my shoes and as a thank you for similar myFico posters. Details on how I went from thin file to amex and discover worked. I have no bad entries. Credit enquiries from utilities and a couple of bank for a checking accounts.The HP from chase before I applied for Discover, then Amex. Make slighlty shy of the happiness salary, over 30 and my profession uses a lot of credit typically. (Amex and Discover probably know I will churn a lot in the next decade even if its riskier now out of professional necessity). Sorry, if I have been cryptic. Not a big public poster.
Trying to answer your questions in order.
a) Now utilizing 3% of my card limit seems like an overkill to me. Does spending $10 get on the wrong side of say Amex or Discover resulting in slower CLI love or APR reduction?
There appears to be mixed evidence on this subject. They won't close the card, but there seems to be anecdotal evidence that several months of high spend, coupled with paying in full by the due date, makes the user more likely to receive a CLI. Ultimately, they are going to need history from you, which won't happen for 6 months or so. This is a long haul game, so I would just be patient
b) Do I need a third card to build and should I get the BOA Secured card? (The others are unsecured and hate AF's)
The ideal scoring model indicates that you should have three cards, of which two should report a zero balance and the third should report between 1% and 9% utilization. The reporting zero balance just means that you're paying before the statement date; you still want to push some amount through the cards in order to prevent them from being closed.
c) Now, my APR isn't the greatest, Do I go after lower APR after six months or CLI increases?
You will likely get CLI, although it might take longer than six months. APR reductions are somewhat rare and need to be requested by SM or phone call, rather than the "request CLI" (aka "luv") button. However, as you are paying in full, the APR doesn't matter, as you never accrue interest when you pay in full by the due date.
d) Also, does Discover CLI increase or APR reduction depend on higher purchase and pay off before statement date?
I can't speak for Discover specifically. As with all things, your milage may vary. Chances are good that the CCC will want to see a history of use before they give you a CLI or an APR reduction. However, this is more of a timing thing than a throughput thing. You just don't have enough history right now justify any sort of increase, and likely won't for six to twelve months.
d) I could have four or five additional credit lines as AU from someone with a high 700 score reporting. Do I add all of them as AU or ship the store cards?
Up to you if you want to be added as AU. Some models count AU, some do not. I don't understand what you're asking by "ship the store cards."
EDIT: Depends on the utilization, CLs, and history of the store cards, just like any other card.
e) Does that credit owner's credit utilization hit my rapid score increases goal with the low utilization goal I have?
IF the model uses AU, the utilization of those cards will affect your utilization. If it is high, that will be bad for you. If it is low, that will be good for you.
f) Also, do I garden for six months and get another prime to make it three?
You might as well try for the third card now. If it doesn't work out, you can try again in six months.
One of the other options that is available to you are store cards. You can typically get them by shopping online (search for Shopping Cart Trick on these forums). There is a lot of uncertainty over whether they help you or not, with advocates on either side. On the positive side, you have no AAoA right now, so you won't take a big hit to it if you pick up 10-20 store cards. After a year to two years, they, along with the rest of your cards, will stop counting as "new" tradelines and will show up as established tradelines. Thus, you will have a thick file much sooner than you would without them. You don't really have to do anything with the cards, just stick them in a drawer somewhere and forget about them. I'm not sure if you even have to charge anything to them at all.
On the negative side, you do have to figure out how to monitor them. You at least want to be aware of any charges that happen, so that you can challenge if your identity gets stolen or something along those lines. This isn't hard, and there are numerous software packages out there that can help. You also would want an auto bill pay set up so that you don't run the risk of missing a payment, should you ever purchase something or get charged for something.
Additionally, going the store card route effectively removes your ability to get a loan for the next two years. Any manual underwriter will see lots of recently opened new credit, which is generally a big red flag. However, if you aren't thinking of applying for a home or auto loan in the next two years, then it isn't something to worry about.
Welcome to the forums. Please continue to ask any questions that you can think of.
