I want to apply... Advice?

[brcbmnmo]

Hi everyone!!

I'm brand new to this credit watching/board/etc. so any advice in appreciated.

Up until now, I've paid everything with cash (aka my debit card).  I've never taken an auto loan out because I live in San Francisco, CA and never needed a car.  I also never even took a student loan out after getting lucky with a scholarship.  After graduating and building up my career with a decent income, I didn't even see a point to credit cards (until I learned how rewards work.. Now I feel stupid for not looking into that before, but I digress...)  Now I'm hoping in the next 5 years to purchase a house (or apartment/condo/buy into a co-op) - and this is where credit cards come in.

Because I thought I had no use for credit cards/loans/etc, I have a very limited credit history.  I only got the idea to start building my credit when I realized how crappy it is that I have to rent a small place for $$$$ when that money could be put toward owning!  I have only one revolving secured card with a small limit of $500 through my credit union that I've had for one year - and every month I put probably $50 on it, and then pay it in full.  I have no collections or liens.  I only have one inquiry from one year ago when I opened that secured card on my Equifax score, and one inquiry on my Experian score from Verizon 8 months ago when I switched my phone service from a pre-paid plan.  As of 7/16/13, my Experian is 717, Equifax is 716, and I have no TransUnion info .

Since my credit history is so short, is there a card out there that I can apply for that's not secured?  I don't really care what the limit is - since I'm still used to just using my debit card, and maybe using my secured card to buy $10 worth of produce at the grocery store once a week.  I really don't want to apply for something I'm not qualified for.  A lot of websites say "This card is good for 700+ credit scores"  blah-blah-blah... But they also have "good/excellent" next to it.  I'm sure my credit isn't considered "excellent" - it's just one low-limit secured card that's paid on time.

Any advice on a card that definitely doesn't pull from TU as they don't have any of my history?  Also, maybe recommend a card with cash or other rewards?  It's not crucial since the end game is for me to get more history started now, then just let my credit grow for the next 5 years, but rewards would definitely be nice.  Like I said, I'm in San Francisco, CA (NorCal) - I noticed on the boards that region plays a role...

[Anonymous]

@brcbmnmo, i recommended the amex BCE they are generous to give high CL.. 

[myjourney]

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@brcbmnmo wrote:

Hi everyone!!

I'm brand new to this credit watching/board/etc. so any advice in appreciated.

Up until now, I've paid everything with cash (aka my debit card).  I've never taken an auto loan out because I live in San Francisco, CA and never needed a car.  I also never even took a student loan out after getting lucky with a scholarship.  After graduating and building up my career with a decent income, I didn't even see a point to credit cards (until I learned how rewards work.. Now I feel stupid for not looking into that before, but I digress...)  Now I'm hoping in the next 5 years to purchase a house (or apartment/condo/buy into a co-op) - and this is where credit cards come in.

Because I thought I had no use for credit cards/loans/etc, I have a very limited credit history.  I only got the idea to start building my credit when I realized how crappy it is that I have to rent a small place for $$$$ when that money could be put toward owning!  I have only one revolving secured card with a small limit of $500 through my credit union that I've had for one year - and every month I put probably $50 on it, and then pay it in full.  I have no collections or liens.  I only have one inquiry from one year ago when I opened that secured card on my Equifax score, and one inquiry on my Experian score from Verizon 8 months ago when I switched my phone service from a pre-paid plan.  As of 7/16/13, my Experian is 717, Equifax is 716, and I have no TransUnion info .

Since my credit history is so short, is there a card out there that I can apply for that's not secured?  I don't really care what the limit is - since I'm still used to just using my debit card, and maybe using my secured card to buy $10 worth of produce at the grocery store once a week.  I really don't want to apply for something I'm not qualified for.  A lot of websites say "This card is good for 700+ credit scores"  blah-blah-blah... But they also have "good/excellent" next to it.  I'm sure my credit isn't considered "excellent" - it's just one low-limit secured card that's paid on time.

Any advice on a card that definitely doesn't pull from TU as they don't have any of my history?  Also, maybe recommend a card with cash or other rewards?  It's not crucial since the end game is for me to get more history started now, then just let my credit grow for the next 5 years, but rewards would definitely be nice.  Like I said, I'm in San Francisco, CA (NorCal) - I noticed on the boards that region plays a role...

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Welcome to the forum

Actually I don't think your in a bad position right now.

You have had a secured with payment history over a year...good

INQ's low....great

I don't say this often but I think you may be a good fit for Freedom and Discover YMMV

[daybreakgonesXe]

Any AMEX, Chase Freedom, almost any BoA, any Barclay's, etc. Try some prequalified offer links from many creditors!

Feel free to read my thread on "building", since the only thing you really have on your report is a secured card, therefore you still fall into this category! 4d.) should be the one you're looking at:

http://ficoforums.myfico.com/t5/Credit-Cards/quot-Start-From-Scratch-quot-Credit-Builders-Handbook/t...

[azguy13]

First of all, Welcome to the forum. You will find a lot of great information here.

Your credit history is a good thing and a bad thing. The good news is that you get to start fresh, which a lot of people wish they could do. The fact that you found this forum while starting may save you a ton of grief. 

It may be hard for you to get a decent CL with such a limited credit history. Cap1 is a great place to start with limited credit history but their CL's are pretty low. I would try and speak with you credit union about changing your $500 limit secured to an unsecured. Your hurdle is going to be the low credit limits and the average age of accounts. It is going to take some time.

You may have a good credit score throughout the building process but the history will be extremely short which will be looked upon as you have not proven yourself yet. It is ok though, because once you get that first unsecured card with a decent limit, you can grow. It takes time but you are at the perfect age to act responsibly and grow your credit into the 800 club. 

[Odiseous]

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@Anonymous wrote:

@brcbmnmo, i recommended the amex BCE they are generous to give high CL.. 

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+1

Alternatively BCP, if your spend pattern justifies the AF.

Note that your future mortgage lender will be looking for 3 tradelines, open for 2+ years (each).

[09Lexie]

Barclays has been none to pull TU. Discover sometimes pulls TU. BoA, Chase, Citi and Amex

[scenery_guy]

Those are pretty good scores. If I recall there are quite a few Chase branches in San Francisco. Stop by one and talk to a banker. See if you are prequalified for the Freedom card. Nothing to lose and a good card to gain. Also who do you bank with? They can see all of your debit card transactions and if you tell them you want a credit card to use in place of your debit card they should be able to offer up something. Again, no harm in seeing what they offer. 

Once you get a credit card stop using your debit card for anything except taking out cash. And stop taking out cash. Use the new card for everything. Food, groceries, utilities, cell phone, cable, transportation, shopping etc. You get the point. Wear it out but please pay it in full every month. Someone will chime in about how to use the card and pay it almost all the way off but leave 1% to 9% so the bill can post - then pay that off to avoid interest. This is supposed to maximize your score. I don't bother with that but I have an established file and only care about my score when I am applying for another card. 

[brcbmnmo]

Thanks for all the quick replies! I knew this was an awesome forum...

@myjourney, thanks! This gives me more confidence. I've been feeling down about how late I started my credit.

@daybreakgonesXe, that thread is awesome! I thought I had lurked here long enough to read almost everything, but this is going to help a LOT.  Thanks!

@azguy13, I think I'll call my credit union and ask them about that.  I never even thought to ask if that was a possibility with them - though I'm sure it is.

@Erickgad and @Odiseous - Thanks! That's great to know! Especially about what the mortgage lender will be looking for.  I figured 5 years would be good - so maybe if I save up enough for a good down payment and I find the perfect place to buy, I could try to buy a place in 3 years... but only if I keep up on the right track.

@09Lexie, Thanks!  I guess I'm more worried that if my TU is the only one that gets pulled when reviewing my application, I'll get denied because they don't have any of my history.

[09Lexie]

And I forgot to say, welcome to the forum!