Looking for a 2nd Card to Continue Rebuild

[Dennis885]

After settling on some credit cards a few years back my credit is hovering around 700.  I have a student loan open (but in good standing), an auto lease, a secured CC I got shortly after settling the old CCs, and a Cap One Quicksilver with a $5k limit.

In 2-3 years (once the negatives from settlement) fall off I'd like to pursue a mortgage.   I'm thinking it would be a good idea now to increase my available credit by adding another credit card.   I was preappevoed for $10k for the Upgrade card but read it reposts an installment loan.

So:

1.  Card recommendations?  (Chase and Discover are the two I settled for less than owed -- still on report)

2.   Sort of related -- how much / often do I have to use these cards without the issuer decreasing the limits?  

Thanks for your help!!

[HeavenOhio]

How old are your current cards? I would think that you're well positioned for a lot of products as long as the banks aren't overly sensitive to your negatives and as long as your Capital One card isn't too new.

I don't think you need to worry about your Capital One limit. They don't seem to target 5k limits for decreases.

I'd use your cards for everything you can. But as a minimum, I'd suggest a charge or two every three to four months in order to avoid closure.

[Anonymous]

Smart idea to get the cards out-of-the-way now if you’re gonna do the mortgage later. How many open cards do you have right now? just the capital one & the secured? Does it have an AF? Who is it with?

How old are the chargeoffs? I would get some secured ones that would graduate with good issuers, if I couldn’t get the cards that I wanted.

I’ve found 1 charge every 12 months keeps most open, but once every 6 months would definitely be better. And the shorter the intervals lesser the risk.

[Dennis885]

Cap One Secured (19 months) $500 limit

Cap One QS (10 months) $5k limit 

I try to use the secured at least once a month, the Quicksilver I use a few times a month for gas, groceries, etc.

[Dennis885]

I posted the open cards above, both with Capital One, no annual fees (does that gaurantee them to keep it open?)

The charge offs with Discover and Chase are mid-late 2016.  I began the debt settlement process in the summer of 2016 and completed it at the end of 2018.  

I guess what I was asking is if certain cards are known to offer higher initial credit limits to in turn increase my available credit.  I have a good relationship with my bank and they send me frequent offers for their credit card, so maybe I should go that route.

As I mentioned above I have no issue using multiple cards at least once a month, but it's usually just for smaller purchases.   I think I had a misconception in my head that I needed to be spending a lot of $ monthly on each card or they might reduce my limit, rather than just regular use of the card, regardless of $ amount.

[Anonymous]

As long as you’re using them, they should remain open as long as you pay them.

Starting limits are hard to predict, but some cards/lenders grow more quickly than others. But at the same time, most institutions have slowed down and scaled back due to the current economic climate.

For instance American Express is famous for the 3XCLI at 61 days but that’s not guaranteed. BBT has been generous. Who is your bank? Do you have any relationships with any credit unions? Navy is awesome!

[Dennis885]

My bank is PNC, I do not have membership to any credit unions.

I was considering AMEX, I even did the soft pull prequal with approval.   My only concern was I read is AMEX will approve you with past negatives but may start you with a low limit and be stubborn to increase it.  I suppose it's worth a shot though, I won't be approaching the limit and I'm sure I can get an increase at some point with on time full payments.

[Anonymous]

Just getting your foot in the door is a major accomplishment with American Express and with time it’s guaranteed to grow, may take a little time for them to get to know you, but then you’re good. I think I would go for it.

I haven’t seen a lot of data points on PNC, but I think they have a prequalification page? I don’t know how reliable it is. But if you’ve already got a relationship with them, that might be a foot in the door. You may be able to get both. Good thing about AmEx is it doesn’t report til the second or third cycle.

I personally recommend having five cards to achieve the best mortgage scores. So grabbing two now would be great, you could even try a third one now or 12 months from now and then according to your timeline, two years later down the line when all that drops off, you’ll be superb for a mortgage!

[SunriseEarth]

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@Dennis885 wrote:

So:

1.  Card recommendations?  (Chase and Discover are the two I settled for less than owed -- still on report)

2.   Sort of related -- how much / often do I have to use these cards without the issuer decreasing the limits?  

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As a former rebuilder myself, I always recommend getting credit that is useful to you, no matter what your scores are.  So I'd look at your typical spend. What do you spend in an average month on groceries, gas, dining, etc.?   You may also want to consider if you frequent/order from any particular businesses or if you're a warehouse club member, for example.   

As for AMEX, they are definitely worth consideration.  Even if you start off low, you could ask for 3X the CL in 61 days (and if your SL is over $1K, your odds are fairly good).  

[Dennis885]

Thanks, I decided to apply for an the Amex Blue Cash Everyday.   I use cards mostly for groceries and gas and if offered 3% and 2% back respectively without an annual fee.  The good news is I was approved!

However, I can't create an online account yet to view my initial credit limit.  I had the option to get the card info immediately online but (not thinking) selected to just wait until it was mailed to me.  Unfortunately you need the card number to create an online account so I'll have to wait a few days to login and view my limit.

On the bright side, I'm in the door with Amex!  Thanks for your guidance!