My first card and overall plan: What do you think?

[Anonymous]

---

pdxuser wrote:

Oh, another question: would having a very low overall credit limit be considered a bad thing, similiar to having a thin history, showing that I haven't handled much risk? I believe there's such a thing as CLs that are too high for a loan officer's comfort, but is there such a thing as CLs that are too low for them?

---

Doubtful.  Other than that I will yield to someone more knowledgeable in this particular area.

[Anonymous]

---

@pdxuser wrote:

---

@Anonymous wrote:

Make absolutely sure that when they graduate your secured card, you will keep the same account with all the history rather than getting a brand new account. Mortgage brokers are notoriously antsy about too many new accounts.

---

Is that the key word, "graduate," that I should look for? What's the alternative?

---

'graduate', 'convert', 'change' etc. It's not the word so much but the terms of the card. Whatever secured card you choose must keep the history you've established once it goes to unsecured.

In your case, the other drawback to not adding store cards early is you may miss the opportunity to 'thicken' your file by adding history of 'pd as agreed' tradelines. Which can also enhance your chances of being approved for an unsecured bank credit card. Basically, some use store cards to make up for the lack of history. But since the mortgage is 3 yrs away, you can skip store cards if you'd like.

1 card does not make you look 'super conservative' with money in the eyes of lenders. Gosh, I thought having no credit would give them that impression - NOT! lol. What makes you look conservative/responsible is 'having' credit available, but not using (all) of it.

Tho, I know you've done some research I would suggest doing some more. You've been given a lot of suggestions/advice so far and now it's time to research them. This forum has a ton of great info. After gathering all your info, and truly understanding the impact/reasons, you'll have enough to get a basic plan going.
I suggest searching terms: secured, thin file, rebuilding, look at denial reasons etc. It may also be helpful to click on a members username, then 'find all posts by this user'. Go back to the beginning and read threads that may apply to you...

Good luck!

[haulingthescoreup]

---

@pdxuser wrote:

---

@Anonymous wrote:

If you get one card now, another one in six months, and another one in 12 months as HTSU suggested above, then in 3 years time you will have three accounts, average age of 2.5 years, none less than two years old, and zero inquiries showing.

How does that plan sound?

---

I would be cool with that, if I could get the cards I want that fast. The secured card I want now doesn't convert to unsecured until after a year. While the FICO score doesn't care about the secured status (according to other users, I don't know the sourcing for that), the card is titled "Secured Visa," so I'm guessing the word "secured" will show up in the tradeline. If that's the case (or even if it isn't), would it be difficult getting a rewards card in 6 months? Would I be eligible perhaps for a national credit union's Visa at that point? It would be pretty redundant to have two CU Visas, but at least I wouldn't dislike either of them. And then six months after that, would it still be difficult to get a rewards card, with only a year's history and an average age of 9 months?

---

You know, your situation is a bit similar to that of those who have just moved to the US. They often have great credit in their home country, but it doesn't do them a bit of good here. The threads that I've read by them seem to follow the pattern of getting two cards right away, one or both possibly secured, and in six months, they're getting good bank cards. Of course, they typically have more income than you would at this point in your life, but income doesn't factor into FICO scores. All three of my adult kids found that if they didn't screw up, after 6 months of their first card, they had scores around 680 or so.

I really do think that you're in better shape than you think. It's more important that you have no bad history than that you have no good history. It's very easy to acquire good history, certainly more so than trying to erase bad history.

[Anonymous]

---

pdxuser wrote:

I'm looking at my credit union's secured Visa as my first credit card. The APR is 11.75-19.25% (4.5 to 12% margin, adjusted quarterly) for both purchases and cash advances, with a 25-day grace period on purchases. There are no annual, application, minimum finance, cash advance or ATM withdrawal charges.

---

I'm sorry to bring this point up this late in the thread, but I have to say I'd love a card that has no cash advance or ATM charges.  I'm assuming from your description that maybe the only downside is that there is no grace period on those charges.  Gotta love CU's, for a first card (secured even) this is a feature I've seen nowhere else.

[pdxuser]

---

krystofur wrote:

I'd love a card that has no cash advance or ATM charges.  I'm assuming from your description that maybe the only downside is that there is no grace period on those charges.  Gotta love CU's, for a first card (secured even) this is a feature I've seen nowhere else.

Yep, no grace period, but no fees otherwise. I'm not complaining.