New To Credit

[Anonymous]

Hey there everyone. I've been browsing around for a long time, but I just joined so that I could finally get these questions out there. Questions are bolded.

So, I've only recently started building credit. I got a Discover it Chrome card for Students with a CL of $1500 back in October (the start of my credit), and then got approved for a card with a local credit union for $300 in December. I've never missed a payment and I always pay in full.

However... I have Obsessive-Compulsive Disorder and due to that (and a mix of other things) I ended up applying to 15+ cards over the course of a few months and got declined for all of them, therefore I have a ton of inquiries on my reports. I know that these generally go away after 2 years, but I'm just wondering what my score will be like in 2 years when they all go away if I keep up the pay on time and in full thing? 

Also, I've been considering closing my local credit union card because of its small limit and me constantly reaching the limit. The credit union does not offer credit limit increases until 2 years after you open the card if you are a student. (I know, it's a really bad deal. I didn't realize that this was the case when I opened it.) Should I get rid of this card altogether and just keep the Discover? How will that affect my score?

Thanks a bunch!

TK

[Anonymous]

Welcome to MyFico!

I would not recommend closing that card for now.  As you have stated you got declined for 15 cards, it would be important to keep what cards you have open and in good standing for a year before you apply for better cards.  Also, try to make sure you do not report more than 10% utilization.

Have you thought about getting a secured credit card?  BoA and discover offer those and they graduate (many times before 12 months) with responsible use.  

[Anonymous]

I have thought about getting a secured card, but I just don't know if I really want to give $300 to Wells Fargo for the privilege of paying them that money back, if that makes sense. I already have a good credit limit on the Discover, so I'm just kinda confused on where to go from here. I definitely plan to not apply for any more cards for the next two years until all of those inquiries go away, keep up my good payments and then apply for a nice card from Chase or something like that. 

Here's hoping.

[austinguy907]

I would keep both open as it's still positive reporting on the CU card.  Just knock them down to a netflx/hulu subscription and setup autopay to keep it active.

As time passes things will clear up and those 15+ apps won't matter.  You got denied for lack of credit and probably too many apps in a short period since they all saw the inquiries stacking up.  Don't worry about it.... time heals everything when it comes to credit.  

Disco will grow considerably with time and experience.     90 days in you should/have seen an auto CLI appear potentially.... if not then it's time to hit the CLI button and then repeat every other month..... don't be shy with it since they're on your side unlike the 2 year lock on the CU card.

W/O knowing your current scores but an educated guess with being a student and approved for Disco I would venture to say you're at about 660-680 at this point and in 2 years if nothing else changes but the CLI's on Disco you should be 750-800+.

Just hangout and let things work their magic.  Read up on stuff here in the meantime and work your way into another card in 12-18 months depending on what you're seeing with scores and everything else.