New to credit cards, need advice on Discover cards

[Anonymous]

Hi, Im 26 and recently decided to try to get into increasing my credit score and history.  So, my score is 675, but the things that count against me are my credit age, only 2 years and two months, total accounts only 6 for transunion, 9 for equifax, and a stupid collections account for 53 dollars that is long paid off (damn hospital sent bill for medical supplies to the wrong address, but I guess that's my fault, right?) .  Some of my accounts are an auto loan, the rest being student debt besides my secure card.  My secure card I just got from my bank, wells fargo, and I have yet to even have a complete billing cycle on it, so my credit report doesn't show any history on it yet.

I have Credit Karma, and it says I have a Very Good* chance of getting a Discover Chrome card.  I'm eager to build credit, as I'm trying to get a house sometime after next year, but I don't want to put another inquiry on my report that's going to get me no where.  Do you guys think I actually have a very good chance of getting that card, or should I play it save and only apply for Discover's secure card?

[CreditDunce]

1) Take CK's credit score and recommendations with a grain of salt.  VS scores are perfectly fine, they are just used by very few lenders.  The recommendations are solely there to make money for them.

2) Discover seems to like new credit files.  You probably have a decent chance.  Be sure to think about the IT to see if it is a better match than the Chrome, though. 

3) Cap1 is another popular CCC for people with new thin files.

4) INQs will only hurt you for 12 months.  If your house hunting is over a year off, I wouldn't worry about the INQs too much.  I would aim for a total of 3 CC's right now.  You do not want to hurt your AAoA too much.  However, having three revolvers normally helps your FICO score.  If you weren't house hunting in the near future I would recommend you aim for 5-6 total CC's.   Then garden for the next couple of years.

5) Cap1's pre-qual site is fairly accurate.  Be very wary of Discover pre-qual site.   Even if the Discover pre-qual site returns the generic marketing response, I would still apply for the card if it meets your needs.

6) Hit the rebuilding forum to see if you can get the collection goodwill'd off your CR.  Paid or unpaid collections really hurt your credit score.

7) The AAoA CK reports only include open accounts.  FICO includes closed and open accounts in your AAoA.   Also ignore the CK advice about needing 20+ trade lines.   You do want a mix of revolving and installment loans.  But you don't need that many trade lines.

[Anonymous]

Actually, it was an IT card that said I had a very good chance. Idk why I thought it was chrome. I mean, I could maybe manage getting a secure card, but I don't old rather not put down 300-500 for a credit line right now.

Do you think it's too soon to apply for another card? I just got that secure one last month and it hasn't completed a billing cycle.

[CreditDunce]

Personally, I would apply for the Discover card now before the WF card reports.  I may be prejudiced, though.  I like my Discover and would not want to wait 6 months to apply.  The new CC may improve your credit score (since it would be your first revolving credit line).  However, there is also a reasonable chance it will decrease your score due to the new trade line and reduction in AAoA. 

If you are denied, I think you would have a good recon chance due to the medical collection being small and paid.  Worst case scenario is you wait 6 months and try again.  In the back of my mind, I am thinking I am not sure how good WF is at graduating secured cards.  It would be nice to have another card almost as old as the WF card.  

[SouthJamaica]

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@Anonymous wrote:

Hi, Im 26 and recently decided to try to get into increasing my credit score and history.  So, my score is 675, but the things that count against me are my credit age, only 2 years and two months, total accounts only 6 for transunion, 9 for equifax, and a stupid collections account for 53 dollars that is long paid off (damn hospital sent bill for medical supplies to the wrong address, but I guess that's my fault, right?) .  Some of my accounts are an auto loan, the rest being student debt besides my secure card.  My secure card I just got from my bank, wells fargo, and I have yet to even have a complete billing cycle on it, so my credit report doesn't show any history on it yet.

I have Credit Karma, and it says I have a Very Good* chance of getting a Discover Chrome card.  I'm eager to build credit, as I'm trying to get a house sometime after next year, but I don't want to put another inquiry on my report that's going to get me no where.  Do you guys think I actually have a very good chance of getting that card, or should I play it save and only apply for Discover's secure card?

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CK's "very good" is completely meaningless. I'm sorry to say you'll probably get turned down by Discover at this point. My recommendation would be Cap One Platinum.

[Anonymous]

@ CreditDunce

+1 

Very good, informative info!

[Anonymous]

I don't know about capital one. I had a credit counselor who told me capital one on your report looks desperate when you have limited history.

[Anonymous]

might be thinking of credit one.. 

[Anonymous]

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@Anonymous wrote:

might be thinking of credit one.. 

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Or Capital One years ago. 

[TiggerDat]

No matter what, the sooner you try the better. 

You can always try the Discover site to see if they prequalify you there also.  If it comes up with an offer, not a recommendation, then you would probably have a good chance.

I seem to get a fair amount of use out of my Discover card.  Remember the first year is double back on the bonuses.