New to the US and credit game - how am I doing?

[Anonymous]

I am new to the US and therefore have no credit history. Still, I have been lucky enough to be approved for BofA ($1500) and Discover It  ($500) unsecured credit cards in my first month here. My plan is to use these cards responsibly and 'optimally' and try for better cards in the next 6-12 months.  My ultimate goal is to get the Hilton Amex Aspire and either the CSP or Amex Platinum as soon as possible. I care mainly about high sign-up bonuses and frequent international traveller benefits (status, lounges). So, some questions for you experienced folks:

1. Is it possible to go from "zero to hero" like this in 12 months or ideally less (6+) or am I being overly optimistic?

2. Would the above two cards be enough for now to maximize credit score (once I get one), or should I do something else?

3. The credit limits are low to me, and I appreciate that it's best to keep utilization low (15%'ish). However, how about optimal usage? I.e. can I put substantially more of my spend on the cards and then pay down to less than $100 continuously? Does that make me an interesting customer to the credit card companies ('this guy needs a higher CL') or a 'bad customer' from a future credit score point of view?

Thanks in advance!

[luxlight]

1) I don't think it's feasable for you to be able to aquire all those cards within 6 months and even within a year. American Express likes thin files and also usually wants atleast 6 months of credit history for most approvals. Underwriting for most of their charge cards are the same so its possible for you to aquire the AMEX Platinum. For the CSP, i believe it would not be possible at all as Chase usually likes to see atleast one year of credit history for approvals. Also the CSP has a minimum credit line ($5k or $10k? not really sure) and if you don't already have cards with limits at or above the CSP min. credit line, outlook is looking slim. I don't know anything about the Hilton Amex Aspire so i have no info for you on that.

2) With the cards you have right now, you're in a good spot and will be enough for you to maximize your credit score. Although i heard the ideal is 3-5 cards, its better to only get cards that you actually need and to use them responsibly. Just use them well and garden until you have enough to aquire the CSP or Platinum or Aspire.

3) As long as the balances that your creditors report to the CRA are under 30%, you should be fine. The ideal range is 1-9% but since monthly utilization has only a 1-2 month history, you only really need to worry about keeping a really low balance when you're looking to make any moves credit wise like before applying for another card or a car loan, etc. So you can put substantially more of your spend on the cards and just pay them down before your statement closes and you should be fine. With Discover, if you don't get CLIs automatically you can always ask for a CLI (Credit Line Increase) on their website and it should be a soft pull. I also heard that Bank of America also started recently doing soft pull CLIs instead of hard pulls so you could try your luck with them too online. Just take things easy, don't apply for too many cards if you don't need them and manage your current credit wisely and you should easily be able to aquire those cards you want after a year.

Edit: Also, feel free to check the preapproval pages of both American Express and Chase from time to time as you garden. If you get a solid preapproval from any of them (a specific APR and not a range), it usually means you will be approved for the card.

[HeavenOhio]

Wait until at least month 13 for Chase. And keep their "5/24" rule in mind, i.e. they'll deny your application if you've opened five or more cards within the last 24 months.

I'd apply for the Aspire card somewhere at somewhere between six and twelve months. When the card becomes 61 days old, request a 3X CLI (credit limit increase). There's more information about that in this thread:

The Definitive Amex 3X CLI Guide

If all looks good after month 13, try for the CSP. Then go for the Platinum after that.

[Malcono]

I know a little bit about new credit as a foreigner.
I got my SSN late last year myself and started my credit journey.

What I did though was that 2 years ago, I opened up a checking and savings with Chase to start a relationship with them.
The hard part was getting a credit score, since you need 6 months with a credit line before a score shows up.
I applied to both Wells Fargo (who I have an account with) and Discover for secured cards, where I could dictate the limit myself.
Once my scores showed up I got my CFU thanks to my ongoing relationship with them.

A couple months after that I went into my local branch, and they told me I was preapproved for a CSP; so of course I applied and got that one off the list.
So it's technically possible to do, but it requires some luck and planning.

I would definitely hold off on the Aspire for at least a year, however.
It's on my list as well, but it needs a decent credit file.
Also, dont forget about Chase's 5/24 rule.

Hope that helps.

[Anonymous]

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@Anonymous wrote:

I am new to the US and therefore have no credit history. Still, I have been lucky enough to be approved for BofA ($1500) and Discover It  ($500) unsecured credit cards in my first month here. My plan is to use these cards responsibly and 'optimally' and try for better cards in the next 6-12 months.  My ultimate goal is to get the Hilton Amex Aspire and either the CSP or Amex Platinum as soon as possible. I care mainly about high sign-up bonuses and frequent international traveller benefits (status, lounges). So, some questions for you experienced folks:

1. Is it possible to go from "zero to hero" like this in 12 months or ideally less (6+) or am I being overly optimistic?

2. Would the above two cards be enough for now to maximize credit score (once I get one), or should I do something else?

3. The credit limits are low to me, and I appreciate that it's best to keep utilization low (15%'ish). However, how about optimal usage? I.e. can I put substantially more of my spend on the cards and then pay down to less than $100 continuously? Does that make me an interesting customer to the credit card companies ('this guy needs a higher CL') or a 'bad customer' from a future credit score point of view?

Thanks in advance!

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1) expect scores between 680's to lower 720's after first six months and by the end of the year maybe 760's if you managed to have higher limits (10K+).

2) Credit brand/kind is not directly related to credit scores, they are more like how you utilize them and credit lines available to you. I have read about peeps with 1 or 2 credit cards and have high scores. 

3) Time/patience is all you need for Auto CLI nothing more. When they initially approved you for your SL they considered your creditworthiness, Any credit line increase request which is not automated can cause a small ding in your scores because of HP.  (Lucky for you BOA just turned SP for CLI so can request for one every three to four months/Discover usually provides auto CLI after 7th month.

Optimum use of UTIL % less than 30. I keep mine at <8.9%.

[Anonymous]

Thanks for all your replies. So, seems Hilton Amex Aspire may be next in line after at least 6 months and then maybe CSP after at least a year. Patience it is then...

One more newbie question: When people on these boards say utilization, does that refer to the balance when the statement cuts, or should one actually leave a balance on the card throughout one monthly cycle and pay interest sometimes? I have always been a pay-in-full kind of guy and even thinking about keeping a running balance feels wrong....

[Anonymous]

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@Anonymous wrote:

Thanks for all your replies. So, seems Hilton Amex Aspire may be next in line after at least 6 months and then maybe CSP after at least a year. Patience it is then...

One more newbie question: When people on these boards say utilization, does that refer to the balance when the statement cuts, or should one actually leave a balance on the card throughout one monthly cycle and pay interest sometimes? I have always been a pay-in-full kind of guy and even thinking about keeping a running balance feels wrong....

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always pay in full. Util % is what your balance is on the day of the CC statement. So play around with your limits by paying it off before the statement is generated.

[Anonymous]

Do you have an Amex card in your previous country? From what I've read (and been told) there is a way to use that previous history with Amex to get a card. I haven't done it, but I will if I move to another country.

[Anonymous]

First the poster above is correct, never pay interest if you don't have to. I  have 2-6k limits so I pay my cards off multiple times a month to keep util low when statements cut. Did this with my first card (discover) for over a year and managed to get score to 755 from non existant with no other cards or factors so two cards will defffinitely get you the score you need for others as long as your patient.

Can't speak to BofA but Discover gave me auto cli's 3 times in my first 12 months with them. They then doubled my cl when I submitted my first requested cli so they have the ability to grow with time.

I would imagine if you play your cards right (no pun intended but lol) it shouldn't take you much longer than a year to get where you want to be.

Good luck!