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Seeking a bit of credit card advice (credit rebuilding)

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Trekkie0707
New Contributor

Seeking a bit of credit card advice (credit rebuilding)

Hi everyone first post on the forums! I'm in a bit of a credit card conundrum and thought I'd seek some input from people with more experience than myself. 

I am on the upside of rebuilding. Over the last 4 months I've moved my fico score from 580 to 689. My credit file is pretty thick (multiple paid off auto loans no credit cards until recently) it was low mostly due to collections. So I paid those off in exchange for deletes and the score fixed it's self fast. 

I haven't had a credit card in over 6 years because I didn't feel financially responsible enough for all of that. But now I definitely am a lot more confident and live on less than I make and have developed good financial habits. 

With my new found confidence I took my new credit score out for a spin and in the last 3 months I have opened a discover($5000) an Amex($1000) and 2 days ago I was approved for FNBO ($4100)

 

I have also refinanced my auto loan with a tiny credit union. That tiny credit union is also offering me a credit card using the exact same hard pull they used for my auto refi. The card isn't something I particularly want. It's super basic. No rewards. No frills. 

I kind of want to take it because it's basically an inquiry free line of credit to just bolster my overall available credit. But I'm concerned about adding to many cards to quickly. Was planning on stopping for 6-12 months and gardening. 

Should I take this card just for the additional line of credit since it's inquiry free? Will this be to many new accounts to fast? Would this hinder my ability to get cards I actually want in the future?

 

Any advice would be appreciated!

FICO 8 Starting 01/22: Exp 598 | TU 571 | EQ 591

Current: Exp 676 | TU 654 | EQ 700

NFCU Flagship ($6.9k) | Discover It ($5k) | FNBO Evergreen ($4.1k) | PenFed Gold ($3.5k) | Amex BCE ($1k) | NFCU Secured ($200)


RIP: Mission Lane ($500) | CapOne QS1 ($300) | Memberships : NFCU & PENFed
Message 1 of 18
17 REPLIES 17
W261w261
Frequent Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)

Ask them what the credit line on the card will be.  Since there's no rewards, its only value is some padding for your overall utilization.  The price you'll pay is a new card penalty, which could to some degree inhibit your desirability as far as additional credit goes.  So if you're going to pay the price, you should know what you're getting for it.  If it's 1,000 I'd pass, for instance.

Message 2 of 18
Trekkie0707
New Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)


@W261w261 wrote:

Ask them what the credit line on the card will be.  Since there's no rewards, its only value is some padding for your overall utilization.  The price you'll pay is a new card penalty, which could to some degree inhibit your desirability as far as additional credit goes.  So if you're going to pay the price, you should know what you're getting for it.  If it's 1,000 I'd pass, for instance.



Thanks for the insight. 

its kind of a strange process you tell them what limit you want and their underwriters (yes an actual human being) reviews it and approves declines or counters. I gather I could prolly get 5k ish. My only concern is that my income is decent but it's not high. So I'm worried with that much available credit another card company may deny me or CLI on my "good" cards may be slowed. 

FICO 8 Starting 01/22: Exp 598 | TU 571 | EQ 591

Current: Exp 676 | TU 654 | EQ 700

NFCU Flagship ($6.9k) | Discover It ($5k) | FNBO Evergreen ($4.1k) | PenFed Gold ($3.5k) | Amex BCE ($1k) | NFCU Secured ($200)


RIP: Mission Lane ($500) | CapOne QS1 ($300) | Memberships : NFCU & PENFed
Message 3 of 18
SouthernCredit
Frequent Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)


@W261w261 wrote:

Ask them what the credit line on the card will be.  Since there's no rewards, its only value is some padding for your overall utilization.  The price you'll pay is a new card penalty, which could to some degree inhibit your desirability as far as additional credit goes.  So if you're going to pay the price, you should know what you're getting for it.  If it's 1,000 I'd pass, for instance.


This. The only point of this card will be to keep your utilization down. If it's going to have a low limit, it's probably not worth the new line. 

 

You're on the right track with what you've been doing. If you want access to bigger and better, I would recommend gardening for 6 months-1 year, get some CLIs on your existing cards, and see where your scores are then. 

Message 4 of 18
CA4Closure
Regular Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)

My advice is to use your Discover and AMEX card. For example, Discover is offering 5% cash back in you charge your gasoline purchases with their card. I have already gotten $125 just in purchasing gasoline. Plus Discover sees you using their card, they will most like give you an automatic credit line increase BUT . . . pay off your bill monthly. Discover loves seeing usage. I originally had a $5000 CREDIT LINE. I started using their card religiously over 3-4 months and they bumped my CLI to $15,000. Today I am at $50,000.

AMEX too. Use their card and pay off the balance each month and you will see they will give you CLI without asking for it!

 

Message 5 of 18
SouthJamaica
Mega Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)


@Trekkie0707 wrote:

Hi everyone first post on the forums! I'm in a bit of a credit card conundrum and thought I'd seek some input from people with more experience than myself. 

I am on the upside of rebuilding. Over the last 4 months I've moved my fico score from 580 to 689. My credit file is pretty thick (multiple paid off auto loans no credit cards until recently) it was low mostly due to collections. So I paid those off in exchange for deletes and the score fixed it's self fast. 

I haven't had a credit card in over 6 years because I didn't feel financially responsible enough for all of that. But now I definitely am a lot more confident and live on less than I make and have developed good financial habits. 

With my new found confidence I took my new credit score out for a spin and in the last 3 months I have opened a discover($5000) an Amex($1000) and 2 days ago I was approved for FNBO ($4100)

 

I have also refinanced my auto loan with a tiny credit union. That tiny credit union is also offering me a credit card using the exact same hard pull they used for my auto refi. The card isn't something I particularly want. It's super basic. No rewards. No frills. 

I kind of want to take it because it's basically an inquiry free line of credit to just bolster my overall available credit. But I'm concerned about adding to many cards to quickly. Was planning on stopping for 6-12 months and gardening. 

Should I take this card just for the additional line of credit since it's inquiry free? Will this be to many new accounts to fast? Would this hinder my ability to get cards I actually want in the future?

 

Any advice would be appreciated!


To my mind it depends on (a) whether you're preapproved, and (b) what kind of non-rewards card it is.  If it has no balance transfer fee and no cash advance fee, and a modest interest rate, and you're preapproved for it, then I would go for it, because that kind of card can be very useful, and you don't have one yet.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 18
Kforce
Valued Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)


@Trekkie0707 wrote:

Hi everyone first post on the forums! I'm in a bit of a credit card conundrum and thought I'd seek some input from people with more experience than myself. 

I am on the upside of rebuilding. Over the last 4 months I've moved my fico score from 580 to 689. My credit file is pretty thick (multiple paid off auto loans no credit cards until recently) it was low mostly due to collections. So I paid those off in exchange for deletes and the score fixed it's self fast. 

I haven't had a credit card in over 6 years because I didn't feel financially responsible enough for all of that. But now I definitely am a lot more confident and live on less than I make and have developed good financial habits. 

With my new found confidence I took my new credit score out for a spin and in the last 3 months I have opened a discover($5000) an Amex($1000) and 2 days ago I was approved for FNBO ($4100)

 

I have also refinanced my auto loan with a tiny credit union. That tiny credit union is also offering me a credit card using the exact same hard pull they used for my auto refi. The card isn't something I particularly want. It's super basic. No rewards. No frills. 

I kind of want to take it because it's basically an inquiry free line of credit to just bolster my overall available credit. But I'm concerned about adding to many cards to quickly. Was planning on stopping for 6-12 months and gardening. 

Should I take this card just for the additional line of credit since it's inquiry free? Will this be to many new accounts to fast? Would this hinder my ability to get cards I actually want in the future?

 

Any advice would be appreciated!


I would not take the offer.

You have 3 nice cards, all you need for score building.

Use the cards, collect rewards, and enjoy the trip down "Credit Building Ave".

Don't stop and wast time playing with the neighborhood dogs.  Smiley LOL

Message 7 of 18
DesertWanderer
Frequent Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)


@Kforce wrote:

@Trekkie0707 wrote:

Hi everyone first post on the forums! I'm in a bit of a credit card conundrum and thought I'd seek some input from people with more experience than myself. 

I am on the upside of rebuilding. Over the last 4 months I've moved my fico score from 580 to 689. My credit file is pretty thick (multiple paid off auto loans no credit cards until recently) it was low mostly due to collections. So I paid those off in exchange for deletes and the score fixed it's self fast. 

I haven't had a credit card in over 6 years because I didn't feel financially responsible enough for all of that. But now I definitely am a lot more confident and live on less than I make and have developed good financial habits. 

With my new found confidence I took my new credit score out for a spin and in the last 3 months I have opened a discover($5000) an Amex($1000) and 2 days ago I was approved for FNBO ($4100)

 

I have also refinanced my auto loan with a tiny credit union. That tiny credit union is also offering me a credit card using the exact same hard pull they used for my auto refi. The card isn't something I particularly want. It's super basic. No rewards. No frills. 

I kind of want to take it because it's basically an inquiry free line of credit to just bolster my overall available credit. But I'm concerned about adding to many cards to quickly. Was planning on stopping for 6-12 months and gardening. 

Should I take this card just for the additional line of credit since it's inquiry free? Will this be to many new accounts to fast? Would this hinder my ability to get cards I actually want in the future?

 

Any advice would be appreciated!


I would not take the offer.

You have 3 nice cards, all you need for score building.

Use the cards, collect rewards, and enjoy the trip down "Credit Building Ave".

Don't stop and wast time playing with the neighborhood dogs.  Smiley LOL


I agree with this.  When I was in my rebuild I opened up cards that were not of much value to me thinking short-term instead of long-term.  You have three great cards.  As stated, I would build up those relationships, get some CLI's, garden for awhile, and before you know it you'll be able to pursue your goal cards.



Message 8 of 18
Guyatthebeach
Valued Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)

Trekkie0707,

 

Personally, I would take the card from your CU for a few good reasons, it's expanding your relationship with your CU, you will another trade line with positive payment history, and it will pad your utilization. Regardless if you take the card from your CU or not, I would not apply for any new credit cards for at least 6 months or a year. The day after your third statement cuts at American Express, try for the 3x CLI.

 

You're definitely on the right track! Keep doing what you're doing.

 

Live long and prosper!

 

Guyatthebeach

Message 9 of 18
Trekkie0707
New Contributor

Re: Seeking a bit of credit card advice (credit rebuilding)

Thank you so much everyone for your perspective and insight. I thank y'all are right and I just need to sit tight. 

I also considered the benefits of building a relationship with this credit union. But TBH their products are just meh. Although I do appreciate getting a good rate on my auto refi. But I'm already a member with NFCU and I value that relationship a lot more. Forgot to mention.... I have a secured card with them. They still don't seem to like me for unsecured credit. So I'm going to take everyone's advice and garden for 6-12 months. Maybe then NF will like me for unsecured credit. 🤷🏼‍♂️

thanks everyone for the input. It's much appreciated. 

 

FICO 8 Starting 01/22: Exp 598 | TU 571 | EQ 591

Current: Exp 676 | TU 654 | EQ 700

NFCU Flagship ($6.9k) | Discover It ($5k) | FNBO Evergreen ($4.1k) | PenFed Gold ($3.5k) | Amex BCE ($1k) | NFCU Secured ($200)


RIP: Mission Lane ($500) | CapOne QS1 ($300) | Memberships : NFCU & PENFed
Message 10 of 18
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