Should I apply for another card or wait?

[Bsong]

Hi All!

Im new to Myfico as well as the forum but enjoy how much feedback people give.

I was hoping that I can get some peoples help on what I should do next. Ive been in the process of rebuilding my credit this past year and so far ive done ok. 

Current Credit Info:

Financed a car $30k+ 8 months ago 

Capeone Platinum card with $500 CL thats 3 months old

BofA Platinum Visa card with a $5000 CL thats 1 month old (For BofA they actually only approved me for $1000 but I called the moment I got my card and asked for a CLI and was instantly approved for $5000)

Credit Utilization is @ 25% which I plan to lower to 15% in the next month or so.

No derogs, No lates. Just young credit. 

Current scores:

TU 693 from myfico

EX 683 from myfico

Well, since I got such a great increase on my BofA card I was like "what the heck! lets apply for another one" and applied for a Citi Diamond Preferred and was denied due to "too many inquiries (5 now in total on my TU) and not enough history". I really want to get another credit card with a high limit ($5k+) to lower my utilization along with a card that report credit limit to help me build my credit up. I was wondering if you guys think I should wait it out or try to apply for a credit card elsewhere?

THANKS IN ADVANCE FOR ALL YOUR HELP AND INPUT!!! 

[Bsong]

Not sure if this info is important but I thought Ide add it anyways... 

Age 31 and Income is $75k+ a year. 

[Anonymous]

Your best bet at this point is to simply hold onto what you have and give it time to create a positive history. I would say to wait to apply for any more credit for a year as far as prime credit cards go. If there is a particular store that you do a lot of shopping with then you may want to apply for a card with that store in 6 more months. But with the auto loan (installment) and the 2 credit cards you have the foundation for a very solid credit future.

If you want to maximize your scores then you should pay one of the two credit cards down to zero dollars before the statement date and leave a smaller balance on the other if you want to carry a balance. If you don't want to pay interest then you can pay down the balance just before the statement and then pay off the remainder after the statement. Experience here suggests that 9% or less total utilization is best for scoring. And of course let the inquiries you already have age. After 1 year they don't matter for scoring and after 2 years they do not report any longer.

There is a wealth of information on these forums about good credit practices and when you are ready the credit card forums will help you decide what card offerings make the most sense for you as far as rewards or benefits. Welcome to the forums and good luck.

[Bsong]

@Holdingontohope. Thanks for your response! I will take a break from trying to apply for more cards and will just focus on what I currently have. 

[SpideySense]

Hello BSong,  there is another alternative but it isn't as easy as applying for a new card.  Your income would be very attractive to any banking institution.  Assuming you're banking now, contact your bank and see if they'll give you a personal line of credit in card form (my bank  (usbank) calls this a credit line and reports the tradeline like a credit card).  If it is a local bank, visit them and talk to someone in person -- they should be able to do a soft pull and see what you'll qualify for.  I'd also ask about a better rate refi for your car loan. 

If you don't have a bank... or wouldn't mind another bank, check out chase ... check the web for a bonus for opening a checking account (or ebay for a coupon).  once you're with chase, try asking them (soft pull) about the slate card (0% xfer fee, 0% for 15 months).

You've responded that you'll be gardening and that's a good thing for now,  but there are things you can do to improve your credit position for both now and in the future.

Good luck!

[Bsong]

Hi SpideySence. Thanks for your response. I will try that suggestion out and see what my bank can offer. Im also thinking about having my wife sign up for another card  (AMEX Blue Cash Everyday) and just add me as an authorize user. I read somewhere that it somehow helps your credit score and also utilization. 

[PersonalBanker89]

I know it's tough, but wait it out for a while. Garden now, prosper in the future! You don't want to pull too much credit too fast. You'll thank yourself in the long run. Also, I'd be cautious going the line of credit route through your bank. Most banks charge outrageous interest rates these days, and interest starts accruing as soon as you draw from the line of credit. I wouldn't recommend being added as an authorized user on any of her cards. Being added as an authorized user does show on your credit report, but because you have zero responsibility for the debt, it doesn't effect lending decisions. In fact, the 08' version of the FICO scoring software discontinued the use of authorized users in the computation of the FICO score, eliminating any value out of being an authorized user. Keep your accounts separate. His and hers. It makes life much simpler and you know who is responsible for what spending, balance, late fees, etc. I've seen husbands and wives ruin their spouses' credit history, and parents doing the same thing to their kids. You have a great start and so much to build on, but credit is one thing you def have to be patient with.

[indiolatino61]

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@Bsong wrote:

Hi All!

Im new to Myfico as well as the forum but enjoy how much feedback people give.

I was hoping that I can get some peoples help on what I should do next. Ive been in the process of rebuilding my credit this past year and so far ive done ok. 

Current Credit Info:

Financed a car $30k+ 8 months ago 

Capeone Platinum card with $500 CL thats 3 months old

BofA Platinum Visa card with a $5000 CL thats 1 month old (For BofA they actually only approved me for $1000 but I called the moment I got my card and asked for a CLI and was instantly approved for $5000)

@Anonymous Utilization is @ 25% which I plan to lower to 15% in the next month or so.

No derogs, No lates. Just young credit. 

Current scores:

TU 693 from myfico

EX 683 from myfico

Well, since I got such a great increase on my BofA card I was like "what the heck! lets apply for another one" and applied for a Citi Diamond Preferred and was denied due to "too many inquiries (5 now in total on my TU) and not enough history". I really want to get another credit card with a high limit ($5k+) to lower my utilization along with a card that report credit limit to help me build my credit up. I was wondering if you guys think I should wait it out or try to apply for a credit card elsewhere?

THANKS IN ADVANCE FOR ALL YOUR HELP AND INPUT!!! 

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You're AAoA is relatively low, so I would wait until your accounts age a bit.

[dddewdrop]

You should apply for a Walmart card. It is a GE card so you can get CLIs every 4 months and it will grow impressively. On top of that you can get a free FICO score every month...

[dddewdrop]

PS I would not go the route of getting another instalment loan. Credit cards have a much bigger effect on your fico score. If you don't need an instalment loan for a specific purpose, don't mess with it. The effect on your credit would be too small to jjustify the hassle....