Some basic CC advice needed

Seta · ‎02-02-2015

Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

mikelo22 · ‎02-02-2015

@Seta wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice?

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month?

Thanks

Welcome to MyFico! Hopefully you find the answers you seek here; everyone here is very helpful.

It looks like you've been managing your credit just fine so far and you have been disciplined in payment history. Regarding your question on maintaining a ~10% balance, you should not carry a balance. That will actually hurt your score. It's ok to have a balance when the statement cuts, but you should be sure to try and pay in full (PIF as we call it here) before the due date. It will increase your score and you won't rack up any interest. It is best, however, to carry a 1-9% balance when the statement cuts.

If you are looking for another card, you first need to ask yourself what you spend money on. What kinds of categories do you usually run through each month? Examples would be groceries, gas, dining, Amazon, etc. Knowing what you spend your money on and how much money you spend will help us give you some helpful suggestions of some decent cards. Chase Freedom is a very solid card, so you did well on picking that up with its rotating categories each quarter.

That said, don't feel compelled to get another card if right now it would not suit you. There is no inherent benefit to having more cards. In fact, if anything, it can just become more cumbersome to manage.

Seta · ‎02-02-2015

My score was actually 695 and it dropped to 675, the alert said I was not actively pursuing new credit and I have too few accounts and a short credit history even tho the age on my oldest account is 9 years. Anyway the 'too few sources of credit' is the main reason I'm looking to get at least one more card now and the fact my score was steadily rising then dropped and hasn't budged in months.

Its funny you mention Amazon we use it religiously. Other than that entertainment, movies, gas, Starbucks, misc daily small things like that I use my Freedom for.

Really I just need to get my score up for the future. Whichever cards will help with that the most, have the least drawbacks, be the easiest to use, all of these.. That's the one I want. Should I be looking at store cards or stay away from those? An AMEX maybe?

SunriseEarth · ‎02-02-2015

First off, you should see if you can make Cap One a more useful card. See if you can PC that from the Platinum to the QS...that way, you'll get 1.5% back on everything and it'd be a slightly better general spend card than Freedom. Contact a Cap One CSR. if they can't help, you can contact the EO.

You could get into AMEX with your scores. If you have a Costco membership, TrueEarnings would probably be your best match. BCE would be okay for some of your categories like gas when Freedom didn't offer them that quarter.

I actually think the Barclay Sallie Mae MC would be the best match for your spend with Amazon and gas. SM does 5% cash back for bookstore spend (up to $750 a month) and gas (up to $250 a month), so that would also be good when those aren't Freedom categories.

If you have a store that you frequent, store cards are worth consideration, but only if they offer some sort of incentive. Some offer 0% special financing for large purchases, some offer a generous rewards structure, and some offer discounts/sales.

Seta · ‎02-03-2015

Thanks for all the advice.

I just found out about creditkarma a few min ago, and on there I have a 726 TU and a 729 Equifax.. but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

I am definitely going to try to upgrade my CapOne, with the CreditKarma scores above do I have a good shot of getting approved for the Sallie Mae card?

SunriseEarth · ‎02-03-2015

@Seta wrote:
Thanks for all the advice.

I just found out about creditkarma a few min ago, and on there I have a 726 TU and a 729 Equifax.. but it's also showing TU is still reporting a collection that I paid off 2 years ago, so now I have to take care of that.

I am definitely going to try to upgrade my CapOne, with the CreditKarma scores above do I have a good shot of getting approved for the Sallie Mae card?

Barclay typically pulls TU. I think your odds are pretty good.

Still, there's no harm in sending a GW letter on the paid collection to see if they'll remove. If you need help on that, you might want to look at the "Rebuilding Your Credit" forum.

Anonymous · ‎02-03-2015

You are on a good path, i would go with the Discover it card.

Congrats and welcome to the forums

scorewatcher7 · ‎02-03-2015

@Seta wrote:
My score was actually 695 and it dropped to 675, the alert said I was not actively pursuing new credit and I have too few accounts and a short credit history even tho the age on my oldest account is 9 years. Anyway the 'too few sources of credit' is the main reason I'm looking to get at least one more card now and the fact my score was steadily rising then dropped and hasn't budged in months.

Its funny you mention Amazon we use it religiously. Other than that entertainment, movies, gas, Starbucks, misc daily small things like that I use my Freedom for.

Really I just need to get my score up for the future. Whichever cards will help with that the most, have the least drawbacks, be the easiest to use, all of these.. That's the one I want. Should I be looking at store cards or stay away from those? An AMEX maybe?

Your file is thin-(though you have 9 years) so there isn't much on it to raise your scores necessarily. You also mention a collection, though only on one bureau; that can be a score killer.

As for store cards, I've always been under the impression that store cards are considered less prime (maybe not sub-prime) than standard cards. They serve their purpose though, so if you want/need credit, don't hesitate. Amex is a good prime but they might give you the same credit history alert.

Pway · ‎02-03-2015

@Seta wrote:
Hi, never posted here before, looking for some advice as to getting another card or two to help build my credit.

Welcome to the forums.

Right now I just have two cards, a CapOne platinum with 0 balance I never use (this was my first card when rebuilding credit) and a Chase Freedom I put lots of minor stuff on and pay off every month, rolling over a 10% balance. My credit was steadily going up for awhile then it stopped at 675. There's so many cards out there I don't know where to start.. And I don't want to be turned down for one. Any advice? Have you weighed your options with Capital One? They have some great cards and they have unlimited cash back on their cards and you do not have to spend in one category or another.

Also am I doing the right thing by carrying over a 10-15% balance every month on a card or should I be paying them off every month? For best scoring it should be 1-9 reporting balance.

Thanks

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.

Anonymous · ‎02-03-2015

@SunriseEarth wrote:
First off, you should see if you can make Cap One a more useful card. See if you can PC that from the Platinum to the QS...that way, you'll get 1.5% back on everything and it'd be a slightly better general spend card than Freedom. Contact a Cap One CSR. if they can't help, you can contact the EO.

You could get into AMEX with your scores. If you have a Costco membership, TrueEarnings would probably be your best match. BCE would be okay for some of your categories like gas when Freedom didn't offer them that quarter.

I actually think the Barclay Sallie Mae MC would be the best match for your spend with Amazon and gas. SM does 5% cash back for bookstore spend (up to $750 a month) and gas (up to $250 a month), so that would also be good when those aren't Freedom categories.

If you have a store that you frequent, store cards are worth consideration, but only if they offer some sort of incentive. Some offer 0% special financing for large purchases, some offer a generous rewards structure, and some offer discounts/sales.

SE hit the nail on the head here. The Sallie Mae MC is one of the best cards around for every day use (orders fulfilled by Amazon and gift cards from Amazon also earn 5% as a bookstore). If you're not supporting a family, $250 per month for gas & groceries each is plenty of capacity. It is also quite easy to get the card with scores in the high 600s from what I hear, compared to other rewards cards which require a score in the low to mid 700s. If you are planning on applying for more than one card, apply for the Sallie Mae card first, as they are a bit sensitive to inquires.