What should i do next?

[dnj4eva]

how much would I benefit from applying for a new credit card once I lower my UTL? Is the Discover IT card the best for my situation?

[dnj4eva]

Ok thanks for that tip

[dodfire]

Having a lower UTL on your current card will greatly increase your chance of approval.

When other lenders see you have a high UTL "maxed out card" then they think you are in financial trouble and seeking new credit to overcome your current debt.

Before you start applying for a credit card....what is your goal you have in mind? What kind of card are you looking for?

[enharu]

once you get your util down, the benefits of getting more cards are:

1. other cards have better rewards than what capitalone is giving you.

2. higher limit than than 240 (most likely, but can vary depending on lender)

3. better customer service compared to capital one, based on what a lot of ppl are saying.

4. just more lines of credit. if you're getting a mortage eventually, some loan officers want to see a few revolving lines of credit.

5. will help your scores eventually down the road.

and you can carry a high balance if you need to when you're not applying for any loans or cards.

you should however carry a few dollars, or no balance at all, if you are planning to apply for any cards.

also to add, i recommend you apply in june or july 2013, just so that your late auto payment will be >1 year.

[dnj4eva]

My goal is to get a card without an annual fee and a fair rewards program. My goal is to never carry a large balance on it. While I'm not seeking a mortgage too soon I want to be ready when the time comes

[enharu]

there's a few cards that has a nice reward program.

you can check out chase freedom, discover IT, barclays rewards, sallie mae mastercard (good for gas, bookstores and amazon.com), bank of america americard, citi dividend, etc.

since its already mid april i would recommend you just wait 1.5 more months and let your auto loan late be 1 year old. 

[dodfire]

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@dnj4eva wrote:
My goal is to get a card without an annual fee and a fair rewards program. My goal is to never carry a large balance on it. While I'm not seeking a mortgage too soon I want to be ready when the time comes

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Discover is probably a good place to start...No AF and they have a decent cash back rewards program. ( Keep in mind..no apps for about a year before you start looking for a morgage)

[dnj4eva]

Thanks for the great advice. Taught me a little more which will help me a lot.

[dodfire]

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@dnj4eva wrote:
Thanks for the great advice. Taught me a little more which will help me a lot.

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Anytime you have questions just ask...everyone here is willing to help.

And....Welcome to the Forums!!!

[09Lexie]

Good luck.