My sis recently started out building her credit and I'm trying to help her to a solid start.
The first thing I did was to add her as an AU to a 10K Discover and 10K Freedom. She has since applied and got approved for a $500 Barclay's card (JetBlue I believe), about 3 mounts ago.
I checked PreQ and got an offer from BofA and USBank, so what would be her best next step. 1) for now just wait... 2) Get one of the PQ. 3) Considering she got some offers from BofA and USB she should try her luck with other cards, Discover, Citi, Amex etc.
Additionally, would it be wise to apply for a loan to get a better credit mix? If so, what is her best option for that. Also, is it better to try business cards first so that it doesn't report.
P.S. Her TU Fico through Barclay is 711. As mentioned in the title she's under 21.
If she doesn't really need the loan for something else, I wouldn't suggest getting it just to improve her credit as it isn't worth it. Secondly, i would say for her to get cards that match her spending. If she spends alot in certain categories, let her find cards that match her spending. If her spending is all around the place, then a 2% cashback card like Citi DC, Paypal 2% MC, Fidelity, etc would be good picks. Don't get her cards that she won't use and eventually sockdrawer as she is already building credit with her current credit card.
Agreed on only applying for cards that match her spending. That said if one had to pick between BoA and USB, I'd go BoA every time. They're well known to be generous with limits once they've gotten to know you. My BoA started at $5000 for reference.
She can have better than an 800 Fico with one card and two AU.
No real hurry to get her more cards.
I would move slow and only get cards that match her spend and will be good for an extended time.
No 1-2 year cards, wait for cards that will do her good for at least 5-7 years.
Keep checking scores , let some time pass, and then pull the trigger on two that meet her spend the best.
Most people need a good general spend card and 2 or 3 that hit top spending categories, whatever they are.
Travel, food, grocery, gas, utils, etc, check her spend for the last 6 months and find the correct fit.
Have fun and good luck 
@Ahava18 wrote:My sis recently started out building her credit and I'm trying to help her to a solid start.
The first thing I did was to add her as an AU to a 10K Discover and 10K Freedom. She has since applied and got approved for a $500 Barclay's card (JetBlue I believe), about 3 mounts ago.
I checked PreQ and got an offer from BofA and USBank, so what would be her best next step. 1) for now just wait... 2) Get one of the PQ. 3) Considering she got some offers from BofA and USB she should try her luck with other cards, Discover, Citi, Amex etc.
Additionally, would it be wise to apply for a loan to get a better credit mix? If so, what is her best option for that. Also, is it better to try business cards first so that it doesn't report.
P.S. Her TU Fico through Barclay is 711. As mentioned in the title she's under 21.
1. Business cards are for businesses, so scotch that.
2. She doesn't need to do anything right now. But if she wants to expand I would recommend joining a good credit union and getting a nice low interest card.
3. No point in getting a loan.
