Where to go from here?

[Anonymous]

Looking for some advice on the best way to put myself in position to get the best rates on a home in 2-3 years. Scores are in the mid to low 700's currently. They were a bit higher, but im just gettin started with most credit cards and added a few in the last 2 months. I have a shell gas card for a year, and recently got an AMEX gold, Affinity fcu 5,000 limit visa, and joint account holder on a discover miles 3,000 limit.  I will most likely either cancel, or switch the amex gold  to a zinc before the annual fee and apply for the blue cash everyday at that time. I plan to rarely, if ever, carry any balance , always paying in full before the statement hits.  Will 2-3 years of near perfect payment history on these, and the occasional cli (how should i handle these/how imporant are these) get my score where it needs to be.  I have never had any baddies or anything negative in the past. Just young and trying to get headed in the right direction.

[Anonymous]

Your best case scenario would be to let your inquiries drop off before you apply for your mortgage. The inquiries stop hurting your score after one year, but still show for 2 years. Keep your utilities less than 10% (and even lower is better....I keep mine between 1-4% reporting). You should have 3-5 revolving accounts (with prime banks is best of course), so long as they are always paid on time. The GOLD card you have is not  a revolver, but still good for your credit. I would switch it to a Zync before cancelling that one. IMO, Amex is a good bank, and since they are prime, it can pave the way for one of their revolving cards.

[Anonymous]

Thanks for the input. Since I have a discover and amex, should I obtain another credit card with a prime lender like BOA or chase, or will my citi shell card (that i rarely use) and the affinity credit union card be enough? I am thinking it would probably be good to get app for a BOA or Chase ina few months.

[Anonymous]

If you want to add another card to your arsenal, then now would be a good time since the inquiry will drop off in two years, and you are looking to get a mortgage in the next 2-3 years.  One more prime lender certainly wouldn't hurt and I think you will have a better mix (particularly since your Amex is not a revolver).

What are your credit scores and your average age of accounts? This will help us make some card recommendations for you.

Oh....and approximately how many inquiries have you had in the last 6 months?

[SevenNEW]

... on the other hand, you can also just wait and see. I am sure that if you were starting in the low 700s, with the new credit lines, a bit more AAoA as time goes by, and careful util planning you should really be in good shape.

[Anonymous]

My FICO EQ is in the 750's, I recently got the AMEX (GOLD) and the AFFINITY FCU ($5,000) cards. They both pulled EX and the affinity rep told me my EX was 730.  My oldest revolving accounts are only a year old Discover Miles (3,000) and Citi shell gas card (600).  I have 3 inquiries in the last year.  1 of which will come off next month and 1 inquiry from about a year and a half ago. I have been listed as an AUTHORIZED USER on my parents Chase Sapphire for a while though. They have 30 years plus of history and perfect pay history. Not sure if that helps or not. Like I said, I plan apping for the AMEX blue cash everyday card 6 months to a year, that will add another revolving account and my relationship with AMEX should be solid by then.  Plus, this will be a good card for everyday purchases. If it was up to me, I would have 1 or 2 credit cards for everything. But of course, I want to build the best history I can to ensure the best rate I can when buying a home in the next 2-3 years. Im not messing around with debt and was raised by the "if you dont have the money for it, dont buy it (and even if you do have the money, dont buy it anyway)."  I make about $55,000 a year as an account, but that salary should be moving up year by year. My fiance, also and accountant and makes about the same. Hope this helps and thanks for the info.  Seems like adding another prime card (assuming i get that amex blue) would be helpful but ill leave that to you guys.

[Anonymous]

SevenNEW makes an excellent point as well. 

Your history sounds good so far.

I like your plan with the AMEX blue cash. Prime lender, and great card too....AND you already have your foot in the door with AMEX. The preferred has a better reward structure (which you probably already know), if you do a lot of spending on groceries, gas and department store, regardless of the $75 annual fee. I have the regular Blue cash, but only because my gas goes on my business account.

The AU should add to your average age of account history. 

I would look at Citi or Chase. You can look into it now, or wait 6 months. Up to you.

For Chase, I love the Freedom card. The 5% rotating catagories are excellent. ---CAUTION--- When I spoke with Chase about my daughter, they told me they want a minimum 1 year history and PREFERABLY 2 year history to get approved. My daughter only has 8 months average age of accounts right now...thus Chase is not an option.They have a great rewards mall if you do a lot of online shopping. 

For Citi, I like the Forward card. 5x points on all dining, entertainment, movies, Amazon.com purchases.

The most important thing as most will tell you here.....only apply for a card you will use. 

[Anonymous]

Thanks again for the advice.   I will most likely wait about 6 months and app for the amex blue cash.  The chase freedom sounds like a solid card, the sapphire would be sweet because of the initial bonus miles but I assume that would be a more difficult card to get?  After this,  I think having 4 cards revolving cards, 3 of which are prime banks, will put me in a good position in 2-3 years when the time comes to look at some homes.

This forum has been great for me, someone who has the ability (job, income, financial intelligence) to do things the right way, but never really have been told exactly whats needed.  Like i said in a previous post, I am 24 and have a bachelors and masters degree in accounting.  I am also about to finish the cpa exam.   I have obvioulsy taken a lot of finance related courses during this time.  However, no one teaches you how to maximize your credit score to best prepare you for the road ahead..   I learned more in 1 day of scanning through this forum. My parents always drilled into me conservative spending habits, but If I had not looked into it, I would have had 1 credit card, paid in full every month, and not have known how to maximize my credit potential.

[Anonymous]

You are doing great and are setting yourself up nicely. I wish I knew all of this when I was 24!! Took a lot of living and learning for me unfortunately (and finding this site of course).

I have Sapphire preferred on my radar too. I got the Freedom in August and INK in September, so I have to hold off on my Chase apps unfortunately.

yess....Sapphire is a tough one. The Freedom and Sapphire work extremely well as complimentary cards. This is why I want BOTH. You can use the Freedom in the 5% catagories to maximize the rewards, and then transfer them to Sapphire. I LOVE that option. You end up with a lot more points that way rather than just 2x dining and 1x everything else. I want it!

I learned very quickly on here that the whole credit thing is like a game. Use the cards the right way and they actually end up paying you back. There are definite ways to maximize scores. 

[Anonymous]

Would CHASE do anything for you like say I applied for the Sapphire and got denied, would they be able to offer me the Freedom card if I called for reconsideration?  That would be nice.