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He had a Secured Discover that graduated to a CL of $1,800 and has had that card for a year. He just applied yesterday and was approved for a Best Buy Visa CL $5,000.00. He also has a Auto Loan. So his credit file is pretty thin. Any suggestions for his 3 card. I told him No store cards. The score he gets from the Discover site says 638 TransUnion and Experian is 716
Edit... He is extremely responsible and currently has over $5,000.00 in his savings acct. I just know that having 3 cards is optimal for a higher Credit Score.
It's a little hard to answer your question because you only gave us fako scores. Plus, what kind of card could he benefit from? (Travel, Cash Back, Big SUB, BT) Ok, so no more store cards which I agree with. Also, are there any negatives on his report?
FAKO from Discover? The TransUnion score shown in Discover accounts and on statements is a FICO 8 score, and the one Discover provides at creditscorecard.com is an Experian FICO 8.
Is there a need to rush for a 3rd card? What does he spend most of his money on? That would lead to higher rewards based on spending. No need to completely avoid store cards. If he spends a lot at a store whose card offers a large discount, that's a sound financial decision.
Why does he need a 3rd card? Give him some time using credit responsibly and then choose a card that will work best with his spending habits. If he's a 638 on Discover, that's actually a FICO and would suggest that he's probably carrying large balances on the 2 cards he has or potentially has been late.
@Anonymous wrote:It's a little hard to answer your question because you only gave us fako scores. Plus, what kind of card could he benefit from? (Travel, Cash Back, Big SUB, BT) Ok, so no more store cards which I agree with. Also, are there any negatives on his report?
Agree ^^^
Do an analysis of what his spending patterns are and find cards to match. I have 1 college daughter that cooks and hardly ever goes out, so her AMEX BCE gets heavy usage on the grocery spend rewards. I have another college daughter that eats out with her friends all the time and loves to drive those friends around everywhere, so she benefits from a restaurant and/or gas card.
Discover scores are not Fako.
His balance on his Discover was at 33% and he has not gotten his Visa Best Buy card yet. He was approved yesterday so it's not reporting as of yet. No lates for his account. He was an AU on a account that had 1 late on it and he is disputing it to get it removed.
Thank you i will edit... i didn't know that.
Based on the new information, I wouldn't suggest any new applications until the AU card with the late payment has been removed from his reports. Since there is a disparity between the EX and TU scores, can we assume that perhaps it is not reporting to all 3 CRAs?
I'd take the time to have him review his spending and see where the money's going and look at a long-term card that best rewards spending in those categories.
If his Experian FICO 8 is still what you listed, American Express may be a safe bet if any of their cards fit his spend, but I would not apply for Amex with a late showing if that account is on Experian.
Ok. That makes sense. Since he has his own accounts now, does it still make sense for him to be an AU? I'd definitely wait until he's clean before he applies elsewhere.
What is he using his cards for? Is it mostly restaurants and groceries? Also, is he a student or does he have full time employment?