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Your Credit Card Evolution

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Anonymous
Not applicable

Your Credit Card Evolution

Hello, Everyone!

I am an 18-year-old student (long time lurker) and thanks to many of you I got my first credit card with no history whatsoever. I got the Discover IT Chrome for students in August 2015 and now am looking at adding some more cards. It's been 6 months and I have no baddies and my Discover FICO score with TU is 734. Credit Karma reports my FAKO scores at 672 and 696 for TU and EQ respectively. I have no loans and no other forms of credit other than my Discover card. I recently got a CLI to $750, but the CLI has yet to report. I thought I would have to settle with a secured card but ended up getting a Discover with great benefits! I love my Discover card but would like to continue to grow my credit history and get a little more variety. I eventually would like an AMEX, Chase Freedom, Citi DC and possibly QS and a few others, but those are my goals at the moment. To give a short summary of my situation: I have one account open with a $750 limit low util, only one inquiry on my TU score from Discover 6 months ago (approved), no baddies, I always pay on time. The only negatives are that I only have one account open and my AAOA is only 6 months. I would be reporting an income of around $12,000 if I can't include scholarships, stipend etc if that's included I'm around $38k.  My question is what is your personal credit card evolution from your first card to what you have now and maybe that'll offer some insight as to what I should do next. 

Message 1 of 15
14 REPLIES 14
Chris679
Established Contributor

Re: Your Credit Card Evolution

Don't apply for anything you don't want to keep long term. We see a lot of people applying for every store card under the sun then later they are closing them all. You can include any income that you have access to and I would build slowly, 1-2 accounts per year.
Message 2 of 15
Anonymous
Not applicable

Re: Your Credit Card Evolution

Take your time and use your cars wisely and you will be in great shape. I am sure other members will have ideas for a second card. Perhaps Capital One?

Message 3 of 15
Anonymous
Not applicable

Re: Your Credit Card Evolution

I'll put my two cents in -- don't overextend. Don't buy more than what you can pay for. Avoid carrying balances. Don't buy the significant other a TV -- if you're like me, a year later no significant other, no TV and you're still paying the bill.  Smiley Happy

Message 4 of 15
Anonymous
Not applicable

Re: Your Credit Card Evolution

Hit the prequals up and see what they are offering from banks you know you already want

 

And remember 3 credit cards is all you need in revolving credit to get the best score, and honestly 3 cc is a lot to deal with on their own when you are new to all of life's bills.

Message 5 of 15
Closingracer99
Valued Contributor

Re: Your Credit Card Evolution


@Anonymous wrote:

Hit the prequals up and see what they are offering from banks you know you already want

 

And remember 3 credit cards is all you need in revolving credit to get the best score, and honestly 3 cc is a lot to deal with on their own when you are new to all of life's bills.


3? meh I have like 20 opened ones and I use around 5-6 every day and about 2-5 more at least monthly. I do rotate some around though. 


My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740
Message 6 of 15
Anonymous
Not applicable

Re: Your Credit Card Evolution

3 is still plenty for most

my main question is why is there a need for another right now? 6 months is still very very new and honestly idk if you can use grant money or not. where i work that isn't income.
Message 7 of 15
mikelo22
Established Contributor

Re: Your Credit Card Evolution


@Anonymous wrote:
3 is still plenty for most

my main question is why is there a need for another right now? 6 months is still very very new and honestly idk if you can use grant money or not. where i work that isn't income.

Depends on the lender.  I know for a fact that Citi allows you to include scholarships/grants.  The general rule of thumb I used is that if it's on my 1098-T, I'll count it.  But it's best to check with the lender you applying to.

 

Anyway, to answer your question, I started out with a Citi Forward as my first card.  My second card was a Chase Freedom, which I got around 11 months later I think.  I stuck with those two for a good 1.5 years, then I found this site, and, well, the rest is history! Smiley Very Happy

 

As others have said, stick to cards you plan to keep longterm.  

Message 8 of 15
Anonymous
Not applicable

Re: Your Credit Card Evolution


@Chris679 wrote:
Don't apply for anything you don't want to keep long term. We see a lot of people applying for every store card under the sun then later they are closing them all. You can include any income that you have access to and I would build slowly, 1-2 accounts per year.

+1.

 

I would personally wait a little longer to apply for anything else, unless you're really in need of another CC.

Amex generally like to see at least 1 year of credit, and I also applied for an Amex and was approved after having roughly 13 months worth of credit history total (I had only 1 secured card at the time).

This way you're establishing a long term relationship with a great bank like Amex you can keep for life. And I think they would be a great second step in your credit journey, I purposefully waited just over a year to apply after receiving the same advise I am giving you now.

Third steps for me were other bank cards at around the 18 month mark.

At this point your scores should be a lot higher, then try to aim for cards to maximize rewards, this is where the fun starts!

AAoA's I don't think matter as much as everyone thinks, my AAoA's when applying for the CSP and Freedom were also 6 months, and I was approved for my Citi Prestige with only 5 months!

Just keep your payment history clean and your utility percentage LOW.

Good luck Smiley Happy

Message 9 of 15
SouthJamaica
Mega Contributor

Re: Your Credit Card Evolution


@Anonymous wrote:

Hello, Everyone!

I am an 18-year-old student (long time lurker) and thanks to many of you I got my first credit card with no history whatsoever. I got the Discover IT Chrome for students in August 2015 and now am looking at adding some more cards. It's been 6 months and I have no baddies and my Discover FICO score with TU is 734. Credit Karma reports my FAKO scores at 672 and 696 for TU and EQ respectively. I have no loans and no other forms of credit other than my Discover card. I recently got a CLI to $750, but the CLI has yet to report. I thought I would have to settle with a secured card but ended up getting a Discover with great benefits! I love my Discover card but would like to continue to grow my credit history and get a little more variety. I eventually would like an AMEX, Chase Freedom, Citi DC and possibly QS and a few others, but those are my goals at the moment. To give a short summary of my situation: I have one account open with a $750 limit low util, only one inquiry on my TU score from Discover 6 months ago (approved), no baddies, I always pay on time. The only negatives are that I only have one account open and my AAOA is only 6 months. I would be reporting an income of around $12,000 if I can't include scholarships, stipend etc if that's included I'm around $38k.  My question is what is your personal credit card evolution from your first card to what you have now and maybe that'll offer some insight as to what I should do next. 


Your score is good enough that you don't have to worry about evolving, you're already at a point that you can probably get a decent card.

 

But if you wanted to play it safe, I'd say go for a Capital One or a Barclay Rewards card.

 

I would not be shocked if you applied for and got the Chase Freedom or Citi DC or Amex Everyday.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 691

Message 10 of 15
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