Your Credit Card Evolution

[Anonymous]

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@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. 

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To answer your question... 

My first card I got at 18. It was a capital one card, probably the platinum ( or equivalent) that was 15 years ago. I never used it and eventually the account was closed. Then I started getting store cards. 

I I got a Wells Fargo card from tiger direct about 12 years ago and bought my first computer with it. Still have that account open somehow.

Then I got a Best Buy card a few years later and a Lowe's card at the same time when I finally got a good job and could afford large purchases. I took advantage of their financing offers of 0% for a year or 18 months. 

Now, I app'd for the Citi DC and AMEX BCP cards that I have a family. I'm much more interested in stretching my dollars these days as opposed to making payments on anything.

Im thinking currently about getting the Discover IT. Just because Citi is stingy and I want something to bridge the gap on 2% cash back while I wait the year for citi to give me a good SL

[Anonymous]

No cards as young adult. Scared of debt and looked at them as foolish. Fast forward to unexpected medical expenses with 0% for 24 months and my dentist basically guaranteeing my approval lol I took the care credit a few years ago. 

Then I saw a chase freedom mailer for $300 free applied was denied, and did a horrific job reconing. Denied for discover. Denied for capital one. Later on approved for credit one for $300 and that helped me get approved with capital one and commerce later. 

I am just fine with credit one and think that their $8 a month is well worth the cost despite how they compound interest. My af was 49 bucks.  I'd argue they only pull 1 credit bureau opposed to cap 1 but they are alright for upgrades and increases... but folks have significantly more luck. Y reapplying and combining. 

Looking back I wish I would have used cards at a younger age. They truly are the missing puzzle piece to my extreme couponing! I have also put that saved money to better use. 

I do wish I would have not applied for the earlier apps and instead just went to a credit union for checking and cc or bank of America, even secured.

Lately it's a toss-up but I am pretty impressed with citi, discover, boa, and small town banks. 

In one year I have went from 13k in credit to what I have currently. Life is good. I always carry a balance on no interest cards and scores really got better with a 5k card on file. 

I wonder what the average credit limit is? 

[EdMan63]

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@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

Great advice!!!

My journey has been a rather conservative one to say the least.  As a youth I had a couple of store cards I got in college (Sears and Macys) and didn't get my first Visa until I was 30 years old getting married for the first time. I had that card ( and still do. It's now 22.5 years old ) with a 1.5k limit and last year I decided I needed to give myself more spending power and build my credit file. I went through a tough financial period following a divorce in 2003 and didn't do anything credit wise from 2010 to 2015 with the exception of a couple of lease cars. I had a major charge off in 2010 related to my old home and previous divorce which I setteled in 2014.

In the past 12 months I've opened 4 major credit cards (Amex, Chase and Cap One) and don't plan on adding anymore for at least another year. Next step is my current wife and I plan to sell our current home and purchase a new home in 2017 so I'm not doing anything credit wise until after that is complete. 

[kdm31091]

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@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.

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100% agree with this. One or two store cards for stores you shop at religiously can make sense for discounts. But don't go crazy with them or use them as a shortcut to rebuilding. There are always better options out there, even if it means a secured card, because at least a secured Visa can be used anywhere and will help you more in the long run vs 10% off at a store.

[Anonymous]

Actually I tried one additional tactic that slightly differs from the last reply. I applied and was granted $900 at Dillard's. I don't live near a Dillard's, and they don't sell much that interests me. So that's 900 factored into utilization that I'll likely never use. It's recent, so whether they'll lower it for lack of use is yet to be seen.