Building from scratch - no credit history whatsoever

[Anonymous]

I started reading these forums before I jumped in and want to thank everyone for the crazy amount of help. There really is a super amount of information here and I wanted to give back.

My story - NO credit no derogs no bankruptcy nothing. Self-employed.

Got Cap 1 secured they asked for 49 I gave them 249. CL 500.

In the meantime, I spent, let it go to the limit once, but always PIF. Let it report never more than 9% except once at 19%.

As soon as my 6th statement cut, they gave me a 300 CLI. I called and asked for a PC or a rate redeuction. DENIED. 

So, I apllied elsewhere. I ended up in one morning with 1500 Amex Everyday at 16.74, Amex Gold Rewards, Discover IT Miles at 1500 24.49, and Navy Federal CU Cash Rewards 1000 at 16.74.

I'm seriously thinking about just cancelling my Cap1 as it will be of no use to me with no rewards and at 25.24%.

Just AAoA would suffer.

So, not saying that will be your journey but it worked for me.

[Anonymous]

Closing it will not affect your AAoA because closed accounts will continue to age and report for up to 10 years.

That said, since your file is so thin and it has no AF, you might want to keep it for a while and see if PC options might show up later, just setup autopay and charge something small every 3 months.

[Anonymous]

Thanks. I just have a bad taste in my mouth since I was assuming they should have been the ones to graduate. I'll happily keep that sock drawered and pay my Netflix.

[jamie123]

Job well done! You are starting out with some very nice cards. Treat them well and your CLs will grow.

Yes, cancel the Cap1 before it turns 1 year old or you will need to pay another annual fee. The Cap1 won't ever graduate into another card because Cap1 doesn't do that so it really is a dead end card.

Make sure to set-up autopay for the minimum balance to be paid every month on your credit cards. This way at least the minimum payment gets paid in case you forget or something happens. One late payment will set you back a long way and nobody needs that.

Good luck!

[Anonymous]

Thank You @jamie123. No AF on the Cap1, but I don't know about giving them my business when others will. I have gotten different answers from different Cap1 reps if it will graduate, if ever. I heard about "Credit Steps", thought I was on that but I guess not. I'm pleased they gave me that chance, but not pleased there is no growth there. Auto Pay is set up.

[Anonymous]

     Here’s something you want to think about with respect to what you are planning on doing. Remember, individual card utilization is a factor as well as total utilization. If your current Cap One card has a $500 CL and you get another card with a $1,000 CL, you have to consider the utilization individually as well as jointly.

     How about this? You said you have no AF on your current card and I understand you are angry about their treatment of you, but don’t let that affect your decision. IF YOU QUALIFY, why not apply for a QS card since you already have one of their cards? Say you get the same $1K limit on that card. After a year or so Cap One will let you combine cards if you show use and good (excellent) payment history. Now you have one card with a $1,500 CL and that will allow you to charge more on that one card (while keeping it below category limits) than you could on the other two.

     What I mean is $100 on the low card is 20% and $100 on the second card is 10%. Both situations are above the maximum scoring value of 8.99% for an individual card utilization. However, $100 on a $1,500 card is only 6.7% which is well below the optimum card utilization value.

     Food for thought.

Y

[Anonymous]

Here is what I think, OP doesn't need another 3 HPs for a QS card because he already has Navy Cash Rewards that pays 1.5% CB, it would be redundant. I would nurse the secured card, have it unsecured to a Platinum and look to PC to Savor One eventually, and hope he will pick up a CLI or two along the way.

I also recommend heading to the garden for OP, 4 new cards plus CapOne is more than plenty especially for a new and thin profile, time to let them age and grow.

[Jnbmom]

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@Anonymous wrote:

Here is what I think, OP doesn't need another 3 HPs for a QS card because he already has Navy Cash Rewards that pays 1.5% CB, it would be redundant. I would nurse the secured card, have it unsecured to a Platinum and look to PC to Savor One eventually, and hope he will pick up a CLI or two along the way.

I also recommend heading to the garden for OP, 4 new cards plus CapOne is more than plenty especially for a new and thin profile, time to let them age and grow.

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+ 1   I so agree here, you don't need another Cap one card and with their 3 HPs, you don't need those either.