@FromNYtoDubia wrote:- I Bank w/NFCU and just recently opened their Nrewards secured card with a $300 balance. I read that this can take 3-6 months to see if eligible for CLI.
In 3 months, you'll likely get a $300-$500 CLI with no needed extra deposit and in 6 months, you'll very likely be graduated to $2k and get the 1.5% cashrewards card. I would recommend once that happens calling/messaging navy federal to disable automatic credit line increases to make sure you are in control of your credit line increases so you can get the maximum amount.
~181 days after you graduate, ask for a credit line increase on the card either on the website or in the app, and you should receive a CLI to $6k so your card can be upgraded to be a 2% card!
- Applied for a DiscoverIT card and "said" I got approved for $1K SL. Still waiting to see if this is even real! (I'm shocked)
Congrats!! great card, take advantage of those 5% categories, they are 10% in the first year up to the $1500 quarterly cap.
- Will either PIF/month or keep my utilization rate under 3%
Pay your statement balance in full by the due date. You can feel free to pay down balances prior to the statement date, but you don't have to.
Showing that you pay your credit cards balances in full is a good thing for your credit profile. (it's more impressive if the bank can see "hey, this guy spent $500 and paid it off the next month" as opposed to "hey, this guy charged $3.50 and paid it in full".
- Plan on opening up a SSL of $5k for the 5 year mark. (Paying down to 8.9% and setting up auto-transfer for the remaining to let it sit on my profile) You only need to do $3,001, which is what I would recommend if you are lower income < $30k or you have other high outstanding debts/rent relative to income, but it doesn't look like you do.
- Just opened up a Chase account to hopefully get a cc with them in the future.
I'd probably apply for a Chase Freedom Flex in about a year, maybe perhaps a Chase Sapphire Preferred, do this after your car loan.
- Have currently (2) family members that said they will place me as AU on their accounts to help me out. They have a good credit score Make sure they aren't reporting high usage on these cards, would do you more harm than good.
My question is what should I do next to build a strong profile in the next 1-2 years. How should I go about applying for credit cards and achieving the ultimate goal of approval? I currently have plans on getting a really nice car for my bday next year at the end of the year. What should be my best plan to achieve this car with low interest? go a year without applying for anything new would absoutely maximise your chances atrr a low interest rate, building a relationship with navy federal with deposits and making them your main deposit bank would give you a great place to lend from for your car loan too. otherwise, if you go a year without appplying, your credit score will be in the best possible place to apply anywhere else. earlier is fine, but the highest chance at a low apr will come from being 0/12 (0 applications for new credit in the last 12 months)
I'm starting a new business this year, What bank should I choose to do business with?
Chase and Amex are probably where I would start, they're the most likely to approve you with ~1 year of total credit history with both a biz checking and a credit card.
@FromNYtoDubia wrote:Newbie here and want to say Thanks in advance for reading and commenting. I have read a lot of forums here and have learned a lot of knowledge already. But would trully appreciate any suggestions I can get.
So I am 33 years old and just now starting to learn and realize that I need to have a strong credit profile. I currently have a clean report and would love some guidance on how I should start creating a strong profile for myself.
- I Bank w/NFCU and just recently opened their Nrewards secured card with a $300 balance. I read that this can take 3-6 months to see if eligible for CLI.
- Applied for a DiscoverIT card and "said" I got approved for $1K SL. Still waiting to see if this is even real! (I'm shocked)
- Will either PIF/month or keep my utilization rate under 3%
- Plan on opening up a SSL of $5k for the 5 year mark. (Paying down to 8.9% and setting up auto-transfer for the remaining to let it sit on my profile)
- Just opened up a Chase account to hopefully get a cc with them in the future.
- Have currently (2) family members that said they will place me as AU on their accounts to help me out. They have a good credit score
My question is what should I do next to build a strong profile in the next 1-2 years. How should I go about applying for credit cards and achieving the ultimate goal of approval? I currently have plans on getting a really nice car for my bday next year at the end of the year. What should be my best plan to achieve this car with low intrest? I'm starting a new business this year, What bank should I choose to do business with?
Thank you'll again, and any advice will help!
1. Welcome to the forum.
2. I don't think you need to do anything else, I think you're doing fine as is.
3. Utilization is based on the reported balance. With both of your cards the statement date is the report date. It is advisable that you pay in full each month. If you want to maximize your scores you can probably eke out a few points by letting one card report a zero balance (i.e. paying it off before the statement date).
4. Since you were able to get 2 cards on your own, I don't think you should get involved with AU cards.
5. If you have any other installment loans, then you don't need the SSL.
6. It can't hurt to have the Chase deposit accounts, but in my experience Chase doesn't really care.
7. My favorite business bank is Chase. My least favorite is TD Bank.
8. My particular approach to car loans has always been to let the dealer shop it.
@FromNYtoDubia wrote:@GZG (Thank You and appreciate you commenting.)
- Copy on your message with NFCU. I recently paid my bill so my statements read a 3% utilization rate. Will update of coarse on graduation/CLI timeline, and received message on 181 days on requesting CLI once graduation.
-My DiscoverIT card did in fact come in the mail, so as of now I have a unsecured card w/ a CL of $1K. (Will use responsibly) I also signed up and actived the 5% cashback for this month!
- Question regarding my Billing Statement. My due date is the 2nd and my statement date is the 5th. When should I post my bill. I currently paid it leaving a small balance. But was wondering should I wait till it post on my statement? I'm a little confused.
Not sure what you mean by "post your bill". You should pay your bill in full as soon as possible. No you should not leave a balance.
-I just thought 5K would make it longer with NFCU, but if $3,001 is enough. I will do this after I apply for a new cc. Follow up.
-Correct no outstanding balance or debt!
- I will go a year without applying for anything new. My birthday is in the last quarter of the year so I have way over 15+ months until. I do however plan on starting a new business and need a vehicle for it. Tried to get a Auto loan for 15K but due to no credit history I was denied. So I'm kinda stuck now on starting the business due to my vehicle issue. Unless I wait a few months to save to put down.
- Haven't started the business yet but when I start do you recommend I bank with Chase Day 1 or wait until I get some revenue coming in first to possibly capitalize on SUB's?
IMHO you should open a Chase business checking account as soon as you start your business.