More CC options after first Credit score

[Anonymous]

Hello

I applied for Secured CC with CapitalOne and got approved, I’ve been using it for less than 3 months and already built a score of 667 but it’s a Vantage 3.0 score though.

I don’t have any FICO score yet since it hasn’t been more than 6 months.

My question is, I have been getting so many emails from companies like CreditKarma that my chances of a unsecured CC is very good and I can have a higher CL too. My current CL is $200 with a secured card.

Does anyone recommend that I apply for an unsecured CC now or wait until 6 months are finished?

Also I have a checking account with Bank of American with a great history. If you recommend getting an unsecured CC. Should I apply with Bank of American instead?

Will this increase my score or hurt it?

Thanks I’m advance for help.

[Anonymous]

Applying for a 2nd card (and eventually a 3rd) is the right thing to do, even if in the short term it causes your score to go down a bit (and it may not do that).

I would wait on doing that, howver, until I had my three FICO scores, which will be after month 6.

In the meantime, use your card every month for something small, like $5-15 worth of groceries or gas.  Netflix is a popular option if you really like movies.  The key thing is that your statement should always have a small positive balance on it every month.  (When you have multiple credit cards it is fine to let them report $0, as logn as at least one reports a positive balance.) Then pay it off in full after you get the statement.  Then do it again the next month.

Your goal should be to use debit cards for almost all your purchases in the first 13 months or so.  If you do that, you won't care about your credit limits.

[Anonymous]

This is currently what I am doing. I am keeping my usage below 30%...I usually keep the balance to below $10 before my statement is printed.

Since you are recommending to wait until my fico is generated. Do you think I would be able to generate my fico score with a secured CC with such a low CL?

[Anonymous]

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@Anonymouswrote:
This is currently what I am doing. I am keeping my usage below 30%...I usually keep the balance to below $10 before my statement is printed.

Since you are recommending to wait until my fico is generated. Do you think I would be able to generate my fico score with a secured CC with such a low CL?

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The size of your credit limit does not (in itself) affect your FICO score.  Not even by a point.  A person can have an 800 FICO score with only one credit card with a $200 limit.  What FICO does care about is your reported utilization.  Keep that in 1-8% range and you are fine.

Nor does the size of your credit limit affect when you will get your first score.  Your first FICO scores will materialize six months after you open your account.

[Anonymous]

Very insightful. Thanks.

I guess since Fico score is so important and I can build it with a $200 CL then I don’t need any other CC’s. I can just do that with my Capital one secured card.

Thanks for the help!

[Anonymous]

You can certainly get to an 800 with a $200 credit limit.  To get to an 800 with only 1-2 accounts, however, is difficult.  Your idea of adding a second card at month 7 and then a third card at month 13 (say) is a good one.

[Anonymous]

Ok, thanks alot!!