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Need Help with my Next Credit Step

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Anonymous
Not applicable

Need Help with my Next Credit Step

Hi Guys,

 

Been working really hard on my credit since I was a bit of a late...bloomer in the credit world for many different reasons. Right now I'm trying to figure out what my next step should be to help keep my credit building and to also gain more latitude as far as having more credit. Should I get a new card instead of requesting a limit increase etc...

 

Right now (as of today) my TransUnion is 754 and my Equifax is 721. My first credit card is only 2.5 years old (3 years in October) and that's my oldest credit line. I've never missed or been late on a payment. Try to keep it below 30% it's only $1000. Started as a secured card and got bumped from $500 to $1000 a year + ago. My other line is my car note that is 1 year old as of February and I've never missed or been late.

 

Just started a new job that pays 62000. (just giving all the other infor I've seen asked for on the Forum) 2 inquires for Equifax from Feb 2013 and July 2012. None on Transunion. No collections.

 

 

Right now I'm at a point where I'm worried that making a wrong move can affect my score negatively. I have more expenses now and feel like I need more credit to help me balance my budget better.

 

 

What would you guys suggest? I've been thinking about getting a new credit card...or asking for an increase on my limit. Currently my card is pretty much no frills since it started as a secured card, so i'd rather get something new. I'm just really looking for suggestions on how not to screw up my score while gaining more credit latitude.

 

Thanks.

 

 

Message 1 of 10
9 REPLIES 9
ezdoesit
Valued Contributor

Re: Need Help with my Next Credit Step

Your scores are good but I would suggest both of what you said.

 

Request a CLI increase on your current card you never stated what kind of card it is:

 

1:  See if you can get CLI on that card because some cards that graduate from secured to unsecured you can't get CLI on.

 

2:  Before you ask for the CLI see if its a HP you would prefer a SP. 

 

The reason you want a CLI is because some prime cards might only give you up to your highest limit.   Research the type of card you want points, cash back,  etc.  Check around this forum to get an Idea how difficult the card that you decide to get is in getting.

 

Remember though if you get a new card or two your score will take a hit because of your limited history and low AAOA and the added inquiries  Don't worry with time those score will come back up with age also the inquires won't count on FICO scoring after a year in though they stay on your report for two.  One or two more cards should help a lot for you in the long run.

Message 2 of 10
Anonymous
Not applicable

Re: Need Help with my Next Credit Step

From this point what would be the best time frame you think for getting 2 more cards? 6 months apart of so or close together? . . .   I'll definitely have to start doing some more CC research on the card  I really want, rewards wise.

 

What is AAOA?

Message 3 of 10
ezdoesit
Valued Contributor

Re: Need Help with my Next Credit Step

I would say close together to me that makes more sense that way they age together and since its a hard pull they will come at the same time also. 

Message 4 of 10
AndySoCal
Senior Contributor

Re: Need Help with my Next Credit Step

My question is the credit still secured ? If so I would not ask for a CLI. I would ask the  creditor about unsecuring the credit card first. 

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Message 5 of 10
Anonymous
Not applicable

Re: Need Help with my Next Credit Step

Card got unsecured after the first 8 months. I think that's an automatic process from what I understand. 

Message 6 of 10
Anonymous
Not applicable

Re: Need Help with my Next Credit Step

I second apping for two together. The inquiry hit is much less than a new account hit and a new account takes about 1-2 months to show up on your report. Plus the inquiry only hits 1 out 3 reports (unless you app for a Capital One), but a new account hits all three together. If you know which bureau is going to be pulled, you can spread out your two apps. 

 

With your score, I will start considering a prime card (Chase, Discover, AMEX, BoA), Perhaps a cashback card of your choosing. One recommendation though, make sure you credit card statement closes below 10% balances before you app. You don't have to spend less than 10% than month, but pay it down to that before the statement cuts. This should put you in the best chance of being approved. 

 

Consider a AMEX revolving product as the the Blue Cash Everyday (or Preferred, if you spend a lot on grocery monthly). While most prime credit cards I have dealt with seem to grant credit lines that are in line with my current ones (espesically true if it was my first card at the credit card company), my AMEX revolver grew the fastest because the generorus 3x CLI after 60 days and 6 months. With your income, you can easily grow it into 10k+ within two years. One draw back is that I think it is relatively harder to get approved for. 

 

I was in similar situation as you are two years ago. Oldest card was 2.5 year, another just shy of 2. TransUnion and Equifax were ~750. Got my util down to 10% and I apped for Amex BCE, Citi Dividend and Chase Freedom all within the same month and got approved for all three. So I think you stand a fair chance to do two prime cards at once.

 

Obviously if you are having a major credit activity (e.g buying a house) within a year or so, I'd hold off apping until you get that out of the way. 

Message 7 of 10
Anonymous
Not applicable

Re: Need Help with my Next Credit Step

Funny you mentioned AMEX after reading up a lot I applied for the Same card you mentioned last night Amex Blue Cash Everyday and got approved! I must say this is a much better feeling than all the denied letters I got a few years ago.

I really like the cash back on the Amex. Is there a similar card with no annual fee you guys would recommend? Cash Back Card.
Message 8 of 10
Anonymous
Not applicable

Re: Need Help with my Next Credit Step

Just pulled the trigger on my second card as you guys suggested and got Approved! 3K on the Capitol One Venture Card... (The one that has no annual fee) 1.25 miles per $1. I just refuse to pay any kind of CC fee! 

 

Think this is exactly what I needed and I'll be in a holding pattern for a while with  these 3 cards. Don't want anymore! lol. Thanks everybody. Will definitely be hanging around the forums a lot more. 

 

Message 9 of 10
Anonymous
Not applicable

Re: Need Help with my Next Credit Step

Congrats! I would have gone for a rotating 5% category card like the Chase Freedom or Discover IT, perhaps something to consider down the road? The Capital One VentureOne does have a slight edge in everyday expense though. 

 

I believe you are set for now too, just garden for a while and grow that AMEX. 

Message 10 of 10
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