New to credit- need advise please

[Onix]

I am new to the credit world.

I've got 40K in "debt"

26K finishing up an auto loan

13ishK for some student loans.

I have a score approaching 680. Just got my first card, a simple cap1 quicksilver with CL of 500.

Only thing that isn't "good" or better is my credit history. My oldest account is 8ish years old and an average age of around 5 years with this new card opened.

Should I continue to just keep utilization low and PIF on my quicksilver for now, or go ahead and look for another card or two to increase my overall credit limit, and ultimately credit history average as they all age together?

[Horseshoez]

---

@Onix wrote:

I am new to the credit world.

I've got 40K in "debt"

26K finishing up an auto loan

13ishK for some student loans.

I have a score approaching 680. Just got my first card, a simple cap1 quicksilver with CL of 500.

Only thing that isn't "good" or better is my credit history. My oldest account is 8ish years old and an average age of around 5 years with this new card opened.

Should I continue to just keep utilization low and PIF on my quicksilver for now, or go ahead and look for another card or two to increase my overall credit limit, and ultimately credit history average as they all age together?

---

I would look for one, possibly two more cards.  Why?  Due to some idiosyncrasies on how the FICO scoring is done, it is best to have three cards, one of which reports a trivial (say $10) balance per month while the other two report a zero balance.  In your shoes I'd be looking at Discover for a second card, and a credit union for the third.

[Thomas_Thumb]

---

@Onix wrote:

I have a score approaching 680. Just got my first card, a simple cap1 quicksilver with CL of 500.

Should I continue to just keep utilization low and PIF on my quicksilver for now, or go ahead and look for another card or two to increase my overall credit limit, and ultimately credit history average as they all age together?

---

Get a 2nd card. Discover is a good choice .  I'd suggest applying after your new card shows 3 months of use. Given you have only 1 card, let a small non zero balance post on the statement and then PIF before the due date.

What's a small balance?  Anything under 9% ($45) of the card's $500 CL. If that's too much of a hardship atleast keep the reported balance under 29% ($145).

Showing some activity on the new card along with responsible revolving credit management could boost your current score 20 points. That may help you get a higher SL on a 2nd card.

[Onix]

@Thomas_Thumb @Horseshoez 

Thank you both.

Kind of my thought.

Also, why Discover over say.. trying for a Chase or Amex?

And what is the thought behind a credit union card?

Sorry just not super familiar with them yet.

[Thomas_Thumb]

Discover often gives +$1000 starting limits for those new to revolving credit and allows for soft pull CLIs every 6 months. If/when Cap One acquires them all bets are off. Discover also has a nice 5% revolving category cashback.

Actually, a revolving AMEX credit card (not charge card) is a good option as well. I almost mentioned it but wasn't sure of the card name - blue cash preferred or something like that. It offers 6% cash back on groceries and streaming plus 3% on gas. You can find out if you qualify and will be approved with no impact on credit score.

As for a Chase starter card, forget about it -IMO. Nothing wrong credit union card but, I'd put it in 3rd or fourth place.

[Onix]

Blue cash everyday card?

What's chances I get approved at that score? Should I call recon, If I was to?

Would it be worth trying to do the Discover and AMEX cards after a few months with the Quicksilver?

Final question- Should I hold off on anything with Chase until I get into the low/mid 700 range, and more history?

[SouthJamaica]

---

@Onix wrote:

Blue cash everyday card?

What's chances I get approved at that score? Should I call recon, If I was to?

Would it be worth trying to do the Discover and AMEX cards after a few months with the Quicksilver?

Final question- Should I hold off on anything with Chase until I get into the low/mid 700 range, and more history?

---

1. You do have a decent chance of getting approved for the Blue Cash Everyday. That would be a good card for your next card.

2. Sure it would be worth trying for a Discover or the Amex after a few months with Quicksilver.

3. Yes you should hold off on Chase. Don't apply there until you've had a year of history with your other card(s).

[Onix]

Thank you, and everyone else for the help.

I've got a solid income. Would it be worth opening a Chase checking account in the mean time. Just to have history and shows transactions with them over the next year or two?

Any advise with the recon call, if I had to for the Amex blue card?

[FicoMike0]

The amex blue everyday pays 3% max, no af $200 sub for $2000 spend in 6 months. The blue preferred pays 6% max, $95 af (first year deferred), $250 sub for $3000 6 months spend. Preferred sub has been $400.  If you can do the $3000, I'd go preferred, you can downgrade in 11 months.

[Onix]

Apologies, could I get this in layman's terms?

I'm following but what does "$250 sub for $3000" mean?