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Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

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Traveler24
New Member

Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Hi everyone,

 

I'm 26 years old living in New York and currently have a credit score of 674. I don't have any debt except student loans of 10k. There is nothing else on my credit history. I never applied to any credit cards. I have 0 hard pulls. I've only used debit cards (only 1) since I was 18 and currently have a stable job making 55k a year. My credit score has been 674 for the past years (it doesn't move at all). I want to start building my credit score up and eventually get to 750-800 area. I want to get a credit card but I'm not sure which one I should get (I don't want to get denied). Is it better to get only 1 now or get 2 right away so the hard pull doesn't negatively affect me the second time I apply for the second credit card. If I want to build my credit score up the "right way" do you recommend I only apply for 1 card or for 2? 

My 2 future goals 2-4 years from now is having at least 2 Amex cards and collect membership rewards points using mostly Amex cards and maybe a chase card. My second goal is having about 30-60k+ in available credit in total between all the credit cards I would have by then. Those are my 2 ultimate goals.

 

If you have any suggestions about what card I should apply for and what else I should do please let me know. I appreciate all the feedback and thank you in advance for everything. 

Message 1 of 21
20 REPLIES 20
Rogue46
Established Contributor

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

If you're looking at Amex they have a pre-qualification page on their site to see if you're eligible. It's not a 100% thing but pretty solid.  Same goes for Chase.

 

 





Message 2 of 21
Traveler24
New Member

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Do you think it's best I get a discover it card and a second basic credit card and build my credit with those for the next 6 months to a year?  If so, what second credit card do you suggest I get? I'll definitely get a discover it card as I think I will for sure be approved for it. The main thing is I don't want to get a hard pull and get denied as then I'll end up having to apply again and therefore get another hard pull 

Message 3 of 21
Rogue46
Established Contributor

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Discover would be a great first card. Ideally for the best credit building strategy you'll want to have 3 cards. Keep in mind if your shooting for a Chase card they have what's called a 5/24 rule which means they will deny you if you've opened more then 5 cards in 2 years so if you want a Chase card I would prioritize that.

 

I wouldn't worry too much about inquiries unless it's an excessive amount. Also they drop off after 2 years so no long term effect.

 

Discover also has a pre-qualification page so you can check that before applying 





Message 4 of 21
Traveler24
New Member

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Thanks for replying. I would prefer Amex to chase but I know that both Amex and chase don't like accepting people with 0 credit history. I've never had a credit card and my credit scores been the same for the past years 674. I want to start building a credit profile. Besides the discover card, do you recommend a second credit card I would most likely be approved. I was thinking of starting with a capital one card in addition to the discover card. Any cons of getting both the discover it card and the capital one platinum card? Is there an easier/starter capital one card that I should get instead of the platinum by capital one? Thanks in advance 

Message 5 of 21
Thomas_Thumb
Senior Contributor

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?


@Traveler24 wrote:

Do you think it's best I get a discover it card and a second basic credit card and build my credit with those for the next 6 months to a year?  If so, what second credit card do you suggest I get? I'll definitely get a discover it card as I think I will for sure be approved for it. The main thing is I don't want to get a hard pull and get denied as then I'll end up having to apply again and therefore get another hard pull 


Yes - Better to get 2 cards starting out. Having a 2nd card adds flexibility and provides a back-up. It can also help to have aggregate CL higher than a single card CL Fico scorewise.

 

Discover IT is a great starting card and a long term keeper. Relatively easy to build credit limit over time with solid payment history. I'd suggest applying for a Visa or Mastercard from a bank or Credit Union where you currently have an account when considering a 2nd card.

 

Then, after 1 year of use on both cards, apply for an AMEX. At that time your score could be above 720.

 

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 6 of 21
GatoradeZeroGuy
Valued Contributor

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?


@Traveler24 wrote:

Thanks for replying. I would prefer Amex to chase but I know that both Amex and chase don't like accepting people with 0 credit history. I've never had a credit card and my credit scores been the same for the past years 674. I want to start building a credit profile. Besides the discover card, do you recommend a second credit card I would most likely be approved. I was thinking of starting with a capital one card in addition to the discover card. Any cons of getting both the discover it card and the capital one platinum card? Is there an easier/starter capital one card that I should get instead of the platinum by capital one? Thanks in advance 


Amex will allow you to apply with no Hard Pull if you are declined, find the card you want, find the "apply with confidence" language and apply.

The pre-qualification tool is here and might help as well: https://www.americanexpress.com/us/credit-cards/check-for-offers/ 

 

image.png

if approved, great, take your offer. 

if not, I would definitely check the preapproval pages of Discover and Capital One to see what you're being offered, I don't think you need to start at a platnimum given your student loan history

 

https://www.capitalone.com/credit-cards/preapprove/
https://www.discover.com/credit-cards/

 

 

Starting FICO 8:

Current FICO 8:

3/6, 5/12, 14/24

Message 7 of 21
Traveler24
New Member

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Just wanted to say thank you to everyone for responding. Looking forward to reading more comments and suggestions 

Message 8 of 21
Traveler24
New Member

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Thank you for responding. I appreciate it.

 

I will 100% get a discover card. I bank with TD bank. I wanted to ask, in your opinion are there benefits to me getting a credit card from td bank where I have my checking account vs getting the second credit card from capital one or a credit Union?

 

thank you again and I look forward to reading your thoughts. I really appreciate you guiding me through this and sharing your thoughts . Idk if you're receiving my reply but this is for you @Thomas_Thumb 

Message 9 of 21
Traveler24
New Member

Re: Should I apply for 1 or 2 credit cards to start building my credit score? What else should I do?

Thank you for sharing this. I'll definitely use this tool from Amex. If it shows I won't get approved then I'll apply for the discover card and a second card. Regarding the second card, do you suggest I get the td bank credit card (this is the bank I have a checking account with) or do you suggest I get capital one ?

Message 10 of 21
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