Advice for 20 year old building credit.

Anonymous · ‎11-12-2014

Hello everyone, I'm trying to build my credit up to eventually be able to buy a new car. Right now I'm just looking to get a few credit cards and keep paying my first autoloan in the garden but I'm having some issues.

Here is my current situation

One autoloan, 19 months ontime payments(never a late)

1 chase slate card($600 limit) opened about one month ago.

Amazon store card($2100 limit) opened 8 moths ago. With a recent cli from $600 to $2100

My current scores are EQ 627 TU 630 EX 647

AAOA of about 9months

Everything always paid ontime

Baddies:

One collection from a year ago, unpaid utility bill.

14 inquiries over the last 2 years, many of them autoloans.

So far I've applied for the discover IT card and was declined, I called the backdoor and was told it was because of my collection and short credit history. I asked about the secured and they said it's not something they actively offer. The only solution I was told was that I could apply again via a joint application but I don't have anyone who would do that.

I've applied for a cli when I got my chase slate but was declinded and got a HP.

I applied for an autoloan through capital one and was denied.

I checked all the prequalify sites and have nothing.

And tried the shopping cart trick, got nothing.

I really want to pick up a couple extra cards before I garden, I feel like a low limit chase card and an Amazon store card just isn't enough. I would like atleast one other card with a decent limit.

I feel like my only other option is to get stuck with a 500 dollar limit capital one card, im not sure the 500 dollar limit is worth the inquiry and the $39 fee. Do you think I should explore capital one? I'm also afraid of getting denied again, which seems to be the running theme in credit apps lately.

I thought about going with another store card, but I think I would prefer an actual credit card over another store card. Unless you think a store card would be a good option for me?

Also my current Income is 40k if that helps any.

I'd love to get a decent Amex card, but I think they may be out of the picture for now.

Any ideas?

RobertEG · ‎11-12-2014

I would wait until the Chase is a year old, and then app for a bank card.

You already have a good mix of credit, and I would hold out for a bank card.

As an aside, are you opted in or out?

Being in a building stage, you may want to be opted-in, as any offer you receive based on a CRA listing must be honored if you app and continue to meet the criteria they specified in getting the listing used to make you the offer.

Anonymous · ‎11-13-2014

I agree with Robert - time is your friend here. Get at least 6 months of payments on the chase card before applying for anything else.
Work on getting the collection cleared. PFD if its unpaid, GW if its paid.

Anonymous · ‎11-13-2014

I thought I was opted in, but I've never received any prescreened offers. My girlfriend gets like 4 capital one offers a month and I get absolutely nothing. I thought maybe it had something to do with my age, but I went over to the opt in site and opted in. So hopefully that helps.

And I've been desperately trying to get PFD on that collection but everytime I call they don't budge. What is my next move? DV Letter? How does the dv letter work exactly? I know it's a debt validation but if they have an unlimited amount of time to validate, doesn't it kind of become pointless to DV?

Thanks!

Anonymous · ‎11-13-2014

Yeah, a DV now would be untimely and pointless. Try different contact methods for the PFD offer. Try email contacts and written letters. If you've been asking for the PFD 'in writing' that may be a sticking point. Some CA's are averse to putting such agreements in writing, because such written agreements could potentially damage their relationships with the CRA's.

SunriseEarth · ‎11-13-2014

Stop apping. With a short history and tons of INQs, you won't have much success at this point. You can definitely garden with two cards, since UTIL and payment history have a huge effect on your scores. With two cards, make sure one posts with a zero balance and the other posts with a balance of less than 10%. It may be easier to pay Chase off before the statement date and letting a balance post on Amazon, since the Amazon CL is higher. However, do whatever makes the most sense to you. Do this for 6 months and then see where your scores are at before apping again.

As for the collection, you might also consider paying/settling and making GW removal attempts.