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Building my Credit up - RedCard or wait??

Honda89
Established Member

Building my Credit up - RedCard or wait??

For many years I just used a debt card to pay for everything and this past July I made a decision to start working on building my credit. I got a Cap1 secured credit card. Starting credit score was 552. I had one medical bill that was derogatory on my credit report that was for $36 - I paid that off. I have nothing else on my credit report - no outstanding debts. 

 

After 2 months of using the card responsibly and paying off that medical debt my credit score shot up to 671 TU & EQ. I still have no score with Experian??  Not sure why that is.

 

I was wondering what my approval chances might be in applying for the Target RedCard? It would be another great tool to help in building my credit and the 5% off purchases are really nice as I frequently go there. Or should I wait awhile and build up more history with cap1 and continue building my score? 

Message 1 of 16
15 REPLIES 15
FireMedic1
Community Leader
Super Contributor

Re: Building my Credit up - RedCard or wait??


@Honda89 wrote:

For many years I just used a debt card to pay for everything and this past July I made a decision to start working on building my credit. I got a Cap1 secured credit card. Starting credit score was 552. I had one medical bill that was derogatory on my credit report that was for $36 - I paid that off. I have nothing else on my credit report - no outstanding debts. 

 

After 2 months of using the card responsibly and paying off that medical debt my credit score shot up to 671 TU & EQ. I still have no score with Experian??  Not sure why that is.

 

I was wondering what my approval chances might be in applying for the Target RedCard? It would be another great tool to help in building my credit and the 5% off purchases are really nice as I frequently go there. Or should I wait awhile and build up more history with cap1 and continue building my score? 


Takes 6 months to generate a score from FICO. Since July was your start month. January EX should pop a score by then. Since you said TU/EQ I guess thats credit karma?




Homeowner since Sept 2020. Sharing my experiences after BK from learning here. Rebuild to recovery from the @ 540's.
Message 2 of 16
ImTheDevil
Super Contributor

Re: Building my Credit up - RedCard or wait??

^^^ same thought I had. OP, without having FICO scores in hand, you should wait. They’re the scores that lenders use for credit decisions. If you manage your card responsibly, you’ll probably debut in January around a 715 give or take. At that point, grab 1-2 cards and an SSL, and then just maintain and age them for a year. At that point, you will be sitting pretty and the sky's the limit.
Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | FNBO Prime Visa | FNBO Evergreen | PenFed PCR | PenFed Gold | Navy cashRewards | Navy Platinum | Apple | Wells Fargo Active Cash | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)


Message 3 of 16
Honda89
Established Member

Re: Building my Credit up - RedCard or wait??

Yeah those scores were from Credit Karma. 

 

I will just wait and see in Jan. Like you said by then I will have a FICO score and some history. I am hoping by then my CS will be at least in the early 700s. That big credit score jump I had this month. I am sure opening my secured card, paying the debt off and keeping under the utilization and paying the bill on time was why it shot up almost 120 points this month. Will be curious how much it the score will increase next statement cycle. 

 

Thanks,

Honda

Message 4 of 16
BallBounces
Valued Contributor

Re: Building my Credit up - RedCard or wait??

Waiting is certainly fine, and prudent.  Hard to disagree with it.

 

I will point out I think the RedCard is very potentially a smart and excellent choice for someone new to credit and who makes use of the store.  5% is significant.  Once you have verified you have FICO scores generated, I would personally not hesitate to add it if it is useful.

 

050719:     
032422:     



FICO 08 scores listed and are stagnated until multiple derogatory items expire in a few years.
Message 5 of 16
Honda89
Established Member

Re: Building my Credit up - RedCard or wait??

That was what I was thinking sense I already shop there it would be perfect. I would enjoy the 5% savings discount and build credit at the same time. It's a win win situation =) 

 

A friend suggested Finger Hut. I am trying to save money not spend it. That is why the Redcard makes sense to me. 

 

Honda 

Message 6 of 16
BallBounces
Valued Contributor

Re: Building my Credit up - RedCard or wait??


@Honda89 wrote:

That was what I was thinking sense I already shop there it would be perfect. I would enjoy the 5% savings discount and build credit at the same time. It's a win win situation =) 

 

A friend suggested Finger Hut. I am trying to save money not spend it. That is why the Redcard makes sense to me. 

 

Honda 


Let me strongly un suggest Finger Hut for you.  It's nonsense. (IMO)

 

Please just wait a few months and you will be in great shape! Kudos!

 

050719:     
032422:     



FICO 08 scores listed and are stagnated until multiple derogatory items expire in a few years.
Message 7 of 16
Semirxbih
Member

Re: Building my Credit up - RedCard or wait??

I have fingerhut and while it does give you more credit limits (I have a limit of $3,000) .. their products are overly priced compared to stores due to their monthly payment plans.

 

Having the card isn't bad tho, I have a $40 balance that I pay like $5-10 monthly.

Message 8 of 16
Honda89
Established Member

Re: Building my Credit up - RedCard or wait??

Update. 

 

I decided to go ahead and try for the RedCard.  I was approved for 500CL. Pretty excited for that with the 5% off as I shop their frequently.  =) 

 

I was doing some research on more starter cards and found Petal Card Visa.  I was approved for that card with a 750 CL and APR is 14.74 (lower than my cap1 secured card) they offer 1% cash back immediately and after 12 consecutive payments it goes up to 1.5% cash back. Seems like a great deal with the low APR and cash back. However looking at the agreement they sent with the approval. They never increase your CL.  This card can be another tool to help me bulk up my thin file and grow my credit. I am on the fence if I should activate this card or hold off til I can qualify for the cap1 QS card. 

 

Question. 

If you finance a phone through google does that appear on your credit report ? Is that loan reported to the bureaus each month? 

 

 

Honda

 

 

Message 9 of 16
FireMedic1
Community Leader
Super Contributor

Re: Building my Credit up - RedCard or wait??

You already took the hits on your reports after your approval. Activate it and keep it for a year then close it once you get better cards. Google is handled by Sync and it will report.




Homeowner since Sept 2020. Sharing my experiences after BK from learning here. Rebuild to recovery from the @ 540's.
Message 10 of 16
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