@Anonymous wrote:So I started building credit in January 2022 - applied for CapOne QS One and approved for 300 SL. Someone suggested I apply for Apple Card and was approved for that in Feb - 2K SL. This month, I applied for Discover IT and was approved with 500 SL and GM Rewards (Goldman Sachs), which approved me for 7K. I'm assuming GM Rewards was a much larger SL due to heavy Apple Card use since receiving it in Feb. this year.
I do not yet have an Experian FICO8 score because I do not have six months of credit history. I do have a FICO8 for Equifax and Transunion, 745 and 784, respectively.
Again, this is a building - not so much rebuilding - of credit history because I never had credit in my name before. I have a great job - over 200K annually and no collections or bad marks on my report. It was just blank prior to Jan. 2022. Should I add attempt to add anything else at this time? Or just leave things as they are? If the latter, for how long? Also, should I be carrying any kind of balance on these cards - if yes, does carrying a balance mean allowing a balance to report and paying it off before the due date?
Thank you in advance for any advice/suggestions - on the above or otherwise.
@Anonymous
I would bet that you have the Equifax and Transunion scores from CreditKarma. Please do not get this wrong, but those are NOT FICO scores of any type. Those, specifically, are VantageScore 3.0 Scores.
FICO does take about six months and then you will see all three.
Seems like you are on a good start and a good path.
One thing to ask: the Capital One - is that a secured card? The $300 CL is a giveaway for either a Secured Card or a Bucketed Card. If it is NOT a secured card, then be aware that it is highly likely that you will struggle to see any "improvements" on this card (with "improvement" being defined as any CLIs - Credit Line Increases - or any other terms - such as Interest Rate). This is a well-known 'tactic' by Capital One.
The suggestion here is to wait for seven or eigth months and then apply for another Capital One credit card (if - and only if) you are so inclined.
Other than that, welcome to the Forum and it sounds like you are off to a really good start.
Starting Score: Exp 627
@Anonymous wrote:So I started building credit in January 2022 - applied for CapOne QS One and approved for 300 SL. Someone suggested I apply for Apple Card and was approved for that in Feb - 2K SL. This month, I applied for Discover IT and was approved with 500 SL and GM Rewards (Goldman Sachs), which approved me for 7K. I'm assuming GM Rewards was a much larger SL due to heavy Apple Card use since receiving it in Feb. this year.
I do not yet have an Experian FICO8 score because I do not have six months of credit history. I do have a FICO8 for Equifax and Transunion, 745 and 784, respectively.
Again, this is a building - not so much rebuilding - of credit history because I never had credit in my name before. I have a great job - over 200K annually and no collections or bad marks on my report. It was just blank prior to Jan. 2022. Should I add attempt to add anything else at this time? Or just leave things as they are? If the latter, for how long? Also, should I be carrying any kind of balance on these cards - if yes, does carrying a balance mean allowing a balance to report and paying it off before the due date?
Thank you in advance for any advice/suggestions - on the above or otherwise.
@Anonymous
The general concept is to keep the reported balances below 30% of your credit line.
As you likely know, your FICO Scores consist of several categories. Credit Utilization and Payment History represent 65% of your FICO Score (30% and 35%, respectively). So, credit utilization (the thing that we are discussing here) is really key.
So, with the Discover IT card with the $500 Credit Line, you would want Discover to report no more than $150.
Better yet, is to keep the reported balances below 10% of your credit line.
So, again, with the Discover IT card and its $500 Credit Line, you would want Discover to report no more than $50.
So, I specifically stated "reported balances below....". What does that mean, exactly?
This is a question that causes a fair | good amount of confustion.
The balance on each of your revolvers is reported to the three CRAs (Credit Reporting Agencies) on the "Billing Statement Closing Date". Or, whatever each of the creditors calls it. For example, Discover calls it "Statement Closing Date" while American Express calls it "Closing Date" and Capital One calls it "Billing Cycle".
Whatever that day is for each of your revolvers is THE DAY you want to know (well, along with the Due Date - which is something totally different from the "Billing Statement Closing Date").
This is something that changes each month, too. EDIT: to be clear, not the Statement Closing Billing Date......talking specifically about the amount reported to the three CRAs. Meaning, whatever is reported this month is "updated/replaced" by what is reported next month. I hope that is a good way to explain things. One thing on this point to keep in mind, however, is that with the much newer FICO models (specifically, 10 and 10T) it looks like "trending" is taken into account so be aware of that.
I tend to stop using a credit card three or four days prior to the Statement Closing Billing Date and to make a payment to "massage" what said revolver reports to the three CRAs. It is not something that you need to do, but it is something that a fair number of people do. I do not have but a few credit cards so it is something that - for me - is really easy to manage. It feels like it COULD be something useful for you (but, ultimately, YOU decide that).
In order to avoid Interest Charges you would then need to pay of the "reported balance" by the Due Date.
Does this help? Or did I raise more questions for you?
@Anonymous wrote:Thank you very much, @HowDoesThisAllWork
I signed up for Experian IdentityWorks Premium and the scores I referenced in my original post are what I see for EQ and TU and they say FICO8. They are different from my Vantage scores on CK.
In researching, I found Experian requires six months of active credit history but the other two bureaus do not. This is all so confusing - I a would not be surprised if I'm mistaken. I tried to add screenshots but can't figure out how to add photos.
My Capital One card is not secured- so after 7-8 months, apply for another card and close this bucketed card?
Good afternoon!
This whole thing regarding Credit is totally confusing. What makes it even more confusing is that there is so much "bad" information out there. And, misleading information.
Experian has - in my opinion - a really good service. For full disclosure, I subscribe to their service. I like it.
Regarding the screen shots - you will NOT be able to do that until you make some more posts. Specifically, until your "status/rank" changes. Once that happens, you will see an "Insert/Edit Link" and an "Insert Photos" link (in the toolbar where you see the "B" and the "I" and the "U"...just look a few over to the right and you will see those two (you will NOT at this point...but you eventually will if you continue to make posts and to reply).
Regarding the Capital One card.....waiting and then applying for another one would be the thing to do IF you had a reason to do so. But I fear that the $300 Credit Line card - as mentioned - is "bucketed". So, if you had a legit need for a "more useful" Capital One credit card - then, yes. Maybe even wait a year. Totally depends on how you operate and what your needs are.
Keep in mind that Capital One makes a Hard Pull against all three CRAs (Experian, Equifax, Transunion). So, that is something to consider if you should be thinking about another credit card down the line. If you were to be approved for that second CapOne credit card, then keep in mind that it is one more credit card that you have in a very short period of time. Chase, which is a VERY popular creditor, has a so-called 5/24 Rule. That is their "rule" that if you have five newly opened accounts in the last 24 months then they will not approve you.
So, you might be better suited to investigate another credit card from another creditor in that six, seven, eight months time. Again, all depends on you.
Figured out how to insert these photos! This is what I'm seeing, @HowDoesThisAllWork - EQ and TU say Fico8 but are these legit?
Thanks again, @HowDoesThisAllWork. This is so helpful. So I have yet to carry a balance on either Cap One or the Apple Card - I've used them both a lot but have paid them off in full every month.
So if I understand correctly, the "balance" I have on my card when the billing period closes - whether that is zero or 50 dollars - is what is reported to the credit bureaus and what is used in calculating my credit utilization rate? Thank you again for taking the time to respond - this is all really helpful.
@Anonymous
Yes! That is indeed what is used to determine the so-called credit utilization for each revolver (aka, credit card). So, you have a credit utilization for each individual credit card AND you have an overall credit utilization. The formula (and not being condesending here) is the amount reported / credit limit.
So, to continue with the Discover IT card....lets say that you have a $32 balance on the Statement Closing Date. Your credit utilization for that specific credit card is 32/500, or 6.4%. That would be really good.
To complete this thought, in order to avoid any interest charges on this card, you would need to pay off that $32 on or before the Due Date (which is roughly 25 days AFTER the Statement Closing Date).
And you are most welcome. This stuff is all really confusing. There is sooooooo much information.
If I might suggest, spend some time in this forum and then also in some of the others.
If I may, here are a couple of links that really helped me:
I can not emphasis enough just how CRUCIAL the Scoring Primer is. It does an amazing job and breaking things down and explaining things so that even I can understand it.
Welcome to the Journey!
@Anonymous wrote:Figured out how to insert these photos! This is what I'm seeing, @HowDoesThisAllWork - EQ and TU say Fico8 but are these legit?
@Anonymous
TOTALLY LEGIT!