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Building my credit

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
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Building my credit

Hello, I've been lurking on this forum for a while soaking in the info- thanks to the many knowledgable folks here!
My situation:
A year ago (Aug '18) my credit score was 580 
- HP for a Paypal line of credit ($250) 
- 2 HP from apartment hunting (my building got sold, and had to move within a month)
At this point I had some expenses that were coming up for the move, and I decided to try applying for a card- after not having had one for at least 15 years, and I got a QS1 - with a $300 CL. Needed at the time, and I have been PIF every month since.

Now my credit score is 720 TU / 723 EX
So I decided to try applying for a second card- one without an annual fee- Chase freedom unlimited 
I got a $3900 CL there. My plans are to just use it to pay my phone bill and internet for a few months to secure the sign up bonus.

My score hasn't dropped yet as a result of the new card and what will be the subsequent hit to AAoA and AoYA- I have a little time until that card reports.

My question is: would it be most beneficial to wait and see what the full impact of this card is on my score or should I apply for another card  while my score is still higher to have a stronger base of older accounts going forward ?

Thanks!

5 REPLIES 5
Regular Contributor

Re: Building my credit

If you open another cc it will lower your AAOA even more plus another hard inquiry.You should use the capital one and chase cc's to build a solid pattern of monthly on time payments.You should'nt apply for any more cc's any time soon.Having a cc with no apr is great to have.When I was rebuilding, I used what cc's I had to build a long history of on time payment to graduate up to better cc's with no annual fee and great rewards.It's seems your doing fine. I hope this helps.

Message 2 of 6
Valued Contributor

Re: Building my credit

I wouldn’t go for another card right after being approved for a Chase card, they don’t like credit seeking behavior and have been known to flat out close accounts for doing it. Give it at least 3 months before you put another app in, 6 months if you really want to be on the safe side. 

 

Rebuilding takes time. Congratulations on the approval!



Scores 1/2019:
Scores 4/2019:

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Goal: Garden... and garden... and garden.
Message 3 of 6
Super Contributor

Re: Building my credit


@judokaal wrote:

Hello, I've been lurking on this forum for a while soaking in the info- thanks to the many knowledgable folks here!
My situation:
A year ago (Aug '18) my credit score was 580 
- HP for a Paypal line of credit ($250) 
- 2 HP from apartment hunting (my building got sold, and had to move within a month)
At this point I had some expenses that were coming up for the move, and I decided to try applying for a card- after not having had one for at least 15 years, and I got a QS1 - with a $300 CL. Needed at the time, and I have been PIF every month since.

Now my credit score is 720 TU / 723 EX
So I decided to try applying for a second card- one without an annual fee- Chase freedom unlimited 
I got a $3900 CL there. My plans are to just use it to pay my phone bill and internet for a few months to secure the sign up bonus.

My score hasn't dropped yet as a result of the new card and what will be the subsequent hit to AAoA and AoYA- I have a little time until that card reports.

My question is: would it be most beneficial to wait and see what the full impact of this card is on my score or should I apply for another card  while my score is still higher to have a stronger base of older accounts going forward ?

Thanks!


I agree with @Saeren and @DIYcredit that you should wait. Together they have provided the reasons why.



FICO8 EQ 749 TU 779 EX 744 Total revolving limits 671300 (560300 reporting)
Message 4 of 6
Regular Contributor

Re: Building my credit

I also agree you should wait I raised mine to 755 did 2 CC (unsecured) and switched my other secured to unsecured when I refinanced my car (that last two was considered 1 hit) so I had 3 hits from all together and my score dropped 100 points from it....mostly from changing the AAoA so if you can spread them out definitely do my strategy was more so to have a history since I only had the secured at the time so when my car is paid off everything will be over 3 years AAoA so it kind of had a point but it just sucks rebuilding in the meantime LOL    Good luck

Starting Score: 537
Current Score: 725
Goal Score: 775


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Message 5 of 6
Valued Contributor

Re: Building my credit

Okay, I'm clearly on the other side of the fence as the other posters but it depends...

 

How long into the future can you foresee you really needing more and important credit? Like for a car or mortgage?

 

If it is longer than one year, you should app for 2 more cards right now. Sure you will take a score hit, but it will recover and probably be much higher a year from now. It is the price we have to pay to build a thick file. You will eventually have to take a hit at some point so why not now?

 

I would recommend applying for a Discover IT and then an AMEX BCE right now. Both companies like people with thin files but highish scores.

 

Really...At this point you have very little to lose except a bit of pride and everything to gain if you are approved for both CCs.

 

At worst case you get turned down now and can reapply in six months like the other posters recommend but if you get approved you are 6 months ahead of the game. Time is one part of the equation that keeps moving on. Get what you need as soon as you can IMHO.

 

Good luck!!

 

Let us know what you decide and how it turns out.


Starting Score: EQ 653 6/21/12
Current Score: EQ 791 3/20/19 - EX 746 2/16/19 - TU 809 4/8/19
Message 6 of 6