Road to 800s..

[Anonymous]

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@Anonymous wrote:

Yeah, wait until your scores hit.  Then whatever cards you want, get them asap.  Then they will age together and the longer you go without adding new accounts the faster your score will rise.   Don't worry about inquiries, they fall off after 2 years and only affect your score for 1 year.  I recommend Discover for sure since they are versatile, have excellent service, can grow large, and love thin files.  If you only planned on one more I would get in with a great credit union like Penfed or Navyfed.

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I am planning on app-ing for Discover It for sure.

About PenFed or NFCU, will that be possible for me to get their credit card soon after I become their member? Let's say if I become their member today, will I be eligible for a credit card on May 2nd?

[Anonymous]

You can app for cards there as soon as you join or at any time.

[Anonymous]

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@Anonymous wrote:

You can app for cards there as soon as you join or at any time.

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Got it.  Should I try for PenFed Promise first or should I go for Power Cash Rewards straight away? Or simply Gold Visa?

[Anonymous]

I think approval criteria is the same and they just adjust the limit accordingly, so whichever one you want, go for it.

[sarge12]

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@Anonymous wrote:

Hey guys,

This is my first post here. I cam across this community and decided to find our what you can recommend I should do. Here is my situation:

I opened my first CC ever in Sept 2016 - Cap1 Platinum Secured CC. Originally it was with $100 deposit and $251 CL. After 6 month (in March 2017) I got CLI for $300 and now it is $551. I use only 1-2% of it keeping my utilization really low. I also PIF every month.

I also have a car loan for $18,5k and paying it every month with autopay.

FAKO score is showing 683 TU with 6 inquiries (due to auto loan, I was set up for lease originally but then financial institution refused to approve lease and the dealership had to - without my consent though - send my loan to several other lenders and I got approved with Ally Financial). EQ or EX are not shown there.

FICO score is showing 710 EX and only 4 inquieries. Doesn't show EQ or TU though.

The ultimate goal is to be able to get mortgage with lowest rates, also to be able to lease good cars and to get and maintain score at 800s.

Want your advice on how to get to the goal fast and safe.

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An 800+ score is a demonstration of an exceptional credit history...To my knowledge the history part is required and takes time, and a good bit of it. There are many here that can tell you how to get 800+ scores, but it is not a goal that can be achieved fast, once achieved with good credit habits it can be maintained for many years though.

[Anonymous]

800+ scores and "getting there fast" are not two things that go together particularly well.

[Anonymous]

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@Anonymous wrote:

I think approval criteria is the same and they just adjust the limit accordingly, so whichever one you want, go for it.

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Alright then, I will wait a bit till I have all 3 FICO 8 scores and will apply.

@sarge12 & @Anonymous, of course I understand that getting to 800s is not an overnight thing - that's why I came here and asked for your advice.  Do not pay too much attention to the word fast - I meant as fast as it can be with all the resources that are available to me. 

I will post here once I have the updates.  Thanks everyone for the help!

[sarge12]

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@Anonymous wrote:

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@Anonymous wrote:

I think approval criteria is the same and they just adjust the limit accordingly, so whichever one you want, go for it.

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Alright then, I will wait a bit till I have all 3 FICO 8 scores and will apply.

@sarge12 & @Anonymous, of course I understand that getting to 800s is not an overnight thing - that's why I came here and asked for your advice.  Do not pay too much attention to the word fast - I meant as fast as it can be with all the resources that are available to me. 

I will post here once I have the updates.  Thanks everyone for the help!

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Treeqster...If I was just starting out on my credit journey, and wanted the strongest profile possible, this is how I would proceed. First, you need at minimum 1 installment loan and 3 credit cards, but having more good credit cards will make utilization easier in the future. I would shoot for 6 premium cards and avoid store cards.I would also want to have a mortgage. I would establish early on a strict habit of using cards to purchase only items I would buy if I had no credit cards and PIF always. Credit habits both good and bad, are developed over time, and once established are hard to break. After you have the 6 or so cards, a mortgage, and maybe an Auto loan, then comes the hardest part...waiting...for the months and years to pass, while always paying everything early. Why early?...because if you pay things as early as you can, a mistakenly forgotten payment will result in the payment being on time, not late. I also would pay every card used at least twice a month, this makes you avoid the delayed debiting of your checking account that causes many to wind up carrying balances, and also prevents ever being late. It took me a lifetime to learn how credit should be used, but now I know. As a citizen, I now have a concealed weapons permit, and when I leave the house I always know the most dangerous items in my possession are a loaded pistol and unloaded credit cards, both used carelessly are extremely dangerous and should be respected.

[Anonymous]

@sarge12,  I will definitely use your advice. Thanks!

Few more questions I want to ask:

1) If I have 3 credit cards with different CL - will that matter which one of those will keep balance from $1 to $8.99?

2) Does Cap1 make the secured CC an unsecured one at some point? And if yes, when does it usually happen? Do I have to continue use the Cap1 secured CC every month in order to make it graduate?

3) When does Discover report the balance to credit bureau?  I wanted to use the cash back as much as I can by paying for my regular things (which I otherwise would have purchased with my debit card) and paying the balance right away but still leave the balance for Discover to report - will that method work btw?

[sarge12]

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@Anonymous wrote:

@sarge12,  I will definitely use your advice. Thanks!

Few more questions I want to ask:

1) If I have 3 credit cards with different CL - will that matter which one of those will keep balance from $1 to $8.99?

2) Does Cap1 make the secured CC an unsecured one at some point? And if yes, when does it usually happen? Do I have to continue use the Cap1 secured CC every month in order to make it graduate?

3) When does Discover report the balance to credit bureau?  I wanted to use the cash back as much as I can by paying for my regular things (which I otherwise would have purchased with my debit card) and paying the balance right away but still leave the balance for Discover to report - will that method work btw?

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If you want the maximum points for utilization you need under half of your cards to report less than 9% total limit utilization. That is why 3 are the least amount necessary because you can not have less than half reporting on 1 or 2 cards. If you have 5 cards 2 could report a balance if the total utilization is still under 9%. I am unfamiliar with             secured credit cards, as I have never had one, so someone else will be best to answer that part. I also am not aware of when any creditor reports to the CRA's, nor do I believe it important. They will report the statement balance whenever they do report, so the statement cut date is important to know. If you do not want a card to report a balance you need that cards balance to be 0 on the statement cut day for that card. If you want it to report a balance you need to wait till after the statement cut date to pay it, but still pay it before due date to avoid interest.