sandrafig2007 wrote:I have recently started my credit. I have only 1 credit card with a small limit of $300.. I have been paying my balance off in full because I heard that would help my credit a lot... I am hoping that in a couple of months I establish some type of credit but im just not sure how long that would take and if its enough to establish good credit with just one credit card... I eventually want to have well enough credit to get pre-approved for an American express card. But like I said I just dont know how long that would take... Please give me some good on advice how to get one... Thank you!
I established credit only 1 year ago (5/2010) with a secured Capital One Mastercard that helped me a lot. After that, I applied for a Reward Zone Mastercard with a toy limit of $100. My Cap One card had a secured limit of $500 and 5 months later, I increased in to $1000.
Amex denied me 3 times for their Zync card. In the meantime, I got approved for a Orchard Bank MC ($300).
Only when my Cap One hit its first anniversary date (May 2011), I tried again with Amex and got approved for the Zync, but as my history is not very old (1 year), they proposed me a limit set at $200 or $500 if I opted in their AutoPay service (they debit my checking account automatically after each billing cycle). I chose the 2nd solution. Also, Capital One approved me for another card (unsecured) at $500.
So, it's just my experience, but hope it will help you. Patience is the best way to establish a good credit. My score now is 677. I always pay on time and mostly in full to avoid paying interests.
My recommendation would be to start with a secured Capital One Mastercard, they don't report as secured (which is a positive thing), and you can choose a limit between $200 and $3000. It's also very easy to increase your limit online later on, by authorizing an ACH debit from your bank account.