I'm an Authorized User on verge of first account. Advice??

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DaftMonk
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I'm an Authorized User on verge of first account. Advice??

Postby DaftMonk » Thu Mar 21, 2013 8:27 pm

Hey Everyone!

I'm a newbie here, and I would like your advice on how I should go about applying for a new credit card (in order to optimize my credit score).

I'm an authorized user on my mom's Gold Premier Rewards charge card, and she's never missed a payment and always paid on time.

I currently use a debit card for almost all of my own purchases. The GPR card is used for gas, textbooks, and occasionally groceries.

I may have to apply for a car loan in about 2 years, which is why I'd like to start building that score ASAP. So far, the Amex Blue Sky card or Chase Freedom Card seem to be my top choices.

Here's some info about me:

736 = My FICO Score

27 years = Account Age listed on my Amex account on myfico.com
-1986 = Original card holder's member date
- 2009= Date I was added as an authorized user to this card.

1 student loan paid off on-time and in-full ($5,000)

I'm currently unemployed and have little assets. I graduated college in May 2012 and worked from July 2012 to March 2013; I was recently laid off due to a company restructuring.

Myfico.com says that high revolving balances (~$9,000 from my Mom's expenses) and credit card inactivity are hurting my credit score.

Questions:

1) What would be the best course of action to start building my credit score?

2) Is there any way to backdate my new Amex account/card to 1986?


Thanks!


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PlatinumAMEX94
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Postby PlatinumAMEX94 » Fri Mar 22, 2013 11:12 pm

Until you have verifiable salary/wages you won't be approved for anything. You have to put something as income due to the CARD act, otherwise it will automatically be denied. After you have income you should call AMEX and ask them if they will issue you a green card.

They won't date you back to 1986, they stopped doing that for AU. If you're lucky they will date to 2009 when you were listed as the AU.
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DaftMonk
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Postby DaftMonk » Sat Mar 23, 2013 12:08 am

PlatinumAMEX94 wrote:Until you have verifiable salary/wages you won't be approved for anything. You have to put something as income due to the CARD act, otherwise it will automatically be denied. After you have income you should call AMEX and ask them if they will issue you a green card.

They won't date you back to 1986, they stopped doing that for AU. If you're lucky they will date to 2009 when you were listed as the AU.


Thank you very much for the answers. Looks like I'll apply once I'm back to work.

With regard to the average age of my accounts, if I decide to open a brand new Visa card while keeping the "26 year old" AU Gold card account, will my average age of accounts drop to 13 years?

Thanks!

DavidNY
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Postby DavidNY » Sat Mar 23, 2013 1:28 pm

DaftMonk wrote:The GPR card is used for gas, textbooks, and occasionally groceries.


Sallie Mae MC offers 5% in those categories and is accepted in many more places than Amex.

https://www.salliemae.com/landing/WorldCreditCard/

You might be able to get it as a joint account with your mom.

The cash back can be used as a statement credit.

mattymatt808
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Postby mattymatt808 » Sat Mar 23, 2013 4:07 pm

If they backdate you to 2009 then an AMEX would be the way to go for the longest history, otherwise any card will build your score at the same rate. If you don't want to pay an annual fee the Blue Cash Everyday is great (or the Blue Sky as you mentioned). In terms of score building, more important than your card choice is your utilization, so it would probably be best to avoid more conservative lenders like Capitol One and Discover.
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DaftMonk
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Postby DaftMonk » Wed Mar 27, 2013 8:13 pm

mattymatt808 wrote: In terms of score building, more important than your card choice is your utilization, so it would probably be best to avoid more conservative lenders like Capitol One and Discover.


If I use the "hack" of consistently keeping my utilization in the 1-2% range on the day the credit card company reports the balance to the credit bureaus...than would it really matter if my credit limit if $2,000 vs. $10,000?

In other words, does the credit utilization scoring methodology weigh the dollar amount at all? Or is the scoring methodology strictly focused on percentages of utilization?

Cheers



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