700+ credit score with history length less than a year?

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Ish
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700+ credit score with history length less than a year?

Postby Ish » Tue Feb 21, 2017 9:30 pm

I have two questions:

1. Is it possible to have a credit score above 700 with a history length of 9 months? More details:
I came to US 1y ago, I do have a Green Card. I didn't have any credit history. NONE. My first (and ONLY) credit card I got 9 months ago, it's $300 secured credit card. People said, that I will have to wait a few years to reach "Good" credit score.

But here I am, after 9 months of paying off regularly, keeping my utilization ratio at 1%. I installed Credit Karma after 5 moths and I saw 680~ scores for two bureaus. Now, after 9 months I see 700+ scores. How is it possible? Could it be my salary?

2. Can I apply for credit cards, like Capital One VentureOne, which requires good credit score? I mean, the score is good, but can they still reject me because of my history length?

Thanks for help
Last edited by Ish on Mon Mar 06, 2017 2:43 pm, edited 1 time in total.


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Vattené
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Re: 700+ credit score is history length less than a year?

Postby Vattené » Wed Feb 22, 2017 11:11 am

Welcome! It's certainly possible to have that score even with a limited history. There is no income information in a credit profile (though when you apply for credit, lenders do take income into consideration). You may not have much history, but if it is clean the score will be pretty good. That's a downside of reducing a credit profile to a single number: you could have the same score as someone with a much longer history. Creditors will generally be more willing to lend to someone with a longer history even though the score is the same, and they do take other factors like this into consideration.

You can apply for credit cards, but I wouldn't expect you're likely to get approved for a prime rewards card like a VentureOne at this point. I don't have any experience with Capital One, so others may be more useful here. They do have a wide selection of credit card products. It may be possible to apply for the VentureOne, and if you don't get approved at least get one of their "lesser" cards instead, but I couldn't tell you Captial One's reputation for this.
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Ish
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Re: 700+ credit score is history length less than a year?

Postby Ish » Wed Feb 22, 2017 9:04 pm

Thanks, two months ago (so, with 6-7 months history at the time) I was pre-approved and then even approved for Platinum Credit Card From Capital One: https://www.capitalone.com/credit-cards/platinum/. It says "This card is for people with AVERAGE CREDIT".

The thing is I'm not sure what my credit score really is. I know the number, but is it good? average? Technically 700+ is good, but my files are pretty thin. So.. I thinking about 3 options:
A. Safe option: Apply for Platinum Credit Card (I was pre-approved twice and approved once in past 3 months.. although after those 3 letters I didn't get more). I'm not sure what that means?
B. Risky option: Apply for a better card, like VentureOne. The risk of being rejected is big.. I think.
C. Wait with my secure $300 credit card and apply for a better card after some time. I have no idea how long should I wait though.

C* In about 4 months (I will have 1y history) I will probably ask my current bank to convert my secure card to non-secure, regular card. They should agree, but that will be probably a hard inquiry.

Which option would you recommend?

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CarefulBuilder14
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Re: 700+ credit score is history length less than a year?

Postby CarefulBuilder14 » Wed Feb 22, 2017 9:48 pm

With 9 months of history, you should be looking at unsecured cards with rewards...and AFs only if the cards have great rewards or perks.

Chase Freedom, Discover It, VentureOne, QuickSilver...these are within the realm of possibility. Do avoid cards with a $5k minimum CL.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
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Ish
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Re: 700+ credit score is history length less than a year?

Postby Ish » Thu Feb 23, 2017 8:47 pm

CarefulBuilder14 wrote:With 9 months of history, you should be looking at unsecured cards with rewards...and AFs only if the cards have great rewards or perks.

What's AF?
What if they reject me? Will they offer me other card?
If they reject me for let's say VentureOne, do I have to wait 6months for the next inquiry?
If they will offer me another card - will it be shown as two hard inquires (one successful and one rejected)?

CarefulBuilder14 wrote:Chase Freedom, Discover It, VentureOne, QuickSilver...these are within the realm of possibility. Do avoid cards with a $5k minimum CL.

I don't know what's the credit limit for those cards. They don't say..

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Re: 700+ credit score is history length less than a year?

Postby Vattené » Fri Feb 24, 2017 11:06 am

Ish wrote:What's AF?

Annual Fee. There are good rewards cards that can still be worthwhile despite having an annual fee. For example Amex has a Blue Cash Preferred card that costs $95 a year but earns 6% cash back at supermarkets and 3% at gas stations and certain department stores. If you spend enough on groceries (at stores coded properly as grocery stores), you'll net more in rewards with the annual fee than a card with no annual fee. They also have a Platinum card that costs $450 a year, but has a lot of travel-related perks that make it worthwhile for the frequent traveler.

There are also bottom-feeding lenders that charge annual (or even monthly) fees. These are for people with bad credit and no other options, and are to be avoided if at all possible. You're already beyond the place where you even need to consider these. Secured cards are a step above this, and CarefulBuilder was saying you don't even have to go that "low" in the credit card hierarchy.


Ish wrote:What if they reject me? Will they offer me other card?

It depends on the lender. If you submit an application online and get rejected, you will have to contact them (you can find reconsideration numbers across forums for the lender in question) for the hope of getting something, and it is only a possibility that is up to their discretion. If you were to apply for a VentureOne and not get approved automatically, it may be possible to call Capital One and talk them into reconsidering you for the card, or if not that then something that doesn't require as good of a credit score so it's not a wasted inquiry.


Ish wrote:If they reject me for let's say VentureOne, do I have to wait 6months for the next inquiry?

You could apply for something else, but a profile with a short history isn't going to support a lot of inquiries. It could look to lenders that you are seeking credit too aggressively. Not saying that it's impossible to get approved for something else right away, but it's definitely safer to let that inquiry age a bit along with the account you currently have. I may be inclined to play it more safe than necessary, too.


Ish wrote:If they will offer me another card - will it be shown as two hard inquires (one successful and one rejected)?

If you go the reconsideration route and are successful, they will use that inquiry to approve you for the other card. Just one HP.


Ish wrote:
CarefulBuilder14 wrote:Chase Freedom, Discover It, VentureOne, QuickSilver...these are within the realm of possibility. Do avoid cards with a $5k minimum CL.

I don't know what's the credit limit for those cards. They don't say..

Those cards can get approved with low credit limits - which is good in your case. You can get approved for a decent card and put up with a low credit limit at this point. If I recall CarefulBuilder started out with a $500 Freedom. There are cards that have minimum starting credit limits. Any Visa Signature card (for example, a Chase Sapphire Preferred) must have a minimum credit limit of $5,000. Your credit profile doesn't support a limit that large, so applying for a card that requires a limit like this would be a wasted HP.
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CarefulBuilder14
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Re: 700+ credit score is history length less than a year?

Postby CarefulBuilder14 » Fri Feb 24, 2017 1:34 pm

Re: My first card
Mine was $600, but $500 is the minimum CL on Freedom.

Re: Visa Signature
CSP does require a $5k CL but the same cannot be said of all VS cards, or even all Chase VS cards. The Chase Amazon comes as VS and starts as low as $500.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
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Vattené
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Re: 700+ credit score is history length less than a year?

Postby Vattené » Fri Feb 24, 2017 4:13 pm

My mistake (2 mistakes, actually), I thought that was a VS requirement across the board.
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Ish
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Re: 700+ credit score is history length less than a year?

Postby Ish » Fri Feb 24, 2017 10:17 pm

Thanks guys,

Actually, I made a mistake too! I looked today at Credit Karma and I have 7 months history. Scores 704 on TU and 719 on Equifax.

What CL +/- should I expect? More or less than 1k?

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CarefulBuilder14
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Re: 700+ credit score is history length less than a year?

Postby CarefulBuilder14 » Fri Feb 24, 2017 11:08 pm

Ish wrote:Thanks guys,

Actually, I made a mistake too! I looked today at Credit Karma and I have 7 months history. Scores 704 on TU and 719 on Equifax.

What CL +/- should I expect? More or less than 1k?

Only having 7 months of history does change things a bit. V1 requires a $2k CL, so I suggest that you avoid that for now.

QS requires $1k. Discover requires $500. Those are more realistic. I'd suggest Freedom or Discover.

You can find out this info for other cards by reading card terms below the Schumer Box (the box that contains a card's rate and fee info).
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card



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