dreamymind wrote:You are right, this is my first card and I don't have any history at this point. However, I am not trying to switch to get a higher limit.
Unfortunately, the intent doesn't really matter. A thin profile is a thin profile and the limit on the card you have indicates that creditors are very wary so your profile probably won't support much credit seeking activity at this point. I'd recommend working with what you have. 6 months is a general suggestion as a timeframe to establish at least some history and I'd recommend considering another card at that point.
dreamymind wrote:And if I am denied, will it be on my record and will it hurt me?
If denied you have a hard pull. That's it. Definitely make sure you're routinely reviewing your own reports. You can see how items are recorded by looking at them.
dreamymind wrote:So would it hurt me in any way if I got a new card with another bank and closed the current account? From what I understand it would temporarily lower my score (for like 3 months), but that is the only issue that I see right now. Is there any other reason not to switch?
We can't tell you that doing X will lead to a change of Y points for Z time.
Consider the standard factors:http://www.myfico.com/crediteducation/w ... score.aspx
A new account reporting will drop your AAoA (Length of Credit History). You'll also incur another hard pull (New Credit). With your profile a hard pull will have a bigger impact than it would for someone with a thicker, established profile in good standing. As I stated above, your thin profile also won't support much credit seeking. You low limit on the card you have is a reflection of your credit and the concerns that your creditors have. For those reasons I recommend using this card for at least 6 months before worrying over another card.
Building and rebuilding credit is a long, slow process so make sure you're in the right mindset and have reasonable expectations. Once your profile is built adding new accounts won't be as big of a deal.