forrestst wrote:I was pre-approved for either the qicksilver one or the platinum card. I chose the platinum because it came with no AF and I'm in the rebuilding phase right now. The quicksilver one has a $39 AF and you get 1.5% cash back. When I do the math, with my $300 CL, I'd have to max my card out every month to come out ahead. If my spending falls short, it would cost me money to have the card in my pocket. It's my understanding I can have 2 captial one products and if I waited a few months, I'm positive cap 1 would give me the qucksilver one as well. My reasoning is almost all starter cards have a limited useful life, then it's time to move on. With the platinum card, I can have a spare card with no AF, so if it only sees a small amount of useage to keep it active, it's not hurting anything to keep it. Since I'm looking to build credit, I wasn't too concerned about rewards this time around and Cap 1 was willing to give me a card without a security deposit. The thing about credit is you have to have credit to get credit. As a friend of mine discovered, when he went to buy a home, the bank couldn't pull a credit score on him because he never borrowed money before in his life. He went and applied for a credit card and got rejected due to his lack of credit history. At age 50, he had to start out with a secured credit card and build up some history.
As for my mom, some slick talker at Wells Fargo convinced her to apply for a platinum visa card when she opened a checking account. I don't think she ever had a major credit card before in her life, just a couple of store cards. I know she had some friends who tried to talk her into dumping that card and getting a rewards card, but she refused. We are talking about someone who goes to the bank and wants to buy traveler's checks because she is going out of state for the weekend. She doesn't believe me when I tried to explain they you could use any major credit card to pay for gas at the pump. She'll drive across town because that's the station she has a fuel card for.
My plan now is to give it 6 months and see if I get a CLI from Cap 1 in that time and see if FNBO is willing to refund my security deposit by then. I wish FNBO had something better, but their best card only gives 1% cash back and I would have to get a savings account with them or something to get 2% back. I'm not sure if that would be worth looking into a PC or not. For me, chasing rewards feels like driving in the fast lane with a 50cc moped! My employer does offer a Visa card issued by UMB Financial Corporation, it offers 2% back at any location owned by my employer and 1% everywhere else.
FNBO does give me a FICO 8 score updated once a month and right now I'm at 635. Maybe wait until I'm around 700 to try for my next card.
Your plan sounds fine. I think you made the right decision for yourself with the Platinum vs Quicksilver One and I think you made it for the right reasons. What's important is that you're thinking about the short term and the long term. I agree with your sentiment that it does not matter what card you have now if it won't last long term either way and that you can always just leave the Platinum card there as a back up and make sure it is always paid on time.
There is a lot of reward maximization on this site and others and while I certainly think it's important, I think it is equally if not more important to establish credit responsibly. The average person's spending won't earn them a ton of rewards on an annual basis regardless. If you use that same credit responsibly to strengthen your profile, the real rewards will come when you apply for auto loans and mortgages. The difference between a bad rate even on a car can be $100+ a month easily. On a mortgage, you're talking thousands or tens of thousands of dollars over the lifetime of the mortgage.
What's important is being responsible with the credit you have. Time and patience will take care of your scores and credit profile. I think you're on the right track and I think you understand what you need to do to stay on that track. Good luck.