I am fairly new to this "world" but I have been doing a lot of research in the past few months about building credit and decided to take it to the next level and finally open up a new line of credit/ credit card.
I would need some advice, what you would do in my situation to improve credit score and gain some line of credit.
- I came to the USA 4.5 years ago, therefore my credit history is only 4 years old (there is not much I can do about that).
- I opened up a bank account at a Credit Union bank and to build credit, I figured it is a good idea to open up a secured credit card/account. So I did, secured $500 and paid off ~$22 every month and when it was all paid off I opened another one and did that all over again therefore I generated payment history.
- 2009 March, I bought a car 50% cash, and 50% finance via Wells Fargo and paid off the balance by paying 3X the monthly minimum (which was basically the maximum amount allowed per month to pay back, but I did not want to stretch out this payment history, since WF gave me a delicious 21% interest rate .
- I always paid/pay my bills on time and that gave me an excellent bill payment history up until now.
- End of 2010, I reached a credit score of 700 and applied for an American Express Platinum. I was naive, I did not know how prestigious that card was, but what surprised me even more is that I got accepted and they issued me an AMEX Platinum with no pre-set limit. Since it is a charge card, I always pay 100% off every month as soon as the bill comes out.
- Now, I have my third $500 secured loan and I have been paying these mini-amounts back but I am ready to establish some line of credit (unsecured).
Now I am in need of help. I want to get one or two VISA credit cards because they might lower my score in the next month but would help building my credit tremendously in the long-run. I would always submit 100% of the payments at the end of every month, and would ONLY use 10% of the available credit on each card to maximize the credit score in terms of gaining points.
But now, I truly do not know where to look for. Should I try the credit union where I established my credit? Or should I try Bank of America where I have my business and personal account? Which company is more likely to give me a line of credit? What type of credit cards should I apply for?
I was thinking about a bank credit card, such as the credit union or BoA AND the Capital One Venture Rewards credit card that would still gather me 2 miles for every dollar.
The only thing is, now I am really afraid that I will just accrue another inquiry on my report which I really do not need but do not know what / how to do it.
PS: I only have one inquiry in the past 12 months on my report.
Your responses are appreciated!