Should I go for it?

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jupiter
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Should I go for it?

Postby jupiter » Tue Dec 11, 2012 11:57 pm

Hi, everyone! So for the last 5 months I have been building credit with a secured card from my credit union. I went with them after being rejected for a couple unsecured cards from the major banks.

My plan was to wait for a few more months and then apply for the union's unsecured card, but today I got a per-approval letter from CapitalOne for their Platinum card. I'm kind of torn about applying though, because though my history is good, it isn't very long and therefore I'm afraid of wracking up more hard pulls if CO doesn't approve me. Should I take the chance and go for it, or should I simply wait for a few more months and try for the credit union's unsecured card?

Thanks in advance for the advice!

Scores: TU 715, Vantage 716


Midori
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Postby Midori » Wed Dec 12, 2012 9:49 pm

Is it a Capital One Platinum with an annual fee?

If it has a fee attached to it, personally I'd bypass it. I'd pay a fee for a year or two just to get a starter credit card, but I wouldn't pay a fee for a second card.If you already have a secured card that you're building history with, I'd wait a little extra time for a better card with no fee. If I'm thinking of the wrong Capital One Platinum card, and it doesn't have an annual fee, I'd be more open to picking one up if you think it would help you grow.

MemberSince99
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Postby MemberSince99 » Thu Dec 13, 2012 4:24 pm

They will pull all 3 bureaus just so you know.

I agree with Midori - just keep your current card for a year and use it and let 1-4% report every month. After a year, you should be good to go for Chase Freedom/Discover More and possibly Amex Green, Citi, etc. You may get Freedom or More after 6 months with this card if the rest of your profile is good.

Cap One will NOT grow with you. In all likelihood, you will get one CLI, after 6 months, and then not see another for many many years if ever. You will have a 500 dollar limit card they will NOT increase even if you have an 800 score. And they hit all 3 bureaus to give you that.

I just don't see it being worth it, with a little patience you can do a lot better. More and Freedom have no annual fee and give you rewards and they will only pull one CRA. And the limits will grow over time.

jupiter
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Postby jupiter » Thu Dec 13, 2012 7:34 pm

Midori wrote:Is it a Capital One Platinum with an annual fee?

If it has a fee attached to it, personally I'd bypass it. I'd pay a fee for a year or two just to get a starter credit card, but I wouldn't pay a fee for a second card.If you already have a secured card that you're building history with, I'd wait a little extra time for a better card with no fee. If I'm thinking of the wrong Capital One Platinum card, and it doesn't have an annual fee, I'd be more open to picking one up if you think it would help you grow.


It's the Platinum version that does not come with an annual fee. But even so, I'm not sure the hard credit pulls this early in the game are worth it.


MemberSince99 wrote:They will pull all 3 bureaus just so you know.

I agree with Midori - just keep your current card for a year and use it and let 1-4% report every month. After a year, you should be good to go for Chase Freedom/Discover More and possibly Amex Green, Citi, etc. You may get Freedom or More after 6 months with this card if the rest of your profile is good.

Cap One will NOT grow with you. In all likelihood, you will get one CLI, after 6 months, and then not see another for many many years if ever. You will have a 500 dollar limit card they will NOT increase even if you have an 800 score. And they hit all 3 bureaus to give you that.

I just don't see it being worth it, with a little patience you can do a lot better. More and Freedom have no annual fee and give you rewards and they will only pull one CRA. And the limits will grow over time.



Actually, I'm not that interested in the Chase Freedom card. 1% cash back is nice, but I would rather not deal with the rolling categories throughout the year. Right now the cards I want to get are the platinum card from the credit union with 1% cash back, and the amazon Visa card since I do a lot of shopping on there.

I've heard that CapitalOne doesn't grow with consumers, which is another reason why I'm really hesitant. I'm starting to think it would be a much better idea to wait another few months, and then apply for an unsecured card. Just wondering, does Discover More have the rolling categories like Chase Freedom?

Daniel
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Postby Daniel » Thu Dec 13, 2012 7:39 pm

In this situation I would agree that your best option may be to just wait, however my reasoning is that, based on what is in your message, you don't have many tradelines, and have at least 3 inquiries that are recent. I might give it another 6 months, giving you 12 months of history, and reassess your options.

I definitely see the case for the Cap One cards with annual fees when that is your only/best option, however, these guys are right, the benefits of a More/Green/Freedom are much better and might be worth the 6 month wait. You could check out the Cash Rewards for newcomers card they offer. It is a no annual fee version of the Cash Rewards card they offer, but for little credit history. If I remember correctly, they have a pre approval checker on their website, might be worth a look, but I would personally lean towards waiting.



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