Beginner's plan, or what is the next move?

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Beginner's plan, or what is the next move?

Postby NouveauCredit88 » Mon Sep 02, 2013 9:01 pm

Hello everyone,

I've been lurking around for a few months and it's been very helpful in learning about credit. I'm a "beginner" - I received my first CC from a credit union about 8 months ago, which was probably generous as it was an unsecured card. I only used it occasionally and paid in full every month. After 7 months (and with an upcoming vacation) I applied for a Discover IT card, which I was approved for (at the time i had a thin file but Experian and TransUnion both pulled high 700s for me).

So now my credit looks like this:

- Credit Union Visa Signature with a limit of $500. I really don't like this card; they charge a web pay fee every time you pay, it has no rewards, and the CU doesn't have such great service. There is a Visa Platinum CU rewards card available at the CU but with my short credit history I probably won't be approved.

- Discover IT card with a limit of $4,000. I like this card, and Discover's service so far. I have about $650 balance which should be paid in full in the next few weeks, which is left over from my holiday. I love how I can use the rewards to get discounts on everyday necessities like gas and even my contact lenses.

- Fidelity Rewards Amex. Denied for a thin file and no revolving credit. I knew I was going out on a limb for this one. I do have an investment account with Fidelity so was hoping somehow that would help but guess not. This one I paid for; I got hit with two hard inquiries by BoA.

Right now my utilization is about 14%. My fako score from CreditSesame is 732 (down from 736) and CK says 690 (which is down from 706). I don't have any other debt, and make about $35k a year.

My main concerns are:

- Lack of acceptance of Discover card by merchants that cause me to fall back on using my Visa card that I really really don't like.

- Lack of any Amex card which is not a big deal, but again very annoying when going to merchants that only take Amex or cash.

- Lack of rewards from sectors like restaurants, amazon, travel that the Discover IT doesn't cover. I live in a metropolitan area and frequently eat out for lunch and dinner so this to me is a wasted opportunity to earn back some of my expenses.

- Growing good credit!

So..where do I go from here? Wait six months and ask my CU for a different card or CLI? App a new card right away? Or just sit back and keep my cc usage low or "garden". Any advice would be great, thanks! :)

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Postby otter » Mon Sep 09, 2013 2:31 pm

Welcome to the Forum, Nouveau, I am new here as well, but have learned much in a short time, so here's my thoughts:

  • Your archaic credit union VISA- I would honestly cancel the credit union card, but that's just me. It's the 21st century and the minimum any bank(or credit union) should have is online access, a mobile app, the ability to integrate with account aggregation software and the ability to pay off your bill online without a fee.
  • Discover IT- I like the IT card too. I wouldn't worry so much about acceptance because Discover has actually surpassed AMEX in overall acceptance by merchants. Other than Costco (and a few restaurants) very few places take AMEX exclusively, Most merchants really hate AMEX for their high fees and chargeback policies.
  • I would look for a card which is a good general reward card(CO quicksilver offers 1.5%) and perhaps the Barclaycard Rewards (2% for groceries, gas, and utilities). I think Citibank offers a few good cards for restaurant purchases if that's what you need.

Hope this helps some...
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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Postby DavidNY » Mon Sep 09, 2013 3:47 pm

As long as your CU card has no annual fee I would recommend keeping it but not using it.

Your Discover card is useful at 97% of US merchants. For now you can use your debit card for the rest. If security is a concern you can open a new checking account and just put enough in there for transactions.

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