Ready to get to A Great Credit Score[Seeking Good Advice]

For just about anything you want to get off your chest about credit cards.
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CCGuy88
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Ready to get to A Great Credit Score[Seeking Good Advice]

Postby CCGuy88 » Sun Nov 03, 2013 2:04 pm

Not to bore you with a long story, but I was a person with little/no credit, and the little bit of credit I had was in delinquency (found out Jan this year). Long story short, I followed the advice of some great members here and went to annual credit report to find any issues. I found 3, and one was so problematic it took nearly 3-4 months to resolve (I started this in Jan.). Now all my disputes and issues are gone away, and this is what I have so far building credit:

- A car that was cosigned with a relative with good credit. All payments have been on time, and Its been about 2-3 solid years of being report to all the big 3 except Experian.

- I was added to my relatives Lowe's and Sears credit cards that have been paid on time, and I have been on there for about 1-1.5 years.

I am getting letters from Capital One now for cards, and my bank (Chase) has told me I am able to apply for some type of card (not sure what's the name, I'll find out).


SO... I'm trying to see the next step to do to get to a great credit score. This is what my plan is (and maybe its good/needs improvement), but this is it in a nutshell:

- Fix/Repair Credit (Done).
- Get A Secure Credit Card/Secure Bank Loan and only go a 1/3 of my max limit. ($400 for a $1,200 limit).
- After about 3-6 months, Get A Credit Card with Excellent cashback and rewards and repeat the steps from the last step.

So that should put me at:

- A car loan that has been paid on time.
- A secure loan/card that has been paid on time.
- My name on 2 other credit cards that are paid on time.

Then I can get a credit card and pay that on time.


Should I go for a secure loan or a secure credit card? I only intend to use this to pay for minor things like cell phone and gas, which is typically $100-150, and I pay it off every month.


Thanks for anyone that can give me some insights. I literally live in a small town, and dont really know anyone haha.


DavidNY
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Postby DavidNY » Sun Nov 03, 2013 2:08 pm

Try to get an unsecured credit card. If it doesn't work out I'd recommend the Bank of America Secured Visa card.

Midori
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Postby Midori » Sun Nov 03, 2013 2:39 pm

Capital One isn't too bad, but remember that it won't grow with you. I picked up a Capital One starter card with a $39/yr fee, and wished I had known about secured cards that convert to unsecured cards at the time.

I'm curious if Chase is recommending that you try for the Freedom, or if they have something else in mind. The Freedom's a pretty decent card (the 5% rotating categories can be hit-or-miss like any other card with rotating categories), and with no AF, I'd go for it if they think you have a good shot at it.

I wouldn't go for a loan I didn't need. It's my impression, just based on my limited experience, that someone is more likely to be turned down for a card for "lack of revolving credit" rather than "lack of credit mix" or something. Since you've already got your name on some store cards, and you've already got some other loans in there, I'd go straight for a credit card.

CCGuy88
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Postby CCGuy88 » Sun Nov 03, 2013 3:13 pm

Ahh I see, so here's my task for tomorrow:

- Should I sign up for a Myfico score? Does that pull a hard pull from my credit?

- Or should I go for a Chase Freedom card?

Midori
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Postby Midori » Sun Nov 03, 2013 9:16 pm

Credit score is nice to know, but I personally don't think it makes a huge difference unless you're marginal already. Then it can push you over the edge for an approval, or it can firmly squelch any chances of getting the card you want. For example, I applied for a Lowe's credit card and got turned down because of a "lack of revolving credit"--- the 800+ score, the pages of perfectly paid-off student loans/mortgages/car notes/etc notwithstanding.

I'd go for the Chase Freedom if my banker was making happy noises about it and thought you had a good shot at it. Then again, I'd had a checking account with Citibank for 7 years or so, and thought I would be a shoo-in for a plain-Jane Citi ThankYou, but they were pretty suspicious (took them a month and a few hoops before they gave me the yes) and then pretty stingy with the credit limit. But at least I got the darn thing in the end. But the lesson I took in the end was that The Bank and The Credit Card Company might have the same name, but it doesn't mean they talk to each other, and a positive relationship with one doesn't equate to a certainty with the other.

tldr; go for the Freedom if you're feeling pretty confident, but start smaller if you feel conservative and want a sure thing. Then apply for the Freedom in 6-12 months.

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otter
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Postby otter » Sun Nov 03, 2013 9:24 pm

CCGuy88 wrote: Should I sign up for a Myfico score? Does that pull a hard pull from my credit?


It's never a hard pull to check your own credit.
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

DavidNY
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Postby DavidNY » Sun Nov 03, 2013 9:57 pm

I'd try for the Freedom card and I'd never buy a credit score.

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Snowman
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Postby Snowman » Sun Nov 03, 2013 11:36 pm

CCGuy88 wrote:Ahh I see, so here's my task for tomorrow:

- Should I sign up for a Myfico score? Does that pull a hard pull from my credit?

- Or should I go for a Chase Freedom card?


Umm, you could get a score, but the FICO and the score you get from the CC company or bank wont necessarily be the same. No, there is no hard pull to check your score. If I may ask, what do you estimate your scores to be? and what is the Average Age of your accounts? IME, Chase generally discounts AU's and store cards when apping for their cards, and they like to see a year worth of history (revolving or installment.) If I were you, app for it and see what happens. If not, try again in 6 months to a year. Chase can be a rather conservative lender and they, IME, prefer your reports to be as clean as they can be before granting you a card. I live in California, and they have always pulled Experian for me, and they are also known for being account and inquiry sensitive. Good luck on whatever path you decide to take.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.

MemberSince99
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Postby MemberSince99 » Mon Nov 04, 2013 6:37 am

I don't know if Lowe's and Sears report AU activity to the bureaus. Amex does, and Discover does not, so it just depends on the lender (at least that's how those companies did it with an AU I added).

Chase likes to see a minimum of 6 months good usage with a card, and you have that. Since you say you got your baddies cleared up, and you haven't gone nuts on it yet, my guess is you have a great chance of getting a Freedom.

So here's what I'd do - apply for that (Freedom) first. If turned down, recon with them (they are one of the best to do that with). If you still can't get it on recon (and you should be able to from what I read) then go for the BofA secured card (99 deposit for a 500 limit). It eventually graduates to unsecured. If that fails, though you shouldn't get to this point but we can't know that, then try for something like Cap One.

That's how I would attack that. Let us know how it turns out.

CCGuy88
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Postby CCGuy88 » Tue Nov 05, 2013 12:30 pm

Thanks everyone for applying. I am going to go today or tomorrow and take a shot at the freedom. All I have is checking at Chase, so that must be the card she was referring to.



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