20yo starting to build credit. Critique plan?

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walle
 
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20yo starting to build credit. Critique plan?

Postby walle » Tue Dec 31, 2013 2:34 pm

I have an actual question below, but I just wanted to start off with the basics.

I am a 20 year old college student just starting to build credit and I wanted to make sure I'm doing everything right. I've been lurking around these forums for awhile now which has given me a great starting knowledge base. I applied for my first credit card this past summer and got rejected. After that, I applied for another credit card through my school bank and got accepted for $1,000. I have been using that card for the past 7 months, always reporting a balance below 15% and then PIF. I also recently got a $1,000 card from Capital One, but after 2 statements, it still isn't reporting. I have a 673 CK, which obviously doesn't include the Capital One card. I also have 5 student loan accounts totaling 9K in deferment.

My short term plan is:
-Hoping for a CLI to 1,500 or 2,000 in the next 4 months from Capital One
-Let my accounts age after that (current AoAA is 5 months)
-Apply for AMEX BCE in 12 months (I really like the rewards and have seen people with a short history get accepted)
-Open up several more student loan accounts totaling an additional 80K (unavoidable :( )
-My school bank hands out 5,000 credit lines to graduates but I'm hoping they could give me a 5K CLI instead of opening a new account
-Let accounts age while I worry about student loan payments

I would like to throw a Discover It in there somewhere just to see my FICO, but I don't know if an additional account is worth that.

Now my actual question:
My Capital One card isn't reporting (to TU, at least) after 2 statements. Is this normal? The inquiry shows up on CK, but nothing about my account does. I used an entirely different address when I applied for that card (my school apartment) than I did with my first card. Could this cause problems? Also, does that mean that my apartment will be listed as my primary address on my credit report, since it's the most recent one I've used?


MemberSince99
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Postby MemberSince99 » Tue Dec 31, 2013 4:30 pm

My cards with them reported to all 3 bureaus. I don't recall how long it took for them to show. It sounds like you are only monitoring TU and don't see if it's on the others yet. I'd give it one more statement to show and if it still doesn't I'd contact Cap One.


They should update your address with the bureaus most likely. I doubt it would cause any problems.

trainypooh
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Postby trainypooh » Tue Dec 31, 2013 7:44 pm

I agree with MemberSince99

walle wrote:My short term plan is:
-Hoping for a CLI to 1,500 or 2,000 in the next 4 months from Capital One
-Let my accounts age after that (current AoAA is 5 months)
-Apply for AMEX BCE in 12 months (I really like the rewards and have seen people with a short history get accepted)
-Open up several more student loan accounts totaling an additional 80K (unavoidable :( )
-My school bank hands out 5,000 credit lines to graduates but I'm hoping they could give me a 5K CLI instead of opening a new account
-Let accounts age while I worry about student loan payments

I would like to throw a Discover It in there somewhere just to see my FICO, but I don't know if an additional account is worth that.



You probably won't see anything higher than a $250 CLI, if at all within 4 months from CapOne. They are stingy.
I think the Discover It is a great card, although it is rated as a "high FICO score" card to obtain. You could try for the Discover It Student card and then see if they will upgrade it to the regular after awhile. BCE is also a great card as well.
My Wallet:
Discover IT - $9500
AMEX BCE - $9000
Chase Freedom - $5000
Capital One Quicksilver - $2700

Future Cards:
Chase CSP

JoDa
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Postby JoDa » Tue Dec 31, 2013 11:13 pm

One thing, just make sure to update your address when you move, especially once you graduate and have a more stable residence. New mortgage rules have banks combing over your credit report with a fine-tooth comb, and it caused some problems for me when I refinanced that an old, closed account had reported my mother's address as mine. I had to have her send in a utility bill showing that was her address along with a statement that her address was my permanent residence for a time and the years that it was my address. And I had to go through that hassle *10 YEARS* after I stopped using her address as my permanent residence (though I never updated the address on that account and it was closed only about 6 years ago...hence, update, update, update).
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K

MemberSince99
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Postby MemberSince99 » Wed Jan 01, 2014 7:09 am

I honestly don't see where your address was 10 years ago has anything to do with your ability to pay a mortgage now. I can see verifying your income even income history, but who in hell even cares where you lived 10 years ago or why? I'm failing in an epic way to see what that has to do with paying a mortgage.


It's an old account that is closed. As long as it's closed satisfactorily, I don't understand the intense scrutiny.


It's just more of the Orwellian direction this country has been going in for some time now. Next they'll want notes from your kindergarten teacher stating you were a model student.

HookEmHorns
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Postby HookEmHorns » Wed Jan 01, 2014 9:56 pm

You're going to borrow another 80K in student loans??!! Good Lord dude, just reading that makes me want to have a drink for you. I'd hate to even see the interest payments on that thing. Best way to build credit? Find a cheaper way to get your degree.
AMEX PRG~1/14--backdated to 2012
AMEX BCE~6/13--backdated to 2012
Chase Freedom~5/13
Discover IT ~12/12

:cool:

JoDa
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Postby JoDa » Wed Jan 01, 2014 10:16 pm

It matters not *why* they're so concerned with that address showing up on my credit report, I was only advising that, in order to make the OP's life easier, keeping his address up to date will be helpful. At the end of the day, I got a very handsome mortgage offer, so the extra paperwork didn't kill me, but one simple phone call to update my address would have eliminated the need for even that paperwork.

$80K+ in student loans is just the reality for many people today. I graduated with just over $100K for a BS and MA from state schools. Yes, I worked, but at a $5.15/hour minimum wage and only being able to work about 30 hours a week to keep up my studies, I could basically only pay for my groceries and gas out of my own pocket...everything else from tuition and fees and books to rent and utilities had to go on the tab. Today, the total cost of attendance at my STATE undergrad school is about $25K/year (in-state). ASSUMING you're pursuing studies in a field that will get you a good job, it won't kill you. Do what you can to max out federal loans and consolidate to lock in your interest rate once you graduate. Even with that BIG total number for me, I'm locked in at 4% interest and pushed them out to a 25-year repayment so my MANDATORY payments are only 6.5% of my gross income. Of course, I pay as much as humanly possible, so it looks like I'll be rid of them in 13 years, total. It shouldn't be this way, but it is what it is and you just need to do what you can to minimize the burden.
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K

MemberSince99
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Postby MemberSince99 » Wed Jan 01, 2014 10:25 pm

Well to each their own, but I think if they were THAT bothered about something that stupid, I'd go elsewhere. Life is too short to hassle with any more fascist idiots than we already have to.

HookEmHorns
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Postby HookEmHorns » Thu Jan 02, 2014 10:17 am

"$80K+ in student loans is just the reality for many people today."

And it doesn't have to be. If more people would utilize AP/Dual Credit/Community College most wouldn't be in that kind of mess.

Dude I'm not trying to down you, but just understand what you're getting into before you walk into that kind of debt.
AMEX PRG~1/14--backdated to 2012
AMEX BCE~6/13--backdated to 2012
Chase Freedom~5/13
Discover IT ~12/12

:cool:

JoDa
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Postby JoDa » Thu Jan 02, 2014 7:18 pm

I will admit that I'm 15 years out of high school, so between the time and a not-so-good school system, AP wasn't really an option for me AT THE TIME. It's my understanding the school district now offers more AP, so you're right that people should exploit that for all it's worth, if available. Community college *may* also be valuable, but, if going that route, do make sure that the credits will transfer fully and you won't get caught in a loophole. For example, my university now has a 2-year on-campus requirement UNLESS YOU ARE 24, MARRIED, OR HAVE A KID YOU HAVE AT LEAST HALF CUSTODY OF. Living on campus is far more expensive than living off, so just run those numbers (with expected increases in costs) to be sure.

And sometimes it just makes sense to go straight to the "real" college. Sure, my non-major classes cost more than I cared to pay for them, but I received a rigorous education overall, and especially in my majors, that has allowed me to be very successful in my field. Perhaps I would have been well-prepared by a community college for the rigorous upper-level courses in my majors, but there's a chance I wouldn't have been without the integration and focusing on *serious* students in even lower-level courses. My brother did the CC-to-real-college route, and while he has less debt from it, I also spent 6 weeks teaching him the calculus I learned in the "same" course he took at the CC, where it was dumbed down enough that he didn't really learn much. Of course, there are quality CCs out there, but it pays to get an idea of what you're learning and how that relates to what you'd learn elsewhere. It would be worse than paying the full boat upfront to pay for a dumbed-down course at the CC only to have to pay for it again in its full rigor at the 4-year university level.
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K



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