New Credit Builder 20 Years Old, How is my progress, what to do?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
11 posts
FutureAttorney
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New Credit Builder 20 Years Old, How is my progress, what to do?

Postby FutureAttorney » Sat Aug 24, 2013 5:33 pm

Hi everyone,

This is my first post, Im brand new to the forum, and would like feedback, im 20 YO with 2 credit cards, I have a Bank of Americard, i opened it a little more than a year ago as a secured credit card for $400 and after the one year passed it is now a regular credit card. I have one Capital One Journey Credit card which i got around the same time as the bank of americard and that one opened at $500 then they increased my limit after a few months to $750. I want to increase my limits, never been late and even a few times I maxed and payed in full the same month.

What should I do to get a credit limit increase,

Do you guys recommend getting more credit cards for me? ( i really dont want any more)


THanks Everyone,


sakhalin
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Postby sakhalin » Sun Aug 25, 2013 3:41 am

Hello and welcome to the forum!

You're off to a good start! If you don't want any more credit cards, then don't apply. However, keep in mind that Capital One does *not* like to give out credit limit increases no matter how much you beg them. Your request for an increase with Bank of America will likely be a hard inquiry, but you'll most likely get an increase since you have never been late on a payment/pay in full.
AMEX BCE ($20,000), Citi Forward ($6,800), Discover IT ($5,250), BoA Travel Rewards ($1,800)

SClay
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Postby SClay » Sun Aug 25, 2013 6:57 am

Hey there!

As you have two cards, you have already started the road to a great credit history! However, what is the utilization on your cards? Do you pay in full each month? We need to know things like this in order to determine what you should be doing.

Bank of America might give you a CLI (Credit Limit Increase). If it just got upgraded to a regular card, I would wait a month or two before requesting one. As far as Capital One goes, they are not generous with their credit lines at all and it is likely that the $250 increase you saw was a one time deal. I'm assuming they increased it because you were in the 'Credit Steps' program.

You might also want to consider checking your credit score via Experian or Transunion. You could also sign up for a CreditKarma account and it gives you a free credit score through transunion and has card recommendations.

What is your income like? This is a major factor in determining a CLI. Also, why would you like a CLI or more credit?

Before doing anything else, I would check your credit score to see where you are at and what you need.
Capital One Secured AU | $1851 | 10/2013
Capital One Journey | $1000 | 03/03/2016
American Express Delta Gold | Denied | 03/13/2016
Citi Bank Double Cash | $1000 | 03/13/2016
Chase Amazon Visa | Pending | 03/13/2016

Kripler68
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Postby Kripler68 » Sun Aug 25, 2013 10:44 am

Keep in mind That Cap 1 has cards that cannot go beyond a certain limit, not sure about the Journey,but I know they have 2 cards for sure that have credit limit caps on.
Call them and ask if your current card has a credit cap on it. if so, go for a product change if possible.
Some of the lower tier card limits max out at 750.00.

FutureAttorney
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Postby FutureAttorney » Sun Aug 25, 2013 2:10 pm

Thanks for your response,

The only reason i want credit limit increases is so my credit card utilization will be low, right now i spend 75%+ of my limit but pay in full every month and they still don't give me an increase ive tried with both b of a and cap 1.

FutureAttorney
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Postby FutureAttorney » Sun Aug 25, 2013 2:15 pm

Hi Thank You!

My utilization is often 75%+ and i pay in full every month

I checked my credit score through a credit tracking program from cap1 called journey credit tracker and my score is 699

I would like a cli so I can have less utilization & im guessing that will give me better credit

I also have a car lease for 2 yrs 260 a month which is been a year already with no late payments

FutureAttorney
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Postby FutureAttorney » Sun Aug 25, 2013 2:16 pm

I will ask them and what is any other cards i should consider with bigger cl's thank you!

beef.stu
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Postby beef.stu » Sun Aug 25, 2013 2:17 pm

If you really only want to have to keep track of 2 credit cards you could just open a new card with better rewards/benefits as your credit improves and take one of your current cards with lesser rewards, probably the Cap 1, and place it somewhere safe and not use it.

My chevron card in my signature was my second credit card that I got when I was 18. It served its purpose when I was new to credit, but I wanted a card that had some form of cash back. So I got the BCE and now the chevron card sits in a locked drawer and gets no use.

Also, if you find it difficult keeping track of all of your accounts and spending, I would recommend mint.com. I know when I got my 4th credit card and second checking account it became too much to keep track of, so I used mint.com which allows me to see all of my accounts in one place and reminds me when my credit card payments are due.
(01/10) - Wells Fargo Cash Back VISA Signature
(05/10) - Techron Advantage
(10/12) - Amex BCE
(02/13) - Chase Freedom VISA
(09/13) - Discover It
(03/14) - Sallie Mae Commence WMC
(09/15) - Citi Double Cash WEMC
(09/16) - US Bank Cash+ VISA Signature
(01/17) - Amazon Prime Rewards Visa Signature

lexrj
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Postby lexrj » Mon Aug 26, 2013 10:00 pm

I would get the AMEX BCE (BCP if you can offset the AF with spending) so you can start building your CL right away with the sp 61 days 3x CLI and every 6mo after that with the sp 3x CLIs. Once you reached a CL higher than 5K (don't stop at 5k) then you are pretty much set. If you have the need and want you will be able get pretty much any card you want (assuming you kept a good history and low util).
I wouldn't waste my time trying to build anything with Bank of America nor CAP One, if they give you automatic CLI that's great, other than that they are not worth it (specially not worth of hard pulls) and are only as good as a starting card. Once you get the BCE just put everything on it and forget about them, It should become sock drawers very soon.
This will raise your scores guaranteed!
Just make sure that when you apply for the BCE your reported UTIL is lower then 5%.

That's kinda of how I started 2.5yrs ago and look at my signature, right now I can get almost any card I want (dont need or want any for now) and my score will soon reach above 750. Not trying to sound arrogant just showing what worked for me.....
---------------------------------------
Current in my Wallet
Amex BCP - 25K (02/12)
Barclaycard Arrival WMC - 15K (10/13)

Future
US Bank Cash +

Socks drawer
Crap One Quicksilver - 1.7K (04/11)
CSP - 15K (03/13)

Scores
FICO EX 772 / TU 765 / EQ 762 - (09/14)
AAoA 2.1

FutureAttorney
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Postby FutureAttorney » Tue Sep 03, 2013 1:43 am

Hey everyone, i got another question,

So ive been hearing about how student cc's are low on credit limits and all but, will it effect me if i do a product change, and what do you suggest in me doing, closing my account for another credit card or just doing a product change, how will it effect my credit

thanks in advanced.



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