24 Looking to build Credit... What are some good tips on your first Credit Card

So after about a week, I got this letter in the mail.


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So I called up and they said they have a very strict policy "The 5/24 Rule" and would not reconsider my application. I didn't know that they take being an Authorized User into consideration.

So In January 2017, I will apply again because by then at least 2 records should drop off.

Well I knew sooner or later it was going to catch up, I opened both Chase United Mileage Plus Explorer Card and Sapphire Preferred nettiing me 110K miles combined in the past 2 years, as did my GF by authorizing each other. In addition to my regular BankOfAmerica Cash rewards for daily spending, and the Barclays Arrival Plus card which gave me another $500 in travel redemption.

I hope I get accepted in January because I'm really looking forward for those bonuses.
 
Jordman23 said:
So after about a week, I got this letter in the mail.

So I called up and they said they have a very strict policy "The 5/24 Rule" and would not reconsider my application. I didn't know that they take being an Authorized User into consideration.

So In January 2017, I will apply again because by then at least 2 records should drop off.

Well I knew sooner or later it was going to catch up, I opened both Chase United Mileage Plus Explorer Card and Sapphire Preferred nettiing me 110K miles combined in the past 2 years, as did my GF by authorizing each other. In addition to my regular BankOfAmerica Cash rewards for daily spending, and the Barclays Arrival Plus card which gave me another $500 in travel redemption.

I hope I get accepted in January because I'm really looking forward for those bonuses.
Click to expand...


Call again. Some reps will look into your authorized user accounts and not count them for 5/24.
 
So, I need some advising on how to fix my credit.  I currently make pretty good money, but I have some issues on my credit report from 5/6 years ago, when I didn't make good money.

From all three reports, it seems the majority of my late items are going to come off in 2017. There is an "estimated removal date" posted on transunion. So it seems the common sense thing to do would be to allow these items to expire.

However, in the meantime, I presume it would also be smart to start rebuilding some positive credit. I currently belong to a credit union(navy fed), and i'm curious if I should apply for credit cards through them, or other secured cards, as I've researched on the web such as the Discover "it" card, Capital one secured etc. My current score is 586-600.

Any and all insights are welcome.
 
Verbal Kint said:
So, I need some advising on how to fix my credit.  I currently make pretty good money, but I have some issues on my credit report from 5/6 years ago, when I didn't make good money.

From all three reports, it seems the majority of my late items are going to come off in 2017. There is an "estimated removal date" posted on transunion. So it seems the common sense thing to do would be to allow these items to expire.

However, in the meantime, I presume it would also be smart to start rebuilding some positive credit. I currently belong to a credit union(navy fed), and i'm curious if I should apply for credit cards through them, or other secured cards, as I've researched on the web such as the Discover "it" card, Capital one secured etc. My current score is 586-600.

Any and all insights are welcome.
Click to expand...

Your lucky its about to be 2017 so id say just wait till they drop off but if your trying to get moving on your credit asap id say just send goodwill letters or pay to delete. Actually I wouldnt even pay to delete because it'll be gone after 7 years anyways.

Student Loans and other loans though make sure you try and get those all in positive as much as you can
 
So last month, my FICO score was 651, and I paid my statement balance in full (it was around 34% of my total CL). It rose like 40 points the month prior (just starting out with credit really). So I'm sitting here thinking my credit score was about to rise again because I paid it in full. Low and behold, it went down to 646! I was upset and was taken by surprise. Is the cause for the drop the fact that I went slightly over 30% of my CL?
 
^^^ No idea why it dropped but if you paid off a major balance like that and are not carrying one going forward your score should continue to rise
 
Verbal Kint said:
 
So, I need some advising on how to fix my credit.  I currently make pretty good money, but I have some issues on my credit report from 5/6 years ago, when I didn't make good money.

From all three reports, it seems the majority of my late items are going to come off in 2017. There is an "estimated removal date" posted on transunion. So it seems the common sense thing to do would be to allow these items to expire.

However, in the meantime, I presume it would also be smart to start rebuilding some positive credit. I currently belong to a credit union(navy fed), and i'm curious if I should apply for credit cards through them, or other secured cards, as I've researched on the web such as the Discover "it" card, Capital one secured etc. My current score is 586-600.

Any and all insights are welcome.
Click to expand...
You're going to have glorious 2017 then just watching negatives come off your report. If you have mortgage, student loans, car payment don't have any more late or missed payments on those of course, and you should get a secured card to show lenders that you are someone who makes payments on time. Go through your credit union and see if they have a secured card. If not, tell the associate their your situation (that you're trying to rebuild your credit" and they should have a card in mind for you.

I did a quick search and it looks like navy fed has a (good) secured card:

http://www.beverlyharzog.com/review-navy-federal-credit-union-nrewards-secured-card/
 
howfly2 said:
So last month, my FICO score was 651, and I paid my statement balance in full (it was around 34% of my total CL). It rose like 40 points the month prior (just starting out with credit really). So I'm sitting here thinking my credit score was about to rise again because I paid it in full. Low and behold, it went down to 646! I was upset and was taken by surprise. Is the cause for the drop the fact that I went slightly over 30% of my CL?
Click to expand...

If you don't have any balances reporting your score will take a hit. Show less than 10% but greater than 0% of your total credit limit for maximum scores.
 
howfly2 said:
 
So last month, my FICO score was 651, and I paid my statement balance in full (it was around 34% of my total CL). It rose like 40 points the month prior (just starting out with credit really). So I'm sitting here thinking my credit score was about to rise again because I paid it in full. Low and behold, it went down to 646! I was upset and was taken by surprise. Is the cause for the drop the fact that I went slightly over 30% of my CL?
Click to expand...
If you let over 30% of your CL statement cut yes that's why it dropped. Any statement that cuts balance gets reported. Should go up next month.

To not take a hit you want to pay before the statement cut date.
 
BeezyGotSole said:
If you let over 30% of your CL statement cut yes that's why it dropped. Any statement that cuts balance gets reported. Should go up next month.
To not take a hit you want to pay before the statement cut date.
Click to expand...

Unless I'm not understanding what the cut date is, as soon as my statement period ends, I pay off my statement. So I don't think it's that, but I guess you're talking about the day it's due?

jon4rd said:
If you don't have any balances reporting your score will take a hit. Show less than 10% but greater than 0% of your total credit limit for maximum scores.
Click to expand...

So they don't want me to pay it off in full? [emoji]129300[/emoji] That seems counterintuitive, I thought it'd seem like I'm more responsible if I pay it in full.
 
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That's the cut date, when your cycle period ends. Paying in full before then would show 0% utilization more or less (depends when your credit score is calculated). Paying before the due dates just avoids lye fees.
 
Well isn't that a terrible sign up bonus
laugh.gif
 
Verbal Kint said:
So, I need some advising on how to fix my credit.  I currently make pretty good money, but I have some issues on my credit report from 5/6 years ago, when I didn't make good money.

From all three reports, it seems the majority of my late items are going to come off in 2017. There is an "estimated removal date" posted on transunion. So it seems the common sense thing to do would be to allow these items to expire.

However, in the meantime, I presume it would also be smart to start rebuilding some positive credit. I currently belong to a credit union(navy fed), and i'm curious if I should apply for credit cards through them, or other secured cards, as I've researched on the web such as the Discover "it" card, Capital one secured etc. My current score is 586-600.

Any and all insights are welcome.
Click to expand...

Similar situation, just let the ones about to expire fall off . Def give Navy fed a shot, they just gave me a 19k limit. If anything atleast wait until a couple of those fall offf then apply for credit cards. You can put up some money for a secured card for now.
 
Mark Antony said:
Similar situation, just let the ones about to expire fall off . Def give Navy fed a shot, they just gave me a 19k limit. If anything atleast wait until a couple of those fall offf then apply for credit cards. You can put up some money for a secured card for now.
Click to expand...
Out of curiosity, which card did you go for with Navy Fed? I presume the Nrewards or the Cashrewards?  I took the plunge lastnight and applied for a Capitol One card and was approved for the unsecured Platinum, with a really low limit. Like 700.  I'll probably try for one more. Either the DiscoverIT card, or one of the Navy Federals ones. Secured or Unsecured. Ive read the Navy Fed Secured card is reported to the bureaus as unsecured. I dont know if that matters one way or another.

Thank you for the insights guys!
 
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