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

[s-blaze]

I hit a goal today and wanted to share wit somebody. Pulled my credit score out the sewer. Went from 500 to 755 in 6 months. Looking back, it was pretty easy. Just watched a gang of youtubes to find what was consistently true and ran wit it. Feels good to say i got good credit. And it happened way faster than I expected.

love it

 

[willypete]

'Increase your limit' is basically out (because of COVID) as of right now rite??
Tryna get rid of a annual fee on a CC, willing to close it if I could get my other CCs up there.

Not sure honestly. I increased my Macy’s limit a few weeks ago by about 2k with no issues. It may be out with certain companies.

 

[turbospartan]

Tryna get rid of a annual fee on a CC, willing to close it if I could get my other CCs up there.

What card? Might be better to request a "product change" to a card with no annual fee, rather than closing the card and losing that line of credit / age of credit etc.

 

[akademikgenius]

What card? Might be better to request a "product change" to a card with no annual fee, rather than closing the card and losing that line of credit / age of credit etc.

So if I have a card through my bank I can request to change it to a different card? Like go from cash back to a card that has points?

 

[$tatus $ymbol]

I tried to get a CLI with discover a few days ago and got denied. Been with them 5 years, no missed payments, never carry a balance and these bastards haven’t ever given me a bump.

 

[turbospartan]

So if I have a card through my bank I can request to change it to a different card? Like go from cash back to a card that has points?

Depends on the bank / card. For Chase, it is a very simple process and allows you to keep the credit line / history instead of closing the account.

 

[akademikgenius]

Depends on the bank / card. For Chase, it is a very simple process and allows you to keep the credit line / history instead of closing the account.

good to know. I bank with Navy Fed and would like to request to change to a card with points. When switching to a different product, do they new card incentives kick in too?

 

[flightman]

I hit a goal today and wanted to share wit somebody. Pulled my credit score out the sewer. Went from 500 to 755 in 6 months. Looking back, it was pretty easy. Just watched a gang of youtubes to find what was consistently true and ran wit it. Feels good to say i got good credit. And it happened way faster than I expected.

score provided by credit karma or fico?

 

[turbospartan]

good to know. I bank with Navy Fed and would like to request to change to a card with points. When switching to a different product, do they new card incentives kick in too?

Incentives like the cash back / points rate of the new card will kick in, but typically if you "product change" from 1 card to another, you don't get the sign up bonus. For example if you sign up now for the Chase Freedom Unlimited you get a $200 bonus for spending $500+ in 3 months. But if you were to "product change" from a different card to that card - you would get the 1.5x point on all spending (main reason for the CFU card), but you wouldn't get the $200 sign up bonus.

So it depends on what you're looking for. If you wanted to get out of an annual-fee card but keep that credit line - you can product change. If you want a new card for a sign up bonus, you can do that. Or you can do both, but make sure you apply and get your new card sign up bonus before you product change your other card

 

[akademikgenius]

Incentives like the cash back / points rate of the new card will kick in, but typically if you "product change" from 1 card to another, you don't get the sign up bonus. For example if you sign up now for the Chase Freedom Unlimited you get a $200 bonus for spending $500+ in 3 months. But if you were to "product change" from a different card to that card - you would get the 1.5x point on all spending (main reason for the CFU card), but you wouldn't get the $200 sign up bonus.

So it depends on what you're looking for. If you wanted to get out of an annual-fee card but keep that credit line - you can product change. If you want a new card for a sign up bonus, you can do that. Or you can do both, but make sure you apply and get your new card sign up bonus before you product change your other card

Okay, I’ll look Into it. Thx bro!

 

[HankHill]

'Increase your limit' is basically out (because of COVID) as of right now rite??
Tryna get rid of a annual fee on a CC, willing to close it if I could get my other CCs up there.

I have a couple cards with Citi and was able to get a CLI. Each within the past 6 months.

 

[melo0115]

Discover just increased my limit, I didn't even request it.

 

[dmbrhs]

Discover just increased my limit, I didn't even request it.

You can request increases, but generally CC companies do it without asking. However, they are required by law to inform you of any increase (I believe). Not sure if the notice has to be via mail anymore, but my oldest card got increases but it was an old address, so when I saw my limit once, I literally did a triple take. This was years ago when I had no money, too. I just paid it off regularly. I never even sniffed the limit they gave me. Ironically, I stopped using that card entirely maybe a year and a half ago, so they're lowering my limit already for non-use. I can request to maintain that limit, but I have to call them.

 

[dmbrhs]

I hit a goal today and wanted to share wit somebody. Pulled my credit score out the sewer. Went from 500 to 755 in 6 months. Looking back, it was pretty easy. Just watched a gang of youtubes to find what was consistently true and ran wit it. Feels good to say i got good credit. And it happened way faster than I expected.

Congrats, man.

Now, another piece of advice worth sharing: good credit does not equal good financial standing. Anyone can have good credit. Not saying you aren't in good financial shape, but some people think there is a correlation. I've had good-to-great credit for years, but it wasn't until last year that I'd saved up enough cash to really utilize it.

 

[blackboyfly]

Lots of good info in this thread, definitely taking notes, appreciate it fellas

Question, I'm in a position where I can pay off my student loans 100%, that interest is killing me. I'm just wondering if that will ultimately help or hurt my credit. The loan is the oldest credit item on my report by far. Next closest is a CC I opened in 2017. Any advice would be great.

 

[htg designs]

What's some of the main things you did? I need to do this.. I started building my credit when I was 19-20 and was on top of it for years but had some financial trouble and completely messed everything up now my scores like 5-550ish somewhere in there and it's almost made me depressed. I hate even looking at my credit score anymore but I've been trying to get back on it now that I got my finances In order again. I actually used to get a rush kinda and made me happy knowing I was always paying those bills on time building that credit but if you get behind it's a **** show sometimes.

I got a Discover It secured card (cus i couldnt get regular cc wit my score). Found out when they reported to the bureaus ( the day my cycle closes). So I would just keep utilization a low as possible. Its a cashback card, so i ran it up like the next day after my cycle closed but paid it down way before the due date, and left just enough to reflect between 10 and 20% untilization. Then I paid that balance in full the following month, ran it up and repeat. Those arent magic numbers, i wanted as low as possible but i wanted greater than 0 so they know im using it. I heard to stay below 25 and 30 % utilizarion. So i just set my bar at 20% max to be safe. I wanted to get another card but i been waitiing as i heard to wait after at least 6mnths so I dont look desperate for captial.

Must note i had a clean history (outside some soft inquiries) cus everything that was on my report fell off.

 

[htg designs]

score provided by credit karma or fico?

Fico 8

 

[dmbrhs]

Lots of good info in this thread, definitely taking notes, appreciate it fellas

Question, I'm in a position where I can pay off my student loans 100%, that interest is killing me. I'm just wondering if that will ultimately help or hurt my credit. The loan is the oldest credit item on my report by far. Next closest is a CC I opened in 2017. Any advice would be great.

Fortunately, I never had to deal with student loans, but that's especially aggravating. I just know once you pay it off your score will drop, just like paying off a car loan (that knocked me down for a bit). This is why the credit system is so stupid. You can be totally responsible, make payments on time, but because there are no more payments, the reporting agencies view it as you closing an account and your score drops. More if it's older. It literally punishes responsible people.

That being said, if you can pay off your student loans, the drop in CC score is probably worth it in the short term over paying that interest.

 

[para bellum]

Didn't even know companies lowered your limit based on lack of usage

Had an old Capital One Venture Card that I only use for some transportation here and there, then they hit me up last month telling me they're lowering my limit by 8k

 

[blackboyfly]

Fortunately, I never had to deal with student loans, but that's especially aggravating. I just know once you pay it off your score will drop, just like paying off a car loan (that knocked me down for a bit). This is why the credit system is so stupid. You can be totally responsible, make payments on time, but because there are no more payments, the reporting agencies view it as you closing an account and your score drops. More if it's older. It literally punishes responsible people.

That being said, if you can pay off your student loans, the drop in CC score is probably worth it in the short term over paying that interest.

Thats what I figured
Wife and I are trying to buy a house next summer, my scores are in the low 650s, hers range from 680 - 720. Worried that paying off the student loans will bring my score down too much.

 

[ROYGBiV]

Good **** man. Starting to see that credit can both be lost and gained easily. Just gotta be vigilant.

I'm a few points away from 8 hunnid, low-key proud of myself.

Hmm NVM. I checked my score based off CK even though I know it's not the most accurate. But no more than two weeks ago it was at 790 and now dipped to 783. What did I do wrong?

Monthly business:
CC- with balance, I paid more then minimum like always.

2nd CC- had a little balance, 50, paid it, then used the card for a big purchase and paid that off too before the closing cycle. So two payments this month.

3rd CC- zero balance to start the month. Bought something and paid it off before the closing cycle.

Assuming I'm ****ing up by paying this stuff off before my billing cycle closes. So the banks never get a chance to tax me

 

[dmbrhs]

Didn't even know companies lowered your limit based on lack of usage

Had an old Capital One Venture Card that I only use for some transportation here and there, then they hit me up last month telling me they're lowering my limit by 8k

Neither did I lol. I'm fine with it. I'm probably never going to use it ever again, but it's my oldest card (12 years). It'll eventually just get deactivated, but CC companies can't close your accounts unless you request it. It's a bit of a safety net for users.

One funny anecdote I have about credit cards is that Neiman Marcus famously only accepted AMEX or in-house Neiman cards for years (except for, like, their Hawaii store). They opened in Bellevue a little over ten years ago as AMEX only. Except, everyone in the Seattle area has Alaska Airlines cards because Alaska is based out of here. It was also the depths of the recession, so Neiman had to pivot and allow VISA for this market. They even had signs advertising they were accepting VISA. They completely botched their opening.

 

[the coolness]

Thats what I figured
Wife and I are trying to buy a house next summer, my scores are in the low 650s, hers range from 680 - 720. Worried that paying off the student loans will bring my score down too much.

I've never been a position to do so but I've heard what's best is to pay down like 95% and then carry that last little balance for a year or whatever.

You can avoid that big drop in your score and it should also keep you clear of any bull**** early repayment penalties.

 

[fluid hips]

Chase is desperate and keeps sending me approval emails for the sapphire preferred card

 

[cs02132]

Chase is desperate and keeps sending me approval emails for the sapphire preferred card

Do it get that $800 bonus they have
I need to wait a few months for some cards to drop off my 24 month history and I’m in there