Struggling to be approve for a credit card? - Page 4

carnivore · 02-14-2014, 12:10 PM

But then building credit would be as easy as getting a few credit cards and hardly using them. No?

D_IN_LI · 02-14-2014, 12:57 PM

Quote:

Originally Posted by carnivore

But then building credit would be as easy as getting a few credit cards and hardly using them. No?

If you are just starting out or building credit i dont advise on applying and opening more than 2 credit cards. first establish some credit with 1 or 2. and manager you money right, and then you can continue and extend your credit with more.

I am just starting out with my credit, and I only have applied for 2 and I only have a Discover card right now.

I don't have any plans on opening multiple or more than 2 cards right now. I need to build some credit with discover, and them maybe ill think of a 2nd or even a 3rd card.

Establishing credit is NOT just about getting approved for credit cards, its about managing money, and learning how to budget your cards, and keeping a good standing with them at the end of your statement.

vivace · 02-14-2014, 01:54 PM

Quote:

Originally Posted by FinAnalyst

There's a difference between using the card to "show that you have money to spend" and showing a low utilization % at month end statement.

Your credit card company knows how much and when you spend money, they can see all your transactions.. They could care less if you max the card out once, twice, or as many times as you want within the period, as long as you pay them in full at months end, or atleast the min payment (this is highly unadvisable)

On the other hand the credit bureaus only get to see a "snap shot" of your credit on a monthly basis.
All they see is how much you CURRENTLY owe vs total credit line. This is the tools they use to determine your credit score, among other factors such as age of credit, % of on time payments, total accounts, # of hard inquires, and any derogatory marks.

The point is, that you are perfectly fine to use as much % of your credit line (not advisable) just remember to pay most of the balance off before the statement date so that when they "snap shot" your accounts, it looks like you hardly need most of that credit line.
Once again I do not condone the maxing out of credit cards, specially for those who do not quite yet know how to manage credit and cash flows.

If I do it so that I have zero balance in my credit card at the end of every statement month, does that look bad to the credit bureaus?

jaxter09 · 02-14-2014, 02:23 PM

Quote:

Originally Posted by carnivore

But then building credit would be as easy as getting a few credit cards and hardly using them. No?

In a way "YES" i got my first credit card at 19 only use it every now and then never really knew what my score was or any of that. When I was 22 got a second credit card and also only use it every now and then and when i say every now and then i mean every 3 or 4 months when i remember i have a credit card. To my surprise now that I check my credit score I have a 720.

One thing that i can assure you is don't be late on your payments or your score is definitely going to drop

carnivore · 02-14-2014, 02:59 PM

I just checked mine on creditkarma. It's 646. I see now the 30% ideal thing. I'm at 4%.

kmpxx · 02-14-2014, 04:47 PM

Quote:

Originally Posted by carnivore

But then building credit would be as easy as getting a few credit cards and hardly using them. No?

Actually, opening a lot of credit cards around the same time period is a good thing (only if you get accepted though). Why? Because those credit cards age together and when you need to apply for another card or loan later on your average age of accounts (AAoA) don't take as big of a hit. Also, utilization isn't based on just one card. They pool all of your credit card limits together and add all of your balances from each card together to get utilization. Even if you have a card you don't use credit bureaus still use the credit limit on that card to calculate your overall utilization.

Utilization and length of credit history is important but the most important factor is your timely payments. Building credit isn't hard. Don't make it complicated because it isn't. Just log into your account before the statement post date and pay off a big chunk of the balance then pay off the rest after statement posts. My scores are all over the place depending on the bureau but it's generally around 770s. Just make sure you don't have any late payments and keep balances low when statement posts.

sweetDreams7 · 02-15-2014, 02:00 AM

Thats so weird how im reading post about not using more than 25% of the credit given. Ive use up to 90% (due to my wedding expenses) on my chase slate. ive always paid more than minimum though and always ahead of time. i also tranfer a known department store in so cal to my new social. I recently went to test drive a certified used vehicle and i was approve for a 1.9% interest on the car. They said that my credit was really good and itd showed i was a good payer.

JoseAle12 · 02-15-2014, 07:49 PM

how can i raise my credit fast

mayito · 02-21-2014, 06:15 PM

Use less than 30 % of your credit limit, pay in full by due date.

Charlie827 · 02-22-2014, 01:12 AM

I have applied for a capital one secure cc twice and have been denied both times. After receiving an answer from them in the mail as to why i was denied, i find myself at a loss and not sure what to do. Both times i received a letter from capital one denying me because of my social. The letter says that the info they have on the applicant is of a deceased person!! what in the world? I received my social in June of 2013, how can it come up as deceased when it was issued not too long ago?!

Has anyone else experienced this before? Should i just apply for a secure cc through Discover or just go to a Wells fargo and apply for one through them? thanks guys!

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Struggling to be approve for a credit card? - Page 4