Blank Credit Canvass that Needs a Picasso!

[LadiiSota]

Hello Everyone,

 

I have been lurking on this website for a little while now, searching for suggestions on how people can build onto their credit with a decent foundation already established. I finally decided to sign up and give all of my details so that I can get a more personalized response from the incredibly helpful people of this forum.

 

My Slim Credit History

• Was able to open a college checking account through Wells Fargo at the age of 16
• As soon as I turned 18 I went to WF and applied for a Wells Fargo CashBack College Credit Card. I was approved with a CL of $750
• Age 21: CL is now $2800
• No late payments & Utilization ranges from 0-10%
• Took out a student loan for $3000 about 5 months ago, but if everything goes as planned, I will be a full time student for the next 4 years, so I don't have to worry about paying that any time soon.
• Unless my financial situation changes (by that, I mean win the lottery) I will continue to take out student loans to help pay for my next four years of school.
• Since I don't have my FICO scores, I took the quiz at myfico to estimate a range for my credit score. it was 695-735. CK has my TU at 722. (And, I know, I know, these are not accurate but it's all I have.)
• The only negative that is on my score is my AAOA.
• My debit card says Member since '08/ Credit Card says Member since '11
• Credit Card gets PIF every month. I try to wait until a day or two before the due date so that it can report a small balance. Never had a late payment.
• No "Baddies" as you guys would say.
• Directv account in my name for over a year. Never had a late payment.
• Pretty much a blank canvass that needs a Picasso

More Information

• My parents let me use my credit card to pay all of their bills (Mortgage, Car Note, uitl., etc.) so that I can cash in on my rewards. I also plan on paying my tuition in full on my credit cards in the future, so all together, it should be about $30-40000 going through my card per year.
• I am unemployed
• I had to cancel both my debit and credit cards last year because wallet was stolen. I got new ones though, and my debit card says Member since '08/ Credit Card says Member since '11, so I don't know if this cancellation hurt my AAOA.
• I don't travel much. I haven't been on a plane since I was 4 years old. Drive out of town a lot with my family though.

 

Whew! Now that I have all of that out of the way, I really need some insight on how to build on this.

 

I don't really have an interest in opening any new bank accounts as WF has been good to me and it is the most convenient bank here in Iowa. But I would like to add some credit cards within the next few months and then "garden" my account (I believe that's the appropriate term ).

 

I would like to hold onto these new cards and not apply for new ones until I graduate from college in 4 years, if not longer.

Since I plan on holding onto them for what I feel like would be a long time, I would like a nice variety that I can rotate when I get bored after the first few years.

 

What I Would Like in a Card

• I know this is silly but, for one of the cards, I would like it to have a little prestige. I got mail from AMEX inviting me to apply for the Premier Rewards Gold and the Cap1 Platinum, but I think that the Chase Sapphire Preferred would be a better fit, because like I said above, I will be running $30-40000 through this card a year, and I don't want to be subject to AMEX Financial Reviews, as I would most likely fail because I am unemployed and the money that is going through the card will come from my parents and financial aid.
• I'm not really picky about the other cards, my only requirement is that they be rewards cards, with atleast 1% cashback on every purchase or 1 point for every dollar spent, and have no annual fee, as I am only willing to pay the AF on my prestige card (only because the rewards I earn throughout the year should cover it! LOL)

 

Welp! That is all the information I have. I can't wait to see your suggestions on what would help build my credit, as well as the cards I should add to my pocketbook, prestige or otherwise.

 

Thank you all in advance for reading my long post!

 

-LadiiSota

 

[BobWang]

http://creditboards.com/forums/index.php?showtopic=528784

 

http://creditboards.com/forums/index.php?showtopic=483738

[shifter]

how does your parents' mortgage and car loan let you pay with a credit card?

[cv91915]

You might try several of the pre-approval sites like Card Match on creditcards.com. Your file is thin in revolving credit but you have no garbage.

 

There are also a couple of threads with links to the pre-approval checkers for the major banks. I'd try SEVERAL of those and see which options are presented before you apply for anything.

 

Make sure that you note whether the site is suggesting something because you're pre-approved, or if they're simply making a suggestion because the results of the soft pull on your credit are inconclusive.

 

If you have any questions about this post them here and you should get help.

 

Here's a good thread if you have the patience to slog through it all: http://creditboards.com/forums/index.php?showtopic=322856&page=1 The thread was started in 2008, so the info at the very beginning may become obsolete as the thread unfolds.

 

If you aren't presented with good options, get a Capital One card and maybe a local CU card, use them a little and let them age for six months, and then go credit card shopping again. Having three revolving trade lines reporting will do wonders for future approvals.

Edited May 16, 2014 by cv91915

[LadiiSota]

how does your parents' mortgage and car loan let you pay with a credit card?

 

Well, for the mortgage, US Bank sends my parents a statement every month, I went with my mom to US Bank, she showed them the statement, and then proceeded to pay the amount on her credit card.

 

For the auto loan, my parents are allowing my brother to reap the benefits of paying that though his credit card. I don't know who the loan is through, but I do know that they take the payment automatically every month.

[LadiiSota]

You might try several of the pre-approval sites like Card Match on creditcards.com. Your file is thin in revolving credit but you have no garbage.

 

There are also a couple of threads with links to the pre-approval checkers for the major banks. I'd try SEVERAL of those and see which options are presented before you apply for anything.

 

Make sure that you note whether the site is suggesting something because you're pre-approved, or if they're simply making a suggestion because the results of the soft pull on your credit are inconclusive.

 

If you have any questions about this post them here and you should get help.

 

Here's a good thread if you have the patience to slog through it all: http://creditboards.com/forums/index.php?showtopic=322856&page=1 The thread was started in 2008, so the info at the very beginning may become obsolete as the thread unfolds.

 

If you aren't presented with good options, get a Capital One card and maybe a local CU card, use them a little and let them age for six months, and then go credit card shopping again. Having three revolving trade lines reporting will do wonders for future approvals.

Thanks for this info. I will look into them immediately.

[LadiiSota]

http://creditboards.com/forums/index.php?showtopic=528784

 

http://creditboards.com/forums/index.php?showtopic=483738

Thanks for the reply Bob! I have a couple questions though, and I apologize in advance for being dense especially if the answers are obvious

 

1. After reading through the 1st thread, I see that you were helping someone with similar "stats" as mine. My question is: what exactly do you want me to pull from that thread? Should I attempt to follow the same steps that you walked her through?

 

2. In the 2nd thread, are those cards that you are suggesting I get in order to get my FICO scores?

 

Thanks again!

[LadiiSota]

Bump...

[BobWang]

My best advice for you is to

 

spend a month reading here

 

before doing anything.

 

You will become your own best advisor.

[chugs102]

You are doing great!

 

1) Make sure to live within your means. Don't charge your credit card unless you ALREADY have cash to pay it off

2) Pay bills on time. ALWAYS.

3) If your parents have an AMEX card (from Centurion bank, not other co-branded AMEX), ask them to add you as an AU

 

4) If you parents don't have an AMEX, apply for one.

5) If you are able to continue using your credit cards with discipline, then apply for several more. Use them periodically just to keep them open. otherwise, put them in a sock drawer. This will help with your AAOA.