Credit Card question | TigerDroppings.com

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Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
5528 posts

Credit Card question


about 6 months ago I tried to get my first credit card without any previous credit history besides a few month old auto loan...every place denied me due to lack of credit history except for USAA, they have me their minimum card (worst may be better word) but they gave me something nonetheless

I've been using it for the past 6 months spending around $1,000 per month on it and paying it off each month, my question is how long will it be before my credit score rises and I can get a better card if I'm spending around $1,000 each month and paying it off each month?


TIA



This post was edited on 5/3 at 9:05 am



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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56384 posts

re: Credit Card question


It's really about longevity. I would say a year is a good starting point.





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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1629 posts

re: Credit Card question


One year ago I got a secured credit card through Capitol One. It was my first credit card ever. Early last month I applied for a new credit card and was denied. I have a credit score of about 670 according to my application that was denied. Here is the comments for my denial:

quote:

Key factors that adversely affected your credit score:
Too few accounts currently paid as agreed
Length of time accounts have been established
Proportion of balances to credit limits on revolving accounts is too high
Lack of recent installment loan information
Too many inquiries last 12 months


My credit history is ~12 months old



This post was edited on 5/3 at 9:11 am


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Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
5528 posts

re: Credit Card question


I'm not too sure what those reasons really are trying to say...did you pay the accounts off too early and not spend enough?





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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56384 posts

re: Credit Card question


Hey, go get a signature loan for $400 from a credit union. Do it for 1 year.





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txtiger21
LSU Fan
Dallas, TX
Member since Jul 2010
250 posts

re: Credit Card question


If you applied for several credit cards just 6 months ago, I would wait a while. After 2 years all of those inquiries will drop off of your credit report and that will help you. Also, before you apply for a new card pay off your current card BEFORE the statement comes out. This will allow you to show 0% utilization, which will drastically improve your credit score if you are using over 30% of your credit limit each month.

You can use CreditKarma.com to get a better idea of what your credit score looks like and how certain factors influence it. It's free, safe, and provides fairly accurate credit score estimates.






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Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
5528 posts

re: Credit Card question


the limit is only $4,000, so I'm only using 25% of it each month





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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1629 posts

re: Credit Card question


quote:

Too few accounts currently paid as agreed

Not sure

quote:

Length of time accounts have been established

Same issue you are experiencing. Information about my credit history is 6-12 months old.

quote:

Proportion of balances to credit limits on revolving accounts is too high

This is my fault. One poster in this thread hinted at how to resolve this problem. I was keeping too high of a balance on my monthly statement instead of keeping it within 0-20%. It wasn't even necessary for me to keep a high balance since I could pay it off no problem.

quote:

Lack of recent installment loan information

Not sure about this one

quote:

Too many inquiries last 12 months

This one is for doing exactly what you are doing, applying for several credit cards and continually getting denied.

quote:

did you pay the accounts off too early and not spend enough?

I was at one point registering every purchase on my credit card, and immediately paying it off when the balance registered on my account. The problem was I did not monitor this balance appropriately during the week when they log your balance for your monthly statement. I've since swapped to balancing my purchases between my debit and credit card. When I swipe my debit, I usually select credit, in order to delay the hold on my account for a few days.



This post was edited on 5/3 at 9:31 am


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29987 posts

re: Credit Card question


No idea how long it'll take, but there are ways to find out when you're there.

One way is to just apply for a better card every six months or so. The hit on your credit score is small and goes away after awhile, it really isn't a big deal.

Alternatively you could sign up for one of the "free" scoring services out there. The scores they give you are not the same as "real" scores but you should still notice when it goes up. Or you could buy your score from one of the bureaus, it doesn't really cost that much.






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Will Cover
Washington Fan
Whiskey Dick Mountain, WA
Member since Mar 2007
24887 posts

re: Credit Card question


quote:

I've been using it for the past 6 months spending around $1,000 per month on it and paying it off each month, my question is how long will it be before my credit score rises and I can get a better card if I'm spending around $1,000 each month and paying it off each month?


FICO Score Breakdown

• 35 % Debt History (What is your track record?)
• 30 % Debt Level (How much is too much?)
• 15 % Length of Time You Have Been in Debt (How established is yours?)
• 10 % New Debt (Are you taking on more new debt?)
• 10 % Types of Debt in Use (Is it a healthy mix?)

Your FICO score can change whenever your credit report changes. But your score probably won’t change a lot from one month to the next. In a given three-month time period, only about one in four people has a 20 point change in their FICO score.






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