Hello all! I've lurked around FWF for a couple of months and have learned a lot from the stories posted here. I am hoping to gain a bit of advice form you all in regard to my own credit situation...
Credit Accounts -Chase +1 Student Card: Opened 01/11, $1000 CL, Increased to $2000 01/12 (Requested) -Chase Freedom: Opened 02/12, $2000 CL, Increased to $3000 automatically 08/12 -Discover More: Opened 02/12, $1500 CL, Increased to $1750 automatically 08/12 -AMEX Blue Cash: Opened 06/12, $2000 CL, Increased to $5000 02/13 (online CLI request) -Edward Jones World Plus MC (from Elan FS): Opened 02/13, $8000 CL
I am currently just over 22 years of age and have worked very hard to always manage my finances wisely. I check my credit report often and have nothing negative reported. I feel like I've done fairly well considering my credit history is just over two years old. At this point, I am really wondering how some of the senior members grew their credit lines to such large amounts, although I know much of this will come as I continue to build my credit history. Also, I am really wanting to get my line increased on my Freedom card, but until this month is was my highest limit card. How long should I wait before requesting a CLI from Chase since I now have lines much more than that at AMEX and Elan?
I suppose I am mostly seeking some reassurance that I am on the right track.
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posted: Feb. 18, 2013 @ 5:20a
Assuming that you're not running up any balances and paying interest, you're doing quite well.
posted: Feb. 18, 2013 @ 8:13a
You are doing great. Time will help you as these cards age.
I suggest diversifying your debt -- consider a car loan in a few months. Different types of debt instruments help build your credit profile. This doesn't mean you have to hold on to the car loan... you can hold a low / no fee loan for a short time and pay it off or take the money and play FWF games with it if you have the discipline to do so within your ability to pay it off if it blows up (adverse action, frozen account, money held, etc). A mortgage / HELOC would help too. None of these should be done in order to just get a better profile... just consider them if they also make sense in your overall financial picture.
The other suggestion is to take one card at a time and use it towards the CL on your everyday spending. Bringing the balance up towards the limit often leads to higher credit limits which then leads to lower utilization ratios in the future. You don't need to spend a dime on CC interest in order for this to work. Pay it off every month.
posted: Feb. 19, 2013 @ 4:29p
Treffen said: Assuming that you're not running up any balances and paying interest, you're doing quite well. Absolutely, I've always paid off the balance in full each month. I appreciate the feedback!
debentureboy said: ...consider a car loan in a few months... This doesn't mean you have to hold on to the car loan... I am actually planning to purchase a car when I graduate at the end of the summer. I could pay for it in cash, but I like your suggestion to of financing it to diversify my credit portfolio. Not considering the cost of the loan, which do you think would be most beneficial: financing a small portion of it, say $5,000, and paying it out over perhaps 24 months or financing the entire amount for 48 months and paying it off very quickly over the course of a few large payments?
debentureboy said: ...you can hold a low / no fee loan for a short time and pay it off or take the money and play FWF games with it if you have the discipline to do so within your ability to pay it off if it blows up (adverse action, frozen account, money held, etc). What types of loans are you referring to here? Are they quite common?
Thanks again for the advice Treffen & DB.
posted: Feb. 19, 2013 @ 7:06p
I wasn't referring to much of anything in particular -- just a loan with low or no fees. I haven't gone loan shopping for a while, but last time I did there were banks / CUs that charged a fee for a loan and those that did not. I went with the "not". At the time, there were a lot of CUs that had no fee loans. What I did was to finance a lot of it (80%???) and then pay it down substantially after one month. I let it ride for a few more months and then paid it off. I'm not saying this best or even good... that's just what I did.
It's all based on "who knows if it's true" stuff from MyFICO and the like that creditors want to see you have a mix of credit types.
I was over $1M on credit card credit limit spread over 50 some cards plus a mortgage.
posted: Feb. 19, 2013 @ 8:33p
if you have 10k deposited with chase they will take special consideration on your credit line for CL raises. Special considerations meaning you get to talk to a credit analyst and they can bump you up
I am actually planning to purchase a car when I graduate at the end of the summer. I could pay for it in cash, but I like your suggestion to of financing it to diversify my credit portfolio. Not considering the cost of the loan, which do you think would be most beneficial: financing a small portion of it, say $5,000, and paying it out over perhaps 24 months or financing the entire amount for 48 months and paying it off very quickly over the course of a few large payments?
Stop taking HPs if you need auto loan then. You applied for enough credit cards last year and this month...if you want a good rate on the loan that is.
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