Credit Tips: Building Credit History Tips

Posted On: June 1, 2006

Author: WellManicuredMan
Posted: Sat Mar 18, 2006 1:15 am
Post subject: Beginning Credit History

Hello, I’m new to the board but have been reading it and learning a lot in a short period of time.

Unfortunately, I started building my credit history late (I used a debit card for many years thinking I didn’t have any need for a credit card as I had enough money in my checking account all the time).

I’m currently 26 and got my first credit card a year ago. I was actually rather surprised with what I was able to get with practically no credit history what-so-ever. I’ve had a Wells Fargo checking account for some time and decided to try getting their Cash Back Visa Card, mainly to build credit but also because its nice to get some cash back. To my surprise they approved my application with a $3000 CL. 6 months later I applied for a Citi Dividend Platinum Select card (because the cash back on the Wells Card was very bad) and was approved with an $1100 CL (I had to mail in proof of a utility bill with my name and address on it).

Also, since I’ve had the Wells card for a year, they just instantly approved a CLI for me on the phone. I haven’t had the Citi card for 6 months yet but will be doing the online CLI as soon as I hit 6 months as I need a LOT more credit on that sucker.

I’ve since gotten my free credit report from all 3 companies but I didn’t want to pay to see my credit scores so I still don’t know what they are (although I’m really dying to know).

My question is, how was I able to get the above cards so easily when I didn’t have any prior credit history? On these boards I read about how people have to get gas cards, store cards, secured cards with annual fees, etc when they don’t have any credit history.

Thanks for reading.

Author: beyond platinum
Posted: Sat Mar 18, 2006 6:22 am
Post subject:

By your own admission, you have already answered your question. One suggestion I always give is that if you have a limited history or you’re going after your first credit card; try applying for credit with your bank or credit union first.

You had an existing account with Wells Fargo in good standing which makes getting a card from them painless. You want their business and they want your business. After having the Wells Fargo credit card for 6 months, you established a good payment history on your credit record which made getting a Citibank card even more effortless despite the low credit limit.

There are a lot of rewards cards out there so don’t feel limited by your choices.
_________________
“Believe not everything, but only what is approved: the former is foolish, the latter the act of a sensible man.” –Democritus

Author: Polonius
Posted: Sat Mar 18, 2006 11:43 am
Post subject: Building Credit History Tips

Quote:
You had an existing account with Wells Fargo in good standing which makes getting a card from them painless.
Yeah–you’d think so, wouldn’t you?

I was turned down for the Prime Rate Wells Fargo card in 11/03 and was NOT offered another card.

I’ve had three accounts with Wells Fargo for the past 13 years–two checking and one savings. All have always been in good standing. I’d never applied for credit with Wells before. My CREDIT PLUS score was 745 when I applied with no negatives on ANY of my credit reports except for one paid-off tax lien (which was put on, paid, and taken off within three months in 2002). I had about two dozen cards active at the time, all in good standing, utilization around 50%, but a fairly high total amount owed (about $150,000).

Two weeks after I was rejected for that card, Wells Fargo mailed me a check for about $2000.00. If I decided to cash it, I would have to pay 18.99% interest on the loan. I had never received any such check from Wells before, so I assume it was connected to my card application. I threw it away.

I have no idea why some computer at Wells thought I was desperate for $2,000 when I had over $10,000 in my three accounts with Wells at the time.

Banks bewilder me.

Author: TomfromCT
Posted: Sat Mar 18, 2006 1:10 pm
Post subject: Building Credit History Tips

Your relationship with the bank usually helps. With only one card with a 1500 dollar limit BoA approved me for a 7k rewards card. And one of my scores was below 700 by a goodly sum.

Lets face it. Approvals and rejections and CLI’s are mysterious. We never knwo what each cc company has for criterium.

Also, you lack of credit means no bad credit.

and an 1100 dollar limit isn’t alot on a credit card so they approved you but limited their exposure to you fairly well. With those two cards, if you don;t screw up or start living beyond your means you should be well on your way to some enviable scores.

Polonius,

If you were a credit underwriter, would you give you more credit?

10K in the bank(maybe you more elswhere they couldnt see) and 150k in debts. The income better be nice - really nice. (but did they even have that info)

I’m not too surprised you were rejected.

Next time, tell them the forum at cardratings.com com will vouch for ya ! That otta help We know you are a good credit user.