What Kind of Credit Card Can I Apply for With My Credit Score?
freeman
Joined: 17 Jul 2006
Posts: 7
Posted: Tue Jul 18, 2006 7:00 am Post subject: What kind of card can I get with my credit score?
--------------------------------------------------------------------------------
Hello everyone,
I am 24 years old, almost 25. I've had my first credit card since 2000.
I currently have two credit card, both are from Providians, w/ 2140 & 3000 credit limts. Since they won't raise my credit limit by phone request. I am looking to apply for more cards to help the cash flow of my business.
My credit score range from 640-670. It changes every month depending on my balance. (info provided by Providian/Transunion). I've had a balance that I carried on since 2001 that I paid off in the beginning of this year after I realize how stupid I was and how much money they were making off me.
About a month before I paid off my card, Providian had increased, my limit by $140 / $1000. Two months later, my score went from a 636 to 670. A month later, I had to used to card to make some business purchase, but I manage to pay off most of it before the statment hit.
Before I started reading this board, I throught that maxing out 90% of the card and pay it off in 2-3 months and keep repeating it would help me build my credit. So I had maxed out 90% of it at one point, and paid it off in two months, hopefully to show some payment history with higher payment amount. My currenty score dropped to 640 from 659 that dropped from a 670 back in Feb, with a balance of 4500-4999 balance out of 5000 total available credit. I believe the info was pulled in May, because the report was updated on June 1st. I had paid off my statement ending balance and I still have a few hundred on each card that was charged recently.
I've had a collection that was paid back in 2001 from either aspire or associate Visa. I also have closed my Cap One card back in 2001.
What would be the best card to get for someone with my credit history?
So far Capital One is the only one who have sent me offer under my business name, but I had closed my personal account with them back in 2001 because they only gave me $200 dollar credit limit back then. I am afraid that they will reject me and leave a hard one on my credit report.
Someone had suggested me to apply for an AMEX Blue, but I am afraid that I would get reject, as I was rejected by Citi Bank Last November, reason was because of a high balance that was carried over for over a year.
I would greatly appericate any advise you guys and gals have to offer.
I would like to get something that I have a higher chance of getting with my credit. I noticed most card with great offer require like 690-700s. I don't think I will hit 700 anytime soon.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: hdporter
Posted: Tue Jul 18, 2006 8:03 am
Post subject: Re: What kind of card can I get with my credit score?
Quote:
I am 24 years old, almost 25. I've had my first credit card since 2000.
I currently have two credit card, both are from Providians, w/ 2140 & 3000 credit limts. Since they won't raise my credit limit by phone request.
My credit score range from 640-670. It changes every month depending on my balance. (info provided by Providian/Transunion).
About a month before I paid off my card, Providian had increased, my limit by $140 / $1000. Two months later, my score went from a 636 to 670.
So I had maxed out 90% of it at one point, and paid it off in two months, hopefully to show some payment history with higher payment amount. My current score dropped to 640 from 659 that dropped from a 670 back in Feb, with a balance of 4500-4999 balance out of 5000 total available credit. I believe the info was pulled in May, because the report was updated on June 1st. I had paid off my statement ending balance and I still have a few hundred on each card that was charged recently.
I've had a collection that was paid back in 2001 from either aspire or associate Visa. I also have closed my Cap One card back in 2001.
What would be the best card to get for someone with my credit history?
So far Capital One is the only one who have sent me offer under my business name, but I had closed my personal account with them back in 2001 because they only gave me $200 dollar credit limit back then. I am afraid that they will reject me and leave a hard one on my credit report.
Someone had suggested me to apply for an AMEX Blue, but I am afraid that I would get reject, as I was rejected by Citi Bank Last November, reason was because of a high balance that was carried over for over a year.
To give you the strongest reply, it would be helpful to have a clear understanding of all negative information reporting on your credit report. For the time being, I'm going to assume that the collection is the only item reporting.
In general, there are two prime targets if you want to move your score into the high 600's: Have no delinquencies reported in the last 2 years and keep reported credit card balances under 40% of their individual limits (under 30% is better).
By "no delinquencies", I'm also saying that you shouldn't have an open collection from the past, or an account that was settled for less than the full amount due and therefore reporting as something other than "Paid as Agreed", "Paid Satisfactorily", etc.
I'm not suggesting that your report is anything other than currently clear ... just being clear.
------------
With regard to account balances, it's the current balance that reports on your credit bureau report that affects your score most. If past balance history has any impact (and I'm uncertain about that), the effect is modest relative to your current balance.
Thus, if you ensure that there is a limited past balance/new charges outstanding at the time your statement is issued, your credit score should favorably reflect this (and your post indicates you've directly witnessed this).
You're fortunate in that Providian reports account balances only at the time that a statement is issued. There are other creditors who now report several times a month, so adding new charges to an account only for a brief period of time (or in advance of the next payment) will temporarily depress a score.
So, the bottom line is that if you're showing a clean history for at least the last 3 or 4 years, you're in a very strong position to obtain additional credit at favorable terms. There's a very high likelihood that Citi would have approved you had your reported Prov. balances been modest when they pulled your report. A minimum score of 680 would put you in good turf for their Platinum/Diamond products.
For a score under 690, I advise steering clear of Capital One. On the weaker side of the scale, Capital One is notorious for extending small lines. Plus, because they don't report credit limits (just past high balance), the reporting puts you at a disadvantage for credit scoring over other cards (although a remedy is to max the card out for one month).
------------
My advice to you is to maintain low (under 30%-40%) Providian statement balances for 2-3 months, no matter who you decide to apply to. I personally recommend reapplying to Citi. You've allowed an appropriate amount of time since your last application, so they'll give your new app reasonable consideration.
Personally, unless you really start moving above 3 credit pulls in the last 6 mo. and 5 in the last year, I wouldn't overly sweat the impact of credit inquiries on your credit report. They're typically reported as initially depressing your score by 3-7 points each (the greater the recent number, the higher the impact), and then the effect sizably diminishes over time. Inquiries that are over a year old don't have any effect.
Reduce your balances, pull your scores again to ensure that you're 680+, and then judiciously apply where your prospects are strongest - based upon the recommendations of others.
As a final note, if you do have more recent adverse history than that 2001 collection, you may wish to provide complete details here so that any reply can weigh it. If you are clean since 2001, you're to be commended and you can have confidence that you'll be an attractive credit once those balances are consistently paid down.
Author: nessaness
Posted: Tue Jul 18, 2006 11:39 am
Post subject: What kind of card can I get with my credit score?
Freeman,
Your best bet is to go to this site:
http://www.financeglobe.com/Finance/index.php?p=getdb&db_id=33
and click on "Cards by FICO Score" under By Criteria.
You can also search by card type, approval rating, and types of cards.
Hope this helps
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Joined: 17 Jul 2006
Posts: 7
Posted: Tue Jul 18, 2006 7:00 am Post subject: What kind of card can I get with my credit score?
--------------------------------------------------------------------------------
Hello everyone,
I am 24 years old, almost 25. I've had my first credit card since 2000.
I currently have two credit card, both are from Providians, w/ 2140 & 3000 credit limts. Since they won't raise my credit limit by phone request. I am looking to apply for more cards to help the cash flow of my business.
My credit score range from 640-670. It changes every month depending on my balance. (info provided by Providian/Transunion). I've had a balance that I carried on since 2001 that I paid off in the beginning of this year after I realize how stupid I was and how much money they were making off me.
About a month before I paid off my card, Providian had increased, my limit by $140 / $1000. Two months later, my score went from a 636 to 670. A month later, I had to used to card to make some business purchase, but I manage to pay off most of it before the statment hit.
Before I started reading this board, I throught that maxing out 90% of the card and pay it off in 2-3 months and keep repeating it would help me build my credit. So I had maxed out 90% of it at one point, and paid it off in two months, hopefully to show some payment history with higher payment amount. My currenty score dropped to 640 from 659 that dropped from a 670 back in Feb, with a balance of 4500-4999 balance out of 5000 total available credit. I believe the info was pulled in May, because the report was updated on June 1st. I had paid off my statement ending balance and I still have a few hundred on each card that was charged recently.
I've had a collection that was paid back in 2001 from either aspire or associate Visa. I also have closed my Cap One card back in 2001.
What would be the best card to get for someone with my credit history?
So far Capital One is the only one who have sent me offer under my business name, but I had closed my personal account with them back in 2001 because they only gave me $200 dollar credit limit back then. I am afraid that they will reject me and leave a hard one on my credit report.
Someone had suggested me to apply for an AMEX Blue, but I am afraid that I would get reject, as I was rejected by Citi Bank Last November, reason was because of a high balance that was carried over for over a year.
I would greatly appericate any advise you guys and gals have to offer.
I would like to get something that I have a higher chance of getting with my credit. I noticed most card with great offer require like 690-700s. I don't think I will hit 700 anytime soon.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: hdporter
Posted: Tue Jul 18, 2006 8:03 am
Post subject: Re: What kind of card can I get with my credit score?
Quote:
I am 24 years old, almost 25. I've had my first credit card since 2000.
I currently have two credit card, both are from Providians, w/ 2140 & 3000 credit limts. Since they won't raise my credit limit by phone request.
My credit score range from 640-670. It changes every month depending on my balance. (info provided by Providian/Transunion).
About a month before I paid off my card, Providian had increased, my limit by $140 / $1000. Two months later, my score went from a 636 to 670.
So I had maxed out 90% of it at one point, and paid it off in two months, hopefully to show some payment history with higher payment amount. My current score dropped to 640 from 659 that dropped from a 670 back in Feb, with a balance of 4500-4999 balance out of 5000 total available credit. I believe the info was pulled in May, because the report was updated on June 1st. I had paid off my statement ending balance and I still have a few hundred on each card that was charged recently.
I've had a collection that was paid back in 2001 from either aspire or associate Visa. I also have closed my Cap One card back in 2001.
What would be the best card to get for someone with my credit history?
So far Capital One is the only one who have sent me offer under my business name, but I had closed my personal account with them back in 2001 because they only gave me $200 dollar credit limit back then. I am afraid that they will reject me and leave a hard one on my credit report.
Someone had suggested me to apply for an AMEX Blue, but I am afraid that I would get reject, as I was rejected by Citi Bank Last November, reason was because of a high balance that was carried over for over a year.
To give you the strongest reply, it would be helpful to have a clear understanding of all negative information reporting on your credit report. For the time being, I'm going to assume that the collection is the only item reporting.
In general, there are two prime targets if you want to move your score into the high 600's: Have no delinquencies reported in the last 2 years and keep reported credit card balances under 40% of their individual limits (under 30% is better).
By "no delinquencies", I'm also saying that you shouldn't have an open collection from the past, or an account that was settled for less than the full amount due and therefore reporting as something other than "Paid as Agreed", "Paid Satisfactorily", etc.
I'm not suggesting that your report is anything other than currently clear ... just being clear.
------------
With regard to account balances, it's the current balance that reports on your credit bureau report that affects your score most. If past balance history has any impact (and I'm uncertain about that), the effect is modest relative to your current balance.
Thus, if you ensure that there is a limited past balance/new charges outstanding at the time your statement is issued, your credit score should favorably reflect this (and your post indicates you've directly witnessed this).
You're fortunate in that Providian reports account balances only at the time that a statement is issued. There are other creditors who now report several times a month, so adding new charges to an account only for a brief period of time (or in advance of the next payment) will temporarily depress a score.
So, the bottom line is that if you're showing a clean history for at least the last 3 or 4 years, you're in a very strong position to obtain additional credit at favorable terms. There's a very high likelihood that Citi would have approved you had your reported Prov. balances been modest when they pulled your report. A minimum score of 680 would put you in good turf for their Platinum/Diamond products.
For a score under 690, I advise steering clear of Capital One. On the weaker side of the scale, Capital One is notorious for extending small lines. Plus, because they don't report credit limits (just past high balance), the reporting puts you at a disadvantage for credit scoring over other cards (although a remedy is to max the card out for one month).
------------
My advice to you is to maintain low (under 30%-40%) Providian statement balances for 2-3 months, no matter who you decide to apply to. I personally recommend reapplying to Citi. You've allowed an appropriate amount of time since your last application, so they'll give your new app reasonable consideration.
Personally, unless you really start moving above 3 credit pulls in the last 6 mo. and 5 in the last year, I wouldn't overly sweat the impact of credit inquiries on your credit report. They're typically reported as initially depressing your score by 3-7 points each (the greater the recent number, the higher the impact), and then the effect sizably diminishes over time. Inquiries that are over a year old don't have any effect.
Reduce your balances, pull your scores again to ensure that you're 680+, and then judiciously apply where your prospects are strongest - based upon the recommendations of others.
As a final note, if you do have more recent adverse history than that 2001 collection, you may wish to provide complete details here so that any reply can weigh it. If you are clean since 2001, you're to be commended and you can have confidence that you'll be an attractive credit once those balances are consistently paid down.
Author: nessaness
Posted: Tue Jul 18, 2006 11:39 am
Post subject: What kind of card can I get with my credit score?
Freeman,
Your best bet is to go to this site:
http://www.financeglobe.com/Finance/index.php?p=getdb&db_id=33
and click on "Cards by FICO Score" under By Criteria.
You can also search by card type, approval rating, and types of cards.
Hope this helps
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:15 AM
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