Totally new to CC World, need Help?

**FidelityAmex** · Feb 17, 10, 7:41 pm

Hi guys,

I just graduated from College. When I was in College I did not have any credit cards or applied for any credit cards. I was afraid because I heard many people said credit cards are very bad if you are still in school. So I guess I am a little bit behind to everyone right.

I worked part time when I was in college. I am a saver, so most of my money I invest it in stocks. Everything I buy I use cash or debit card because I don't have any CC.

Now I have money and I'm ready to start building my credit. I tried to apply for Fidelity American Express because I have an account with Fidelity and the reward is good too, but I got denied. Then I heard some people said Captial One is good for those who wants to start building credit. I applied for Capital One card, and still got denied because I have no credit history. They don't even offer me any other options.

My last hope is going to my bank and ask for help. Bank of America rep checked my background and told me the only card they can offer me is a secure CC. I have to give them $100, then they will give me a card with $500 credit limit. I have been using the card for 3 months now. I used it to pay for gas only and the amount I used is always less then $100. I pay the bills on time and I pay it in full every month.

Recently, I got a mail from Capital One. They offer me a platinum card with no annual fee. My secure card has $39 annual fee. So I guess now Capital One wants to know "What's in my wallet" huh

My first question is should I take that offer or just wait until you are finish using that secure card.

Second question is when you are received an offer liked that. Does that mean BofA report it to 3 major credit companies? And you are in a good shape right.

Third question is pay it in full or carry a balance is a good way to build your credit. And what is APRs? How does the finace charge things work?

Thank you all for reading it. I will update more later. My goal is to get Fidelity American Express. I did some research and found some people with 730 score still got no approval for that card. May be you guys can help me.

**Mogul of Pineapples** · Feb 18, 10, 7:03 pm

Originally Posted by FidelityAmex

My first question is should I take that offer or just wait until you are finish using that secure card.

I know this doesn't make sense, but when someone receives an offer in the mail it doesn't mean they are approved or qualified for that card. Credit card companies buy mailings lists, just as every other company does, and send blanket mailings out. In reality, the offer they send you is not based on whether or not you even qualify. Rather it's based on demographics, etc.

Second question is when you are received an offer liked that. Does that mean BofA report it to 3 major credit companies? And you are in a good shape right.

Do you mean Capital One? They are not affiliated with BofA. Typically a creditor will not report to all three, but after a few months the credit bureaus they don't report it to will pick it up for their records. Therefore it will eventually show on all three.

Third question is pay it in full or carry a balance is a good way to build your credit. And what is APRs? How does the finace charge things work?

It's a huge fallacy that people need to carry a balance to build up credit. What is reported to the credit bureaus is the amount due when your statement closes each month. So whether or not you pay it in full or not is irrelevant. Someone could charge $500 this month, pay it off in full, and then charge $500 the next month - what it will show to the credit bureaus is that a $500 balance was on the card at the close of each statement, even though it was paid off in full in-between that time.

Welcome to the forum and I hope this helps. Feel free to post followup questions.

**FidelityAmex** · Mar 1, 10, 9:44 pm

Thanks Mogul for the info.

I have some more questions. What do you think my score will be after one year of using secure credit card? Like 600 or 650. And where can I go check my credit report? Which website is the best one for checking your report?

Thanks

**cpaynter** · Mar 15, 10, 5:31 pm

Originally Posted by FidelityAmex

Thanks Mogul for the info.

I have some more questions. What do you think my score will be after one year of using secure credit card? Like 600 or 650. And where can I go check my credit report? Which website is the best one for checking your report?

Thanks

You can get your full report once a year from all three CRA's through AnnualCreditReport.com, though you don't get your FICO score unless you pay for it from each CRA.

I've been using CreditKarma.com lately to keep track of my score. It's not identical to your FICO score, but it comes pretty darn close, and lets you drill down to more detail about what's affecting your score, and lets you try what-if scenarios to see the results if you take certain actions. Highly recommended.

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Totally new to CC World, need Help?