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How To Build Credit
Sinae posted a topic in Life After Deferred ActionI got a secured credit card from my bank at the end of the March and got my credit score yesterday. It took me a little over 6 months to get a score as the banker told me. I've noticed some DACA approved people saying they got rejected on secured credit card. Secured credit card means you put deposit money and the deposit amount becomes your credit limit, so there's no reason to be rejected if the application is filled right. Even my father, who only has ITIN, was able to get the secured card. I use the website called creditsesame.com for the score check. It monitors the credit score for free and access is available at anytime unlike many other sites. My score showed as n/a until yesterday because the bank secured card is my only credit line but it had no established score. My first official established credit score I got yesterday is 672, which is just average. I won't get approved of credit cards with low interests and great rewards because these credit cards require better credit scores. I might get approved of the chase freedom, it only requires average credit score. I won't apply for credit cards that I know I will get rejected because that leaves the records. When credit card company or bank sees these records, it gives them the sense of desperation. This red flag makes them think I'm in need of money that I don't have which leads to unpaid balance. Also, the credit score gets deducted each time you get rejected. The credit score gets deducted each time you close a credit card as well. Furthermore, the recored is left each time you go into a car dealership and give them your info. to check the available interest rate. Because what they do is put your info. in their system to get the rates from banks. But it's different from getting an auto loan from thr bank. Credit card companys and banks considers many factors when someone applys for credit line. Revolving account (such as credit cards and money market), installment account (such as loans and mortgages), depth of open credit lines, amount of debt or credit card balance, and etc. are considered. Just having one or two credit cards is not sufficient enough to raise the credit score if you plan to apply for a loan or mortgage. I first established credit card score of 672, using a secured card. It could've been a little higher if I didn't check the interest rate with the car dealers twice, try to get the car loan from my bank, and apply for the "preapproved" discover credit card that was mailed to my house. Now I'm going to go in to my bank to talk to the banker about upgrading my secured card to an unsecured card with higher limit and get my deposit back. If the banker thinks that will hurt my score, I'll keep the secured credit card open for six more months and in mean while, I'll use the unsecured card to build some legacy on that credit line before I close the secured card. I'll get a car soon for an installment account.