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Assuming this a joke. But in case it's not, with 77k in revolving debt, the last thing you need is another card. Get rid of your debt first or you'll always be behind.
Chief
It's student debt, not revolving debt OP said in another post.
Forgot to add: (Current Credit Score: 730)
77k debt is all STUDENT LOANS
Damn dude 😯
What type of card do you already have? Cash back? Travel? Etc. I think for starters it’s good to get a cash back card. As for travel cards don’t think that’s the move rn since annual cost is high and we cant reap these benefits this year
Is the quicksilverOne with the annual fee? If so you should call them and ask if you can product change to the one without the fee
Chief
What is your goal? Increasing credit score? More spending power? Something else?
Of that $77k debt, is that all credit card debt or other types of debt? What is your total credit limit? How many cards do you have now?
Chief
Go ahead and get another one, then. I'd recommend something with no annual fee, but whether you look for a cash back cards or a points card is entirely up to you.
In general, when it comes to FICO scoring, there are several key factors in play:
1) Average age of accounts: That's the average age of all open and closed accounts on your credit report. Once that number hits 5 years, there's a minimal difference between an AAoA of 5 years or 25 years.
2) Utilization, both per account and overall: This looks at the balance reported to the credit bureaus each month. Ideally for FICO 08 scoring, you have all but one revolving account reporting a $0 balance and the last one reporting a <10% balance each month. For fixed payment accounts, it's been a while since I looked at the data, but I believe the triggers for score bumps are at under 40% and under 10%, but don't quote me on that.
3) Credit mix: Optimal scoring mix for FICO 08 (which is what most non-mortgage lenders look at) is at least 3 revolving accounts and 1 fixed payment account. More than 3/1 doesn't make a real difference in scoring.
I have been doing pro bono credit counseling for about a decade, happy to answer any questions you might have.
Chief
Most of the advice here may be skewed because you make it sound like your $77,000 is credit card debt (not student loan debt).
There are plenty of credit score simulators out there - my advice is to get a $0 fee card like the Citi Double Cash or Chase Freedom - this is a good #2 card to have.
Once we start traveling again, a solid rewards travel card like the Chase Sapphire Reserve cars would be good - but no need until then.
The credit score formula is a bit of a black box, but average credit length and available credit are both important - I’d say you’re doing the right things, but get a $0 annual fee card you can hold onto for life (helps the average credit length formula).
Needless to say, this is a tool to boost your credit — it should not be used to change your spending habits. You gotta focus on clearing student loans over the next few years.
If you have one cash back card and your goal is to increase credit score then the first thing to realize is that it will take time. You need more than one card and you also need the average age of accounts to be older. That will take a sizable hit once you open some additional cards.
My advice is to open a discover IT card and a chase freedom card at the same time. Two more lines of credit, the age of accounts will tank but after 2-3 years it should slowly go back up. You’ll have motivation to use the different cards based on the categories and it will be something that will always be useful.
Finally, make sure that before the statement closes each month you pay off enough to have less than 10% of your available credit being used. Do that for 2-3 years and your score will slowly creep up to 760+
Chief
For what purpose? You shouldn’t be running anything through your card except expenses (if any at all).
FYI Getting a new card lowers your age of credit, reducing your score temporarily.
Keep paying your debt down and call your credit card company and ask for a higher limit, which will increase your score slightly.
Credit score is a bull shit concept. You want to get more debt before you clear your existing debt . You are broke with a negative net worth . Clear all loans immediately. Listen to Dave Ramsey if possible
It is a bull shit concept but is a necessity in this life. All my loans are student debt, no credit card debt. I prefer to listen to Rich Dad Poor Dad
I will recommend Wells Fargo propel card. It has 3% cash back on travel (including uber, Lyft), eating out and ordering, gas, and online stores like iTunes, streaming services etc. without any fees. I find it to be overall a good card.
I have $150k I’m student debt. $7k in credit card debt with a credit line of $50k. Credit score is 780. Credit cards are good to build credit if you have the self control to not spend beyond your means and pay off every month.
I have 4 credit cards, and I just don’t use 3 of them, and ask for increases in my limit on all 4 every 6 months. It has helped my credit score immensely.
Hey I'm in the same boat and have been using credit cards to pay off student loans. If you're interested in 'churning', you can profit off sign up bonuses while also building credit - the cc perks are nice for our line of work too!
I've gone through $14k~ so far after finishing off my Chase Sapphire Preferred, Ink Preferred and Amex Gold with a rough profit of $2.2k~ so far.
If you don't think you qualify for any of those, you can easily get one of the Chase Freedom cards as they're one of the more valuable entry credit cards and have no annual fee.
Feel free to follow up/dm if you have questions or you can check out general churning forums.
If you’re trying to build your credit, it makes sense to open another no fee card account and ask for a limit increase on the current one. You could do the same again next year, but try not to open more than 2 cards in a year. Not only because it reduces average age of your accounts (though that is a factor). Most credit scores are also affected by the number of credit inquiries you’ve made in the last 1-2 years - and while having 1-2 has limited effect, 3+ can have a big negative effect especially if your credit history is limited.
Of course, if you open up 4 at once, that will hurt your score for 2 years and then after 2 years it’ll actually help you (since average age will be higher than if you waited). But if you actually need credit in the next 2 years you could be screwed, as if say it drops your score from 730 to 695 or something, that could put you below eligibility thresholds for some lenders that have cutoffs around 700-720.
Otherwise also generally agree with TM1’s guidance on drivers of scores.