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Question By
Meppe

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0 People Helped
Strategy for establishing credit history
What would be your recommendation for me to establish credit history?

Backgorund:
Single, mid-late 20s, $150k salary.

Credit History:
Authorized user on two credit cards (since 2-3 years), and a car lease (since a year ago).
CreditKarma score: 762-763

Scope:
Considering myself as being good with money, having a decent salary, and a good credit score, I naively applied for the Chase Sapphire Reserve card, and got (to my surprise at the time) rejected. The motivation was as follows: "Not enough accounts opened long enough to establish a credit history". It went on to say that my credit score was 813/900 of the Card Acquisition Risk Score scoring system. My assessment is that I need to open up lines of credit and hold onto them before I qualify for premier cards, and I am wondering on how to accomplish this as quickly as possible.
I'm inclined on getting a couple of easier to get-no annual fee cards, but not sure how many I should apply for and in what frequency? I could apply for one card, likely get approved, wait a quarter and show the credit bureaus that I won't be utilizing the credit received much, and apply again for a second card (very safe, bullet proof).
However, I would preferably, unless it is too risky, (here I am asking for the community's opinion), apply for two credit cards at once and benefit from longer average credit history later and potentially higher credit limits, but with the risk of possibly getting rejected (I doubt it looks good with two hard inquiries within the same time frame, shortly after a third -- the Reserve which I got rejected from).

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Top Contributor
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I would just get a couple mediocre cards right now, take the hit (short term damage occurs to build good credit) and then use them for six months to a year before trying any of the higher end cards. Remember that Chase has a pretty solid preapproval link on their website, so be sure to check it next time before applying.

Reply by
Meppe

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Thank you, very helpful. Do you think it is risky to apply for a few lower end cards?

Reply by
Meppe

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With that, I mean apply for them at once.

Top Contributor
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I advise taking the time to learn about credit, which is what Credit Karma is all about.  Read the articles here, and follow the advice so you can build your score.  Sure worked for me.  I learned far more here than from my college business and accounting classes and now have a very good score.

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