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04-17-2017 12:31 PM
I recently went on a credit app spree, and I was successful with every application. I am going to be graduating college here in about 2 weeks with a job lined up after graduation, so I wanted to build my credit card collection, as I felt now would be a good time to begin.
I have had a Discover IT student card since August 2014, and have always made on time payments and paying off the balance as often as I can. I have a couple student loans, which I was able to qualify for without a cosigner, so it is fair to say that shown I have been responsible with my credit thus far and I am ready to build my credit card collection. My AAoA is 17 months with 8 accounts (student loans and my Discover card). Equifax: 729 Experian: 732 TU: 732 when I began applying.
Here are my applications:
-Capital One Journey for students (4/5) : Approved with $3000 CL
-AMEX Everyday (4/9): Approved with $6000 CL
-CITI Double Cash (4/10): Approved with $1500 CL
-AMEX Blue Cash Everyday (4/13): Approved with $6000 CL
- Discover IT Chrome (4/14): Approved with $1500 CL
-Chase Freedom Unlimited (4/14): Approved with $1500 CL
These applications have in turn added 4 hard inquiries to Equifax (making toal inquiries 6), 6 hard inquiries to Experian (making total inquiries 12), and 1 hard inquiry to TU (making total inquiries 3). My EQ dropped 4 points (now 724), Ex dropped 16 points (now 716), and TU stayed the same (732).
1. I know that my AAoA will go down significantly, but am worried about how much that will drop my score when the cards are reported to the credit agency, in addition to the inquiries. I have no intentions of applying for any more credit within the next two years, so I am not worried about it in that sense. I just like to have peace of mind.
2. Also, I applied for these credit cards before they had time to be reported to the bureaus and before there was a hit to my score. When they are all reported, is it possible that the credit card companies will want to close my accounts because I applied for so much credit? I don't NEED the credit limits that I was given, as I have no intention of spending any more than I know I can afford to pay off, so it's not like I am desperate. I am just looking to maximize my benefits for the money that I plan on spending.
If any one has any personal experience or any information that they would be willing to share, that would be great. Thanks so much!
04-17-2017 02:09 PM
You did good and you'll be fine when it comes to when they all report.
You managed to add almost $20K in new CC's and that's impressive considering you're not even out of school yet.
AMEX will grow if you use the 3X guide here. First one will be 61 days but, since you have 2 cards you'll have to pick one to do it on as after you get a CLI on one you have to wait 180 days to get the other one bumped up. If you find yourself prefering one system MR/Cash over the other then you can eventually move the CL over to the one you prefer to increase your leverage on the CLI's down the road.
Disco.... So you have a Student one and apped for a new card? I'm surprised they didn't contact you before opening the new one and ask if you just wanted to convert the student one over and bump the CL.
Chase/Cap1/Citi.... they'll be good standby cards unless you have a specific use in mind.
Chase - HP for CLI's unless they really like you and hit you with multiple CLI's w/o asking
Citi - can be either HP/SP for a CLI
Otherwise I wouldn't worry about the impact of the new accounts hitting your profiles since you don't have any big purchases coming up like a car / home loan. Just give them 6-12 months and your scores will rebound and jump past where they're at now. Just take a deep breath and relax
04-17-2017 03:31 PM
I definitely do plan on trying for the 3x CLI with AMEX.
As for the Discover, the chrome offers 2% cash back on gas and restaurants, so I planned on using that as my gas and restaurant card only, and paying that off every month. I never considered trying to upgrade my student card to the Chrome-- that might have been a wiser choice.
I wanted to get my foot in the door with some good cards at different banks so I can build a good relationship with them. I'm hoping I don't take too much of a hit, but it will be worth it in the long run.
04-17-2017 03:40 PM
I went on an 8 card app spree from December through February and my score dropped between 50-60 points. April just reported and it is already back up 10-15 points. It takes about 6 months give or take, but it will bounce back and then some.
04-17-2017 04:01 PM
Thanks for your input. I'm glad that you're starting to come back up from where you were after your spree, and I hope it contonues to rise until you reach your credit goal. Congrats on the new cards!!
04-17-2017 05:33 PM - edited 04-17-2017 05:36 PM
The other option would have been a flat 1.5% card (Discover Miles) vs the chromes 2% on just those two categories... has a few small travel perks but its basically a 1.5% card.. but for the first year.. it too can get the joy of Doubling.....to the tune of 3% plus you still can get disco deals...
Wonder if you can upgrade your student Disco to Miles and get the deals.. but id cash out first because it gets wierd with the change in point systems..
Your fico score will drop a bit, but nothing to be concerned about... your FAKOs will be hit hard (esp in the first 3 months) with the accounts opening but... after all its just a FAKO... (Vantage drops fast for new accounts, esp with thinner files) Just dont panic when you see them.... And if you keep on your plan of attack you should be fine.... Perhaps even go for some soft CLI's on cards that support it, esp in a few months..
Good luck, and keep us informed
05-28-2017 07:51 AM
05-28-2017 08:54 AM
Considering the number of apps/pulls you took a ~30 point drop on all 3 CBs is not too shabby I must say.
05-29-2017 07:02 PM
"..... have no intentions of applying for any more credit within the next two years, so I am not worried about it in that sense."
If that is true, your score shouldnt really matter that much
I dont think you have to worry about having any AA at this point in your credit journey. Stick to the garden for a year and you should be fine
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