Recommend my next step, please!

[osuguy]

Hey there everyone,

Long-time-lurker posting for the first time. I have to say, the myFICO community has taught me so much over the years and helped me rebuild my scores from lows in the 600's to the now high 700's. Thank you myFICO!

Anyway, I'm looking for advice on what my next steps should be. Which credit cards would your recommend?

I frequently shop: on Amazon, at Nordstrom, fly on Southwest airlines, at Whole Foods and at Kroger (Smith's), and buy gas at Chevron gas stations.

This is my current standing:

AAOA: 6 years

Oldest account: opened 11 years, 4 months ago

Baddies: two 30-day lates on a Chase card from 2007 and 2008 (just after college). Considered sending a GW letter.

Utilization: 1-2% (only the $9.95/mo. fee on the Credit One Bank card), every other card has a $0.00 balance.

Inquiries: 2 on Experian, 0 on EQ and TU.

Collections: 0

Public Records: 0

Can you kindly recommend what my next steps should be, including recommending any cards? Let me know what questions you have and I'll reply as quickly as possible.

Thank you!

[Swapmeet]

I recommend an app spree, say a cash +, BCP, and perhaps a freedom or discover. If you like a 2% for whatever option, then add the fidelity amex.

[clocktick]

I would also recommend the BCP for the groceries (unless you can't justify the AF) and gas.  The Freedom or Discover IT for 5% off of gas with their quarterly categories, with the BCP for back up which is 3% off of gas.

My parents love their Chase Southwest card and use it all the time but I honestly don't know a lot about it.

I'm an AU on a Chase Amazon, but again, I don't know a lot about it.  Oh, the Discover IT's reward dollars can be used directly on Amazon too - very easily. 

Let us know what you decide!

[osuguy]

Wow, thanks for the fast feedback, keep 'em coming! I'm working on getting the "ALT tags" to show up for the credit cards in my signature, but here's the CL breakdown if you're wondering:

1) Credit One Bank: $1,100

2.) Capital One: $300

3.) Macy's: $800

4.) Express (Comenity): $2,000

5.) Wells Fargo Secured: $400

Thanks everyone!

[cottontop]

Only weakness I see is lack of a $5k plus line from a major issuer.  However, should be a shoe in for Freedom, Discover and BCP.  Lack of a higher line could limit you on a CSP or Airlines card, I would wait till next round for SW in 3 months or so after getting Freedom.

BTW, don't bother with the two 30 days from 5 years ago, they shouldn't hurt you a bit at this point.  I've got 3 or 4 myself from 2009-11, and as soon as they hit 2 years, issuers quit asking about them.

[longtimelurker]

And as soon as you get a better card (or even now) close Credit One. $9.95 a month?   That's horrible!

[FastForward]

Definitely agree that the AmEx BCP would be a great card for you - 6% for groceries ($6k/year cap), 3% for gas & several major dept. stores, including Nordstrom (no cap) & 1% for everything else.  With what you've stated your spending habits are, this card will probably pay for itself (even w/the $75 AF).

You should also consider the Barclay Sallie Mae MC - 5% for groceries ($250/month cap), 5% for gas ($250/month cap), 5% for bookstores, includes Amazon ($750/month cap) & 1% for everything else.  If you're planning on a spree though, you may want to consider the fact that Barclay is known to be inquiry & new account sensitive (so, tread lightly with them).   I do however really like this card so far & with no AF, makes it all that much better!

You may also want to contact the Cap1 EO & request a PC (to the Quicksilver or Venture) & a CLI.  Also ask about removing the AF on that card, if you have one.

And +1 on closing down Credit One as soon as possible.  Based on your credit profile, it looks like it's served its purpose & the fees aren't worth it anymore. 

[longtimelurker]

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@FastForward wrote:

Definitely agree that the AmEx BCP would be a great card for you - 6% for groceries ($6k/year cap), 3% for gas & several major dept. stores, including Nordstrom (no cap) & 1% for everything else.  With what you've stated your spending habits are, this card will probably pay for itself (even w/the $75 AF).

You should also consider the Barclay Sallie Mae MC - 5% for groceries ($250/month cap), 5% for gas ($250/month cap), 5% for bookstores, includes Amazon ($750/month cap) & 1% for everything else.  If you're planning on a spree though, you may want to consider the fact that Barclay is known to be inquiry & new account sensitive (so, tread lightly with them).   I do however really like this card so far & with no AF, makes it all that much better!

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Yes, Sallie Mae is a good card.   

For light spenders, those that fit into the < $250 a month cap, go with Sallie Mae.   The rate is better than BCE, and the redemptions are much quicker and more flexible.

If you spend more, then the BCP might make sense, but, if possible, also get the Sallie Mae.  This boosts the cap on your 5-6% return on groceries to $9K a year.

Much beyond that, get the Blue Cash instead, but probably still get the Sallie Mae to use while spending the $6,500 a year (hopefully on non-groceries) needed for the BC.

So you might see a pattern here.  Get the SM regardless of your level of spend!

[Creditaddict]

Your credit is screaming for an app spree!

1. Sallie Mae Barclay

2. Chase Southwest

3. Chase Freedom

4. American Express BCP

5. Discover it

6. Unsecured Wells Fargo - apply if you have to and close the secured

7. email capital one exec office and ask for quicksilver PC, AF removal and CLI to $5k

8. Close Credit One

9. Ask for upgrade to Macy's Amex

I bet you get approvals of 1-5 with no issues! (this order too I think)

[clocktick]

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@Creditaddict wrote:

Your credit is screaming for an app spree!

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LOL, right?  Oh that made me laugh!