A few questions regarding new CC's and CLI +applying for more

[Anonymous]

Hello! I'm new here, I recently just started working on improving my credit and have a few questions.

A little background: I had some hot checks written in my name in my early 20's, paid them off, they dont show on my credit report now. Had an apartment that was on my credit report with a 10,000$ balance, that is now off my credit. Good standing credit is my car (5 years) and a secured credit card (5 years).

Now that those bad remarks are off, my credit score went from the low 500's to around 637-652, depending on what credit check system youre looking at. Because of the score increase I decided to apply for a credit card, to my surpise and excitment, I was approved for:

Discover it: 1200

Chase unlimited freedom: 500

Chase amazon rewards: 500

Capital one platinum: 500

Closed the secured credit card of 5 years with 500$ limit

I know, 4 cards in the last month is alot, got too excited and went a little overboard. So now questions are:

1) discover sent me a thing in the mail stating my credit score was 623, however, chase sent me a thing in the mail saying my credit score was 589, within 1 day of each other. Seems like a huge difference in score number, im surprised I got approved for a cc with chase with that 589 score, the paper statements both state they used equifax, why are the score's so different? Should I call Chase back and tell them I have another piece of information that shows a different (better) score?

2) how long should I baby these cards before requesting a CLI?

3) when should I reapply for more credit cards?

4) did I screw up by closing my secured card? (honestly though, I dont need it now)

I fully intend to stay under 25% utlization on cards, paying off most of the balance each month.

[MoneyBurns]

I'll try and answer your questions as best as I can as.

1. I believe the scores are different because Chase and Discover use different formulas to calculate your scores. So the numbers may be different even if it's from the same bureau. I don't know much about scoring so it's my educated guess.

2. I would be happy for six months (maybe more) with those cards for now! You've worked hard on yiur credit journey so far. I would nourish those accounts for six months+ personally. Cap1 may give SP CLI down the line. Chase from my experience, is HPs.

3. Six months+ for me personally. You've covered a lot with those cards. 😊

4. I don't know the answer to that one.

I hope that helps!!

[Anonymous]

Thanks for responding! You are correct about the score. I called chase and they told me their score model is different. Six months sounds good to me, can you elaborate what "HP" means?

Thanks

[Anonymous]

1) no. 

2) at least 90 days

3) at least 90 but prob 180 if you don't really need

4) yes as you just threw away five years of hopefully positive payment history. 

[MoneyBurns]

HP means a "hardpull" inquiry to your credit report. It is when a bank takes a look at your credit report to see if they would like to extend you credit (credit card, loan, etc.)

It stays on your report for 2 years and most the times banks don't like seeing too many of those in a short period of time.

It's important with HPs as you want to save those for new credit cards or loans. Whenever you ask for a credit line increase go for the soft pull (SP). The bank will check your report but it will not count towards you applying for new credit.

Hope thay clarifies things!!

[Anonymous]

Your closed secured card will remain on your credit report as a positive closed trade line for up to 10 years so no, you didn't screw yourself over by closing it.  People recommend you keep the oldest trade line because it helps with average age of accounts, but you've outgrown the secured card and in 10 years when it falls off your other cards will have aged nicely as well.

[Anonymous]

Oh good! thank you for the info! I actually just checked my credit report today and a kohls card I closed 10 years ago just fell off my report, so now I know why!