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Hi all,
I am looking to app for the BCE and was wondering how AMEX likes to see utilization. As it stands now, I will have one credit card showing a $30 balance and all my other cards with a $0 balance. Is this a good strategy? Any suggestions
I have an AMEX green (opened 8/2013). Since then, I have pushed thru a 5k down payment in September, and every month since then have been nominal charges of $5-$30 dollars that I let report and PIF. I am planning to push another hundred or two thru and PIF just to possibly up my internal score. Would this make a difference?
I have an auto loan (10.5k) and school loan (4.9k) both opened 09/2013. Does this make any difference?
I also have two negative accounts and a collection that are all paid, and set to fall off sometime after July this year. Does this make any difference?
I appreciate any answers, thank you in advance for your help.
EX 655 (FAKO) with 8-10 INQ's (estimation)
Keeping your util as low as possible is certainly going to be a benefit to you. Responsible use of their Green card will also reflect favorably on your internal scoring. The installment loans will pad your credit report but at the same will also affect your DTI.
If you were already approved with derogs you might be able to push through a revolver ap, but if it isn't critical to obtain this card right now I would probably wait until your reports are clean near the middle of the year. My .02.
Best of luck.
As with any other creditor, generally the lower the utilization (balances don't really tell us anything) the better as long as it is greater than 0. We can't tell you what your optimal utilization is. You'd have to find out through testing.
As for whether or not any of those points make a difference -- they all can. However, we don't know the specific scoring algorithm used by FICO and we don't know the specifics of AmEx's underwriting criteria for the BCE so we can't tell you the exact impact. Consider the standard factors:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
Generally speaking, derogs will hurt, lower utilization is better, more variety of credit will help. If you want to improve your odds then wait until the derogs fall off. That said, I can't tell you if those are going to be dealbreakers with AmEx or not or how they will affect the limit and terms you would receive if approved.
@Involver wrote:Keeping your util as low as possible is certainly going to be a benefit to you. Responsible use of their Green card will also reflect favorably on your internal scoring. The installment loans will pad your credit report but at the same will also affect your DTI.
If you were already approved with derogs you might be able to push through a revolver ap, but if it isn't critical to obtain this card right now I would probably wait until your reports are clean near the middle of the year. My .02.
Best of luck.
Thanks. I wanted to app next month or March, for maximum backdating purposes. It's either soon or next January! Ahh! i'm not too worried about derogs though. Oh well. Nothing ventured, nothing gained. SP if denied anyways!
@takeshi74 wrote:As with any other creditor, generally the lower the utilization (balances don't really tell us anything) the better as long as it is greater than 0. We can't tell you what your optimal utilization is. You'd have to find out through testing.
As for whether or not any of those points make a difference -- they all can. However, we don't know the specific scoring algorithm used by FICO and we don't know the specifics of AmEx's underwriting criteria for the BCE so we can't tell you the exact impact. Consider the standard factors:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
Generally speaking, derogs will hurt, lower utilization is better, more variety of credit will help. If you want to improve your odds then wait until the derogs fall off. That said, I can't tell you if those are going to be dealbreakers with AmEx or not or how they will affect the limit and terms you would receive if approved.
Thanks Takeshi.
The APR can be asked to be lowered later on after a relationship has been established with a revolver. I usually PIF anyways so it's not a big deal. The starting limit is kind of a big deal, but with the 61 day CLI in place, i'm not too worried at all. Thanks for your thoughts!
@Shock_ wrote:
@Involver wrote:Keeping your util as low as possible is certainly going to be a benefit to you. Responsible use of their Green card will also reflect favorably on your internal scoring. The installment loans will pad your credit report but at the same will also affect your DTI.
If you were already approved with derogs you might be able to push through a revolver ap, but if it isn't critical to obtain this card right now I would probably wait until your reports are clean near the middle of the year. My .02.
Best of luck.
Thanks. I want app app next month or March, for maximum backdating purposes. It's either soon or next January! Ahh! i'm not too worried about derogs though. Oh well. Nothing cetured, nothing gained. SP if denied anyways!
I was just going to say it's SP if denied anyways. So might as well go ahead and try while it's still January for max backdate. GL!
If you can use the BCE and make money off of it. (More money than other CCs can yield.) Then I say go ahead, but if you can wait until your derogs fall off then in January of next year you're going to get better terms and a much higher starting CL as well... plus you're going to add serious months in backdating by apping in January of next year. Just something to think about.
I suppose it virtually makes no difference if I app in march 14 or january 15 since the backdating will come in, and i only lose 2 months.
but the kicker is the starting credit limit and APR i suppose, even though the CL can easily be raised on the 61st day. i guess it comes down to necessity..i donn't really need it, but rather want it in my lineup! i just want to do it soon because once i get approved, i will likely be gardening for a year or two.
Thoughts?
@Shock_ wrote:I suppose it virtually makes no difference if I app in march 14 or january 15 since the backdating will come in, and i only lose 2 months.
but the kicker is the starting credit limit and APR i suppose, even though the CL can easily be raised on the 61st day. i guess it comes down to necessity..i donn't really need it, but rather want it in my lineup! i just want to do it soon because once i get approved, i will likely be gardening for a year or two.
Thoughts?
As others have mentioned, I'd go for it. It's a SP if declined, and you can always CLI after 61 days, and ask for an APR reduction later.