Credit Cards

[racer-x]

So I just received my GECU (general electric credit union) card with a $3500 CL at 8.99%.

This is my lst big (to me) card.

I have:

Cap One (formerly HSBC) card specific for Suzuki motorcycle items only - It reports a $15K CL to all bureaus.  The new balance will report in a week with a balance of $726, down from $8200.  So my utilization has improved greatly but it has not been reflected in my scores yet.

GECU card - $3500 CL (not yet reporting, including inquiries) - $0 bal

Cap One card - $500 CL - $0 bal

US Bank reserve line - $750 CL - $0 bal

Walmart - $700 - $0 bal

Auto loan with GECU - $8200

1 Hard inquiry on EX, 0 on TU and EQ.

My utilization is 3%-ish once the Cap One account updates in 10 days.

DTI - 7%

My EQ is squeaky clean and my best score.  No negs.  Oldest account 5 yrs, AAoA is 1 yr.

TU/EX reporting a paid collection ($165 utility bill)  that I have GW'd but no action or response yet.

I'm receiving pre-select, pre-apply, pre-approval, and pre-denial (lol) offers from Discover, AMEX, BoA, US Bank Visa, and CITI.

Question is:  Should I try for a another, hopefully high-ish limit card before the GECU card and new auto loan TL hits the bureaus, or wait for the utlization on my revolving accounts to be reported from  50% to 3%?

I'm wondering if the new GECU card and the new $8200 GECU auto loan will keep me from getting another prime card even when my utilization drops to 3% with a $20K available credit reporting?

I'm guessing my score will shoot up 30 pts. with the new low utilization %.  And may go up more because of the new type of TL with the auto loan and because of the higher CL VISA that I have with GECU.

Although my AAoA will surely drop when the new VISA and new auto loan hits the reports. 

GECU uses EQ exclusively, and since that's my best report, I want to apply at EQ friendly card companies.

But, then again, TU/EX won't know about the new GECU Visa TL and the new GECU auto TL since GECU uses and reports to EQ exclusively?

Is anybody following my dilemna...sigh...lol

My gut says to wait for the new low utilization and new TL's to report to the bureaus and then let things 'grow' til the spring....

Buuuutttttt, I don't want to miss out on an opportunity to get a $5000 Discover before the new GECU TL's hit the bureaus and hinder me from getting another prime card so quickly?

Thanks and MERRY CHRISTMAS to all.

[armbenderc]

Personally, I would APP today for AMEX. I would go for the Gold PRG to get the 2012 member date. if you have the ball and did not want a charge card, go for Amex BCE, BCP, SPG, or whatever. However, if you are denied, you have to wait 30 days (you won't get 2012 backdating).

[racer-x]

armbenderc - I do understand the backdating scenario with AMEX and that does make sense.   But, what if I were to wait 2wks when I know my scores are going to go up 20-30 points because of the huge reduction in my CC utilization, total balances down $7500 with a utilization of 3-4% vs. 50%, and 0 balances on 4 of the 5 accounts?

I think my chances of approval would be better with scores in the 720 range than 680-90's especially when AMEX pulls TU/EX and the paid collection shows up.

And, credtors like to see bigger CL accounts correct?  So once the GECU visa reports with a CL of $3500, will that not help in getting a prime card?  But then again, I keep forgetting about the Cap One with the $15k CL....it reports as such but the card is not useable.  The special program that was set up between HSBC/Cap One  and Suzuki is no longer, but the account and balance due is obviously active.  I (or anybody else for that matter) can't actually use the card to purchase Suzuki specific items anymore...not since late '08 actually.

And I'm not so sure AMEX Gold PRG interests me.  $175 AF?  Dayum.

I'm leaning toward Discover because they seem to pull EQ in my area, Cincinnati.

I feel like I"m flirting with big, positive steps in my credit venture, and just trying to make the right moves.

[jsucool76]

Even if you were to app for Amex today you might not get the 2012 member date. Cutting it this close doednt always work.

I personally would let the new account report before apping since it is your highest limit (not counting the suzuki card)
Does the suzuki card report as a regular card, or a store line of credit or something like that. If it reports as a regular card disregard the previous tip since you then have a 15k limit reporting and app away.
:-)

[MovingForward_2012]

AMEX or Discover are good choices. Your former HSBC card is still open even if it is not usable. So as long as the limit still shows the $15K credit limit, that I believe is prerequisite enough for a >$5K limit card.

Merry Christmas!

[racer-x]

jsucool - Yup, the Cap One reports the $15K limit as a revolving account.

Here's a snippet of my account on the Cap One site:

Current balance: Available credit: Total credit limit: Last payment amount: Last payment date:

$726.29

$14,273.71

$15,000.00

$7,500.00

12/07/2012

And on the TU myFIco report:

Status as of Date opened [?] Date of last activity [?] Loan type [?] Credit limit [?] Largest past balance [?] Account Type [?]

Dec, 2012

May, 2008

Nov, 2012

Charge Account

$15,000

$14,339

Revolving Account

Keep in mind, the balance on this account has been going down since the beginning.  It is now $726, but the new Cap One statement isn't until the 5th.

[racer-x]

movingforward - ...and that's why I didn't pay off the $15K Cap One account completely although I damn near did.  It would have closed the account, thus taking that high reporting CL away from me.

I'll pay the minimum on that $726 balance for as long as needed to help me move on to bigger and better TL's.

[MovingForward_2012]

Haha! If I were in your boat, I would do the very same thing!

[SnackTrader]

Once again, I have to disagree with those stating the 2012 member date is important for Amex. The OP's AAoA is 1 year, so adding another new trade line will bring that AAoA under a year, so if the OP were to apply for another Amex in 4 years (assuming he added no new tradelines), the backdating would barely impact his AAoA at the time regardless of if the member date was 2012 or 2013. If we assume he adds 3 or 4 new tradelines a year, then AAoA will also be unaffected by a different year in the long run, since there will be so many tradelines factoring into his calculation.  He has plenty of aging tradelines right now, and I don't see the point of rushing for an Amex he doesn't want.  In fact, it seems pretty clear to me that the OP is looking for a high limit revolving credit card to grow with him, which a charge card doesn't fulfill unless his monthly spending is large enough. 

Anyway, sorry for rambling on that. OP, your scores should improve once the Util updates in a few days. I think you are going to be a good candidate for many prime lenders, although perhaps not at the limits you want. But I've seen many success stories this year using recon lines, So make sure you beg and plead for what you think you deserve. And remember that your income and current debt obligations plays a big part into those limits. But with a 7% DTI you have some room to work with.  Your INQs are already low, and I think you have a few to burn without putting yourself in a hole. So what I would do is pick out some cards you're interested in (Chase Freedom, Discover, Amex revolver like Delta or Hilton, Citi Forward, Barclays) and go for 2 or 3. Then wait 3-6 months, see what rewards or financial gaps you have, and try another 1 or 2. But remember, with such a short AAoA, lots of tradelines at once will impact the score. 

Good Luck, and please keep us updated on your decision and the results. And yes, do this within the next month. Get those INQs and tradelines to age together. 

[jsucool76]

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SnackTrader wrote:

Once again, I have to disagree with those stating the 2012 member date is important for Amex. The OP's AAoA is 1 year, so adding another new trade line will bring that AAoA under a year, so if the OP were to apply for another Amex in 4 years (assuming he added no new tradelines), the backdating would barely impact his AAoA at the time regardless of if the member date was 2012 or 2013. If we assume he adds 3 or 4 new tradelines a year, then AAoA will also be unaffected by a different year in the long run, since there will be so many tradelines factoring into his calculation.  He has plenty of aging tradelines right now, and I don't see the point of rushing for an Amex he doesn't want.  In fact, it seems pretty clear to me that the OP is looking for a high limit revolving credit card to grow with him, which a charge card doesn't fulfill unless his monthly spending is large enough. 

Anyway, sorry for rambling on that. OP, your scores should improve once the Util updates in a few days. I think you are going to be a good candidate for many prime lenders, although perhaps not at the limits you want. But I've seen many success stories this year using recon lines, So make sure you beg and plead for what you think you deserve. And remember that your income and current debt obligations plays a big part into those limits. But with a 7% DTI you have some room to work with.  Your INQs are already low, and I think you have a few to burn without putting yourself in a hole. So what I would do is pick out some cards you're interested in (Chase Freedom, Discover, Amex revolver like Delta or Hilton, Citi Forward, Barclays) and go for 2 or 3. Then wait 3-6 months, see what rewards or financial gaps you have, and try another 1 or 2. But remember, with such a short AAoA, lots of tradelines at once will impact the score. 

Good Luck, and please keep us updated on your decision and the results. And yes, do this within the next month. Get those INQs and tradelines to age together. 

---

Well if the OP were to apply for an amex charge now and get approved (assuming he got the 2012 member date) and then applied for an amex revolver in january, his account would read "Opened january 2012" as opposed to january 2013 or december 2012. which would make the account a year old, thus allowing him to open accounts with amex without lowering his aaoa.