Credit Cards

[racer-x]

Hypothetically speaking of course....Lets say.....what if my friend was recently approved for (2) $10K CC's and those accounts haven't showed up on his CR's.

And then, 'said' friend receives a CC offer that he would really like to app for.

Is it better to wait for the new $10k TL's to report or do it now, before they report?

I see it (2) ways:

-App now before the new TL's show up, so it doesn't look as if 'said' friend is pyramiding(sp?)

-App after TL's show up so it shows that other lenders consider 'said' friend creditworthy and deserving of $10K CL's.

Remember, this is all hypothetically speaking....of course.

[CreditMaster1]

I would think that since you open two new accounts it would affect your AAoA, which might decrease your score. Also if your friend already applied for those two accounts, he will also have 2 hard inquires on his CR, which will probably pull up another flag when he applies for a new credit card since it will seem that he is desperate for credit (even though he might not be). 

I would wait for the two accounts with the 10K limits to age a bit (at least 6 months), then apply for the other card. 

[daybreakgonesXe]

Hmmm thats a tough decision...what does your current credit picture look like? Giving us an idea of where your credit is before those two new tradelines hit will help us decide if it'll help or hurt you!

[racer-x]

Reporting available credit  (pre-$22K new TL's) - $20K, utilization 3%

Oldest acct - 5yrs

AAoA (pre-$22K TL's) - 1yr. 4mos

EQ - clean as can be

TU/EX - (1) paid collection

2 inquiries TU, 0 EX, 4 EQ

60k income

[daybreakgonesXe]

Looks like it'll hit your AAoA pretty bad if they report around the same time...if you really want the card, i would apply before they report, since you're inquiries aren't so high! Hope it hits your TU or EX

[E150GT]

He has already taken a hit so it wouldnt hurt I dont think. If he gets denied he still has two great cards with great limits for the time being. 

[racer-x]

EDIT:  (1) inquiry on EQ, not 4.  It will be (3) when the (2) new TL's report of which pulled EQ.

Card in question is BoA Cash Rewards  or Chase Freedom or both.

[hardworkrebuilding]

To be quite honest, he should go ahead and apply.  From past experience, the inquiries won't raise as big of flag as the newly posted accounts. I would go for it, be prepared to accept the results, and garden for 6 months either way.

[Revelate]

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hardworkrebuilding wrote:

To be quite honest, he should go ahead and apply.  From past experience, the inquiries won't raise as big of flag as the newly posted accounts. I would go for it, be prepared to accept the results, and garden for 6 months either way.

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Also it can take up to 2 months in some cases (admittedly rare) for the TL's to report; an inquiry taken now is already two months towards fading into irrelevance.  I agree with the suggestion to simply apply now, time heals all FICO wounds, might as well start the clock as soon as possible.  

To add to that, with BOFA there's a non-zero chance that it'll hit EX anyway which is a blank slate, and no tradelines there and no inquiries is better than 2 additional new tradelines in my opinion.

[youngandcreditwrthy]

I'd go ahead and apply...!! Discover and Amex took like two months to report for me!

Good luck!