Credit Cards

[ficonovice]

This is the first card I've applied for in approximately 1 year since starting to repair/rebuild my credit.

I've been bringing down my revolving balances but currently they're at 78%-82%, but I just couldn't

resist applying on-line for the card. (I'm afraid an old collection account is going to re-appear any day, so I figured now was as good a time as any to apply.)

Fico Scores are:

TU: 664

EQ: 693

EX: 670

Instant approval: $8,500, Prime Rate + 5.99%, currently 13.74%

Balance Transfer 0.00% for 12 months from date of first balance.

With this card, my revolving balances will be 49%.

Current age on accounts is 14 years.

Does it make sense to apply for one more card? My thought process is that it will help

my revolving balances and give me a little security in case of emergency--I'd use the card very little.

From a hard inquiry perspective, does it make sense to apply on the same day for multiple cards? I think I read somewhere that inquiries at the same time or within 1-2 weeks are treated as a single inquiry.

Any advice is greatly appreciated.

[Cooneyca]

It might make sense if you can get a hi-limit card to bring your util down to under 30%.  I wouldn't start apping around to find that card - probably do more harm than good, but maybe give one more try for a card that is more likely to give higher limits.  I found that both my airline rewards cards came in with much higher limits than the other cards from the same bank.  Not very useful on the rewards front, just nice generous credit limits.

Citi - Professional $4k cl (and it was applied for first), Citi AAdvantage $7k

Chase - Freedom $4k cl (again applied for first), Chase Continental $10k

Unfortunately, both the airline reward cards do carry an annual fee  - waived year one as a promo

I don't know if these is a "real" theory or just how it happened for me, but again, I feel that you have a one-shot chance at getting another card which will help your score by bringing your util down before the inquiries hurt your score again.

Carol

[ficonovice]

I see a few other Citi Cards for people with good credit, not excellent credit. Does it make sense to apply to Citi again, or are they likely to deny due to the previous approval within the last few hours?

[Sylviatob]

holy molie! What a great cl, on a prime cc! Congrats!

Do you actually have a need for another card? If you don't, I wouldn't apply.

Message Edited by Sylviatob on 10-29-2007 02:06 PM

[ficonovice]

Thanks Sylvia. I was extremely surprised and pleased when my computer screen said: APPROVED

What a great feeling, and then the limit really made me happy.

In answer to your question, I don't really need another card, but about a week ago there was a hard inquiry on my TU report from a collection agency. I then received a call from them and it's a $94.00 Verizon bill that I think I can prove shouldn't be in collections, but I fear it's going to appear any day now on my reports.

So, while my scores are relatively decent and I've restrained from applying before, now I'm wondering if I can get another card with another good limit to help my utilization and to give me extra rainy day security. Additionally, my question is if I'm going to apply, does it make sense to apply multiple times (2) on the same day from an inquiry perspective, and secondly, does a company like Citi care that I  just applied and was approved by them for another card?

Thanks.. 

[Cooneyca]

Applying multiple times at one sitting can help you get approved because the other inquiries won't show up on your CRs yet, however, it has been the experience of some that CCCs have come back for a second look and closed accounts mere weeks after opening them when they feel someone went app-happy on them.  They call it an Adverse Action (AA).  I don't believe it impacts your FICO score, but doesn't look too good under scrutiny with the next creditor.  If your score is not top of your list and you can wait 12-18 months before seeing positive returns, I wouldn't hesitate to multi-app (within reason).  Don't do it to an extent that you receive 8-10 cards and wipe out your credit history age.

I applied and received my two Citi cards within one day of each other.  In fact, LOL, I think I have two from every bank.  I don't think they will worry too much about whether you have two or more of their cards.  They consider your overall creditworthiness each time.   You hear many stories of people receiving bank branded cards in mulitples. 

Juniper (Barclays) and Discover are two who apparently don't like multi-appers.  Amex is usually stingy with the CLs upon first approval and then goes over the top 30 days later when people call in for an increase.

It's hard to recommend because all of our situations are going to be so different. 

Another nice card that I just received was a Motley Fool BoA branded Amex card (credit check by BoA).  I was surprised to see a 10k limit on this card because most of my recent inquiries were very visible when I got around to applying for it so they may be more lenient. pro: 0% BT and cash advance for 12 months, con: 3% one-time fee with no max.  My Purchase rate is good at 8.99%

good luck,

Carol

Message Edited by Cooneyca on 10-29-2007 02:35 PM

[Sylviatob]

Well that, novice I cannot answer, as I have no Citi cards.

But I applied for 3 cards within days of each other at very end of September, and was approved for all 3. If that helps any.

You sure want to try and take care of that Verizon asap. Perhaps a pay for delete, if the charge is justified. Just my thoughts.

WAIT A MINUTE! A CA did a hard inquiry on you??

Read this asap! From Noah earlier today:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=52568

[ficonovice]

Yes, the CA absolutely did a hard inquiry on me. I'm holding off on pressing that issue, but if they report the debt, I'll use that as good ammunition to fight anything and everything.

[Cooneyca]

sorry for so many response.  In answer to the below comment.  This is only true for Mortgages and Car Loans (perhaps some other types of loans as well).  It is sort of a nod to the fact that people shop around for the best rate and are probably not trying to apply for 8 different car loans or mortgages on the same day.

With revolving credit, however, they are each counted and each will impact your score.  The sad thing is if you do multi app with one bank, they usually hard inq you for each different application

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ficonovice wrote:

From a hard inquiry perspective, does it make sense to apply on the same day for multiple cards? I think I read somewhere that inquiries at the same time or within 1-2 weeks are treated as a single inquiry.

Any advice is greatly appreciated.

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[ficonovice]

Carol--thanks for the info.

I'm going to apply for one more, and stop regardless of the outcome. I'm already happy with my $8,500 Citi approval.

I don't think applying for 2 cards on one day in one year will affect my score more than 5-10 points, and hopefully the improved utilization will off set it.

Here I go to app--I'll keep you posted!