Welcome to the forums, Fred (if it isn't actually your name, I apologize)!
Like you, 6 months ago I had only an installment history with 3.5 years AAoA of student loans and 1 car loan reporting. Oldest account was 6 years old, I had also never been late. After reading through the forums I found that the Capital One Cash Rewards card was an almost automatic approval for my history. I applied (for the version for peopple with excellent credit), and received the no Annual Fee version with a $3,000 credit limit. Once again, this was just 6 months ago, but I kind of regret not applying for any other cards to see where my installment history would have gotten me. The common opinion on this forum is that revolving history is NEEDED before you get to the best revolving cards, which is probably right, but I think exceptions get through this rule.
Let's fast forward 6 months to today, I applied just before Christmas for the Blue Cash Preferred, the Chase Freedom, and the Citi Forward and I was approved for all 3 INSTANTLY! Which probably means my profile is better than just borderline for all 3 lenders. This was after just 6 statements with the Capital One card, and after I showed utility of only 2% on the card. My FICO and FAKO scores are in my signature, and are right where yours are.
Given the limits I was approved for with just 6 months of revolving history, I think you may have a chance the Chase Freedom, but it is nowhere near guaranteed. You may have to call and recon if there is an initial denial, and at the end of the day you may waste an inquiry. But to you, that might be worth the risk. That's your decision. The lack of revolving history will hurt you with a card like that. I don't think that you have a shot at the other 3 you listed. BUT, you could also apply for a different card now with more relaxed criteria (store card, Capital One, etc.) and wait 6 months and try to see if you can have the same success I did. Just be ready for the itch every day. You'll need to really wait, and ignore the temptation of people on the forum telling you that you are ready to apply before 6 months. They usually have your best interests in mind, but everyone's situation is so unique that only you really know what is best for you.
With that said: the caveat to all of the above advice is that my income is over $60k, which may impact your limits. So don't take this to mean you are guaranteeed the same experience.
If you have any questions, just post back and I'll see if I can help. Good luck, and please keep us updated with your decisions!
@SomeGuyNamedFred wrote:Hi all. I really want to apply for a Chase Freedom card, but won't bother if it's going to be an automatic denial.
My credit backround: According to myfico, my score is 762. The only credit I have so far is through student loans (current balance about 8K). AAoA is 6 years with oldest account at 7 years 4 mos. Never missed , never late, and credit reports are spotless. At the time when I plan to apply I will be making somewhere between 30k-34k, and I will be living rent free, staying with family. I also have a checking account with chase. My main concern is that I don't have any revolving credit in my reports as this will be my first credit card(the only negative according to myfico).
So, wise credit gurus, what do you think, do I have a valid shot? If no, my second choice would be one of either 1) amex blue cash preferred, 2) blue cash everyday, or 3) Amex costco trueearnings. Would I have a better shot at one of those?
Many thanks for the advice.
IMO it would be a denial with Chase and let me explain my reasoning. I applied with Chase in September, at the time my scores were pretty close to my siggy. (I think the EX score from the denial was 697). My profile at the time was a paid off mortgage (from 2004); student loans $5,000 bal (62 mos reporting no lates) and a Chase auto loan opened in April $26.000 bal; 1 sm coll to drop off Mar 2013- Income $57,500. Oh, length of oldest account was 28 years and AAOA of 8.5 years.
What was missing? Revolving credit. I tried to recon 3x and each CSR specifically said that the lack of revolving credit was the issue. They wouldn't even give me a$500 CL. I thought since I had an auto loan with them it would be helpful but they explained it was weighted differently -installment loans incl the mtg were secured. Try again after I had a history with revolving credit.
YMMV and iIf you decide to app- good luck !
@SomeGuyNamedFred wrote:Ok thank you both, I may have set my sights a little high.
SnackTrader: Thanks for sharing your experience, it's very helpful, especially given the similarities in credit history. And congrats on your new cards! I was looking at Cap1 originally, but after some research decided to try and start with something I intend to keep for the long haul, and avoid any cards I would want to cancel in the future, especially since I only want to get at most two or three cards . But it sounds like that's probably not an option. I read somehwere (maybe here) that Cap1 hard pulls all three CBR's, was that your experience? That's something I was kinda hoping to avoid as well.
Seeing as you have expressed some uncertainty, and a little optimism about wheter you would have been approved at chase initially, I'm thinking I might still try there first, reconning if necessary, and then fall back on cap1. Do you think one inquiry on my report would kill my chances with cap1? I don't expect to have the same success as you - I wouldn't expect to get any more than half your credit limits, if I'm approved at all. Either way I'll report back here with my results.
It's very good to know at least, that I could probably get a decent card somewhere, and that I could then upgrade in as little as six months! Thanks much!
Capital One did pull all 3 CRs for my approval. I suppose it shouldn't matter a whole lot for an additional inquiry, unless you already have a bunch of inquiries on your reports. How many do you have on each report currently?
I think that it is always worth it to try for the cards you want, unless approval odds are completely unlikely. With the Freedom, who knows. 09Lexie had some really good insight there, so perhaps it would be worthwhile to just wait the 6 months unless you are willing to waste the INQ. It's really a personal decision, but if the computer just looks for a high credit score, which you already have, you may be approved. Your scoress are 60 points higher than 09Lexie due to the collection. I had an instant approval with the best terms available (12.99% APR) with a 780 EX FICO. You may not be far off from that.
Back to Capital One for a second - my card nets me 1% on everything, with a 50% annual bonus (translates to 1.5% on every purchase) and has no AF. I don't plan to ever get rid of my card as long as these terms apply. I use it for everything that isn't gas, groceries, restaurants, movies, bookstores, or otherwise included in Freedom 5% categories. In fact, it will likely continue to get $500-$1,000 a month in use, even with all of the cards.
This is why I recommend applying for the excellent credit version of the Capital one card, because it has no AF and will therefore never really force you to close it. You might as well just leave a card with no AF inactive rather than closing it. So if you're willing to give that a try and wait the 6 months, there is your second option. I think it will all come down to what you are willing to try. Worst case scenario you end up with two inquries on all credit bureaus (one on each from Chase after a denial for Freedom, and then one on each for a Capital One approval) and then wait 6 months and apply for more prime cards in July.
Did any of this get you closer to a decision?
