Credit Card Advice

[100M]

After a long battle, I have finally gotten my credit cleaned up to the point where I want to begin building strong credit. I have no baddies on any of my CRs. I have a CC with my credit union with a $5k limit ($4700 balance that I am working to pay down), a B of A CC with a $300 limit and a $0 balance (a fromer secured card now unsecured), and a HSBC CC with a $300 limit and a $0 balance.

I want to get an AMEX and another card (Chase maybe), but I need some guidance on what I should do next.  My current credit scores are in the 675 range, but I have a high utilization % due to the credit union card balance.  I have no lates on any of my installment or revolving accounts, but I have a short average credit age (approx. 2 years) since I've just rebuilt my entire credit history. 

I have just requested a CLI from the B of A CC and the HSBC CCs.  May request one from my credit union CC, but that card is fairly new...about 8-9 months. Which AMEX card should I apply for to get an approval?  What about Chase?  I applied for both back in March but was denied because I still had 1 baddie on my reports.  It is now gone.

Any guidance would be a BIG help! 

[DI]

Apply for the Chase card first.  They do not like a lot of recent inquiries.  Next you can apply for an AMEX card.  AMEX pulls EX and Chase pulls EQ.  It varies depending on what region you live. 

[UFGuy2006]

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@DI wrote:

Apply for the Chase card first.  They do not like a lot of recent inquiries.  Next you can apply for an AMEX card.  AMEX pulls EX and Chase pulls EQ.  It varies depending on what region you live. 

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I agree - start with Chase. If you get approved there, then move on to Amex. IMO Amex charge cards are a little easier to get than their revolving cards.

[Walt_K]

You're at 84% utilization.  Your score would jump a lot if you paid that down.  You'd not only have better chance of approval, but you'd be likely to get a better CL upon approval.  Any reason you can't wait until you have your utilization paid down before applying for another card?

[DI]

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@Walt_K wrote:

You're at 84% utilization.  Your score would jump a lot if you paid that down.  You'd not only have better chance of approval, but you'd be likely to get a better CL upon approval.  Any reason you can't wait until you have your utilization paid down before applying for another card?

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+1  I missed the high utilization part.  Yes, most definately want to get those balances down before apping for more credit.    The high balances will limit your chances of getting high initial limits if you get approved.  Have no baddies are only a small part of the approval process. 

[tntexans72]

Gonna have to agree with OP here...pay down your usage to less than 15% util before apping. If not, I am afraid you are going to waste a couple of hard IQ on your CRs. Chase and Amex are tough cards to get, you are going to have a better chance once you pay down your UTIL. Be patience and give yourself the best chance of approval by optimizing your score - by paying down your util %. I wouldn't be surprise if your Fico will jump at least 15pts once you pay down your UTIL.

[100M]

Thanks everyone for the advice. I will pay down the balance of my
CC before applying for Chase and AMEX. I will keep you posted on my progress.

[drsmith]

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@DI wrote:

Apply for the Chase card first.  They do not like a lot of recent inquiries.  Next you can apply for an AMEX card.  AMEX pulls EX and Chase pulls EQ.  It varies depending on what region you live. 

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Chase pulled TU for me when I applied in Jan. 2010

[Walt_K]

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@100M wrote:
Thanks everyone for the advice. I will pay down the balance of my
CC before applying for Chase and AMEX. I will keep you posted on my progress.

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Keep up the good work.  Hope it didn't sound like anyone was beating up on you about your utilization.  Lord knows I'd be the last to do that.  I had multiple cards maxed out a few years ago for an embarrassing amount of debt.  You've got a relatively small balance as things can go and no other negatives.  So your score will greatly improve by paying down your balance.  If you can stay focused and get your utilization down before you apply you'll start off with a much better limit.  Otherwise, you're likely to get a small initial CL and it might take a much longer time before you can get an increase.  Waiting a little longer now can get you where you want to be more quickly.