Credit Cards

[Glen_Livet]

Hello credit gurus,

I've received multiple "pre-approved" offers for the Discover IT card and am thinking about applying. I totally get how "pre-qualification" works, so no questions about that. My actual numbers (see signature) appear to put me at the low end of their approval population. My reasons for wanting this card are:

• I need more credit to keep utilization down to <15%
• Since I virtually HAVE to use credit, I'd rather have a card that had sexy perks
• They've sent me 6 solicitations with increasingly favorable terms… so, there's that

My ultimate goal is to apply for a mortgage within 12 months. My hesitation in applying would be taking on the hard inquiry and getting nothing in return. Equifax has me down for 3 hard inquiries, but I'm pretty sure I had 5 or even 6 last year.

MORE INFORMATION (may not be relevant)

One of my student loans shows a collection in Dec of 2009. I have a hunch that this is BS because I never received anything from any collections agency. It sticks out because my rental broker alluded to me having "a collection account" when I was going through a rental application process last year. I had assumed it was a medical billing issue that my insurance company was in the process of settling—until I pulled my credit report yesterday. Should I attempt to get this removed?

Per my credit report, Chase closed a card on me some time in 2011. I recall it being the other way around, I closed the card because (very, very unwisely) decided that I was done with credit cards. 2 months later I get a call telling me I am past due on a balance of < $1… it was all finance and interest for a balance that was nominally ZERO. They supposedly agreed that this was stupid and eliminated the balance. Should I try to have the closing notes changed?

I have 2 student loans. I'm in no hurry to pay them off because I may never see money that cheap again. But would it make sense for me to consolidate them to reduce the number of installment loans on my report?

[john398]

Closing notes really should not matter,your probably hgetting soft by discover and theres a good chance you will be approved

[LS2982]

Welcome to the forums Glen!!

I would say you have a good chance of approval, and even if they decline recon it.

[Goal850]

I am going to assume you probably have a good chance since they are sending you offers and you have a higher score than me and I was approved a little over a week ago with no preapprovals. They hard pulled TU and EQ. TU was 663 at the time and EQ 644 (the score that came with the card). Good Luck if you apply! I say go for it, but that's just me.

[negg]

Can't argue with rotating 5% Q and 1% uncap on everything else. 

[Glen_Livet]

Thanks everyone for the feedback and welcomes.  This is really fascinating stuff... especially how I've been givend so much bad advice from lawyers, MBAs, portfolio managers and others who should have known better.  I was actually under the very ignorant notion that, because I got a raise laste year, it would somehow be automatically impact my credit score.  What a shock I was in for.

I had a couple of clarifying questions...

@LS2982 - what does "recon" mean?  Does that mean somehow getting them to reconsider approval?

@negg - I don't follow... does Q refer to utilization rate?

[LS2982]

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Glen_Livet wrote:

Thanks everyone for the feedback and welcomes.  This is really fascinating stuff... especially how I've been givend so much bad advice from lawyers, MBAs, portfolio managers and others who should have known better.  I was actually under the very ignorant notion that, because I got a raise laste year, it would somehow be automatically impact my credit score.  What a shock I was in for.

I had a couple of clarifying questions...

@LS2982 - what does "recon" mean?  Does that mean somehow getting them to reconsider approval?

@negg - I don't follow... does Q refer to utilization rate?

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"Recon" means Reconsideration. When you are declined for credit, you can call into customer service and ask to speak to a credit analyst for application reconsideratiom. At this point you can make your case as to why you should be approved for the account and agrue their decline reasons. Lots of people have success with it if you go in with your ducks in a row and answer the analysts questions to their satisfaction.

"Q" means quarterly rotating categories found on Discover IT's and Chase Freedom 5% rotating categories.

[Glen_Livet]

Pulled the trigger and apparently, I just got approved.

Good to be back among the living!

Thanks everyone.  I'll let you know what sort of numbers I get.

[LS2982]

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Glen_Livet wrote:

Pulled the trigger and apparently, I just got approved.

Good to be back among the living!

Thanks everyone.  I'll let you know what sort of numbers I get.

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CONGRATS!!!!

Call in and find out what you got!!

[E150GT]

why do you "virtually have" to use credit?