Failed Round of Applications?

[Anonymous]

Hey Everyone --

So I'll level with you, I can't figure out whether rounds of apps are still okay to use as a tactic to increase overall credit or not anymore. It seems like it's a pretty polarizing topic, so I'm hoping that I can lay out what I did yesterday and get some advice on what to do next.

Here's the run down:
--As of today, my score (according to CreditKarma) was 654
-- I had a settlement for less than the total balance and a 120 day late payment back in 2004
-- Since then, I've worked really hard to rebuild my credit and have had a pristine payment history since then.
-- My current cards are Cap 1 ($1250), Juniper ($3.5k), and Chase ($3k)

Today, I wanted to try my hand at getting some new cards, so I applied to:
-- BofA Mastercard
-- Discover
-- US Bank
-- Citi

I was declined by BofA (they were the settlement creditor back in 2004), declined by US Bank, approved by Discover ($5k), and am waiting to hear back from Citi (but prob will be declined).

So the question is, what now? I was hoping to get a bigger CL from my attempts today and was thinking about applying for one or two more cards in the next couple days, but was unsure how this would affect me long-term. I'd like to have a nice 0% 12-month intro APR with a nice CL, but I'm unsure where to go.

-- I heard Wachovia has got a decent 0% intro offer, should I apply to them?
-- Should I try to get a CLI on my Juniper or Chase (both will require hard pulls)?
-- Should I try a second card from Juniper and combine it?
-- Should I sit quietly and wait for 3 months to ask for a CLI from Discover?
-- Should I be happy with what I have and move on?

TIA for anyone's advice -- I feel like my efforts today are a failure and want to keep trying for some additional CL love, but don't want to wreck my credit with too many hard pulls. What's a guy to do?

Thanks,

FC

[Anonymous]

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@Anonymous wrote:
Hey Everyone --

So I'll level with you, I can't figure out whether rounds of apps are still okay to use as a tactic to increase overall credit or not anymore. It seems like it's a pretty polarizing topic, so I'm hoping that I can lay out what I did yesterday and get some advice on what to do next.

Here's the run down:
--As of today, my score (according to CreditKarma) was 654
-- I had a settlement for less than the total balance and a 120 day late payment back in 2004
-- Since then, I've worked really hard to rebuild my credit and have had a pristine payment history since then.
-- My current cards are Cap 1 ($1250), Juniper ($3.5k), and Chase ($3k)

Today, I wanted to try my hand at getting some new cards, so I applied to:
-- BofA Mastercard
-- Discover
-- US Bank
-- Citi

I was declined by BofA (they were the settlement creditor back in 2004), declined by US Bank, approved by Discover ($5k), and am waiting to hear back from Citi (but prob will be declined).

So the question is, what now? I was hoping to get a bigger CL from my attempts today and was thinking about applying for one or two more cards in the next couple days, but was unsure how this would affect me long-term. I'd like to have a nice 0% 12-month intro APR with a nice CL, but I'm unsure where to go.

-- I heard Wachovia has got a decent 0% intro offer, should I apply to them?
-- Should I try to get a CLI on my Juniper or Chase (both will require hard pulls)?
-- Should I try a second card from Juniper and combine it?
-- Should I sit quietly and wait for 3 months to ask for a CLI from Discover?
-- Should I be happy with what I have and move on?

TIA for anyone's advice -- I feel like my efforts today are a failure and want to keep trying for some additional CL love, but don't want to wreck my credit with too many hard pulls. What's a guy to do?

Thanks,

FC

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Welcome to the Forums,

First, the CreditKarma score is not a true FICO.  My first advice would be to obtain true FICO scores from either this site or directly from EQ or TU.

The $5k Discover is great.  Congrats.  Great card that will grow.

You now have numerous inquiries in a short period of time.  I'd definitely cease and desist any further applications for now.  Chances are you will be declined.

You have 4 active credit cards.  I'd use them wisely and nurture your credit to a higher score.

Good luck

[score_building]

congrats!  5k is a great starting CL with discover, they typically require 6 mos. b4 acct. becomes CLI eligible.

[Anonymous]

If you applied in that order, then I agree Citi will probably decline.  They don't like too many recent inquiries.

However, $5k on Discover isn't too shabby.  They only gave me $2k, while other CCC's gave $10k to $25k.

In hindsight, I would have app'ed Citi first, just so the inquiries weren't part of the issue.  Since Discover was in the middle, that would remain the same.

BoA is very conservative right now, so I probably would have looked around at somebody else at this point.

Also, I agree you should find out what yoru FICO's are and what negative comments it gives you.

[Anonymous]

Thanks so much for the responses!

Yep, Citi declined, citing past overdue accts.

I checked my real FICO (through this site) and got a 666 (uh oh!). So I guess I'll just wait, enjoy the $5k CL on Discover, and try again in 6 months... right?

Should I expect my score to improve now that my utilization rate will go down with the $5k additional CL? My rate wasn't extremely high to begin with, but the extra CL certainly helps. I know the 4 hard pulls dinged my score in the short term, but the additional account and CL should lead to a net positive, correct?

Thanks again,

FC

[Anonymous]

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@Anonymous wrote:

Thanks so much for the responses!

Yep, Citi declined, citing past overdue accts.

I checked my real FICO (through this site) and got a 666 (uh oh!). So I guess I'll just wait, enjoy the $5k CL on Discover, and try again in 6 months... right?

Should I expect my score to improve now that my utilization rate will go down with the $5k additional CL? My rate wasn't extremely high to begin with, but the extra CL certainly helps. I know the 4 hard pulls dinged my score in the short term, but the additional account and CL should lead to a net positive, correct?

Thanks again,

FC

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Your score should definitely increase in time.  The factors would include:

1.  Discover will give you a better UTIL ratio.  (Assuming you don't run up your credit).

2.  Your accounts will age.

3.  Your negative(s) will have less impact as time passes (or even fall off your CR).

4.  Your INQs will have less impact as time passes.

For now, I would nurture your accounts and watch your FICO rise.

[Anonymous]

firt congrats!!   , now wait about 6 months  before you act on any new applications.  card shop, investigate and then apply in 6 months

[jaysdad2k]

This reminds me of a baseball analogy. You went 1 for 4 but your hit was a 3 run homer!

That 5K Discover is a real gem. I would not worry about the declines at all. You did great. And you increased your total CL by more than 50%.

 Now you can let that age at least 6 months, then watch your scores grow.

[Anonymous]

Thanks for everyone's responses!

That baseball analogy really helps put things into perspective. I'll hang out and wait for a bit, then take up an app again.

Can I ask a quick question though -- I always thought that Discover was at the low-end of prime cards. The 5% cashback is nice and yeah, it's a great CL, but I'm surprised by everyone's congratulations on the new card. Are Discover cards hard to get? Do they not typically give out CLs like that? Was the big overall CL bump the big win here?

Thanks again,

FC

[Anonymous]

People are congratulating you likely because Discover can be hard to get, and you got a fantastic starting CL - it seems Discover usually grants moderate-to-low initial CLs (mine is 2.5K and I got it a month ago). But regardless of where that CL starts, the card should grow quite well. Discover also has fantastic customer service. And they have pretty conservative lending practices, making them more stable - I haven't heard much of anything about AA lately with Discover. All-in-all, they're a great company to start a relationship with. Of the 4 places you apped, I would be most excited by a Discover approval (and USBank second - they're near and dear to my heart, anyway :-P)