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So I haven't posted here before I moved houses in April - basically, I started on my credit journey not knowing how anything worked and out of trial, I applied for a Chase Freedom and got a $1,000 limit. It's been six months later, and today I applied for an American Express Green, Discover IT, and Hawaiian Airlines World Elite Mastercard and got all three (AmEx obviously is a charge, Discover IT I don't know the balance yet, and Hawaiian Airlines is $5,000 limit).
That makes four credit cards, and I'm so grateful I had everyone's help in getting all four. I have two questions to ask now if anyone would be so kind in answering:
1. How do I apply the under 10% utilization rule with four credit cards? Am I charging all credit cards, paying in full, and leaving a balance on one of them to have under 10%? I know with my Freedom of $1000, I keep the bill to under 10% when the statement cuts and then pay it off before the due date.
2. Should I get any more cards today or tomorrow since this is a spree, or wait until next time? I'm considering a Citi, C1, and maybe store cards, but I'm not too clear ATM.
I was also thinking about doing a CLI on the Chase Freedom card, but I don't know how to go about that and I'm going to start my research now.
Thanks everyone!
1. Yes, you can use all your cards as much as you want and then pay them all off before statement cuts except for one which you let report 1-9%. Remember, you don't need to do this unless you plan on app'ing for new credit soon or just want to see what your optimal score is.
2. Three cards is a pretty good amount to add to your portfolio at a time, any more than that and your AAoA just takes a nose dive. So unless there are other cards you absolutely NEED, I would say stick with the three for now and maybe app for more cards you want in 6 months.
In regards to a Freedom CLI, you should be able to request one online but it will definitely be a HARD PULL.
Congrats on your approvals!
@mrjohnsonsgoals2 wrote:So I haven't posted here before I moved houses in April - basically, I started on my credit journey not knowing how anything worked and out of trial, I applied for a Chase Freedom and got a $1,000 limit. It's been six months later, and today I applied for an American Express Green, Discover IT, and Hawaiian Airlines World Elite Mastercard and got all three (AmEx obviously is a charge, Discover IT I don't know the balance yet, and Hawaiian Airlines is $5,000 limit).
That makes four credit cards, and I'm so grateful I had everyone's help in getting all four. I have two questions to ask now if anyone would be so kind in answering:
1. How do I apply the under 10% utilization rule with four credit cards? Am I charging all credit cards, paying in full, and leaving a balance on one of them to have under 10%? I know with my Freedom of $1000, I keep the bill to under 10% when the statement cuts and then pay it off before the due date.
2. Should I get any more cards today or tomorrow since this is a spree, or wait until next time? I'm considering a Citi, C1, and maybe store cards, but I'm not too clear ATM.
I was also thinking about doing a CLI on the Chase Freedom card, but I don't know how to go about that and I'm going to start my research now.
Thanks everyone!
1.) You can do whatever you like. People who want to have optimal scoring for times of apping usually only make sure one card has reported a balance to the credit bureau with that one balance being between 1-9% of their total CL. Good thing that you brought up the Freedom as sometimes with Chase when you pay the balance to zero they actually sometimes do a midcycle update and post the 0 balance to your report.
2.) Completely up to you. Do you need more credit at this time? What would be your goal for these applications? Do they serve a role in your spending habits to make you money?
3.) To do the CLI all you have to do is call Chase on the back of your card. It will be a HP if you choose to do this. How long have you had the Freedom? Chase has gotten where they tend to do auto-CLIs around month 6 and 12 if you're using it heavily and paying it in full or responsibly paying.
Congrats!