Hello everyone. I never paid much attention to credit scores and everything connected with them. Just out of curiosity, I looked at my Equifax score, and it said I wouldn't have enough accounts in good standing (and a short credit history, but can't do anything about that). Well, I have only one credit card at the moment, a WF Visa with $8900 CL. My EQ score is 749.
I guess it's a good idea to get a couple of other cards then, even if I don't need any at the moment. So my question is: Should I space out my applications or do two at once? I had one hard pull for a checking account last month, and I'm interested in something like Discover More or the Costco TE Amex. Any risk? Would Amex freak out in this case?
i think you should have more than a good chance of getting a new card. i would try amex, discover and chase. i would try amex first, because it seems to me they don't like to see you applying for too much new credit. amex mostly pulls experian just like discover.
Wondering why you must do Penfed first? Because they DESPISE new accounts and will want you to wait 6 months to show that you can handle them so make sure you apply to them FIRST.
Grow them and make them happy because they WILL reward you over time with high limits and rewards.
Then, 6 months later, get any other you were hoping for. I'd say just having the top 3 is a great portfolio and, with your score, it is not critical to ask for more. IF you must, space it out so by the time Penfed hits 1 year, you get one more.
This allows you to space out inquiries, improve chances of higher cli's and higher chance of approval and, when that year is done, you can let them age for a few years and not need to use any more inq's. Your score will rise and you will not take sudden fico score hits with 4+ accounts coming in at once along with 4 inquiries that follow.
That's what I would do if I was in that position. Penfed also offers a 60-90 day "All You Can Eat" credit pull. In other words, you can use the same report, without taking another inquiry, to be approved for loans, cc, car etc.
Thanks guys for the suggestions. I'm not sure that I'm up to gaming those credit unions.
If I see it correctly, my only negative that I can do something about seemed to be the number of credit lines. Even with only a second decent credit line, I should have no utilization problem, but that's still only two lines. I should probably really take the inevitable ding in my score and apply for a few cards now and let them age afterwards. If I wait too long, it will probably prolong the "too low average age" state.
I guess I would need a really good score simulator to find out the best strategy here . I will see how my score will look after the applications.