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Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008
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How many applications with only one cc?

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?
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mrillmatic
Posts: 18
Registered: ‎08-05-2008
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Re: How many applications with only one cc?

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.
Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008
0

Re: How many applications with only one cc?

[ Edited ]
Thanks. I'm not sure what my Experian score is, but I can try my luck. Should I wait with the application for the Discover card in case I get the Amex card and/or don't get it?

Message Edited by Ulan on 09-09-2008 09:15 PM
Regular Contributor
spiritcraft1
Posts: 163
Registered: ‎08-15-2008
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Re: How many applications with only one cc?

With a nice EQ score and one relatively high limit card and likely no inquiries...  you might try a top line CU that pulls EQ.   NASA, Alliant, PenFed...  if it's PenFed, do that before anything else.
11/6/09 TU 724 / EX 739 (FICO from CU) / EQ 701
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008
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Re: How many applications with only one cc?

PenFed - and make sure you do it first. If you have a good income ask for a healthy CL. Work your way down if you have to. You will be very happy with this card.
Established Contributor
jbh
Posts: 763
Registered: ‎07-04-2008
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Re: How many applications with only one cc?

[ Edited ]
First Penfed, then BoA or Amex

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.

I hope this helps.

Message Edited by jbh on 09-10-2008 01:19 AM
Established Contributor
beenthere
Posts: 971
Registered: ‎01-13-2008
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Re: How many applications with only one cc?

If your utilization is low on the one account you won't suffer much or for long if you go for a couple well thought out accounts right away.
1-14-08....... TU=683, EQ=667, EX=666
7-04-08....... TU=688, EQ=678, EX=682.......
.......4 of my 5 cards and a new car later.
2/13/09 and forever EX 693
Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008
0

Re: How many applications with only one cc?

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 :smileywink:. I will see how my score will look after the applications.
Regular Contributor
Physicist
Posts: 164
Registered: ‎07-14-2008
0

Re: How many applications with only one cc?

[ Edited ]
Just a warning: If you consider applying for a mortgage within the next 12 month, do not apply for too many cards. You'll not make up for the inquiry penalties.

Message Edited by Physicist on 09-10-2008 03:06 PM
Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008
0

Re: How many applications with only one cc?

Don't worry. I guess I will leave it at two new cards total.

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