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Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: Need Help on a Decision


jsucool76 wrote:

drkaje wrote:

I'd really wait until any secured product graduated.

 

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

 

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.


I thought inqs only affected scores for 1 year? I know they stay on your report for 2, but I'm fairly certain after 12 months they stop affecting your score. 

 

Also all of amex's charge products (with the exception of plat/cent) waive the AF for the first year, so it is definitely worth it to lock in a member date if you can. 


Does paying to lock in a member date make sense for someone who needs a secured product? I realize the AF is waived first year. Year two people will be asking for a PC hoping things have improved enough to get a credit card from Amex.

 


I'm not saying people shouldn't want an Amex. I'm just saying it should be the right financial decision.


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Valued Contributor
jsucool76
Posts: 2,770
Registered: ‎12-11-2011

Re: Need Help on a Decision

[ Edited ]

drkaje wrote:

jsucool76 wrote:

drkaje wrote:

I'd really wait until any secured product graduated.

 

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

 

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.


I thought inqs only affected scores for 1 year? I know they stay on your report for 2, but I'm fairly certain after 12 months they stop affecting your score. 

 

Also all of amex's charge products (with the exception of plat/cent) waive the AF for the first year, so it is definitely worth it to lock in a member date if you can. 


Does paying to lock in a member date make sense for someone who needs a secured product? I realize the AF is waived first year. Year two people will be asking for a PC hoping things have improved enough to get a credit card from Amex.

 


I'm not saying people shouldn't want an Amex. I'm just saying it should be the right financial decision.


You aren't paying to lock in a member date if it is free....#CommonSense

 

You only need really 6 months of history to get an amex charge, OP has 7. It would be a perfect option to get your foot in the door with amex. The "Go To" used to be the zync which is no longer around, and all charge cards have the same UW criteria. Might as well try. 

 

Other options of course are cash back products that OP is talking about, cap1 cash rewards, discover more/IT, citi forward. 

Wallet: Capital One Cash Rewards 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 1286CL, Walmart Discover: 2000CL, UPromise Mastercard: 1000CL, Chase Slate: 500CL, Discover IT: 2000CL, Citi Forward: 1500CL, Bank Of America Student Travel Rewards: 700CL
Valued Contributor
SnackTrader
Posts: 1,563
Registered: ‎09-15-2012

Re: Need Help on a Decision

I'll throw in some of my ideas here:

 

I also have only 6 months of revolving history (but an AAoA of 4 yrs like the poster), and I was debating the Amex charge card idea. My ultimate goal was the BCP, so I made the decision NOT to apply for the Green and go right for the BCP. The thought was that adding less than a year of backdating probably wouldn't offset adding another new account if I grabbed the Green in December and then the BCP in, say, June. I also felt that I would be ready for the BCP in 2013, which reduces the backdating Over waiting for 2014. 

 

Anyway, all I'm saying is that if you don't want a charge card, OP, and you think you will qualify for a revolver in 2013, then you will gain less than a year's backdating with a charge, so why not just wait to try for the revolver?

 

My vote is for continuing to Garden, think through a multi-step plan (it will give you something other than the itch to think about), and then execute that plan. 

 

For example:

Does BoA unsecure After a year? If so, wait for that to unsecure, pull your scores at that time, apply for your favorite 2 or 3 cards (your INQs are low, so it won't be a drastic approach), and see what you get. I'm sure a year of positive revolving history, and rehabilitated school loans will go a long way. Plus, if you qualify for an Amex revolver at that time, it will be worth it to NOT add a charge today (only 1 new account, only 1 hard INQ, no additional card to mess with). If they deny you, try again in December 2013. 

 

My plan was 6 months of gardening with an unsecured card, and then applying for 3 new cards. I stuck to it, and it worked. But even if it didn't, it made me happy every day that I stuck to that plan and showed my patience. 

 

Kinda like that episode of Seinfeld, I was the master of my domain!


In My Wallet: Amex BCP (12/12) $22.200, Chase CSP (4/14) $12,000, Barclaycard Arrival (5/13) $10,500, Citi Forward (12/12) $9,600, Cap1 Cash Rewards (6/12) $9,000, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
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HiLine
Posts: 2,836
Registered: ‎10-19-2012

Re: Need Help on a Decision


BrokaToe wrote:

Heya folks, what's been going on. I've been hiding in the garden for the last 7 months or so, but the itch is becoming quite overwhelming.

 

You can see my current FICO scores below. I have   $500 BOA 99/500 card and a $300 secured Cap1, and $300 Buckle card. They are all at about 7 months perfect payment history, util is around 3% currently on the BOA card, the other 2 cards have $0 balance. Oldest account opened 10 years ago and AAoA is 4 years.

 

On a couple of my reports I have old school loans in collection status but showing no balance. They have recently been added as new positive tradelines due to rehab completion and are showing positive history since 2002.  No other baddies to speak of.

 

What would you suggest I apply for? I was going to go for Zync, but it's obviously not an available product anymore. I like cash back, but I don't want to wast an inquiry if the odds are against me.  BTW I have no more than 2 inquiries on any of my reports.

 

Thanks for any help or advice..

 

 


You most likely will not get a credit card from Chase. They want to see at least 1 year of credit card usage and do not trust secured credit cards. I think your best shot is with Bank of America since you already have a history with them, even better if you bank with them too.

 

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: Need Help on a Decision

I think OP also has a good shot at getting the green Cap1 rewards card too since OP has history with Cap1. OP if you do decide to app with Cap1, I would apply for the one for average credit since you have limited history. There are two types of the green card with slightly different terms. One is for avg credit, the other is for excellent credit. These two are shown on their website.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
kevinjjc
Posts: 1,301
Registered: ‎01-14-2009

Re: Need Help on a Decision

In my opinion, skip Capital One if at all possible.

Frequent Contributor
kimmiller112
Posts: 465
Registered: ‎04-09-2012

Re: Need Help on a Decision

If you are thinking about Capital One, don't forget that they pull each CRA.  Like others mentioned, it's probably too soon for Chase but I would imagine you would have a good shot at Discover, Amex and/or Citi.  If you are thinking about Citi, app there first as they are very inquiry sensitive.

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Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012

Re: Need Help on a Decision


jsucool76 wrote:

You aren't paying to lock in a member date if it is free....#CommonSense

 

You only need really 6 months of history to get an amex charge, OP has 7. It would be a perfect option to get your foot in the door with amex. The "Go To" used to be the zync which is no longer around, and all charge cards have the same UW criteria. Might as well try. 

 

Other options of course are cash back products that OP is talking about, cap1 cash rewards, discover more/IT, citi forward. 


I think you are forgetting that OP has an AAoA >4 years. So the PRG is not "free". It will cost him substantially in AAoA for a card he will not possibly benefit from after a year. He is a low spender who doesn't travel. Getting a PRG now would reduce his AAoA, give him some bonus points (assuming he can meet the minimum spend) that translate into about a $250 GC (remember, MR points gain value by converting to FF miles, something he won't be doing). In return, he'll get some slight backdating next year, when he applies for the BCE (the card that makes sense for him). But he will now have 2 amex accounts, both of which are younger than his AAoA. So his AAoA will now shrink again. So the "cost" is in reducing the strongest part of his credit profile (AAoA) in exchange for a card he will only possibly benefit from for the next year. 

 

Backdating only really helps in three scenarios: you are just starting out in credit, so taking a hit now does minimal damage but gives you the potential to mitigate damage down the road; you see am amex product that you like and see several others you may want in the future, so are willing to take the hit now in return for help down the line; you have an amex member date that is older than your AAoA, so can use Amex applications to offset hits from other cards. 

 

OP: while I think you could get a freedom today (I don't know where the idea that Chase doesn't "trust" secured cards comes from, and has not been borne out in my experience), but you will likely get a very low limit. Chase is always a hard pull for CLI (I know there are exceptions, but mortals should plan for it), so getting one new with a low limit will cost you at least two pulls (one for card, one for reasonable limit in a year) vs waiting until you have a year of history, likely getting a better limit and getting only 1 pull.

 

Cap1 cards probably don't make sense: you won't qualify for the no AF cards and you will need to spend at least 2k on the card to offset the AF of the one for "average credit". If it were me with your profile, I'd wait until a year, see if BofA unsecures you, then apply for Chase Freedom and Amex BCE. You may have to recon the freedom, but that is pretty easy to do. That will give you two good cards with no AF, 5% cash back in bonus categories, various cash back in BCE categories, 1% minimum on everything. Then, in a year, you can add the discover, forward or whatever. You might even find your BofA card turning useful over time.

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Valued Contributor
SnackTrader
Posts: 1,563
Registered: ‎09-15-2012

Re: Need Help on a Decision


Cdnewmanpac wrote:

jsucool76 wrote:

You aren't paying to lock in a member date if it is free....#CommonSense

 

You only need really 6 months of history to get an amex charge, OP has 7. It would be a perfect option to get your foot in the door with amex. The "Go To" used to be the zync which is no longer around, and all charge cards have the same UW criteria. Might as well try. 

 

Other options of course are cash back products that OP is talking about, cap1 cash rewards, discover more/IT, citi forward. 


I think you are forgetting that OP has an AAoA >4 years. So the PRG is not "free". It will cost him substantially in AAoA for a card he will not possibly benefit from after a year. He is a low spender who doesn't travel. Getting a PRG now would reduce his AAoA, give him some bonus points (assuming he can meet the minimum spend) that translate into about a $250 GC (remember, MR points gain value by converting to FF miles, something he won't be doing). In return, he'll get some slight backdating next year, when he applies for the BCE (the card that makes sense for him). But he will now have 2 amex accounts, both of which are younger than his AAoA. So his AAoA will now shrink again. So the "cost" is in reducing the strongest part of his credit profile (AAoA) in exchange for a card he will only possibly benefit from for the next year. 

 

Backdating only really helps in three scenarios: you are just starting out in credit, so taking a hit now does minimal damage but gives you the potential to mitigate damage down the road; you see am amex product that you like and see several others you may want in the future, so are willing to take the hit now in return for help down the line; you have an amex member date that is older than your AAoA, so can use Amex applications to offset hits from other cards. 

 

OP: while I think you could get a freedom today (I don't know where the idea that Chase doesn't "trust" secured cards comes from, and has not been borne out in my experience), but you will likely get a very low limit. Chase is always a hard pull for CLI (I know there are exceptions, but mortals should plan for it), so getting one new with a low limit will cost you at least two pulls (one for card, one for reasonable limit in a year) vs waiting until you have a year of history, likely getting a better limit and getting only 1 pull.

 

Cap1 cards probably don't make sense: you won't qualify for the no AF cards and you will need to spend at least 2k on the card to offset the AF of the one for "average credit". If it were me with your profile, I'd wait until a year, see if BofA unsecures you, then apply for Chase Freedom and Amex BCE. You may have to recon the freedom, but that is pretty easy to do. That will give you two good cards with no AF, 5% cash back in bonus categories, various cash back in BCE categories, 1% minimum on everything. Then, in a year, you can add the discover, forward or whatever. You might even find your BofA card turning useful over time.


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In My Wallet: Amex BCP (12/12) $22.200, Chase CSP (4/14) $12,000, Barclaycard Arrival (5/13) $10,500, Citi Forward (12/12) $9,600, Cap1 Cash Rewards (6/12) $9,000, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
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HiLine
Posts: 2,836
Registered: ‎10-19-2012

Re: Need Help on a Decision


Cdnewmanpac wrote:

(I don't know where the idea that Chase doesn't "trust" secured cards comes from

 

That comes from my conversation with a Chase recon representative.


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