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Need advice, please...

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tinuviel
Moderator Emeritus

Need advice, please...

I’ve been rebuilding my credit for the last several months. Things have been going well, and as my sig shows, my scores have been going up. Right now, I have the following cards, all of which I PIF every month:

 

Cap1 Platinum Visa – 1400

Cap1 Cash Rewards MC – 750 (now being used as my primary card… pay it several times a month)

Orchard Bank – 300

First Premier – 500 (planning on canceling this summer)

First Premier – 600 (planning on canceling before AF hits in September)

Kay Jewelers – 5100

 

Kay and FP are sock drawered, OB is used for credit monitoring subscription, and my other Cap1 card is used for some type of monthly purchase or other to keep it active every month.

 

Three old, cancelled cards (but not charged-off) will be completely paid off by the end of June. An old CA will fall off this summer, and a second CA will fall off by the end of next year. Also, two old, paid COs will age off of my report the beginning of next year.

 

So much for the background; now my situation…

 

I would love to apply for a premium card by the end of the year to replace FP. Specifically, I am interested in a Wells Fargo card (doesn’t need to be rewards) and the BoA affinity card that supports my alumni association (this is a rewards card). But, I don’t know if I should even attempt this until the second CA falls off at the end of NEXT year.

 

If I have a real shot at it, then I don’t want to add any more inquiries. But, if I would be better off waiting, then there are a couple of store cards that I really wouldn’t mind adding and keeping for the long haul – JC Penney and Dillard’s. I buy most of my husband’s clothes from JCP (he’s a Dockers kind of guy), and Dillard’s is one of my preferred stores for clothes, makeup and skin care. Both stores offer rewards. I’m planning on doing a fair amount of wardrobe shopping for DH soon, and I can get a 10% discount on my first purchase. Plus, the CLs from these cards should help to replace the “padding” to my avail credit that would be lost from closing the two sock drawered FP cards.

 

So… hold off on store cards with my eye on prime cards at the end of the year? Or, hold off on prime cards, take advantage of the discounts/rewards from the above store cards, allow them to grow with me, let the resulting inquiries age, and apply for prime at the end of NEXT year?

 

I realize that in the end, the decision is mine. But, I would really like to hear some thoughts on this, as I’m trying to weight the pros and cons and maybe someone can offer an insight that hadn’t occurred to me. Thanks!


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 1 of 19
18 REPLIES 18
JayRizzo
Established Contributor

Re: Need advice, please...

I like how you ended with, "...the decision is mine".  Excellent statement!!!

 

Since you actually shop at those stores, you will benefit from discounts immediately which makes good purchasing sense.

 

You stated the prime cards do not have to be rewards which tells me you are just looking to get into that higher credit line tier -- which is understandable.  I believe that can still happen at the end of the year AFTER the store cards because you've improved tremendously over the months and steady climbing. 

 

If you acquired the store cards now, by the end of the year the inquiries will have less of an impact (beyond 6 months).  I'm just not 100% sure exactly "how sensitive" WF is about inquiries since that's one of your cards of choice?!?

Message 2 of 19
tinuviel
Moderator Emeritus

Re: Need advice, please...

 


@JayRizzo wrote:

I like how you ended with, "...the decision is mine".  Excellent statement!!!

 

Since you actually shop at those stores, you will benefit from discounts immediately which makes good purchasing sense.

 

You stated the prime cards do not have to be rewards which tells me you are just looking to get into that higher credit line tier -- which is understandable.  I believe that can still happen at the end of the year AFTER the store cards because you've improved tremendously over the months and steady climbing. 

 

If you acquired the store cards now, by the end of the year the inquiries will have less of an impact (beyond 6 months).  I'm just not 100% sure exactly "how sensitive" WF is about inquiries since that's one of your cards of choice?!?


 

I'm not sure, either. I'm hoping that someone might know the underwriting guidelines and post, so that's why I put the question out here.

 

The reason that I'm interested in the non-rewards WF card is that I'd like to have one with a lower APR for charges that I MIGHT need a little breathing room to pay off, with the intention of only using it occassionally -- I have REALLY come to like PIF! Plus, I think that approval for the non-rewards card might be a little easier.

 

The BoA card is a rewards card. I intend to keep my Cap1 cards (IMO, they've been good to me, and the non-rewards card is my oldest active TL) and use the rewards card for gas and groceries, since it would give me 2% cash back. The BoA card would give me 1% back (which I get on Cap1 for everything EXCEPT gas and groceries), but also makes a small contribution to my alumni association. With either WF or BoA, I would expect a better CL than I would get with Cap1 and they would grow with me.

 

So ideally, I would like to have both WF and BoA along with my Cap1 and get rid of not only FP, but eventually Orchard Bank.

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 3 of 19
creditguy-378
Regular Contributor

Re: Need advice, please...

I would go for the store cards and wait for the everything to roll off and accounts age then get the prime cards also apply in the same month so they age together and the inq. will roll off the same time I love my wf card they have a great rewards program and if you bank there u can link your debit card to the rewards program as well  

always use credit wisely and you won't ever feel like you're working just for the task master
Message 4 of 19
tinuviel
Moderator Emeritus

Re: Need advice, please...

 


@creditguy-378 wrote:

I would go for the store cards and wait for the everything to roll off and accounts age then get the prime cards also apply in the same month so they age together and the inq. will roll off the same time I love my wf card they have a great rewards program and if you bank there u can link your debit card to the rewards program as well  


 

Thanks for the input. I'm seriously considering going that route, as I think that the cleaner my report, the better my chances of being approved. At the very least, I've identified exactly which prime bank cards I want and for reasons that suit my particular needs and/or desires. Now I'm planning out a strategy that will help me to increase my chances of being approved for those cards.

 

Another consideration in favor of applying for the store cards now... I currently pay $5/month for one of my FP cards -- the one that I plan on canceling this summer. I don't use it for anything; DH used to be an AU on it, but he has his own rebuilder card now with BBRZMC. Why haven't I cancelled it yet? I'm still paying off some old debt, which I'll be done with soon. The FP card helps me with my util until then. If I get a JCP card, I can ditch FP without losing the util. Not a reason in and of itself to get a JCP card, but -- and this is the biggie -- it IS a card that I would use and would like to have long term. So, if I do get it, I can ditch FP straight away.

 

Just mulling... I want to make sure that I think this through before doing anything.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 5 of 19
tinuviel
Moderator Emeritus

Re: Need advice, please...

 


@JayRizzo wrote:

I like how you ended with, "...the decision is mine".  Excellent statement!!!

 

Since you actually shop at those stores, you will benefit from discounts immediately which makes good purchasing sense.

 

You stated the prime cards do not have to be rewards which tells me you are just looking to get into that higher credit line tier -- which is understandable.  I believe that can still happen at the end of the year AFTER the store cards because you've improved tremendously over the months and steady climbing. 

 

If you acquired the store cards now, by the end of the year the inquiries will have less of an impact (beyond 6 months).  I'm just not 100% sure exactly "how sensitive" WF is about inquiries since that's one of your cards of choice?!?


Yes, this is true. While I do want the BoA card at some point -- because I really want to support my alumni association -- I'm looking for something prime to replace the FP/OB cards. One other card that would fit the bill is Citi Plat Select. According to financeglobe, the recommended FICO for this card is 644, and it states that it's recently had a high rate of approval. Any thoughts on whether or not this would be within reach sometime this year? My scores are in line, but I know that lenders look at more than just scores.

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 6 of 19
tinuviel
Moderator Emeritus

Re: Need advice, please...

Ok, here's where I'm at with my thought process on this.

 

I stand a very good chance of being approved for the store cards. I received a pre-qualify offer in the mail for the JC Penney card. I tossed it in the trash at first, but retreived it after I realized that I'm planning on a shopping trip there soon, and it is a card that I will be able to use on a regular basis and would keep long term. That made me think about Dillard's, as well.

 

I stand a very, very iffy chance of being approved for the bank cards. I think that it would be a better move to apply for, and hopefully receive, the store cards and sit back for another year and let them grow. With any luck, I would expect to receive CLIs on them, which would look good on my reports. I'm happy with my Cap1 cards for now. I get lots of use out of them and can continue to build my history. I'll keep OB for another year as well, allowing my history to grow with them. It's a squeaky clean TL, so I'd like to let it continue to report for a while. I'll close FP this year, as planned. Then, this time next year, I can evaluate whether or not I'm ready to attempt applying for the bank cards.

 

If I go ahead with applying for the store cards, I'll do it after the 1st. The reason for this is that I always get a score bump on the 1st of the month, I'm assuming because any negative history has a chance to age into the background (x number of months since last derogatory entry), while a month of postive history carries more weight. It makes sense to apply when my scores are at their highest.

 

Does this sound like a reasonable plan of action? Am I overlooking something that would impact me negatively? I know I'll take an inq and new credit ding, but after a year or so I'll recover. Anything else that I need to consider? Thanks in advance for any thoughts.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 7 of 19
Anonymous
Not applicable

Re: Need advice, please...


@tinuviel wrote:

 


@creditguy-378 wrote:

I would go for the store cards and wait for the everything to roll off and accounts age then get the prime cards also apply in the same month so they age together and the inq. will roll off the same time I love my wf card they have a great rewards program and if you bank there u can link your debit card to the rewards program as well  


 

Thanks for the input. I'm seriously considering going that route, as I think that the cleaner my report, the better my chances of being approved. At the very least, I've identified exactly which prime bank cards I want and for reasons that suit my particular needs and/or desires. Now I'm planning out a strategy that will help me to increase my chances of being approved for those cards.

 

Another consideration in favor of applying for the store cards now... I currently pay $5/month for one of my FP cards -- the one that I plan on canceling this summer. I don't use it for anything; DH used to be an AU on it, but he has his own rebuilder card now with BBRZMC. Why haven't I cancelled it yet? I'm still paying off some old debt, which I'll be done with soon. The FP card helps me with my util until then. If I get a JCP card, I can ditch FP without losing the util. Not a reason in and of itself to get a JCP card, but -- and this is the biggie -- it IS a card that I would use and would like to have long term. So, if I do get it, I can ditch FP straight away.

 

Just mulling... I want to make sure that I think this through before doing anything.


I like your thinking.  I would take a JCP card over a FP any day of the millenium.

For me - I like my Dillard's card as well.  And Dillard's is historically an even easier approval than JCP - but they're both easy.  And they both do nice CLI's.  Not a huge fan of store cards overall - but I personally like both these cards if you're a customer of these stores.

 

I would only recommend that you check your AAof A currently; then what it would be with one new card; and then again what it would be with two new cards.  That's a deal breaker for me.  Remember that AAofA is always rounded down.  If you can add a new card (or two) without bringing your AAoA down a year, then it's something to consider.

 

Good luck in deciding what would work best for you!

Message 8 of 19
tinuviel
Moderator Emeritus

Re: Need advice, please...

 


@Anonymous wrote:

@tinuviel wrote:

 


@creditguy-378 wrote:

I would go for the store cards and wait for the everything to roll off and accounts age then get the prime cards also apply in the same month so they age together and the inq. will roll off the same time I love my wf card they have a great rewards program and if you bank there u can link your debit card to the rewards program as well  


 

Thanks for the input. I'm seriously considering going that route, as I think that the cleaner my report, the better my chances of being approved. At the very least, I've identified exactly which prime bank cards I want and for reasons that suit my particular needs and/or desires. Now I'm planning out a strategy that will help me to increase my chances of being approved for those cards.

 

Another consideration in favor of applying for the store cards now... I currently pay $5/month for one of my FP cards -- the one that I plan on canceling this summer. I don't use it for anything; DH used to be an AU on it, but he has his own rebuilder card now with BBRZMC. Why haven't I cancelled it yet? I'm still paying off some old debt, which I'll be done with soon. The FP card helps me with my util until then. If I get a JCP card, I can ditch FP without losing the util. Not a reason in and of itself to get a JCP card, but -- and this is the biggie -- it IS a card that I would use and would like to have long term. So, if I do get it, I can ditch FP straight away.

 

Just mulling... I want to make sure that I think this through before doing anything.


I like your thinking.  I would take a JCP card over a FP any day of the millenium.

For me - I like my Dillard's card as well.  And Dillard's is historically an even easier approval than JCP - but they're both easy.  And they both do nice CLI's.  Not a huge fan of store cards overall - but I personally like both these cards if you're a customer of these stores.

 

I would only recommend that you check your AAof A currently; then what it would be with one new card; and then again what it would be with two new cards.  That's a deal breaker for me.  Remember that AAofA is always rounded down.  If you can add a new card (or two) without bringing your AAoA down a year, then it's something to consider.

 

Good luck in deciding what would work best for you!


 

Currently, my AAoA is 7 years; my overall credit history is 17 years. In addition to the cards that I've listed, my account history includes two PIF, never late car loans.

 

I'm pretty sure that adding either card would lower my AAoA, but I would be willing to accept this for cards that I would keep for the long haul. That's kind of the catch-22 of rebuilding; you take a hit for adding new credit, but you need to apply for credit to build it. I've kicked myself hard for getting the second FP card last year, but that was before I joined these forums and learned about these types of scoring issues; I lowered my AAoA for a card that I don't intent to keep. Live, learn, move on.

 


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 9 of 19
austinguy907
Valued Contributor

Re: Need advice, please...

To know more we would need an open date for each account. Rule of thumb is keep the oldest one open as long as practical. If there's an AF on the oldest one eventually you'll probably end up closing it especially if it's FP / OB. To get a "premium" card or another from an institution other than Cap1, Chase, etc. looking into a local CU is your best bet since all the big banks are edging out customers with higher fees and add-ons with the new CC bill / loss of swipe fees. To qualify for some bigger limits / no fees you'll want to let things age a bit and clear up all your blemishes. Any outstanding balances on closed accounts is a big red flag. Other than that you should be able to get almost any card you want once your latest opened account hits 2 years and scores come up a little bit more.
Message 10 of 19
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