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Next Credit Card

Member

Next Credit Card

I am interested in getting the SPG AMEX or some other rewards card. I have just gotten the Chase Freedom card (CL: $900) last Thursday. But I'm worried that I won't be approved for another card because I have low income ~$15k (I'm a student and work part time). My Equifax score is 707. Also I have alot of student loans ~35k, a car loan @ $770.34 ( will pay off in 4 weeks) and a credit union credit card that has a balance of ~$1,334 (CL:$1500) I will have this paid off in mid July. I really want another rewards card so that I can go on a nice trip when I graduate in May 2013!

 

Should I pay off my car loan and credit union credit card first before I apply for a new rewards card?

 

Thank you for any advice!

6 REPLIES
Community Leader
Valued Contributor

Re: Next Credit Card


lnb0804 wrote:

I am interested in getting the SPG AMEX or some other rewards card. I have just gotten the Chase Freedom card (CL: $900) last Thursday. But I'm worried that I won't be approved for another card because I have low income ~$15k (I'm a student and work part time). My Equifax score is 707. Also I have alot of student loans ~35k, a car loan @ $770.34 ( will pay off in 4 weeks) and a credit union credit card that has a balance of ~$1,334 (CL:$1500) I will have this paid off in mid July. I really want another rewards card so that I can go on a nice trip when I graduate in May 2013!

 

Should I pay off my car loan and credit union credit card first before I apply for a new rewards card?

 

Thank you for any advice!


Hey Inb0804!

Welcome to the FICO Forums!

Well, to start, I'd definitely work on getting that balance down on your CU credit card before applying for anything.  That's a awfully high utility and will probably be a big thorn to most lenders.  Secondly, with the income you posted and the amount of your car payment - your DTI ratio is probably scored as too high for most lenders to approve.  So MHO, is to wait and get those 2 accounts paid down.  At that time, I'd app for a Amex Charge and another Student card and wait till April 2013 to app the rewards card you really want.  During the rest of this year, focus on getting the CLs on the current cards increased as high as possible to net a good starting line with your April Vacation/Rewards card app in April.

Also, if approved for the Amex Charge and you handle this card well, you will be set up for the SPG  Amex because of your current relationship with Amex.  (side note:  SPG will be backdated if approved)  

That's what I'd do anyway.  Hope this gives you some ideas.

Best of Luck! 


Starting Score: 642
Current Score: EQ 773, EX 780, TU 777 (All FICO)
Goal Score: 800+

Cards: NFCU Flagship 50K, DC 30K, BCP 28.6K, Arrival+ 25K, Citi DP 22.8K, CSR 20.5K, TotalRewards 25K, QuickSilver 20K

Regular Contributor

Re: Next Credit Card

If your goal is to use the card for a trip, I would first ask can you pay the balance off immediately within the first statement cycle? if not (not sure where your going) but the interest charges on rewards cards are typically horrible and will eat any rewards you earn if you carry the balance. If thats the case I would look for a 0% offer card for whatever period needed to pay off such balance
Wallet: Discover IT, Discover Gas, Citi Professional (6.74% apr), Chase Freedom, Cap1 Quciksilver, Élan Financial Rewards, BOA Amex, Walmart, CareCredit, Paypal Smart Connect, Kohls, HSBC Cash or Fly, Chase Sapphire Preferred, Amex Zync, Amex Blue Cash Preferred, USAA Plat Rewards, Chase Ink, NFCU Plat
Member

Re: Next Credit Card

Yes I wil be able to pay off the card balance in full after and the end of billing statement.

Mega Contributor

Re: Next Credit Card


lnb0804 wrote:

I am interested in getting the SPG AMEX or some other rewards card. I have just gotten the Chase Freedom card (CL: $900) last Thursday. But I'm worried that I won't be approved for another card because I have low income ~$15k (I'm a student and work part time). My Equifax score is 707. Also I have alot of student loans ~35k, a car loan @ $770.34 ( will pay off in 4 weeks) and a credit union credit card that has a balance of ~$1,334 (CL:$1500) I will have this paid off in mid July. I really want another rewards card so that I can go on a nice trip when I graduate in May 2013!

 

Should I pay off my car loan and credit union credit card first before I apply for a new rewards card?

 

Thank you for any advice!


Pay off the CU balance before you app, that is too high util % to go for new credit.




EQ FICO 548 3/3/16
Member

Re: Next Credit Card


improvingmycredit wrote:

lnb0804 wrote:

I am interested in getting the SPG AMEX or some other rewards card. I have just gotten the Chase Freedom card (CL: $900) last Thursday. But I'm worried that I won't be approved for another card because I have low income ~$15k (I'm a student and work part time). My Equifax score is 707. Also I have alot of student loans ~35k, a car loan @ $770.34 ( will pay off in 4 weeks) and a credit union credit card that has a balance of ~$1,334 (CL:$1500) I will have this paid off in mid July. I really want another rewards card so that I can go on a nice trip when I graduate in May 2013!

 

Should I pay off my car loan and credit union credit card first before I apply for a new rewards card?

 

Thank you for any advice!


Hey Inb0804!

Welcome to the FICO Forums!

Well, to start, I'd definitely work on getting that balance down on your CU credit card before applying for anything.  That's a awfully high utility and will probably be a big thorn to most lenders.  Secondly, with the income you posted and the amount of your car payment - your DTI ratio is probably scored as too high for most lenders to approve.  So MHO, is to wait and get those 2 accounts paid down.  At that time, I'd app for a Amex Charge and another Student card and wait till April 2013 to app the rewards card you really want.  During the rest of this year, focus on getting the CLs on the current cards increased as high as possible to net a good starting line with your April Vacation/Rewards card app in April.

Also, if approved for the Amex Charge and you handle this card well, you will be set up for the SPG  Amex because of your current relationship with Amex.  (side note:  SPG will be backdated if approved)  

That's what I'd do anyway.  Hope this gives you some ideas.

Best of Luck! 


What Amex charge card you think I should go for? I'm not really interested in the Zync card, because its MR express card.

 

Thanks for all your help

Highlighted
Community Leader
Valued Contributor

Re: Next Credit Card

I recommend getting the charge card you feel comfortable with the most.  A lot of people like the Zync because it has a low AF.  If the rewards program doesn't suit you, then go for the Green or PR Gold.  The annual fees progress as the card color changes.  If you look at the Green and the regular Gold, the benefits really aren't all that different for a $30 difference in AF.  (IMO)  I believe that the AF is waived for both charge products for the first year anyway.  What ever charge you decide, I think you are good for the approval for any of the charge cards once your CU utility is reported lower.  

Hope this helps. Smiley Happy

 


Starting Score: 642
Current Score: EQ 773, EX 780, TU 777 (All FICO)
Goal Score: 800+

Cards: NFCU Flagship 50K, DC 30K, BCP 28.6K, Arrival+ 25K, Citi DP 22.8K, CSR 20.5K, TotalRewards 25K, QuickSilver 20K