Pre-App Spree Prep Questions

[scenery_guy]

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@Born123 wrote:

Hello,

This will be my first time doing an App Spree

I currently have 2 CC that ive had for 6yrs with crazy high rates

Chase Student ($1000 Limit)

GE CarCareOne ($475 Limit)

Last time i checked my scores was Aug 2012 for my first car loan... average 720score

1) My questions are, what is best utilization % before i apply?... Under 10% or 0%

2) Does it work like car loans in which i can apply for as many and only take 1 hit?

3) Any recommendations on which to apply for? Im looking to get at least one $5k limit to expand my credit portfolio

Planning on applying for

* Local Credit Union ive been with for 2yrs

* Chase Freedom

* Walmart

* Amex

Any help is greatly appreciated!

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Just to be clear each card application will be at least one HP. If you are borderline it might be 2 or even 3. Your list could be 4 HP or up to 12 HP so tread lightly. It's instant on your report now days so the chances of Chase not seeing a HP from an AmEx application are slim unless Chase pulls EQ and AmEx pulls EX. Who knows what the credit union will do so it's hard to give advice without more background. 

I would consider spacing the apps out a bit. Get approval on one then move to the next. Wait for an alert on Credit Karma or another free service so you can see who they pulled. Make sure you feel good about your next application (as in Chase pulled EX and AmEx will pull EX too so can you handle two INQ on same report). If you get a decline stop right there and recon and get reason why you were declined before moving on. This can save you a lot of HP in the long run. What if two of the lenders double pull you and decline you with no chance of recon? 4 HP stings a bit and will cause a 15-20 point drop on your FICO score. Slow and steady will make you a winner. 

The main reason to time an app spree on one day is so in 12 and 24 months all the HP will drop off in one day. In reality it does not matter as what's a few days?  I have had more success spacing a three card spree over a couple of weeks than doing it all on one day. I was 3 for 3 on my last set with all approved either instant or after a couple days wait and no action on my part. 

Get your ULT down and apply for what you need or want the most. Good luck!

[dddewdrop]

     Hi. would disagree with the other poster on utilisation. I think it is very important that you don't have large balances before your app spree. This will maximise your score and will also look good if an actual human being happens to look at it. I don't really think it matters all that much which one you apply for first. You neeurd to decide for yourself which card or cards you want. I would then apply for the one you want the most first. That way you will have the best change of getting it. You should figure out what your goals are and then act accordingly.  There is ample information on this and other forum about the various products out there. Good luck.