Pre quallified for Chase advice please

Anonymous · ‎04-29-2016

Im looking for advice..

I am planning to refinance my auto loan in mid to late may.

Would i be making a huge mistake by applying for another credit card?

I just went to chase websie to see if i was pre qualified for a card and it says that im qualified for chase freedom and slate.

Im excited about having a new card other than capial one.

Fingerhut $70/900 Opened 11/2015

Overstock $164/ 350 Opened 11/2015

Victoria Secret $0/1200 Opened 2/2015

Kay Jewellers $115/900 Opened 4/2012

Capital One Platinum Secured $165/500 Opened 8/2014

Capital One Platinum Unsecured $380/1500 Opened 11/2015

Lumber Liquidators $380/1500 Opened 3/2016

Personal Loan $40/500 Opened 5/2015

Auto Loan $12,015/13500 19% apr Opened 8/2015

I currently have 8-10 Inquires

Average Age of Accounts 1 year 2 months

No late payments

1 account in collections $600 from 2012

Current credit score is 643 (vintage 3)

Of course most importantly i need to refinance my car so if this will be very harmful to my credit than i wont go for the chase. Hopefully i can still be prequalified after i refinance.

Also can anyone tell me what kind of results i can expect on my credit profile once my small personal loan of 500$ will be complete?

Also

I dont believe i have a ho shot with the slate card as the prequal says but maybe i can get the Chase freedom

Kevin86475391 · ‎04-29-2016

I'd definitely recommend waiting. Mid-to-late May is just a couple of weeks (to a month) away. That's really no time at all. In fact I kinda think it's good to just spend that long thinking about whether or not you truly want to apply for a card before you pull the trigger.

The refinancing is clearly a much bigger priority and the time horizon on this is so short. Please just sit tight.

Good luck getting a great new rate on your refinancing!

Anonymous · ‎04-29-2016

kevin thank you for reconfirming!

I should definately wait i have been rying to wai since December when my credit union had a special on auto financing...

I just kept putting the apply for refinance off... and here we are a few days away from may and I would really hate to mess this up.

All of my cards will have reported one last time by may 20th before i go in with HIGH HOPES!

My car insurance and car payment are eating my funds up... I hope to get 10-6 % apr

CreditDunce · ‎04-30-2016

I think you could get away with adding one more account without hurting your score that much. One more TL should not drop your AAoA below the 1 year mark. When you are ready to re-fi (I am assuming you are waiting to pretty up your credit report before the re-fi), apply for the freedom or slate. Just in case Chase denies you for 5/24, I would have a backup card to apply for. Something like Barclay rewards card, Discover IT, etc. If you get denied, it isn't a big deal. Just hang out in the garden for a year and try again.

Note: By pretty-up, I mean all but one credit card report zero balance. The one with a balance should have less than 10% utilization showing.

Aahz · ‎04-30-2016

@Anonymous wrote:
Im looking for advice..
I am planning to refinance my auto loan in mid to late may.
Would i be making a huge mistake by applying for another credit card?
I just went to chase websie to see if i was pre qualified for a card and it says that im qualified for chase freedom and slate.

Fingerhut $70/900 Opened 11/2015
Overstock $164/ 350 Opened 11/2015
Victoria Secret $0/1200 Opened 2/2015
Capital One Platinum Secured $165/500 Opened 8/2014
Capital One Platinum Unsecured $380/1500 Opened 11/2015
Lumber Liquidators $380/1500 Opened 3/2016

The prequal site does not take into account the number of new cards you've opened. You have 6 new cards in the last 24 months which means you will be denied for both the Freedom or Slate card without the possibility of reconsideration. Don't waste the hard pull and look to another lender for your next card.

Anonymous · ‎04-30-2016

The prequal should take that into account because they SP your report. They're hit and miss though but people have gotten away with getting a new chase card outside the 5/24 rule at a branch. But, as stated, definitely just refi first because of that inquiry drops your score some then you could get a higher APR

Also don't just app because you got a prequal. The car is more important and you're paying WAYYYYY too much in interest.

Anonymous · ‎04-30-2016

And also, before apping for either (car or card), DEFINITELY pay some of those balances off. You're reporting a balance on every card you own. Even if you pay off 1-3 of those small ones you should see a score increase by late May and get a possible lower APR

Aahz · ‎04-30-2016

@Anonymous wrote:
The prequal should take that into account because they SP your report.

It should, but it doesn't. I got denied for 5/24 last May despite site and mailer and the site has shown me prequalified every month since.

taxi818 · ‎04-30-2016

Getting that card will have very little if any effect on you refinancing your car. I thought like you did and when i went to the dealer to buy my car. No one cared about the number of inquiries or how many cards i had. Not even how much credit card debt i was showing. i got great rate. <5% with no problem. I apped chase in november 2014. Denied. july 2015 got the pre approval. Jumped on it and went to verification. But ulitmately was approved after sending my driver license in. Good luck. Get it while you can.

UncleB · ‎04-30-2016

@Aahz wrote:
@Anonymous wrote:
The prequal should take that into account because they SP your report.
It should, but it doesn't. I got denied for 5/24 last May despite site and mailer and the site has shown me prequalified every month since.

I think this might be YMMV... in my own case, for months I had a "standing" pre-qual for Freedom and Slate, and within weeks of my two new accounts reporting back in August I ceased to have a pre-qual for anything with Chase - and my credit score had gone up.

I'm not saying it's perfect (it did take a few weeks to catch up), but at least in my case it did seem to "know" I was beyond the rule, which I appreciated (otherwise I might have wasted a HP).