Should I apply for new credit cards?

[austinguy907]

With scores 800's across the board and a good AAoA picking some diversity will be ideal at this point for grooming your needs for credit in the future.  So, as to why you need multiple CC's it comes down to lenders wanting to see that you can manage your credit accordingly.  If you decide to go for a mortgage down the road you'll also need to show 3-5 lines of credit history for approval in most mortgage programs.  As to the auto loan, you'll be fine since most of the "Tier 1" score requirements are only 720 and you're over 100 points above that threshold and can expect to drop maybe 2 points per application / approval.  You may take off an additional 20 points or so from the reduction in AAoA when your new accounts post to your CR.  So, if you picked up 2-3 cards Amex, Discover, Visa, MC and closed out Merrick/Cred1 you should land somewhere in the neighborhood of 740-750 and recover quickly as they age for the first year.  Your options are wide open though for what you can choose to replace some of your less optimal cards.  Just please don't go apply for something that's co-branded with a store unless there's something you just can't live with from that store.

[joltdude]

With that score I would think its a great idea to app for.... one or two cards, then cancel both the subprime cards..

If you want a discover.. it wouldnt be a bad time to get it....

You pretty much should have a pick of what you want right now... but there will be a temp drop when you open the cards.. dont let it scare you.

Might try a prequalify or two ... but you should be able to cold app for pretty much anything.. (not talking the high af travel cards.... probably can get them but does not make sense for your income right yet ).. 

If you get one card, and it has a sizable limit.. you could wait for it to report.... before the next... to try to get a slightly larger starting cl on it... but get rid of the credit one at least after you get approved for a new card.... and ditch the merrick possibly after recieving the card in hand... 

[newhis]

Just for your information OP, my DW got a loan with lowest interest rate from a CU with only 740 score. No need to be over 800 to get the best rate.

I agree with others that you can close 2 cards and open 2 new/better cards. I know that the HP will lower your score for a year, my DW score jumped 20 points when the last HP on her report got over 12 months.

CreditOne, 975 limit with $8.25 monthly fee is horrible as you said. 

[Chickenpotpie]

OP, your scores and credit habits put you in a spot where you can pick and choose the types of cards that you want.

Its totally up to you what type of card you want at this point and what you plan to do with it.   For myself,  I don 't have a need for points, and tend to like cashback cards..   (look at discover for instance!)  Amex blue everyday is also another good card (see what they offer for new card members though) 

If you just want a good solid card, some of the CU's have some great ones.   I haven't apped for Penfed (I was scared to be to honest) but did app for Navy Fed Platinum.  No rewards, but a good low rate, which is what I wanted. 

Do you travel a lot?  if so, look at the travel points cards.  I travel some don't see the point of a card with perks.  That may change  next year. (well I'm told it will change!!)  I'll cross that bridge when I get to it I guess!!)

Close cards that don't work for you.  Yes I know, old card, blah blah blah.  But do yourself a favor;  take a hard look at the thing and if you're only keeping it for AAoA, get rid of it.   It will be on your report for 10 years (so I've heard!).  Go ahead and app before you remove one though. 

As long as you don't go app-happy, I think you're fine.  Oh and make sure you're not too exposed with any one financial institution.  I think it should be spread out a bit.    Times are changing and being app-happy (like 5+  a year) is being frowned upon...    and doing so while overexposed to one institution...well...do some reading and you'll see what I mean.   

The only thing I see holding you back from some of the more stratospheric SL's is your income, but not by much (not with those scores anyway!)

Good luck and let us know how it goes

[go_FICO_self]

yes! yes! you definitely need new cards!

why are you still paying credit one monthly fee? as others have suggested, close it, along with merrick.

Looks like you're not the one to go through credit cards like bubble gum, or infatuated with ginormous credit limits. As such I would look into a credit card that you'd hold on for the long term. If you're interested in daily spend card, with a little cashback on the side, then go with discover/capital one/chase freedom route. If you want credit cards for when you make large purchases and want protection, then consider amex. if you're planning to take a trip in the near future (1-3 yrs from now), i'd sign up for a card with large signup bonus and work towards minimum spend.

with your scores, you should get almost anything you want. and any hit you'll get you'll recover in no time.

[Anonymous]

Here's what I've been considering applying for (in order of preference so far, not going to apply for them all)

DiscoverIT

American Express Blue Cash Everyday

Chase Freedom

Citi Double Cash

I know Discover and AMEX aren't accepted everywhere. I do have a bank visa that I can also use.

[newhis]

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@Anonymous wrote:

Here's what I've been considering applying for (in order of preference so far, not going to apply for them all)

DiscoverIT 

American Express Blue Cash Everyday

Chase Freedom

Citi Double Cash

I know Discover and AMEX aren't accepted everywhere. I do have a bank visa that I can also use.

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If I were you I'll apply for first 3 (Discover/AmexBCE/Freedom). Discover has a promo that double the cashback after 12 months. Amex grow fast if you are into that. Freedom is a good card to start with Chase.

Then close CreditOne and Merrick.

You don't need the Citi Double Cash at least a year (use the Discover in all non-category expenses, to get doubled after a year). Even then I think the Freedom Unlimited is a good card for some people (1.5% instead of 2% but with $150 bonus and $25 with AU, you'll need to use the Citi DC for 30K to break even). So in a year you can apply for DC or FU.

Good luck.

[go_FICO_self]

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@Anonymous wrote:

Here's what I've been considering applying for (in order of preference so far, not going to apply for them all)

DiscoverIT

American Express Blue Cash Everyday

Chase Freedom

Citi Double Cash

I know Discover and AMEX aren't accepted everywhere. I do have a bank visa that I can also use.

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excellent list! though you might change order over time. For discoverIT, as others have mentioned, you get double cashback first year. Which also applies to using discover deal portal and their rotating cashback bonuses. So, it's a good time to do, when you expect to make lots of purchases. Chase and Citi will be your primary daily cards. Amex I suppose for groceries, though keep in mind that they have $25 threshold for redeeming.

[austinguy907]

Unless you're in a little hick town in the middle of no where you shouldn't see and blackholes where Amex / Disc aren't accepted.  There's been a ton of payment processors courting both of them over the last few years that have increased their coverage considerably from where it used to be back in the 90's.  Some of the smaller payment processors haven't went after them and are primarly in smaller rural markets at this point.

[Anonymous]

When applying should I apply to them all at once? Or is staggering them out a better idea?