02-16-2013 06:11 PM
OK people, I need some advice from those who do apps a lot.
Over the last 30 days, I've gone from a static credit experience to a rapidly changing one. I began with a clean credit sheet with no baddies but with a real ratio problem (95% utilization). Through a couple of awesome CLIs, I've gone from 95% to 65% pretty quickly and a total CL now at $45K having begun at $26K for only two cards.
Then I added the Penfed PRV card. This card will decrease my ratio again to about 50%. But it hasn't hit the credit reports yet and I'm wondering whether or not I should make my next move before that happens.
The Penfed PRV card will change my ratio, but it will also change my AAoA downward. Right now it's about 8 years and 2 months with the oldest account being 24 years, 11 months. According to the score number simulators, they estimate my score may decrease..., even though my total CL will jump to $73K. EQ estimates my score may change from +3 to -15 (but I can only simulate a $20K CL increase there). Fico is showing a +/-10 point change, so likely not much of a change with them. Credit Karma actually forcasts a +4 increase (from 723 to 727).
Right now, my EQ score is 757. The EQ Fico is 732. TU and EX are 750 & 749, respectively (not FICO). No baddies. 1 Inquiries on EQ, 1 on EX, none on TU in the last year.
My next conquest is the Fidelity Amex. Honestly, I'm not too worried about being turned down. What I really want is a entry CL that matches the other cards. The smallest is the BofA Cash Rewards at $20K. Then comes the Chase Freedom at $25K. The Penfed is $28K, but again, it hasn't hit the credit reports yet.
Do you think that Fidelity will give me more CL if it sees the Penfed on the report, or will the potential lower scores downplay that consideration, making a application now be more prudent?
02-16-2013 06:21 PM
My experience is to wait until the last card I applied for shows up on a report. I have seen increasing limits with new apps based on the last card I applied for reporting my largest limit. Credit snowballing I guess. I would not sweat the lower scores, it's minor. You have some nice limits and solid scores. If needed with a decline call for reconsideration and be ready to explain UTL and balances. The no baddies and very low HP is a huge help.
The Fidelity card looks pretty cool, if you do some serious spend the $50 deposit into chosen account should happen often. Good luck!
02-17-2013 04:56 AM
I agree with this reasoning. I just had an app burning in my pocket!
But I think you are right. The CL on the new Penfed will probably cancel the effect of the downdraft a new app would do. Both MyFico and Credit Karma accurately model this. Equifax only allows up to a $20k open credit card estimate. And I do want the best limit on the Fidelity. Although its going to be paid off every month for all charges, there will be two charges a year for my daughter's tuition of about $10k and $8k respectively. My wife says we can model that in our budget if we start now, which will save us $365 a year just on that.
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