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Thank you & Help with next steps

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Credit_In_CT
New Member

Thank you & Help with next steps

Hi all,

 

First and foremost, thanks to all who contribute on this forum. Though you don't know it, I have been reading (lurking) around here for over a year and because of all I have learned from you guys I have steadily improved my scores, had incorrect info deleted, sent goodwill letters, improved my credit mix, and learned the fine art of recon. So thank you all!

 

My question is about what now to round out my "portfolio". I currently have an Amex Platinum (backdated to 2007), a CSP (10K limit, October 2013), and a Cap One QuicksilverOne (5K limit, 2011). The annual fee on the platinum is paid for by work. I currently put most of my spend on the Amex, some on the CSP, and a small amount on the Cap One to keep it active. My goal at this point is go accrue points for travel (transferable) or look at cards that are travel focused. 

 

My credit history is rocky at best and I've screwed up plenty (180 day student loan lates with Sallie Mae, Best Buy charge offs, collections, etc). I've worked hard and at this point EX (729) and EQ (724) only have the student loan lates showing. Oddly, one of my reports said they were scheduled to go to positive status in May 2014 but alas they didn't (I can't figure out student loan lates and when they drop off). My TU report shows the student loan lates and a paid collection that is scheduled to come off in Feb but it's off the other 2. TU won't budge. I also purchased a home 1 year ago and leased a car in September, all payments on time. My other pertinent stats:

 

AAoA: 6 years

Oldest Account: 12 years, 5 months

Utilization: PIF monthly (experimented with letting small amounts report but always paid right after)

Income: 175K

Active Accounts: 5 

INQ: 3-4 in last 2 years depending on CRA

 

So, I'm obviously not getting the most out of my cards. My scores and some of my history are hurting me, but one of the knocks I get is not enough active accounts. Here are cards I'm thinking about:

 

Amex Everyday (MR points and backdating to help AAoA)

Chase Freedom (UR points to go with my CSP)

Barclay Arrival Plus WEMC (generic miles for domestic travel)

Citi TYP OR Citi AA card (I try to travel AA when I can).......FYI I had a bad Best Buy history when it was HSBC and one with Sears but both have since fallen off

 

So.....I've written way too much, but this is a thank you because I had scores around 590 a year and a half ago, and a plea for help on if I should apply for some, all, or none of these cards, different ones, or just garden. Thanks guys!

Message 1 of 8
7 REPLIES 7
SnackTrader
Valued Contributor

Re: Thank you & Help with next steps

Chase Freedom is the most obvious choice here due to the UR points combo and the $0 AF. However, it's hard to tell if you will be approved with some of those baddies. On the other hand, Chase has a really good track record with recon and they already trust you enough for the CSP. 

 

I suggest playing it slow and not fragmenting your earnings with multiple rewards programs. Minimum spend will be rather high on the Barclays and the card is only good for a year if you already have the CSP (or vice versa). The Amex Everyday doesn't gain you anything significant you don't already have considering the potential value of UR points for travel. 

 

This is just one man's opinion. Congratulations on all your progress and best of luck!


In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 2 of 8
nachoslibres
Established Contributor

Re: Thank you & Help with next steps

Any of those cards sound good honestly - I guess you will just have to pick what is more important to you.  If MRs are more important get the Every Day - if URs then the Freedom.  I love the Barclaycard Arrival + and use it for all non-bonused spend so it gets the majority of my spend.  I'd figure out which card is most important to you, apply for it first, and then go for the next card if you get approved for the first.  With your scores and the cards you have I think you will be fine - but you never know.  If you really want to be safe you can wait out for the late to drop off - which should set you up quite nicely.

Message 3 of 8
mongstradamus
Super Contributor

Re: Thank you & Help with next steps


@nachoslibres wrote:

Any of those cards sound good honestly - I guess you will just have to pick what is more important to you.  If MRs are more important get the Every Day - if URs then the Freedom.  I love the Barclaycard Arrival + and use it for all non-bonused spend so it gets the majority of my spend.  I'd figure out which card is most important to you, apply for it first, and then go for the next card if you get approved for the first.  With your scores and the cards you have I think you will be fine - but you never know.  If you really want to be safe you can wait out for the late to drop off - which should set you up quite nicely.


If you do an fair amount of traveling than arrival + would be nice to have. The signup bonus is pretty good to have, but if it was me personally, I would do something like arrival+ for first year, then probably switch to fidelity amex for everyday spend. 

 

Also i would try to decide if you want to do amex MR or chase UR. Most airlines are covered by one or the other.  



EX Fico 804 11/16/16 Fako 800 Credit.com 11/16/16
EQ SW bank enhanced 11/16/16 839 CK fako 822 11/16/16
TU Fico discover 10/19/16 814 Fako 819 Creditkarma 11/16/16
Message 4 of 8
Credit_In_CT
New Member

Re: Thank you & Help with next steps

Thanks for the suggestions and reccomendations all.  Agreed I have put myself in a little bit of a spot given my history.  It sounds like I need to pick a program (MR or UR) and stick with it or just go with Barclay's.  Does anyone have any storng feelings on MR points vs UR points?  I don't live near a major airport hub so I'm not tied to an airline and generally take whatever is convinient.

Message 5 of 8
nachoslibres
Established Contributor

Re: Thank you & Help with next steps


@Credit_In_CT wrote:

Thanks for the suggestions and reccomendations all.  Agreed I have put myself in a little bit of a spot given my history.  It sounds like I need to pick a program (MR or UR) and stick with it or just go with Barclay's.  Does anyone have any storng feelings on MR points vs UR points?  I don't live near a major airport hub so I'm not tied to an airline and generally take whatever is convinient.


I'm on the UR system - and here is why.

 

1.  For my spend - I can earn way more URs than MRs.  I get 5 UR/$ on Office Supply stores (which is where I also buy my iTunes, Starbucks, and other non-bonused gift cards so that I get the bonus), 5 UR/$ on my cell phone, business land line, cable, and satellite bills.  I also get 2x UR on gas and any hotel charges.  With the Freedom I get 5.5 UR/$ on whatever the bonus spend is that quarter - whether it is restaurants like last month or gas this month.  Based upon the MR earning structure on the Amex cards there is no way I would earn more MR than UR based upon my spend.

2.  It seems to me than AF is lower on the Chase cards than the Amex cards.  The PRG has an AF of $175 and the top EveryDay card has an AF of $95 - while I can get the Freedom with the rotating categories for $0 AF and the Chase Ink Bold for $95 (which also has benefits like free annual lounge passes).

3.  The UR system has more transfer partners I can use.  I can fly United (UR) out of my home town from a regional airport instead of having to drive 2 hours to fly Delta (MR).  I also prefer Hyatt (UR) over Hilton or SPG (MR). 

 

Now, plenty of people love Amex and the MR system, and both the UR and MR system have great transfer partners (I would say UR has more) so it really comes down to what can earn you more points based upon your spend while factoring in the AF and then making sure you can use those points with the transfer partners.

Message 6 of 8
Credit_In_CT
New Member

Re: Thank you & Help with next steps

That is extremely helpful.  I need to look into the partners a bit more I think but that is some great insight into how you can make UR points work.  Thanks!

Message 7 of 8
nachoslibres
Established Contributor

Re: Thank you & Help with next steps


@Credit_In_CT wrote:

That is extremely helpful.  I need to look into the partners a bit more I think but that is some great insight into how you can make UR points work.  Thanks!


My pleasure.

Message 8 of 8
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