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HiLine
Posts: 2,950
Registered: ‎10-19-2012
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Re: What should be my optimal strategy?

[ Edited ]

Applying for that many cards too soon will significantly decrease AAoA, and don't forget that the OP's history length is only 9 months. With 2 new cards added, that's already a lot of cards for such a young credit profile. If Amex finds out that you obtain a lot of credit after getting a card with them they may call that suspicious and shut you down. Taking a short break, then applying for Amex in January is a safer approach. Build a solid foundation before you shoot for the stars. :smileywink:

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creditnocash
Posts: 2,255
Registered: ‎07-23-2012
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Re: What should be my optimal strategy?

yes besides as long as he has tax returns to back up his income he can do the 3x cli in 61 days. 

with 3 amexs can easily go from 9k in credit to about 30k. 

 

but yes age your credit. 

with a low aaoa (under 6-8 months) your basically starting as new. 

on average someone with a great fico is 4-5 years. 

 

with backdating this should help though. 

if every amex backdates thats one less card that will drop your aaoa .

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Valued Contributor
navigatethis12
Posts: 1,941
Registered: ‎01-24-2012
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Re: What should be my optimal strategy?


HiLine wrote:

Applying for that many cards too soon will significantly decrease AAoA, and don't forget that the OP's history length is only 9 months. With 2 new cards added, that's already a lot of cards for such a young credit profile. If Amex finds out that you obtain a lot of credit after getting a card with them they may call that suspicious and shut you down. Taking a short break, then applying for Amex in January is a safer approach. Build a solid foundation before you shoot for the stars. :smileywink:


I had skipped over the nine months part. I was not really concerned about American Express closing the card or anything. The limit was nice but I care more about Chase and PNC. I do notice that any time an inquiry is done on Experian, Chase and American Express will do a soft pull right after it. I am not sure what they are looking for, but nothing has happened and I do not expect it to.

 

I suggested applying for a few more to build a relationship with many lenders. Had I waited and stopped after PNC and American Express, I would only have four cards and not as much cashback and such. Also they would be aged a year and then it would take another hit when I open more next year. I just wanted the inquiries and accounts to all age at the same time. I also got really excited when I kept getting approved so got everyhing I could think of.

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lylesvegas
Posts: 90
Registered: ‎11-21-2012
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Re: What should be my optimal strategy?

I just want the 8500 CL..........LOL:smileyhappy:

Barclays World MC / Total Rewards Visa / Discover IT / Wells Fargo Platinum Rewards / Cap 1 QS / PPSC


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cowboyguy
Posts: 197
Registered: ‎07-26-2012
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Re: What should be my optimal strategy?

Guys, this might be a silly question but what do you mean by the following?

 

1. 3x CLI

2. Backdating

Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
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thom02099
Posts: 1,326
Registered: ‎08-30-2011
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Re: What should be my optimal strategy?

[ Edited ]

cowboyguy wrote:

Guys, this might be a silly question but what do you mean by the following?

 

1. 3x CLI

2. Backdating


1 - 3x CLI = asking for 3 times your current credit limit.  So, with a $5K CL, ask for $15K.

2 - Backdating. AMEX back dates to the date of an original card issuance.  One applies for an AMEX card in 2012 and gets accepted.  In January 2013, one applies for another AMEX card, is accepted, and the MEMBER SINCE date becomes 01/2012 for the 2nd card, based on the month of your application, but the year of your FIRST application. 

 

AMEX is wonderful about that!  I have 3 AMEX cards, backdated to 1991, does wonders for one's AAofA ! ! !

 

Also, regarding your original premise, to get to that $100K mark, it is doable for sure.  My current available credit is a bit over $81K, the bulk of that has come in the past 12-18months. As others have suggested, I did my apps in spurts, the last big app spree being in Sept 2011, and another minor spree in May of this year, when I got my JP Morgan Select card. 

 

You'll take some dings on the credit reports for the inquiries/new credit, but also gain from the new tradelines.  My financial adviser told me that it's (generally) -10 points per inquiry/new credit, but +15 in 3-6 months for the new tradeline, all things considered, so you net 5 points for each new TL,which then grows exponentially.   

 

I'm very happy with my mix of cards with my total credit mix, I've not asked for many CLI's, but will do so again in May 2013 when my JPM card is a year old.  I'll probably get to that same $100K mark easily enough, but for now I'm satisfied with what I've got! 

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014
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cowboyguy
Posts: 197
Registered: ‎07-26-2012
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Re: What should be my optimal strategy?

thom02099

 

Thank you for your comment. I don't have Citi yet in my portfolio & I've heard they are generous in CLIs.

 

Which Citi card do you suggest me to apply for (and which is famous for their high initial CL)?

 

Also, the biggest question I have in my mind is "with what frequency should I apply for new cards?". I understand its good to have more tradelines in the long term, but I'm also afraid of hard inquiries coming in my credit report in a short span of time & too many inquiries would signal a wrong impression on future prospective lenders.

Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
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thom02099
Posts: 1,326
Registered: ‎08-30-2011
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Re: What should be my optimal strategy?

[ Edited ]

cowboyguy wrote:

thom02099

 

Thank you for your comment. I don't have Citi yet in my portfolio & I've heard they are generous in CLIs.

 

Which Citi card do you suggest me to apply for (and which is famous for their high initial CL)?

 

Also, the biggest question I have in my mind is "with what frequency should I apply for new cards?". I understand its good to have more tradelines in the long term, but I'm also afraid of hard inquiries coming in my credit report in a short span of time & too many inquiries would signal a wrong impression on future prospective lenders.


Citi has been VERY generous to me, without even asking.  My personal preference is the Citi Diamond Preferred MasterCard, since it's generous with BT (18months/no interest if PIF by due date).  I was doing home remodelling, put several very large charges on that card, about to pay it all off next month.  Once PIF, my scores will likely alll be over 800 or pretty darned close!

 

Additionally, Home Depot/Citi offered an automatic CLI to my current $9700 when I made a purchase in July, when my CL was around $8K.  Purchased a storage outbuilding and had them install it, got the CLI as well as great financing (24 mo/no interest if PIF).  So, with Citi, I've basically been able to float some loans to the tune of around $13K, with no interest if PIF by the due date.  I always pay them significant amounts, and in fact had the funds to pay the entire amount IN FULL, but decided to float the interest free loan for as long as I could, and free up those funds for other things.  I really like Citi ! ! ! !

 

Addendum, ref the frequency of apps...I'd follow the recommendations of others here as well, great advice given to apply in spurts.  Check to see which card issuer pulls which specific report for your geographical area (check whogavemecredit.com or creditboards.com for credit pull info).  In my area, Experian is pulled quite a bit, so I take big hits with EX inquiries.  If I know an issuer is going to pull EX, I would time the apps to coincide with when the inquiries will not impact scores, ie, 12 months.  If I know that an issuer is going to pull TU or EQ, I would go ahead an apply. I currently have 6 inquiries on my EX, but none on TU and 1 on EQ, so IF I were in the market for more credit, I'd look to cards that pull TU/EQ for my area.   That geography thing can be important as far as who pulls what, depending on where you live.  I'm in the Garden now, so I'm looking forward to everything falling off my reports !

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014
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cowboyguy
Posts: 197
Registered: ‎07-26-2012
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Re: What should be my optimal strategy?

Thanks thom02099

 

Just a quick question. Which product do you guys normally use to get your TU, EQ & EX scores & check your hard inquiries? I have ScoreWatch but it is only for EQ.

Walmart Discover $10,000... Chase SW $8,500... Freedom $7,000... CSP $6,000... Amex Delta $3,000... Amex BCP $2,000... Local CU $1,500...
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thom02099
Posts: 1,326
Registered: ‎08-30-2011
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Re: What should be my optimal strategy?

[ Edited ]

cowboyguy wrote:

Thanks thom02099

 

Just a quick question. Which product do you guys normally use to get your TU, EQ & EX scores & check your hard inquiries? I have ScoreWatch but it is only for EQ.


I also use ScoreWatch here to monitor EQ scores.  Each time I get an alert for a score increase, I go in and modify my settings to let me know when I reach the next level I've set. 

 

I use CreditKarma (yes, FAKO), to monitor trends in scoring for TU, they are actually pretty good, at least for me, for being close to my TU score, which I get here whenever I have a reason for it.  I usually check my actual TU score here every other month unless CK shows some major trend upward.

 

For EX, I use their own product (again a FAKO) and CreditSesame for their monthly reports, but also good for monitoring trends.  I've been stuck at the same score there (EX) for a while now.  IF I actually need my EX score, my credit union provides that to me on a quarterly basis automatically when I log in to my account.  Since I have loan history with them, I can simply call and request a soft pull to get my score from them any other time. 

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014

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