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Contributor
Eiso
Posts: 123
Registered: ‎03-29-2009

Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

Here's my story:

I have been using AMEX Blue Cash for most of my spending except where places dont accept AMEX, then I use my Chase Freedom. Both I've been using since 2007. Here is my cash back breakdown so far. (More to my questions after the analysis below):

For AMEX Blue Cash (2007-2008):
Charges: $20063.16
Cash Back: $298.60
Percentage: 1.49%

For AMEX Blue Cash (2008-Now):
Charges: 19959.28
Cash Back: $265.38
Percentage: 1.33%

I guess I'm going to apply for Charles Schwab Invest First 2% on all charges. At least it gives me exact 2% and its a VISA, its accepted everywhere. But applying for Schwab card might take 2-3 hard pull on my credit profile (kudos to myFico forums). I plan on not using the AMEX Blue Cash ($10000 CL), Chase Perfect ($2500 CL) and Chase Freedom ($5500 CL) anymore except those *Keep-It-Alive* charges once in a while (kudos to myFico forums) after I got the Schwab card. Although AMEX has some nice feature like additional warranty and great customer service, but I assume I'd get the Visa Signature which would provide the same if i'm correct. But again, Visa Signature NPSL would kill the credit utilization ratio (kudos to myFico forums). Do you guys think it would be worth it to do it?
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FICO pulled by loan officer on 8/3/2009
EQ: 724
EX: 740
TU: 742
Regular Contributor
Lyythine
Posts: 204
Registered: ‎03-05-2009

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

Well, in answer to your question, yes, I think the schwab visa is a great idea! I would apply myself if I didnt have 7inquiries on my reports right now....

 

And second, I have two visa signature accounts (chase and citi) and from what I can tell, neither of them are counted in my util... So, that shouldnt hurt you too much. 

05/25/09
Transunion: 775 (FICO) -- Equifax: 814 (FICO) -- Experian: 806 (FICO - from CU Loan Officer)
Wohoo! Happy 1st BDay to 2 accounts this month!!

07/09/08 - Before I started reading these forums...
Transunion: 670 --Equifax: 698 -- Experian: 685
New Contributor
austintex
Posts: 74
Registered: ‎05-25-2009

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

I'm drooling over this card as well.  I'm afraid they would deny me though, as I only have 2 CC's (Oldest 3 yrs, AAoA 1 yr.).  Always paid on time.  FICOS are all around 736, but from what I have seen, nobody here with a thin file has been approved by them.

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5/31/09 - 736 - EQ
Contributor
Eiso
Posts: 123
Registered: ‎03-29-2009

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

Really? It takes a long history to actually get approved? My first card was from 2004. I have a few auto loans that were completely paid off and a few still on-going. Few credit cards that has completely paid off as well as paying early before closing date to less than 10% each month since 2004 and on. Low credit utilization ratio and reporting balances are 10% or less. What else can contribute to an approval? Large sum of cash into the High Yield checking account, etc?
-----------------------------------------------------
FICO pulled by loan officer on 8/3/2009
EQ: 724
EX: 740
TU: 742
Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

I have no idea. Perhaps, large income? They want you to invest money in their brokerage account, after all. That won't work if you just so scrape by.
New Contributor
austintex
Posts: 74
Registered: ‎05-25-2009

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)


Eiso wrote:
Really? It takes a long history to actually get approved? My first card was from 2004. I have a few auto loans that were completely paid off and a few still on-going. Few credit cards that has completely paid off as well as paying early before closing date to less than 10% each month since 2004 and on. Low credit utilization ratio and reporting balances are 10% or less. What else can contribute to an approval? Large sum of cash into the High Yield checking account, etc?

Eiso - I was actually talking about myself having a 'thin file'.  You seem to have a good chance of getting it - you have way more credit history than me.  However, there is a thread around here with someone talking about getting rejected with a 780.

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5/31/09 - 736 - EQ
Valued Contributor
GregB
Posts: 1,669
Registered: ‎05-24-2007

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

Based upon my experience with Schwab for 4+ years, I would suggest you open a Schwab One Account. That is where the rewards for this card will go anyway and they are assuming that you will be leaving it there. Start with a reasonable deposit - there is likely a minimum but it is lower than you might expect, perhaps only $1000. Add to it regularly, even just $100 per month. Once you have more than $4000, you can apply for a margin account, which means they are giving you some credit with security in the account. Then app for the Invest First card. I have to believe that they will expect reasonable FICOs also.

 

Another plan is to move your IRA to Schwab also.

New Contributor
mrdrum18
Posts: 65
Registered: ‎07-27-2008

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)

I was approved for this card with 6 months history, 720 EX FICO, perfect history, 0% utilization but a significant banking relationship with BofA.
Contributor
Eiso
Posts: 123
Registered: ‎03-29-2009

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)


GregB wrote:

Based upon my experience with Schwab for 4+ years, I would suggest you open a Schwab One Account. That is where the rewards for this card will go anyway and they are assuming that you will be leaving it there. Start with a reasonable deposit - there is likely a minimum but it is lower than you might expect, perhaps only $1000. Add to it regularly, even just $100 per month. Once you have more than $4000, you can apply for a margin account, which means they are giving you some credit with security in the account. Then app for the Invest First card. I have to believe that they will expect reasonable FICOs also.

 

Another plan is to move your IRA to Schwab also.


It might take a while to do it from $1000, and then $100 each month. I know you are not telling to do exactly the way you laid out, it was an example, but still takes some time to do so. I've been leaving all my money in my MMA with WAMU with 2.5% so I can get some interest just to pay a few bills yet secure, but the 2.5% has recently expired, so I'm planning on moving it all to elsewhere (possibly with a good interest, such as the 9-months No-Penalty 2.5% CD with Ally, which is GMAC), or Wells Fargo PMA that offers 100 free trades, I'm just looking to move my money to somewhere that benefits me. That's why I'm looking into Schwab if my deposit will benefit the approval for its cashback card.Since I'm a more saving-conservative guy, I dont really plan on investing into the stock market. I just want a nice straightforward cash back card.

 


mrdrum18 wrote:
I was approved for this card with 6 months history, 720 EX FICO, perfect history, 0% utilization but a significant banking relationship with BofA.

 

I'm assuming I have a 700+ EX for sure, by kind of looking at my FAKOs (I know, I know) and the one I got from CreditKarma yesterday. I guess I have perfect history since I have never missed one payment ever. I intentionally changed back to <10% utilization ratio since I learned that 0% is not as good as <10%. I have done 0% all along from 2004-2007 that kept me around 720 FICO. No relationship with BofA at all. I guess I'll go to a Schwab branch and talk to a banker and see how it goes.

 

-----------------------------------------------------
FICO pulled by loan officer on 8/3/2009
EQ: 724
EX: 740
TU: 742
New Contributor
austintex
Posts: 74
Registered: ‎05-25-2009

Re: Worth hard pulls for Schwab's cash back card? (AMEX & Chase downsizing their rewards now)


Eiso wrote:
I guess I'll go to a Schwab branch and talk to a banker and see how it goes.

 


 Sounds great.  Let us know what you find out!:robothappy:

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5/31/09 - 736 - EQ

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