Rebuilding Your Credit

[greenpang]

I've come up with my plan for maximizing 2013 Rewards, using a combination of credit cards for different categories, and two of the cards will be new: Chase Freedom and Chase Sapphire Preferred.

I'm planning to apply for both of them about a week from now. The reason I'm waiting is because I recently acquired some CLIs, and they're scheduled to report to the CRAs within the next week -- I'd rather apply with my new high limits posted to my credit report.

Some questions -- 

1. On the online app page, the first question is, "Is your credit history clear from bankruptcies and/or seriously delinquent accounts?"

I don't have any currently delinquent accounts, but I have 3 baddies on my reports: Three C/Os on low-limit retail cards from 5 years ago. Never filed for bankruptcy, perfect payment history for over 4 years.

Can I answer "no" to this question?

2. Any thoughts on order/method of the apps? If online, which one should I try first? Or should I apply over the phone, inform the agent I'm interested in both, and allow him/her to choose the order?

3. Just for fun, want to predict my approval success and credit limits for both of these cards? Here are the stats:

- My accounts, limits, and scores are in my signature. (TU FICO will probably be higher once my util ratio decreases after CLIs are reported to CRAs.)

- ~10-15% util on Amex BCE, US Air MC, Barclaycard, and Sears CITI. Other cards have $0 balance.

- Average age of accounts: 4.3 years (but Amex and US Air MC are only 6 months).

- Annual income: $121K.

- Baddies: C/Os on three retail cards in 2007.

- 1-2 hard inquiries on each CRA report.

- Perfect payment history for 4+ years.

[madmann26]

It's hard to say. I'd say apply and if denied, recon it and they'll probably give you a $500 limit on the Freedom.

[greenpang]

Like I said, the question on approval/limit predictions was just for fun, as obviously no one can provide a definitive answer -- but I definitely have very different predictions! I've read a lot of forums on app success for these cards, and I definitely expect to be approved for the Freedom no problem (with $5K+ limit) and also expect to be approved for the Sapphire Preferred (with $8K+ limit), though I feel less certain about Sapphire Preferred. In reading others' approval successes and failures, people were primarily denied for having too limited a credit history (less than a year; not the case for me) or having no high-limit cards (also not the case for me).

Anyway, my real questions are on what I should answer for the "credit history free of serious delinquencies" question if I apply online, the order of the two applications, and whether I should apply online or by phone. Any thoughts there?

[electra]

*subscribe* 

[greenpang]

bump!

Thoughts on #1 or #2, anyone?

[greenpang]

second bump!

Just trying one last time.

Almost all of my new (higher) credit limits have reported now, so I'll be applying for Chase Freedom and Sapphire Preferred within a few days.

Any insight into questions #1 or #2 on my original post or recommendations for my app approach here?

[llecs]

One questions #1 and #2? For #1, you really should answer "no" because it isn't clear. History would include anything from the past or present which would include those old baddies. Also Chase is particular. I've been turned down for a paid and redeemed repo that had occurred 6.5 years prior, and was denied due to a past negative credit obligation, or whatever their code said. On the flip side, Chase is more forgiving when you recon them. If they deny you the first go around, they are sometimes open to reversing their decision after calling them. So, if you are honest the first go around, then when you recon I'd think your odds are better of an approval.

On question #2, I'd try online. Many who were successful at the recond tried online first.