Discover Hitting my Mailbox hard...Should I take the bait or wait?

[Repairman]

Ok, so I've been working hard to rebuild my credit for about 6 months now, and have seen wonderful improvement in my score, as I'm currently sitting in the high 600s (up from the low 500s), however, I have several "recent" baddies in my report. 1 charge off (which is paid in full as of 10/14), as well as 3 other closed accounts with late marks (all, also, now paid in full as of 8/14). I currently, now only have 3 open credit card accounts, all in good standing but with a collective cl of only about $4300.

Since I paid off all my cc debt, Discover has begun to send me applications for credit about every 3 weeks. I recently requested a cli from Bank of America, and BOA denied it, citing the late payments on my CR as one reason (despite the fact that I've had their card since 1998 and I have NEVER been late with them!), and citing my "low" amount of available credit and "too few open accounts"  as another. I want the Discover It card. My question is, should I apply now for the Discover It card, in order to have more credit available to me, in the hopes that that will help my score? (It's important to note my BOA credit limit increase request was 2 weeks ago, and BOA did a HARD PULL but it did NOT affect my Fico score at all). Or, is it better to hold off, say, another 6 months, to apply for the Discover It card, in the hopes that by then, I may be able to get a better credit line or a better APR or a better chance of being approved, as more time will have passed since my late payment delinquencies? To Wait or Not to Wait? Please help!!! I need good advice!

[RobertEG]

Do the offers from Discover indicate that they are sent based on your name being obtained from a listing provided by a CRA?

If so, it is a firm offer for credit, and unless you have had a change in your CR information since they obtained the listing, must be honered if you apply and are found to still meet their criteria.

[Repairman]

I've heard that, and have been skimming through the letter, but have not been able to find that info indicated. Where would it be? In the body of the letter or in the fine print? I have not been able to find anything regarding that, but it does not seem like a firm offer of credit to me.

[cartwrna]

Does it say they invite you to apply for the Discover IT? A few of us have been getting those lately. I think I've gotten 3. Not a firm offer of credit, they will deny lol!

[RobertEG]

Then it was made via means other than having obtained your name from a listing provided by a CRA.

[Repairman]

I don't think it is a firm offer of credit, but I do find it curious that I have literally been getting the application from them every 3 weeks since this past summer. 

[brewcrew87]

With the late marks, I would wait.

I was pretty much in the same boat as you in terms of the mailings.  Literally received 3 in one week once, but they were coming in every couple weeks on average.  I applied (with 1 6 year unpaid collection of $235, and a 2 year old paid $120 collection) and was approved, but they couldn't offer me the promo terms.  I declined, since I was mainly looking to get the card for the 14 month balance transfer (along with the cash back rewards).  

I have since GW the paid collection, and had the other fall off my report.  My score jumped up from the 640-660 range to the 690-700 range, so I applied last weekend.  Approved instantly online with all of the promo offers for a credit line that comes in between my Chase and Amex limits.  Not too bad for my credit situation.  No derogs on my CR now, but I still have about 62% UTL on my credit cards, 18K in student loans, 2 car loans for a combined 34K, and 6 INQ on EQ, 10 on TU, and 2 on EX.  I just received my card today, and they pulled EX at 696.

I would try to GW the lates and see what you can do.  Definitely don't trust the mailings - unless you don't care about the promo rates.

[Repairman]

I've tried GW and was denied by AMEX and Chase. I'm kind of in the opposite boat of you now, as I've managed to bring my scores from "Not Good" to "Good" in under a year, and have very low utilization and zero outstanding balances and zero unpaid debts reporting. My problem, despite my scores currently in the high 600s is those late marks from 2014 on accounts that were all eventually paid in full. Argh!

[Repairman]

Even if they deny me, my more important question remains. Would it benefit me to get a new line of credit now (even if not Discover) or should I wait, say, another 6 months to apply for a new line of credit? What's the best route to help improve my score?

[brewcrew87]

Well I certainly am not an expert - still working on my credit as well.  But I don't know if it will really help all that much.  Since your UTL is very, very low, I am not sure how much another credit card will help.  Do you have any installment loans?  

I think you best move would be to try to get a little bit more of a mix of credit.  Auto loan or a personal loan...  Any need for it?  

Then again..  I could be way off.  Maybe someone else wants to chime in.