topic Re: Help deciding whether I should apply for BCP in Credit Card Applications

Help deciding whether I should apply for BCP

slvrhwk — Thu, 04 Dec 2014 06:01:20 GMT

Hi guys,

My current profile:

Capital One QS Visa - $4250 CL (CC since Sep 2012)

Barclaycard Arrival+ WEM - $2500 (CC since Jan 2014)

I am planning to apply for Amex BCP. I have always wanted an Amex, because I've heard of their excellent CS and because of the backdating (that I learned of on these forums). For some reason, I was thinking of applying for it in Jan 2015, I have no idea why. But I suddenly realized, applying in Dec will be bettter (purely because of the backdating in future).

I am thinking of the BCP for the following reasons:

I shop for $200-$300 for grocery every month, I'll not only break even, but also earn good cashback

I am getting an offer of $250 cash back after spending $1000 in the first 3 months (from creditcards.com)

I want an Amex

I want to increase my CL

Future backdating advantage if I apply now (2014 as opposed to 2015).

My concerns are:

I have only 1 statement generated for both my cards since I received a CLI (CLI received in Oct end. Previous CL - $1250 for CO and $600 for BA+). Will they think that I'm fairly new to higher limits and either reject my application? I doubt they'll reject my application, but I also don't want to be approved for a lower CL.

My TU FICO at the end of Oct, when I applied for a BA+ CLI, was 750. I'm looking to get it up to 760+-780+ by June next year, since I'm planning on buying a house (one of the reasons I want to increase my CL). Do you think I'll take a big hit and it'll be difficult to improve the score?

I have 2 inquiries on my report - Jan 2014, application for BA+ and Oct 2014, request for CLI. I think it should be okay to have another one, but I would like to know what you guys think.

I'd really appreciate your input and advice. Thanks.

Re: Help deciding whether I should apply for BCP

Luscher — Thu, 04 Dec 2014 06:08:29 GMT

With that low of spending I would go with the BCE which has 0 annual fee. but thats just my opinion

Re: Help deciding whether I should apply for BCP

Anonymous — Thu, 04 Dec 2014 06:23:03 GMT

@Luscher wrote:
With that low of spending I would go with the BCE which has 0 annual fee. but thats just my opinion

Well, $2500 on groceries a year is the cross over point when the BCP makes more than the BCE (if the card is used for gas, or "select department stores", the BCP becomes better at a lower amount). So if it really is 200-300 per month, unless it is $200 every month, the BCP is mildly better.

But at this spend, something like the Sallie Mae is better for the rewards, the slighly lower % on groceries being offset by no annual fee (and Sallie Mae is much better on gas, 5% to 3%). But it's not an Amex of course.

My approach would be to app for the Sallie Mae and for the Amex EveryDay card, so you get a free Amex with its advantages, but get decent rewards, and don't pay an annual fee. You don't really need to use the Amex for the rewards until you have a need to travel.

Re: Help deciding whether I should apply for BCP

slvrhwk — Thu, 04 Dec 2014 07:24:49 GMT

@Anonymous wrote:
@Luscher wrote:
With that low of spending I would go with the BCE which has 0 annual fee. but thats just my opinion
Well, $2500 on groceries a year is the cross over point when the BCP makes more than the BCE (if the card is used for gas, or "select department stores", the BCP becomes better at a lower amount). So if it really is 200-300 per month, unless it is $200 every month, the BCP is mildly better.

But at this spend, something like the Sallie Mae is better for the rewards, the slighly lower % on groceries being offset by no annual fee (and Sallie Mae is much better on gas, 5% to 3%). But it's not an Amex of course.

My approach would be to app for the Sallie Mae and for the Amex EveryDay card, so you get a free Amex with its advantages, but get decent rewards, and don't pay an annual fee. You don't really need to use the Amex for the rewards until you have a need to travel.

I'll also be using it for gas every month. That's 200-300 for grocery every month and ~60-80 for gas. I haven't calculated, but I'm pretty sure I'll end up spending more in both these categories.

Re: Help deciding whether I should apply for BCP

yfan — Thu, 04 Dec 2014 07:32:56 GMT

If having an Amex is important to you, as it certainly appears to be, go for it.

Re: Help deciding whether I should apply for BCP

slvrhwk — Thu, 04 Dec 2014 07:39:36 GMT

@yfan wrote:
If having an Amex is important to you, as it certainly appears to be, go for it.

Now I'm beginning to think whether I'll be eligible for it? I just tried the Amex prequal website, and it gave me 3 offers - Platinum Delta Skymiles, Gold Delta Skymiles (I've received prequal for both of these in mail) and Amex Blue. Do they always give only 3 offers? Is there a way to check if I'm prequalified for a particular card?

Re: Help deciding whether I should apply for BCP

Shock — Thu, 04 Dec 2014 07:53:46 GMT

Hmmm..I would suggest applying in January. But, that's only if you already have a AMEX.

If you apped for one in December, your next one would be Month you applied/2014 instead of Month you applied/2015.

Re: Help deciding whether I should apply for BCP

elim — Thu, 04 Dec 2014 09:16:06 GMT

@slvrhwk wrote:
@yfan wrote:
If having an Amex is important to you, as it certainly appears to be, go for it.
Now I'm beginning to think whether I'll be eligible for it? I just tried the Amex prequal website, and it gave me 3 offers - Platinum Delta Skymiles, Gold Delta Skymiles (I've received prequal for both of these in mail) and Amex Blue. Do they always give only 3 offers? Is there a way to check if I'm prequalified for a particular card?

Current Score TU: 744, EX: N/A, EQ: N/A

if your EX is close to your TU then no problem. if you don't have an AMEX then app now to lock in your MSD.

Re: Help deciding whether I should apply for BCP

coldnmn — Thu, 04 Dec 2014 11:25:47 GMT

For future backdating applying this month is in your best interest in my opinion.

Re: Help deciding whether I should apply for BCP

Anonymous — Thu, 04 Dec 2014 12:56:38 GMT

@Shock wrote:
Hmmm..I would suggest applying in January. But, that's only if you already have a AMEX.

If you apped for one in December, your next one would be Month you applied/2014 instead of Month you applied/2015.

I think that this means that you shuld apply in January for your first card.

Re: Help deciding whether I should apply for BCP

Anonymous — Thu, 04 Dec 2014 13:39:48 GMT

@Anonymous wrote:
@Shock wrote:
Hmmm..I would suggest applying in January. But, that's only if you already have a AMEX.

If you apped for one in December, your next one would be Month you applied/2014 instead of Month you applied/2015.

I think that this means that you shuld apply in January for your first card.

No, the month doesn't matter for the fiirst card (as it is ignored on subsequent cards). You want to get the first card in the earliest year that you can, so applying now sets 2014 as the MSD, doing it in Jan would set 2015. Subsequent cards use the MSD YEAR, but the month of application.

Re: Help deciding whether I should apply for BCP

takeshi74 — Thu, 04 Dec 2014 14:44:03 GMT

@slvrhwk wrote:
Now I'm beginning to think whether I'll be eligible for it? I just tried the Amex prequal website, and it gave me 3 offers - Platinum Delta Skymiles, Gold Delta Skymiles (I've received prequal for both of these in mail) and Amex Blue. Do they always give only 3 offers? Is there a way to check if I'm prequalified for a particular card?

No on the particular card. Don't rely on the offers as an indicator.

@slvrhwk wrote:
Will they think that I'm fairly new to higher limits and either reject my application?

We really don't know the specifics of their underwriting but I doubt that they track the details of everyone's CL history on every account on their reports. IIRC your reports only indicate current limits. It seems like you're overthinking it to me. If you're going to worry I'd suggest worrying over the standard factors:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

@slvrhwk wrote:
I doubt they'll reject my application, but I also don't want to be approved for a lower CL.

Don't fret over this. There's the 3X CLI so definitely read the guide if you have not already.

@slvrhwk wrote:
I'm looking to get it up to 760+-780+ by June next year, since I'm planning on buying a house (one of the reasons I want to increase my CL). Do you think I'll take a big hit and it'll be difficult to improve the score?

It's tricky to guess without the details and tricky even with the details. You'll take an HP, your AAoA will drop. The limit granted to you and how you use this card will determine how your utilization is impacted. If you want to be extremely conservative then you may want to be more on the 1 year of no new credit prior to a mortgage versus the 6 month side. I'd guess you would be fine applying right now but I'm not underwriting your mortgage so don't rely on what I say.

@slvrhwk wrote:
I have 2 inquiries on my report - Jan 2014, application for BA+ and Oct 2014, request for CLI. I think it should be okay to have another one, but I would like to know what you guys think.

Which report? There's more than just one CRA. The one (or ones if multiple pulls take place) that AmEx uses is the one that matters. Less is better but we can't tell you where the line falls for inquiries for your credit profile.

@Luscher wrote:
With that low of spending I would go with the BCE which has 0 annual fee. but thats just my opinion

You might want to run the numbers when making an evaluation like this.

Re: Help deciding whether I should apply for BCP

techiegirl — Thu, 04 Dec 2014 14:26:15 GMT

Go for it.

Re: Help deciding whether I should apply for BCP

Luscher — Thu, 04 Dec 2014 21:10:21 GMT

I would say go for it, its a good sign that you are getting any prequels at all on the site.

Re: Help deciding whether I should apply for BCP

Shock — Fri, 05 Dec 2014 01:14:15 GMT

Yup got for it now. That way, your next card's MSD (lets say you applied in april 2015) will be 4/2014 instead of 4/2015

Re: Help deciding whether I should apply for BCP

VirtualCuriosity — Fri, 05 Dec 2014 01:30:41 GMT

@slvrhwk wrote:
@yfan wrote:
If having an Amex is important to you, as it certainly appears to be, go for it.
Now I'm beginning to think whether I'll be eligible for it? I just tried the Amex prequal website, and it gave me 3 offers - Platinum Delta Skymiles, Gold Delta Skymiles (I've received prequal for both of these in mail) and Amex Blue. Do they always give only 3 offers? Is there a way to check if I'm prequalified for a particular card?

I only ever got the "Green Card" for several months on their pre-qual site and in the mail. I apped for and received the BCE with no problem. You are getting multiple suggestions on their site so you may be targeted more, and that might be good.

Re: Help deciding whether I should apply for BCP

slvrhwk — Fri, 05 Dec 2014 02:19:48 GMT

Thanks for the encouragement everyone and @takeshi74 for the detailed reply. I'm gonna go ahead and apply tonight itself. I'll post an update after the application.

One question - On the Amex website, the offer says $100 cash back after $1000 usage in the first 3 months, plus 1 year free of Amazon prime. Creditcards.com offer says $250 cash back after $1000 usage in the first 3 months. The latter is obviously the better offer, and I'll apply using that offer, but do you know if it's possible to combine it with 1 year of free Amazon prime?

Re: Help deciding whether I should apply for BCP

slvrhwk — Fri, 05 Dec 2014 06:12:00 GMT

Hi guys,

I applied and got approved - http://ficoforums.myfico.com/t5/Credit-Card-Applications/Amex-BCP-Approval/td-p/3675143. Thanks to everyone here. How do I know about my CL? I have asked the same question in the other thread. Let me know if there's a way other than waiting for the card.

Re: Help deciding whether I should apply for BCP

Shock — Fri, 05 Dec 2014 06:50:59 GMT

@slvrhwk wrote:
Hi guys,

I applied and got approved - http://ficoforums.myfico.com/t5/Credit-Card-Applications/Amex-BCP-Approval/td-p/3675143. Thanks to everyone here. How do I know about my CL? I have asked the same question in the other thread. Let me know if there's a way other than waiting for the card.

Congrats. Call the approval number 800-567-1083

Re: Help deciding whether I should apply for BCP

slvrhwk — Fri, 05 Dec 2014 18:16:28 GMT

@Shock wrote:
@slvrhwk wrote:
Hi guys,

I applied and got approved - http://ficoforums.myfico.com/t5/Credit-Card-Applications/Amex-BCP-Approval/td-p/3675143. Thanks to everyone here. How do I know about my CL? I have asked the same question in the other thread. Let me know if there's a way other than waiting for the card.
Congrats. Call the approval number 800-567-1083

Thanks. Called the above number. They approved me for $4300. This becomes my highest limit card!