topic Re: App first then garden... or garden first? in Credit Card Applications

App first then garden... or garden first?

Anonymous — Sun, 14 Jul 2019 15:53:16 GMT

Hi folks, I'm newly registered here but have been lurking for some time, and am looking for some advice.

Here's the scoop. I'm recently divorced and refinancing my house to pay off the ex's half of the equity. The closing is in a couple weeks. I'd like to get a cash back card that's more than 1% for everything and am eyeing the Citi Double Cash as my 1st choice and Chase Freedom Unlimited as the 2nd.

I'm thinking of three possible options:

1. Apply for the card immediately after mortgage closing, or a few days afterward, before the mortgage has a chance to report. That way I only have the score ding from the inquiries and not for the new account at application time.

2. Wait for the mortgage to report, then apply. This will probably result in lower scores due to a new account. Additionally, one of my existing accounts, a HELOC, will be paid off and closed.

3. Garden for a while to let things settle, and then apply for the card 6 months to a year after closing, or even longer (2 years?)

Vital stats: EX FICO 813, TU FICO 824 as of 6/19. I don't have a free way to get EQ FICO, but I expect it's over 800 as well. AAoA 6 years, 8 mos. AAoOA (open accounts only) is 9 years 11 months. Open accounts include 3 credit cards and a HELOC. The HELOC will be paid from refinance funds and closed after the closing. 2 inquiries per CRA in June from mortgage shopping and app, 2 other inquires that are >1 year. Most recent card app was a Chase Amazon Visa in early 2018, and no other card apps in many years so I'm at 1/24. Reported utilization 1-3% (I use AZEO).

Once I get this new card, I expect to garden indefinitely, as I don't want or need any other credit products in the foreseeble future.

So, what do the experts here think I should do? Apply immediately after closing, wait for the mortgage to report, or garden for a while?

And then, my other decision, what card do I go for? Citi DC is my first choice, since it has 2% cash back, but the Chase FU has sign-up bonuses (I think the current one is 3% for a year), 0% intro APR for purchases, and the points can be transferred the Sapphire products for travel (which I don't plan on doing since I almost never travel). I tend to keep my cards a long time and rarely app, so long term benefits weigh more for me than short term bonuses.

Thanks!

Re: App first then garden... or garden first?

Anonymous — Sun, 14 Jul 2019 16:21:51 GMT

2% for everyday DC

3% first year on CFU

Might as well start building in some additional foundational cards. Maybe for diversification hit up BOA / Barclay's for a third.

Re: App first then garden... or garden first?

CreditInspired — Sun, 14 Jul 2019 22:38:35 GMT

@Anonymous wrote:
Hi folks, I'm newly registered here but have been lurking for some time, and am looking for some advice.
Here's the scoop. I'm recently divorced and refinancing my house to pay off the ex's half of the equity. The closing is in a couple weeks. I'd like to get a cash back card that's more than 1% for everything and am eyeing the Citi Double Cash as my 1st choice and Chase Freedom Unlimited as the 2nd.

I'm thinking of three possible options:

1. Apply for the card immediately after mortgage closing, or a few days afterward, before the mortgage has a chance to report. That way I only have the score ding from the inquiries and not for the new account at application time.

2. Wait for the mortgage to report, then apply. This will probably result in lower scores due to a new account. Additionally, one of my existing accounts, a HELOC, will be paid off and closed.

3. Garden for a while to let things settle, and then apply for the card 6 months to a year after closing, or even longer (2 years?)

Vital stats: EX FICO 813, TU FICO 824 as of 6/19. I don't have a free way to get EQ FICO, but I expect it's over 800 as well. AAoA 6 years, 8 mos. AAoOA (open accounts only) is 9 years 11 months. Open accounts include 3 credit cards and a HELOC. The HELOC will be paid from refinance funds and closed after the closing. 2 inquiries per CRA in June from mortgage shopping and app, 2 other inquires that are >1 year. Most recent card app was a Chase Amazon Visa in early 2018, and no other card apps in many years so I'm at 1/24. Reported utilization 1-3% (I use AZEO).

Once I get this new card, I expect to garden indefinitely, as I don't want or need any other credit products in the foreseeble future.

So, what do the experts here think I should do? Apply immediately after closing, wait for the mortgage to report, or garden for a while?

And then, my other decision, what card do I go for? Citi DC is my first choice, since it has 2% cash back, but the Chase FU has sign-up bonuses (I think the current one is 3% for a year), 0% intro APR for purchases, and the points can be transferred the Sapphire products for travel (which I don't plan on doing since I almost never travel). I tend to keep my cards a long time and rarely app, so long term benefits weigh more for me than short term bonuses.

Thanks!

Hi and welcome to MyFICO

Go for option 1. That’s what I did. I closed on a Friday and applied for AmX and a NFCU CLI on Monday. The AmX was approved for $15K and got

an 8K NFCU CLI and my scores were high 700-low 800.

Yep, go for it! I personally don’t like Citi because their redemption is $25K.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 00:16:41 GMT

@CreditInspired wrote:
Yep, go for it! I personally don’t like Citi because their redemption is $25.00K.

FTFY

Re: App first then garden... or garden first?

CreditInspired — Mon, 15 Jul 2019 00:23:35 GMT

@Anonymous wrote:
@CreditInspired wrote:
Yep, go for it! I personally don’t like Citi because their redemption is $25.00K.
FTFY

Thank you for the correction 😂🤣😂.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 00:23:57 GMT

@Anonymous wrote:
Might as well start building in some additional foundational cards. Maybe for diversification hit up BOA / Barclay's for a third.

I already have 2 cash back cards: BOA Cash Rewards (3% on gas, 2% on groceries) and the Amazon Prime Visa (5% Amazon). I'm just looking for something to cover the things that are only 1% on the other cards.

I also have a BOA Travel Rewards which is going in the sock drawer, since I have no use for travel rewards. I almost never travel, especially now. I'll probably close this one eventually.

@CreditInspired wrote:
Hi and welcome to MyFICO

Go for option 1. That’s what I did...

Yep, go for it! I personally don’t like Citi because their redemption is $25K.

No pitfalls going this route? No likelihood that the bank will pull my credit after I close and see another inquiry and go what the heck?

I figure apping right after closing gets all the dings out of the way, and in 2 years I'll be inquiry free and clean, while if I wait a year or two, that's another year or two of dinged credit... not that it really matters if I'm going to be gardening anyway. But then, who knows what I might do in a year or two... I might need another card. LOL. I need to stay off this site so I don't.

Re: App first then garden... or garden first?

M_Smart007 — Mon, 15 Jul 2019 11:51:10 GMT

@Anonymous wrote:
Hi folks, I'm newly registered here but have been lurking for some time, and am looking for some advice.
Here's the scoop. I'm recently divorced and refinancing my house to pay off the ex's half of the equity. The closing is in a couple weeks. I'd like to get a cash back card that's more than 1% for everything and am eyeing the Citi Double Cash as my 1st choice and Chase Freedom Unlimited as the 2nd.

I'm thinking of three possible options:

1. Apply for the card immediately after mortgage closing, or a few days afterward, before the mortgage has a chance to report. That way I only have the score ding from the inquiries and not for the new account at application time.

2. Wait for the mortgage to report, then apply. This will probably result in lower scores due to a new account. Additionally, one of my existing accounts, a HELOC, will be paid off and closed.

3. Garden for a while to let things settle, and then apply for the card 6 months to a year after closing, or even longer (2 years?)

Vital stats: EX FICO 813, TU FICO 824 as of 6/19. I don't have a free way to get EQ FICO, but I expect it's over 800 as well. AAoA 6 years, 8 mos. AAoOA (open accounts only) is 9 years 11 months. Open accounts include 3 credit cards and a HELOC. The HELOC will be paid from refinance funds and closed after the closing. 2 inquiries per CRA in June from mortgage shopping and app, 2 other inquires that are >1 year. Most recent card app was a Chase Amazon Visa in early 2018, and no other card apps in many years so I'm at 1/24. Reported utilization 1-3% (I use AZEO).

Once I get this new card, I expect to garden indefinitely, as I don't want or need any other credit products in the foreseeble future.

So, what do the experts here think I should do? Apply immediately after closing, wait for the mortgage to report, or garden for a while?

And then, my other decision, what card do I go for? Citi DC is my first choice, since it has 2% cash back, but the Chase FU has sign-up bonuses (I think the current one is 3% for a year), 0% intro APR for purchases, and the points can be transferred the Sapphire products for travel (which I don't plan on doing since I almost never travel). I tend to keep my cards a long time and rarely app, so long term benefits weigh more for me than short term bonuses.

Thanks!

Welcome To myFICO Forums!!

your name dose not give me warm fuzzy feeling, "@Anonymous"

was there many years ago. sounds like you are on a great recovery & Congrats on The House.

another 2% Card is The PayPal 2% Cash Back. I believe no minumum Cash Back Redemption, Usually no SUB (If you Like Synchrony Bank?) I I personally do not hold that card, as I have The DC.

SP Cli's on The PayPal2% probaly would grow faster than the citibank DC.

just throwing one more option out there.

But The Chase FU with 3% 1st year, and a sign up Bonus, looks awful good.

I got a huge Limit From Chase on The FU a while Back.

just my random thoughts.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 12:23:01 GMT

Paypal MC is a possibility too... didn't think of that one, thanks. I'm not big on Synchrony though.

I've never asked for a CLI ever in over 30 years, so those don't matter to me.

CFU is tempting with the 3% for a year, but I'm not a big spender and it would then be 1.5% after the 1st year. Citi DC is probably the best bet for me long term. I already have a Chase card and I prefer to diversify. If I traveled and planned on using UR points in the future I'd definitely put the CFU higher on my list, but I don't.

I still have a little under 2 weeks to decide.

Thanks folks!

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 16:37:54 GMT

Well, you could go Disco Miles and collect 3% for the first year as well.

WF has changed things up as well where they dropped the minimum redemption requirement and allow you to use points for purchases after they post. The only requirement is to have enough points to cover it 100% not a partial redemption.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 17:48:02 GMT

Not interested in Discover or Amex. I prefer cards that are accepted everywhere.

And WF... well, if I expressed my feelings about that bank here I would probably get banned.

Are there any benefits to waiting/gardening first? No one seems to have chimed in on that aspect of my query.

Also, does Citi ever offer promotions/SUBs on the Double Cash? Like, if I wait a few months, a promotion might pop up? I know Chase changes up their SUBs from time to time... don't know about Citi.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 19:05:30 GMT

@Anonymous wrote:
Not interested in Discover or Amex. I prefer cards that are accepted everywhere.

And WF... well, if I expressed my feelings about that bank here I would probably get banned.

Are there any benefits to waiting/gardening first? No one seems to have chimed in on that aspect of my query.

Also, does Citi ever offer promotions/SUBs on the Double Cash? Like, if I wait a few months, a promotion might pop up? I know Chase changes up their SUBs from time to time... don't know about Citi.

Never hurts to wait. It only garners positive points on your reports. Closing on a mortgage isn't a requirement to get new cards unless you really need to. The dip/pop ratio isn't a big deal when it comes to points. Your F8's are over 800 and would still be over 780 which still leaves the door open to any lender you pick. Usuaully the deciding factor in apping immedately after closing is you know your scores already even though they're 2/4/5 models instead of F8 and the people typically more prone to doing apps after closing don't have a thick profile and great scores already.

I did get $100 for $500 spend on the DC which was what prompted the APP even though 6 months earlier I picked up the Premier for the 50K bonus they were offering.

BTW we all have feelings about particular banks at times that would get us banned or at least slapped on the wrist for mentioning them out loud. I used to have those feelings about a lot of the big banks and then a switch flipped and I started taking their free money through the bonuses they offer. A couple of those banks are actually my highest CL's @ 65K/ea now. WF isn't one of them though at a pitiful $7500 and Citi has been playing the long game with me so far w/ 2K bumps every 6 months.

As to Amex/Disco... I've run into 1 place that didn't accept either of them and it was a gas station that's smaller in scale. Domestically they're accepted probably in 99.99% of places due to the merchant accounts being setup to accept all 4 networks these days. Internationally is a different story where MC/V are accepted more but, in Asia it's Disco through JCB that's accepted more.

Limiting yourself is kind of shooting yourself in the foot sometimes.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 19:50:54 GMT

Thanks for your insights. I still have time to mull it over, and I'll make my decision after the closing. I'm about 50/50 between apping right away and just saying forget it and going directly into the garden. I don't really need another card since I have 3 already.

They say not to app for anything (cards, car loans etc) while applying for a mortgage until after closing, hence the need to wait until then in the first place. After closing, I could app right away before the scores drop, or garden a while and app later, or not app at all.

Guess I'll see how I feel after forking over 100+K to the ex. I'm in spending freeze mode for the foreseeable future anyway, so any new card isn't going to see a lot of spend going on it. Forget anything that requires 4-figure spending for a SUB. LOL.

Seems like bad timing on my part as neither the DC or the CFU have a cash bonus SUB right now. $100 for $500 spend is a better deal than 3% for a year (which would require $3,333 spend to earn $100). Maybe waiting is better.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 19:42:25 GMT

@Anonymous wrote:
Guess I'll see how I feel after forking over 100+K to the ex. I'm in spending freeze mode for the foreseeable future anyway, so any new card isn't going to see a lot of spend going on it. Forget anything that requires 4-figure spending for a SUB. LOL.

Yeah, that will make a diffrerence for sure!

If you're under 80% LTV after closing then you don't need Escrow for Taxes / Insurance. I use taxes for those 3-5K MSR's to collect a "rebate" against the taxes and it adds up quickly. I just break the estimated amoount into 12 installments and shift it to a high APY savings during the year and then wallop a couple of cards for Taxes and collect the $500+ in bonuses to offset the amount spent.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 19:57:04 GMT

@Anonymous wrote:
Yeah, that will make a diffrerence for sure!

If you're under 80% LTV after closing then you don't need Escrow for Taxes / Insurance. I use taxes for those 3-5K MSR's to collect a "rebate" against the taxes and it adds up quickly. I just break the estimated amoount into 12 installments and shift it to a high APY savings during the year and then wallop a couple of cards for Taxes and collect the $500+ in bonuses to offset the amount spent.

Neat idea on taxes/insurance. I don't recall if my county lets you pay taxes with a CC or if there is a surcharge for doing so. I usually just pay using E-check which is free.

Last Jan-Apr or so Chase offered 5% on the Amazon Visa for paying bills including insurance, so I took advantage of that by paying some bills ahead including my auto/home insurance, cable/internet and my (prepay) cell phone. Got some nice cash back for that.

Imagine the cash back I could earn on paying that $100k ex bill on a credit card... LOL. Assuming I had enough to PIF the charge afterward, otherwise the interest would kill me.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 20:15:26 GMT

Yeah, they charge a fee for using a CC. I did mine w/ a 2.35% fee on $5800 and net $640 which is more than 10% back.

I opened 2 new carda and upgraded an Amex for a bonus. I left $100 bonus on the table with one of them since the additional $6500 spend for it didn'r make sense when there are so many other lower spend cards out there. Not to mention the earn rate for the $6500 is only 1.5%.

The next round I opened 4 accounts for another $540 in free bonus money on another big payment for $4500.

So, ~$1200 in rebates towards stuff that already needed to be paid within 6 months of each other.

If you have a plan in place you can make the bank$$$ work for you. Whether you choose to keep or churn them depends on how much you like them after the initial spend and whether or not their website is up to snuff. After a couple of years of doing this though it gets a bit more difficult to find the right fit with at least a 10% return on the apps / apend with the smaller banks. It was a lot easier to nail Chase for 50K points, Citi for 50K, WF for 30K, and Amex of course. The chruning rules get in the way for making this sort of thing routine annually but, it can be done with other banks easily if you do your homework.

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 20:24:49 GMT

Well, I'm not a churner, nor am I a heavy CC spender... I average maybe $1-1.5k/month these days and even that's high for me right now... stupid divorce. I have 3 cards and 2 of them are 14+ years old, so I don't app often either.

Maybe that's why I'm interested in the Double Cash... 2% over many years of modest spending will eventually earn me more than a one-time SUB.

Most cards with larger SUBs are geared toward bigger spenders anyway (Sapphire etc.)

Re: App first then garden... or garden first?

Anonymous — Mon, 15 Jul 2019 20:39:12 GMT

Meh..... 1K-1.5K/mo one place comes to mind where they'll pay you 5% on your checking account up to 10K balance. w/ 12 debits (amazon reloads) and 1K spend on the CC.

https://www.myconsumers.org/bank/accounts/free-rewards-checking

It's not about the big spend... it's taking advantage of the banks wanting customers and handing out cash. It's simple to downgrade or PC cards with banks. Chase is the easiest of them all to do. I got the CSP, collected $500, and switched it to a CF with an e-mail.

I got the Citi Premier for the 50K, spent, collected, and Called them to PC at a year to a DC... which I have 2 X DC now.

WF Propel is a quick $300 and no AF

Amex is usually pretty easy to snag a couple hundred from, rinse and repeat annually. Upgraded this last time for $250/$1000 offer, $95 prorated AF, net is still $250 with minnimal spend.

Some of the others are smaller regionals like BBT, BBVA, Regions, and the tempermental one people around here like to hate Barclay's. Only one with an AF is BBT but, you can pick up 2-3 of them at the same time with the same HP and drop the AF whenever you want since they don't PC you just have to close it.

The most interesting ones were BBVA / Regions as they will tell you your CL before you take the HP to apply. But, you have to have an account with them to get to that side of the app.

Re: App first then garden... or garden first?

Anonymous — Tue, 16 Jul 2019 22:38:04 GMT

Well, after reading this I think the Paypal MC is out: https://ficoforums.myfico.com/t5/Credit-Cards/PayPal-MC-dispute-resolution/td-p/5681479

How well does Citi do notifications? As in, if you set it to text you when a charge is made, does it send it out right away? Chase does, often while I'm still at the register. But BoA often waits until the charge posts before sending a notification, which, if it's fraudulent, a little late.

Re: App first then garden... or garden first?

Anonymous — Wed, 17 Jul 2019 01:16:37 GMT

I don't use alerts. I do notice that if I have the app installed on my phone and have logged in at least once I'll usually get a PUSH notification for that particular bank.

I usually login to mint.com and let it refresh all accounts and look for pending charges. Caught one last week w/ Chase and got a new card within a week.