topic Re: What Card should I apply for next? in Credit Cards

What Card should I apply for next?

imjetguer — Tue, 23 Sep 2008 03:50:17 GMT

The cards I have are:

Citi PremierPass with a 5k CL and a 0 balance!

Chase Visa with a 2400 CL and a 0 Balance! another yeah!

A Pottery Barn WFNB 1500 CL, 1k balance, paying 600 next month....

Capital One MC with 500 cl with a 185 balance.

My Credit Scores are: (just checked today)

Equifax 671
Experian 638

TransUnion 684

I have nothing deragotory on my credit. Everything has been paid on time.

I am looking to apply for a credit card and I was just denied for a Clear American Express so I want to be careful. I am looking to add a card with a generous starting credit limit of 5k-10k. Does anyone have any ideas on what cards I could apply for besides a BOA?

Re: What Card should I apply for next?

GFer — Tue, 23 Sep 2008 10:57:06 GMT

BoA...

Re: What Card should I apply for next?

imjetguer — Tue, 23 Sep 2008 13:25:39 GMT

Besides that one and is there a more specific one that I should apply for?

Re: What Card should I apply for next?

haulingthescoreup — Tue, 23 Sep 2008 13:30:24 GMT

Your EQ is decent; have you checked out credit unions in your area? Or if you're current or separated military, or if you do some forms of civilian contractor work, you can try Navy FCU. (Check their site for all the nitty-gritty.)

As a rule, Bank of America and credit unions have nice initial CL's. Their cards generally don't have a whole lot else going on with rewards, so I consider their CL's their rewards. They fill a niche in your profile to give you that extra line.

How long have you had your Chase? Do you think that you might be able to get a CLI from them? (It will cost a hard, though, if you ask for one.)

Re: What Card should I apply for next?

Anonymous — Tue, 23 Sep 2008 13:34:26 GMT

Yes, a cli with Chase is the way I'd go. And then a gas card (Exxon/Mobil, Shell, etc.).

And......get that WFNB balance down. Then, let everything age.

Re: What Card should I apply for next?

imjetguer — Tue, 23 Sep 2008 17:47:33 GMT

I have had the Chase for 4 months.When I first called and tried the CLI they told me to wait 6 months. So I really don't want to push that. I am looking for a separate card from these.....

Re: What Card should I apply for next?

haulingthescoreup — Tue, 23 Sep 2008 18:06:07 GMT

Let me ask what I should have asked initially: do you have a specific reason why you feel that you need a higher-limit card now, or does this just seem like the next step on your path?

You have four good cards (depending on whether the Cap1 will grow, or if it's one of those with a built-in ceiling.) If you are willing to be patient, let your accounts age, and let your scores rise, you will be in the wonderful position of having CCC's fighting over you, instead of you asking them to let you in.

One very useful thing to do is to look at your reports and see when you have any "birthdays" coming up. If you know your AAoA (average age of accounts) in years and months, how long before it rolls over to the next year older? And especially, when is it due to turn 2 years old, 5 years old, 8 years old? Same for oldest account. If you have any baddies, are any about to turn one year old, two, three, fall off your reports? Your Chase is 4 months old, so in 2 months you should get a tiny bump for its half-birthday. Any other accounts about to hit even-year figures?

I'd give a good look-over to your reports and see what should be happening when, plus keep knocking off the balances. You'll get much better responses when you've hit a few more milestones, the util is way down, and your scores go over 700. Which could be sooner than you think!

Re: What Card should I apply for next?

imjetguer — Tue, 23 Sep 2008 18:53:56 GMT

It just seems like the right next step. I have no baddies, ever. The reason I think my scores are not as high as they should be with me having no baddies and not over in debt is because I just started trying to build my credit last year with the PB card. I also have a West Elm (1500k) but that one I never use nor am I going to. I paid for my car in cash and everything else I have bought has always been in cash. Now I am 23 and I realize that excellent credit is very important. So I would like to add a new card like an amex or discover but scared I will just get a hit and be declined. Which brings me to ask people who know more about this then I do what credit card would I have a better chance getting approved for?

Re: What Card should I apply for next?

haulingthescoreup — Tue, 23 Sep 2008 23:34:27 GMT

OK, well said. I just want to point out the value of timing.

I don't know how many of us here are green with envy at the thought of one year of history, no baddies, and a knowledge of how credit works! Where is my time machine when I need it...

I would still say wait until your scores are in the 700 - 720 range, especially EX, and then look at Bank of America, the Chase Freedom you mentioned, and an American Express charge card. If you've read the threads here, you'll know that AmEx has slammed it into reverse in a complete panic, and I really do think that there is a benefit in establishing a relationship first through a classic charge card, not a revolver. Once your longest history is over 2 years, and your AAoA is over 1 year (at least), check out Discover if you're interested. Not famous for high CL's, but excellent CS and good shop online opportunities. Oh, and a Citi card as well.

But write your plans in pencil, not pen, and keep re-evaluating as you go. If for no other reason than that they change card offerings hourly these days.

Re: What Card should I apply for next?

imjetguer — Tue, 23 Sep 2008 23:59:03 GMT

Thanks, I will take in to consideraton everything you have told me. It is very important for me to have excellent credit as I saw how my parents had a lot of difficulty getting any type of good rate after they ruined their credit.

Re: What Card should I apply for next?

haulingthescoreup — Wed, 24 Sep 2008 00:02:53 GMT

Since you're working this out in advance (my time machine! who took my time machine?!?), you might want to read the FICO High Achievers thread in my siggy. We've been collecting the positive and negative comments that people get on their FICO score reports and using them to try to paint a picture of the ideal credit profile.

Really, depending on how long you've had credit, there are probably at least 4 different ideals, but as you seem a very self-disciplined person, this might help you in your goal-setting. Lots of feedback from folks in the high score ranges, what they have, why they chose them, etc. Good luck!

Re: What Card should I apply for next?

jmbfl — Wed, 24 Sep 2008 04:38:32 GMT

1) We have no idea what your income is. Remember your income is going to be a factor in determining the level of CL that is going to be granted.

2) Another factor is the CL's you have been granted by others. This is the tricky piece. No one wants to go first when you cross the $5K barrier. So you need a brave soul!

3) Which brings be to my point, which is PenFed will be that brave soul. If your income is decent (but not stellar by any means) and all else is OK, they will grant a $10K CL. That being said, in order to get any kind of a CL from PenFed you have to clear their bar. In order to do that you must maintain your perfection and also remain inquiry/new credit free for six months to one year before joining or app'ing PenFed. If you can do that I think you would be a good candidate.

4) Once you have managed to get a higher CL on your CBR's from a CU like PenFed, then go app Discover or BofA. They will use your that higher CL you obtained elsewhere in determining what CL they will give you. Of course they will want to see that you've handled a larger CL without a problem, so try to spread out your app's a little.

Re: What Card should I apply for next?

jmbfl — Wed, 24 Sep 2008 04:46:04 GMT

One other thing - you should have taken out a small loan when you bought your car (if it was financable). Installment credit diversifies your credit base and will improved your FICO scores. That said, you can always go to a banking institution you have a relationship with and set up a loan where you borrow against your own money. Yes, it will cost you a few $'s, but as long as it is a term loan and reported it will report as installment debt and help raise your FICO's.

Short of that, raising your FICO's is going to take time. You have a young credit file and the passage of some time will work wonders as long as you continue paying everything on-time everytime!

Re: What Card should I apply for next?

imjetguer — Wed, 24 Sep 2008 17:38:13 GMT

For PenFed you have to sign up for an account and I am not in the military or anything like that.

Thanks for the other info. I am hoping to be in 700's next year!

Re: What Card should I apply for next?

jmbfl — Fri, 26 Sep 2008 16:08:22 GMT

Anyone can join PedFed. Go to:

www.penfed.org

and follow the link "How to Join". You do this by joining either NMFA or MOAA for a year. MOAA has had a special running for $13. That's it. Do not join until you are prepared to app for your CC in order to avoid unneccessary hard inquiries. PenFed would be a very good move for you. Applicants from here have gotten initial CL's of $5K, $10K, $20K. They will be good to you, are easy to do business with and the CC is excellent. It is my main CC and I PIF several times a month. I also have Discover with an intro offer and that is my revolving card (and seeing duty today at the auto mechanic!).