topic Re: Freedom instant approval- What should I apply for now? in Credit Cards

Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 16:11:09 GMT

This weekend I got instant approval for Chase Freedom with a CL of 1200 and Amazon store card with a 2000 limit. I have a Discover that I got as a student 5 years ago with a $4000 limit. My fico scores range between 697-727. I have 2 inquiries on my report.

I really want one more before I go to the garden for a year. I got pre-approval for Venture, but I've read some bad things about Cap 1 on this board. Whats the card I should try and get at this stage?

Re: Freedom instant approval- What should I apply for now?

tntexans72 — Mon, 09 Nov 2015 16:15:03 GMT

@Anonymous wrote:
This weekend I got instant approval for Chase Freedom with a CL of 1200 and Amazon store card with a 2000 limit. I have a Discover that I got as a student 5 years ago with a $4000 limit. My fico scores range between 697-727. I have 2 inquiries on my report.

I really want one more before I go to the garden for a year. I got pre-approval for Venture, but I've read some bad things about Cap 1 on this board. Whats the card I should try and get at this stage?

You are aiming to get a SL of $5k. Venture may or may not give you that option. Look for a high tier card that fit your spending habit and go for it. You can take 1-2 more inquires.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 16:17:57 GMT

Other than scoring an awesome credit limit what is your need for a venture card are you looking for travel?

If you are not in trouble with anyone I would look at the pre-qual for bofa BBR, Citibank and also US bank because they like a clean file and they offer good cash back.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 16:41:18 GMT

Thanks. Which cards are most likely to give a SL of 5k?

Re: Freedom instant approval- What should I apply for now?

kdm31091 — Mon, 09 Nov 2015 16:45:52 GMT

@Anonymous wrote:
Thanks. Which cards are most likely to give a SL of 5k?

Almost any card you apply for, other than ones with a minimum of 5k, will not guarantee you such a limit. People apply for US Bank's Cash+ Visa Signature and recieve 1k cash rewards instead, just as an example. You cannot rely on polling the forum to discover how to get a 5k limit. Just because I got a 5k limit on a Cash+ doesn't mean you would, too, since everyone's file is different.

The Venture card, I believe, does give a minimum of 5k limit, but to me it's about the usefulness of the card, not just having a high limit. The Venture is no better than a Double Cash (except for the lack of FTF if that's a concern), plus you'll have an annual fee and restricted redemption (i.e. a Double Cash is 2% useable for anything, whereas the Venture is 2% for travel purchases only, or gift cards; any cash back redemption is half the value). Unless you know for a fact you will be traveling often, you may not want to be "boxed in" to travel redemptions -- you may rack up a ton of miles that you cannot redeem at full value if travel plans go awry. Of course, the miles never expire, but I think you get what I'm trying to say.

Re: Freedom instant approval- What should I apply for now?

tntexans72 — Mon, 09 Nov 2015 17:33:50 GMT

@Anonymous wrote:
Thanks. Which cards are most likely to give a SL of 5k?

Travel cards are higher tier and they will give you a SL of 5k. You already have a 4K discover so getting to 5k wont be difficult. If your scores are good and util % is low, shoot for a United, Citi AA, Venture, etc...I don't think you have to travel extensively to obtain a travel card. I mean we all take a vacation right? Lol.. the signup bonus will get you a free ticket etc...as always YMMV so good luck.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 19:47:53 GMT

Capital One's reputation on myFICO has overall improved a lot in the last year.

A Venture might actually be a great idea. You would be very likely to get approved, and if you are, your limit will be at least $5000 ($10000, even more likely). Your limits overall are kind of low, and it would look to good lenders /underwriters a year from now to see that you have managed a high limit card responsibly.

One thing to consider though is whether your spending would allow you to meet the $400 sign up bonus. You would be taking three pulls for the Venture, and having a card with a high limit may not be worth the opportunity cost of three HPs if you won't make the sign up bonus (heck, for some people, the three hard pulls aren't even worth it even though they would earn the sign up bonus!)

Re: Freedom instant approval- What should I apply for now?

SunriseEarth — Mon, 09 Nov 2015 19:56:06 GMT

@Anonymous wrote:
This weekend I got instant approval for Chase Freedom with a CL of 1200 and Amazon store card with a 2000 limit. I have a Discover that I got as a student 5 years ago with a $4000 limit. My fico scores range between 697-727. I have 2 inquiries on my report.

I really want one more before I go to the garden for a year. I got pre-approval for Venture, but I've read some bad things about Cap 1 on this board. Whats the card I should try and get at this stage?

Many people ask the question "what card will give me a high CL", but there are far more factors to consider than this. You can grow into a higher CL over time. So it may be better to ask what fits your needs.

What is your monthly spending like? Do you travel frequenly? Are you a member of any warehouse clubs (Costco, Sam's, BJs)? Do you need a low purchase APR or a BT offer?

Re: Freedom instant approval- What should I apply for now?

kdm31091 — Mon, 09 Nov 2015 20:05:10 GMT

@Anonymous wrote:
Capital One's reputation on myFICO has overall improved a lot in the last year.

A Venture might actually be a great idea. You would be very likely to get approved, and if you are, your limit will be at least $5000 ($10000, even more likely). Your limits overall are kind of low, and it would look to good lenders /underwriters a year from now to see that you have managed a high limit card responsibly.

One thing to consider though is whether your spending would allow you to meet the $400 sign up bonus. You would be taking three pulls for the Venture, and having a card with a high limit may not be worth the opportunity cost of three HPs if you won't make the sign up bonus (heck, for some people, the three hard pulls aren't even worth it even though they would earn the sign up bonus!)

I think Sunrise is right though - we need to know the spending habits and what would benefit the person vs just recommending cards with usually high limits.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 22:21:04 GMT

@kdm31091 wrote:
@Anonymous wrote:
Capital One's reputation on myFICO has overall improved a lot in the last year.

A Venture might actually be a great idea. You would be very likely to get approved, and if you are, your limit will be at least $5000 ($10000, even more likely). Your limits overall are kind of low, and it would look to good lenders /underwriters a year from now to see that you have managed a high limit card responsibly.

One thing to consider though is whether your spending would allow you to meet the $400 sign up bonus. You would be taking three pulls for the Venture, and having a card with a high limit may not be worth the opportunity cost of three HPs if you won't make the sign up bonus (heck, for some people, the three hard pulls aren't even worth it even though they would earn the sign up bonus!)
I think Sunrise is right though - we need to know the spending habits and what would benefit the person vs just recommending cards with usually high limits.

My post included advice (albeit cursory) about the OP taking a look at his or her own spending habits. The OP didn't say one way or another about his/her spending habits, hence why I said "might be a great idea." For all we know, maybe the Victoria's Secret card might be the best fit for the OP. But barring any additional information that would suggest otherwise, I stand by my original statement.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 22:53:00 GMT

Thanks for all your replies.

There is no way I could spend enough to get the sign on bonus for the Venture. The Venture One is more my speed. I do travel frequently, but most of the places are within driving distances. Though I will be moving soon and will need to fly a lot more. As far as spending habits, I don't spend a lot. We are talking needs-like pet care, car tires, and some medical expenses... I will be purchasing a couple of musical instruements in the near future but plan on paying in full when that times comes.

I'm just looking ahead to build my credit. I would like to break the 5k limit, but not sure the Venture One will give me that? What about an Amex?

Re: Freedom instant approval- What should I apply for now?

SunriseEarth — Mon, 09 Nov 2015 23:35:38 GMT

@Anonymous wrote:
Thanks for all your replies.

There is no way I could spend enough to get the sign on bonus for the Venture. The Venture One is more my speed. I do travel frequently, but most of the places are within driving distances. Though I will be moving soon and will need to fly a lot more. As far as spending habits, I don't spend a lot. We are talking needs-like pet care, car tires, and some medical expenses... I will be purchasing a couple of musical instruements in the near future but plan on paying in full when that times comes.

I'm just looking ahead to build my credit. I would like to break the 5k limit, but not sure the Venture One will give me that? What about an Amex?

If you don't have a large spend, I don't recommend anything with AF right now. If you had a Sam's Club membership, their MC would be great for 5% gas. AMEX might be good for the extended warranties, especially if you're buying musical instruments. BCE could be a good fit with 3% supermarkets and 2% gas...ED probably wouldn't be so bad, either.

VentureOne could work, but you'd have to redeem for travel purchases or GCs to get the full 1.25%. I think QS would be marginally better in almost all situations at 1.5%. Cap One does have a capacity for growth. Citi DC is worth consideration for the 1%+1% overall, but their CLs are very lackluster. If you're looking for big bucks, you'll probably be disappointed.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Mon, 09 Nov 2015 23:56:53 GMT

I don't see a lot of logic in jumping between app sprees and long gardening sentences. Unless you're going for a mortgage in the next year or so, why not take the time to space your apps out and to research and think about which cards would be useful? It's not like you can only apply in November 2015 or November 2016 / 2017.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Tue, 10 Nov 2015 00:30:48 GMT

@Anonymous wrote:
Thanks for all your replies.

There is no way I could spend enough to get the sign on bonus for the Venture. The Venture One is more my speed. I do travel frequently, but most of the places are within driving distances. Though I will be moving soon and will need to fly a lot more. As far as spending habits, I don't spend a lot. We are talking needs-like pet care, car tires, and some medical expenses... I will be purchasing a couple of musical instruements in the near future but plan on paying in full when that times comes.

I'm just looking ahead to build my credit. I would like to break the 5k limit, but not sure the Venture One will give me that? What about an Amex?

Ah. Well, in that case, I wouldn't recommend Venture!

Amex may not approve you for a $5000 limit out of the gate, but they are very quick with SP CLIs.

Re: Freedom instant approval- What should I apply for now?

SunriseEarth — Tue, 10 Nov 2015 00:42:16 GMT

@Anonymous wrote:
@Anonymous wrote:
Thanks for all your replies.

There is no way I could spend enough to get the sign on bonus for the Venture. The Venture One is more my speed. I do travel frequently, but most of the places are within driving distances. Though I will be moving soon and will need to fly a lot more. As far as spending habits, I don't spend a lot. We are talking needs-like pet care, car tires, and some medical expenses... I will be purchasing a couple of musical instruements in the near future but plan on paying in full when that times comes.

I'm just looking ahead to build my credit. I would like to break the 5k limit, but not sure the Venture One will give me that? What about an Amex?

Ah. Well, in that case, I wouldn't recommend Venture!

Amex may not approve you for a $5000 limit out of the gate, but they are very quick with SP CLIs.

Very true. A $2K approval could be a $6K CL within 61 days (maybe even upon activation).

Re: Freedom instant approval- What should I apply for now?

kdm31091 — Tue, 10 Nov 2015 00:55:30 GMT

@Anonymous wrote:
I don't see a lot of logic in jumping between app sprees and long gardening sentences. Unless you're going for a mortgage in the next year or so, why not take the time to space your apps out and to research and think about which cards would be useful? It's not like you can only apply in November 2015 or November 2016 / 2017.

Exactly. I dont get why people give themselves arbitrary deadlines. Take your time, examine your options, and go from there

Re: Freedom instant approval- What should I apply for now?

Anonymous — Tue, 10 Nov 2015 02:25:59 GMT

Not really the point of the topic, but I think there are pretty significant advantages of apping in sprees instead of spreading out your apps.

Suppose a hypothetical that involves two people applying for 6 cards over the course of a year, each using a different strategy

Scenario 1: Siegfried applies for 1 card at a time every two months from January to December. Assuming that Siegfried is approved for the first three cards he applies for, after Siegfried's fourth application, he will already have 3 approvals on his credit report from the last six months. He will also have 3 approvals in the last six months when he applies for #5 as well as #6. Not always a dealbreaker, but not ideal.

Scenario 2: Roy applies for 3 cards in January and 3 cards in....say, September. When Roy applies for his second card, card #1 has not yet reported to the bureaus. All lender #2 sees is an inquiry. When he applies for card #3, neither card #1 nor card #2 have reported to the bureaus. All lender #3 sees is two recent inquiries. Then when Roy applies for cards #4, #5, and #6 in September, cards #1,#2, and #3 will all be more than 6 months old at that point, and won't be looked upon quite as unfavorably as ones opened within the last 6 months. Apps #5 and #6 benefit similarly to #2 and #3, as card #4 has not reported yet.

I personally don't think I would have been approved for a US Bank Cash+ if I had spread out my apps like Siegfried. My application benefited from the fact that neither of my BBRs nor my Double Cash had reported to the bureaus as I applied for the Cash+ shortly after those apps. I just don't think US Bank would have approved my app with three new accounts on my report.

If what you are cautioning about is unplanned, capricious app sprees, I agree with you that that is a dangerous practice. But when done with a lot of consideration and forethought, there can be a tremendous amount of logic behind an app spree strategy.

That said, it doesn't necessarily mean that applying for a new card is the best option for the OP. All we can do is give them the information and let them make their own choices.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Tue, 10 Nov 2015 02:41:56 GMT

@Anonymous wrote:
Not really the point of the topic, but I think there are pretty significant advantages of apping in sprees instead of spreading out your apps.

Suppose a hypothetical that involves two people applying for 6 cards over the course of a year, each using a different strategy

Scenario 1: Siegfried applies for 1 card at a time every two months from January to December. Assuming that Siegfried is approved for the first three cards he applies for, after Siegfried's fourth application, he will already have 3 approvals on his credit report from the last six months. He will also have 3 approvals in the last six months when he applies for #5 as well as #6. Not always a dealbreaker, but not ideal.

Scenario 2: Roy applies for 3 cards in January and 3 cards in....say, September. When Roy applies for his second card, card #1 has not yet reported to the bureaus. All lender #2 sees is an inquiry. When he applies for card #3, neither card #1 nor card #2 have reported to the bureaus. All lender #3 sees is two recent inquiries. Then when Roy applies for cards #4, #5, and #6 in September, cards #1,#2, and #3 will all be more than 6 months old at that point, and won't be looked upon quite as unfavorably as ones opened within the last 6 months. Apps #5 and #6 benefit similarly to #2 and #3, as card #4 has not reported yet.

If what you are cautioning about is unplanned, capricious app sprees, I agree with you that that is a dangerous practice. But when done with a lot of consideration and forethought, there can be a tremendous amount of logic behind an app spree strategy.

That said, it doesn't necessarily mean that applying for a new card is the best option for the OP. All we can do is give them the information and let them make their own choices.

I see your point, but still prefer my way.

When I apply my way, it's in small steps. Lenders see a series of small changes. If I were to get a CLD or APR hike, it might serve as a "canary in the coalmine" - an indication to stop applying for new cards before I faced an actual closure on one or several accounts. Of course, the worst AA I've actually had was a partially-approved CLI request, so this is based more on theory than practice.

An app might be more likely be declined my way, but it remains just that - the account is never opened. Inquiries fade quickly. Short-lived accounts are ugly scars that last.

If you apply for #4, #5, and #6 in a short period of time, the lender for #6 might later do a soft pull and say, "We would not have approved this account if we had known about #4 and #5. That's too many new accounts too quickly, and we're closing your card!"

Then you have an account that was closed by the lender after only a few months. That could make other lenders uneasy, and slow AAoA growth.

I'd rather have lenders see the full picture and decline me up front than face closure later on.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Tue, 10 Nov 2015 03:19:23 GMT

@Anonymous wrote:
@Anonymous wrote:
Not really the point of the topic, but I think there are pretty significant advantages of apping in sprees instead of spreading out your apps.

Suppose a hypothetical that involves two people applying for 6 cards over the course of a year, each using a different strategy

Scenario 1: Siegfried applies for 1 card at a time every two months from January to December. Assuming that Siegfried is approved for the first three cards he applies for, after Siegfried's fourth application, he will already have 3 approvals on his credit report from the last six months. He will also have 3 approvals in the last six months when he applies for #5 as well as #6. Not always a dealbreaker, but not ideal.

Scenario 2: Roy applies for 3 cards in January and 3 cards in....say, September. When Roy applies for his second card, card #1 has not yet reported to the bureaus. All lender #2 sees is an inquiry. When he applies for card #3, neither card #1 nor card #2 have reported to the bureaus. All lender #3 sees is two recent inquiries. Then when Roy applies for cards #4, #5, and #6 in September, cards #1,#2, and #3 will all be more than 6 months old at that point, and won't be looked upon quite as unfavorably as ones opened within the last 6 months. Apps #5 and #6 benefit similarly to #2 and #3, as card #4 has not reported yet.

If what you are cautioning about is unplanned, capricious app sprees, I agree with you that that is a dangerous practice. But when done with a lot of consideration and forethought, there can be a tremendous amount of logic behind an app spree strategy.

That said, it doesn't necessarily mean that applying for a new card is the best option for the OP. All we can do is give them the information and let them make their own choices.
I see your point, but still prefer my way.

When I apply my way, it's in small steps. Lenders see a series of small changes. If I were to get a CLD or APR hike, it might serve as a "canary in the coalmine" - an indication to stop applying for new cards before I faced an actual closure on one or several accounts. Of course, the worst AA I've actually had was a partially-approved CLI request, so this is based more on theory than practice.

An app might be more likely be declined my way, but it remains just that - the account is never opened. Inquiries fade quickly. Short-lived accounts are ugly scars that last.

If you apply for #4, #5, and #6 in a short period of time, the lender for #6 might later do a soft pull and say, "We would not have approved this account if we had known about #4 and #5. That's too many new accounts too quickly, and we're closing your card!"

Then you have an account that was closed by the lender after only a few months. That could make other lenders uneasy, and slow AAoA growth.

I'd rather have lenders see the full picture and decline me up front than face closure later on.

I see your point as well, but I would counter with the following:

1) AA is relatively rare. It's much less likely to happen for most credit profiles than simply not being approved for a particular card. Put in context of the example, all else being equal, Roy is much more likely to have card #6 by the end of the year than Siegfried, the small chance of Roy experiencing AA notwithstanding.

2) Who says these accounts are necessarily going to be short lived? -- unless you're referring only to those closed by AA (which, again, is rare). I regularly employ app spree strategies on my cards, and I don't plan on closing any of them (I plan on PCing my Venture to a QS before the annual fee hits. I don't plan to change/close any of my other cards).

3) I am not entirely convinced that Roy's chances of AA are significantly greater than that of Siegfried. By the time December rolls around, both Siegfried and Roy will have the same result -- 6 accounts opened in the last 12 months. Even if Roy is 8 times more likely to experience AA than Siegfried, when we are talking about fractions of a percent, is 8 times fractions of a percent really worth fretting about?

4) Then we have a difference in what we value. I personally would much rather maximize my chances of approval on the cards that I strategically applied for (even if it raises my chance of AA by a few percentage points) than to just be denied and have to burn another HP/HPs later and try again. The small risk of AA, for me, is completely overshadowed by the benefit of increasing my chances of approval and not having to suffer another HP/HPs later for a card I could have been approved for in the first place if I had apped in another way. In any case, to say that there doesn't seem to be any logic in app sprees like you did just simply isn't true. It may not be your favored approach, but there is a lot of logic in the strategy when employed properly.

Re: Freedom instant approval- What should I apply for now?

Anonymous — Tue, 10 Nov 2015 04:13:44 GMT

I see your point that AA is uncommon for most people. With 11 and 13 cards, we're not so far from normal. AA certainly seems more common among people with 30+ cards.

Maybe we need some ~~guinea pigs~~ fellow community members to test our suppositions.

Any ~~victims~~ volunteers?

I'd also point out two other advantages of staggering apps:

1. You can act on unexpected opportunities. If you want a card but don't like the usual bonus, you can act quickly to get a targeted or limited-time bonus. *ETA: Some seasonal bonuses are semi-predictable, but certainly not all bonuses are, and none are certain until actually available.*

2. Minimum spend. If you have to spend a lot in 3 months, then depending on the particulars there may be a risk of:

a. Overspending

b. Manufactured spend, which raises AA risk and/or has prepaid card fraud risk

c. Inefficient category spending. (I wouldn't want to use my Hyatt for groceries.)