topic Re: Where to go from here? in Credit Cards

Where to go from here?

Anonymous — Tue, 05 Jan 2016 04:24:47 GMT

Looking for advice on what card(s) to plan for. Current scores are TU 660, EX 645, EQ 645. No negatives, no lates, no collections, no nada, totally clean as of a few days ago. Right now I have the following:

Discover It $1500

Barclay Reward $1000

Walmart $3500

Amazon $3500

Cap 1 QS1 $850

Cap 1 QS1 $500

credit 1 $650 (yes, I know all about them and it is soon to be cancelled)

JCPenney $500

Buy Power $300 (also soon to be chopped)

AU on Wells Fargo $1000.

My AAOA is not good. It's like 1 year. With my oldest card (QS1) being 1.5 years. I paid my mortgage off about 12 years ago and it no longer shows, so I don't get that benefit. So, my file I would say is thinnish at best. Inquiries are 11 for TU, 9 for EX, and 11 for EQ.

my current utilization is at 21% over all. Discove, Barclays and Cap1 QS1 are at 50% but by March 1 will all be around 10-15%. All other cards at $0 currently I've used the score simulator and if I continue paying as planned my 3 scores will be 700-710.

Annual salary $70k.

Now, all that said, I'm curious as to what card(s) I might shoot for come March. I don't travel a lot, maybe a couple of plane tickets from Dallas to Kentucky each year. So, travel cards might not be the thing. We do eat out a lot, so I guess a dining based reward card? My original desire was Chase because I have banked with them for 5-6 years, but I put the kibosh on that by breaking the 5/24 rule. Any thoughts on what might be the best reward card I might have a shot at come March? I have USAA ins because my wife's father was military. I did join Penfed about 5 years ago when I was looking for an auto loan. If I've left any info out, please ask. Sorry, I know this is an ambiguous question with tons of variables. I've already made the apping willy-nilly mistake. I want to get a couple of premiere type cards and build higher credit limits so that I can do away with the store cards etc. I'm probably not the type that's going want 20 cards and rotate them in and out.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 04:33:08 GMT

Any idea when some of those INQs will fall off? 5/24 doesn't apply to store cards if I remember correctly? (Someone correct me if I'm wrong.)

Re: Where to go from here?

TrialByFire — Tue, 05 Jan 2016 04:51:00 GMT

That might be enough travel to justify a card in the travel genre, as many also offer 2x points on dining.

Citi TY preferred $0 AF 2x dining or DC no AF 2% on all purchases. Premier 3x travel, 2x dining, $95 AF waived first year

Marriott $85 AF first year waived, 2x dining and free night annually. IHG and Hyatt are pretty sweet too.

Re: Where to go from here?

UncleB — Tue, 05 Jan 2016 09:50:11 GMT

@Anonymous wrote:
Looking for advice on what card(s) to plan for. Current scores are TU 660, EX 645, EQ 645. No negatives, no lates, no collections, no nada, totally clean as of a few days ago. Right now I have the following:

Discover It $1500
Barclay Reward $1000
Walmart $3500
Amazon $3500
Cap 1 QS1 $850
Cap 1 QS1 $500
credit 1 $650 (yes, I know all about them and it is soon to be cancelled)
JCPenney $500
Buy Power $300 (also soon to be chopped)
AU on Wells Fargo $1000.

My AAOA is not good. It's like 1 year. With my oldest card (QS1) being 1.5 years. I paid my mortgage off about 12 years ago and it no longer shows, so I don't get that benefit. So, my file I would say is thinnish at best. Inquiries are 11 for TU, 9 for EX, and 11 for EQ.

my current utilization is at 21% over all. Discove, Barclays and Cap1 QS1 are at 50% but by March 1 will all be around 10-15%. All other cards at $0 currently I've used the score simulator and if I continue paying as planned my 3 scores will be 700-710.

Annual salary $70k.

Now, all that said, I'm curious as to what card(s) I might shoot for come March. I don't travel a lot, maybe a couple of plane tickets from Dallas to Kentucky each year. So, travel cards might not be the thing. We do eat out a lot, so I guess a dining based reward card? My original desire was Chase because I have banked with them for 5-6 years, but I put the kibosh on that by breaking the 5/24 rule. Any thoughts on what might be the best reward card I might have a shot at come March? I have USAA ins because my wife's father was military. I did join Penfed about 5 years ago when I was looking for an auto loan. If I've left any info out, please ask. Sorry, I know this is an ambiguous question with tons of variables. I've already made the apping willy-nilly mistake. I want to get a couple of premiere type cards and build higher credit limits so that I can do away with the store cards etc. I'm probably not the type that's going want 20 cards and rotate them in and out.

If it were me, I would do exactly as you already have planned - work on utilization. Unless something's amiss, it's likely your low AAoA and high utilization is holding your scores back for the moment, and the best thing for that is to hold off on applying for new accounts and work on the ones you already have.

Once your Capital One and Discover cards are paid down significantly, I would hit them both up for CLIs. While some folks report them being 'stingy', others (like myself) have found them to be quite generous; in my own case they've been most generous when my balance with them was low.

Also, to help you out with your utilization (which is probably holding your scores down a bit) I would give Credit Solutions a call to see about getting a CLI on your J.C. Penney. You have much higher limits on your Amazon and Wal-Mart, so getting J.C. Penney increased should be painless. You could also try to get them to raise your limit on your Amazon and Wal-Mart - the worst they can say is 'no', and it's only a SP.

Here are some ideas for when the time is right to go for a few more accounts...

You mention that you are with USAA... I'm with them as well, and they are fantastic with banking. Their credit cards aren't 'bad', but they aren't as flashy as many folks around here are used to. They gave me my first 'big' limit, and I credit them with being my 'prybar' to getting larger limits with other lenders. That being said, they tend to be a bit more conservative, and any CLI request with them is a HP. They do give occasional credit increases (I got one around my year anniversary) but this seems to be hit-and-miss. For reference, my score was around 670 when I was approved by them, and I had 1 inquiry.

Synchrony seems to like you (judging by your current limits on Synchrony accounts) so if you shop at Sam's Club you might consider applying for the Sam's Club MasterCard. It will give you 5% cash back on gas, but more importantly (per your post) will cover your restaurants and travel purchases with 3% cash back. I wouldn't go for it until your credit score is a bit higher, though... most folks suggest waiting until your scores are around 720ish... my own TU was 710 (I was approved for a small initial credit line) so YMMV. If you have (or desire) a relationship with Chase, their AARP Visa card also gives 3% cash back on restaurant charges, and is popular with many folks (there is no age requirement).

Some folks will disagree with me on this next thought (and that's OK) but once your scores get just a little higher you'll likely qualify for Capital One's Venture or Quicksilver, either of which will likely give you a credit line significantly higher than what you currently have. Yes, they do pull all three credit bureaus (as you probably already know) but having a card with a more generous line will help your utilization, and with your income you should have no problem qualifying once your scores are just a little higher. (Some folks will 'cold-app' even if they aren't pre-qualified, and sometimes they get approved, but I would wait for the prequal.)

I hope this helps. Good luck, and keep us posted on your progress!

Re: Where to go from here?

UncleB — Tue, 05 Jan 2016 09:58:44 GMT

@Anonymous wrote:
Any idea when some of those INQs will fall off? 5/24 doesn't apply to store cards if I remember correctly? (Someone correct me if I'm wrong.)

I'm not the resident Chase expert, but my understanding is that the "5" part of the rule applies to revolving accounts; I don't think they discriminate between store and bank cards. That's based on anecdotal evidence, though... as with many things credit, YMMV.

Some folks with a significant Chase relationship have reported in other threads being able to get a personal banker to intervene, others have said that didn't work for them.

All that being said, the rule only applies to CSP, Freedom, and Slate - the co-branded cards (AARP, Marriott, etc.) aren't impacted.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 11:28:22 GMT

@Anonymous wrote:
Any idea when some of those INQs will fall off? 5/24 doesn't apply to store cards if I remember correctly? (Someone correct me if I'm wrong.)

Roughly half the inquiries are a year old, other half less than one year with about 3 of them within the last 4 months. The 5/24 rule does apply to store cards. I was told by a CSR and her supervisor.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 11:41:38 GMT

@Anonymous wrote:
Looking for advice on what card(s) to plan for. Current scores are TU 660, EX 645, EQ 645. No negatives, no lates, no collections, no nada, totally clean as of a few days ago. Right now I have the following:

Discover It $1500
Barclay Reward $1000
Walmart $3500
Amazon $3500
Cap 1 QS1 $850
Cap 1 QS1 $500
credit 1 $650 (yes, I know all about them and it is soon to be cancelled)
JCPenney $500
Buy Power $300 (also soon to be chopped)
AU on Wells Fargo $1000.

My AAOA is not good. It's like 1 year. With my oldest card (QS1) being 1.5 years. I paid my mortgage off about 12 years ago and it no longer shows, so I don't get that benefit. So, my file I would say is thinnish at best. Inquiries are 11 for TU, 9 for EX, and 11 for EQ.

my current utilization is at 21% over all. Discove, Barclays and Cap1 QS1 are at 50% but by March 1 will all be around 10-15%. All other cards at $0 currently I've used the score simulator and if I continue paying as planned my 3 scores will be 700-710.

Annual salary $70k.

Now, all that said, I'm curious as to what card(s) I might shoot for come March. I don't travel a lot, maybe a couple of plane tickets from Dallas to Kentucky each year. So, travel cards might not be the thing. We do eat out a lot, so I guess a dining based reward card? My original desire was Chase because I have banked with them for 5-6 years, but I put the kibosh on that by breaking the 5/24 rule. Any thoughts on what might be the best reward card I might have a shot at come March? I have USAA ins because my wife's father was military. I did join Penfed about 5 years ago when I was looking for an auto loan. If I've left any info out, please ask. Sorry, I know this is an ambiguous question with tons of variables. I've already made the apping willy-nilly mistake. I want to get a couple of premiere type cards and build higher credit limits so that I can do away with the store cards etc. I'm probably not the type that's going want 20 cards and rotate them in and out..

I would garden until your most recent inq is six months old. Cards to keep in mind:

PenFed has an uncapped 5% back gas card.

AARP has an uncapped 3% gas/3% restaurant card.

US Bank Cash+ can have 5% back at fast food restaurants

If you're flying from Dallas to Kentucky, a travel or airline card might be helpful. Southwest comes to mind, but I'm not sure of the merits of the various travel cards. You might also consider the Freedom CSP combo, assuming that you garden for long enough to qualify for 5/24.

Citi DC or Fidelity Whatever The New 2% Card Is if you want to go from 1.5% (QS) to 2% on gen spend.

Unfortuntely, time is probably the best healer for your ills. AAoA will only increase with time, and that seems to be one of the big drawbacks to your file. The other is utilization. However, if you're paying in full by the due date, you'll probably get CLIs in the next six months, so the utilization issue will decrease. Those CLIs will also help you get better starting limits on new cards. I might even give it until July before you app for new cards.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 11:46:37 GMT

My current uti I believe is the main thing holding my scores down. I looked at some things and will be able to pay more on my current uti and will have about $2400 coming off my card balances once they all report around Jan 15-20. So, my score should bump a bit then. I'm not real sure how accurate the simulator is, but it's showing my scores to bump to 695, 700, 700 once that amount of balance reduction gets posted.

I have asked for a cli on Discover only to be denied for balance too high, aaoa too low which I was not surprised to be denied, but figured I'd check anyway. Have not tried Barclays but figure they wont, so no point trying yet. Walmart and Amazon both gave me the CLI's first of December. I want my TU to bump to around 675 and will ask them again. The JCPenney wouldnt increase because the account was too new at the time. I may call today and see what they will do as I did charge some stuff and PIF the other day.

My initial plan was to get with Chase as my personal banking was there and I figured having my main credit card with them also would be easier. I guess probably will wait till 2017 and give that a shot while also checking the prequal site each month to see if maybe I slip through the cracks. I'm kinding of leaning towards the Venture card. Hoping that when my scores reach 700 and since I have established a good record with Cap1 for a year and a half now with excellent payment history, that will get me in the door.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 11:50:22 GMT

I would garden until your most recent inq is six months old. Cards to keep in mind:

PenFed has an uncapped 5% back gas card.
AARP has an uncapped 3% gas/3% restaurant card.
US Bank Cash+ can have 5% back at fast food restaurants
If you're flying from Dallas to Kentucky, a travel or airline card might be helpful. Southwest comes to mind, but I'm not sure of the merits of the various travel cards. You might also consider the Freedom CSP combo, assuming that you garden for long enough to qualify for 5/24.
Citi DC or Fidelity Whatever The New 2% Card Is if you want to go from 1.5% (QS) to 2% on gen spend.

Unfortuntely, time is probably the best healer for your ills. AAoA will only increase with time, and that seems to be one of the big drawbacks to your file. The other is utilization. However, if you're paying in full by the due date, you'll probably get CLIs in the next six months, so the utilization issue will decrease. Those CLIs will also help you get better starting limits on new cards. I might even give it until July before you app for new cards.

I did consider the AAdvantage card because I always fly American, but I know Citi is kind of tough to get in with. . Southwest doesnt fly to Louisville which is where I always fly to, or I would consider that. I could do the Delta sky miles card and just switch to Delta since they also fly to Louisville.

Re: Where to go from here?

takeshi74 — Tue, 05 Jan 2016 14:19:23 GMT

@Anonymous wrote:
Looking for advice on what card(s) to plan for.

All that info in your OP is great but what are you looking for from a new card? What's lacking with your current lineup?

@Anonymous wrote:
So, my file I would say is thinnish at best.

With those accounts you're not thin. You have a low AAoA.

@Anonymous wrote:
I don't travel a lot, maybe a couple of plane tickets from Dallas to Kentucky each year. So, travel cards might not be the thing.

That plays a part but it's not the only consideration for travel cards. "Travel card" is a very broad category as well. For most miles/points cards you have to consider and run the numbers for your spend just as you would with any rewards cards. There's just the added steps of considering how transfers and the redemption methods that you will use will impact reward value on top of that.

@Anonymous wrote:
Sorry, I know this is an ambiguous question with tons of variables. I've already made the apping willy-nilly mistake. I want to get a couple of premiere type cards and build higher credit limits so that I can do away with the store cards etc. I'm probably not the type that's going want 20 cards and rotate them in and out.

It's up to you to sort out your need/wants (i.e. the variables you mention) and then to use that to select cards that suit you. If you don't want a bunch of cards and don't want to continue apping willy nilly then form a strategy and stick to it.

"Premiere" doesn't really mean anything so it's not a useful criterion. On top of that the word you're looking for is premier.

Limits are based on what your credit and income qualify for so that's also not a useful criterion.

If rewards are a priority then you should be able to assess this for yourself. You should know where your spend is going. Use that to help you find cards that maximize rewards on your spend.

Your utilization and low limit cards are indicators that there are things you need to work on before worrying about what to apply for but you can certainly consider it while working on those things.

@UncleB wrote:
You mention that you are with USAA... I'm with them as well, and they are fantastic with banking. Their credit cards aren't 'bad', but they aren't as flashy as many folks around here are used to. They gave me my first 'big' limit, and I credit them with being my 'prybar' to getting larger limits with other lenders. That being said, they tend to be a bit more conservative, and any CLI request with them is a HP.

Good, bad, etc are all highly subjective. When I was rebuilding, higher limits were a plus because they were difficult to come by and USAA granted me higher limits, lower APR's and didn't slash limits and bump APR's like my other creditors back in 2008. They also offered me the lowest rates on auto loans at the time. That made them the opposite of conservative though I have no idea what they're like now. I still keep my USAA cards even though rewards are now my priority and USAA's cards are generally poor in that area. However, my USAA cards have 5 digit limits that help with revolving utilization.

Re: Where to go from here?

tntexans72 — Tue, 05 Jan 2016 14:29:21 GMT

Here are quick fixes to your credit reports.

Util 21%...get it down to 1-5% to help increase score.
Thin file ....being added as an AU on a card that has long positive history to increase AAOA.

Once you accomplished those 2 variables and let all your reports update, your score should increase across the board. That's when you start apping OR you can sit for the next 2 years and take the simulator route - pay all your bills on time, keep util under 9%, let your profile age some more. It's boring that's for sure. Its not a bad rout to take. Patient.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 14:39:02 GMT

@takeshi74 wrote:
@Anonymous wrote:
Looking for advice on what card(s) to plan for.
All that info in your OP is great but what are you looking for from a new card? What's lacking with your current lineup?

@Anonymous wrote:
So, my file I would say is thinnish at best.
With those accounts you're not thin. You have a low AAoA.

@Anonymous wrote:
I don't travel a lot, maybe a couple of plane tickets from Dallas to Kentucky each year. So, travel cards might not be the thing.
That plays a part but it's not the only consideration for travel cards. "Travel card" is a very broad category as well. For most miles/points cards you have to consider and run the numbers for your spend just as you would with any rewards cards. There's just the added steps of considering how transfers and the redemption methods that you will use will impact reward value on top of that.

@Anonymous wrote:
Sorry, I know this is an ambiguous question with tons of variables. I've already made the apping willy-nilly mistake. I want to get a couple of premiere type cards and build higher credit limits so that I can do away with the store cards etc. I'm probably not the type that's going want 20 cards and rotate them in and out.
It's up to you to sort out your need/wants (i.e. the variables you mention) and then to use that to select cards that suit you. If you don't want a bunch of cards and don't want to continue apping willy nilly then form a strategy and stick to it.

"Premiere" doesn't really mean anything so it's not a useful criterion. On top of that the word you're looking for is premier.

Limits are based on what your credit and income qualify for so that's also not a useful criterion.

If rewards are a priority then you should be able to assess this for yourself. You should know where your spend is going. Use that to help you find cards that maximize rewards on your spend.

Your utilization and low limit cards are indicators that there are things you need to work on before worrying about what to apply for but you can certainly consider it while working on those things.

@UncleB wrote:
You mention that you are with USAA... I'm with them as well, and they are fantastic with banking. Their credit cards aren't 'bad', but they aren't as flashy as many folks around here are used to. They gave me my first 'big' limit, and I credit them with being my 'prybar' to getting larger limits with other lenders. That being said, they tend to be a bit more conservative, and any CLI request with them is a HP.
Good, bad, etc are all highly subjective. When I was rebuilding, higher limits were a plus because they were difficult to come by and USAA granted me higher limits, lower APR's and didn't slash limits and bump APR's like my other creditors back in 2008. They also offered me the lowest rates on auto loans at the time. That made them the opposite of conservative though I have no idea what they're like now. I still keep my USAA cards even though rewards are now my priority and USAA's cards are generally poor in that area. However, my USAA cards have 5 digit limits that help with revolving utilization.

Thanks for the spell check. It was late, my eyes were tired and I was typing on my iPad. In regards to things to work on. Correct, as stated I know my scores are being held back due to current utilization and as I noted, I'm working that down. By March 15th I will have only one card reporting a balance and it will be around 5%.

I guess the point of my original post was seeking not only advice about what cards are considered desirable, but also what my file and projected scores would qualify me to even consider app'ing for (when I am ready to app which is certainly not today for sure). From there, I will form a strategy.

What's lacking from current line-up? Not sure, that's why I included what I have and hoping others might have experience and can compare to what they know might be better and offer suggestions as replacements. Maybe my current line-up is fine and nothing is better. That's why I'm seeking opinions.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 14:43:43 GMT

@tntexans72 wrote:
Here are quick fixes to your credit reports.

Util 21%...get it down to 1-5% to help increase score.
Thin file ....being added as an AU on a card that has long positive history to increase AAOA.

Once you accomplished those 2 variables and let all your reports update, your score should increase across the board. That's when you start apping OR you can sit for the next 2 years and take the simulator route - pay all your bills on time, keep util under 9%, let your profile age some more. It's boring that's for sure. Its not a bad rout to take. Patient.

Thanks. On the AU, not really doable. Not much family left with which to piggy-back on. On utilization. As I just posted to the other person, currently 21% but by March15th, it will be basically be where you stated it should be.

Im not chomping at the bit to go on an app spree. The point of this post was basically to set my strategy on what I might consider when the time is right. I'm not even going to consder an app until all 3 are at least at 700.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 15:21:47 GMT

Okay, glad to have that confirmed. As some other members have said, I'd honestly shoot for some CLIs for now, and garden for a while. You can really strengthen your credit portfolio and have a strong foundation and really get some good offers in the not-to-distant future. Those CLIs will help knock down some utlization which is certainly good in the long rung.

Re: Where to go from here?

tntexans72 — Tue, 05 Jan 2016 15:22:23 GMT

@Anonymous wrote:
@tntexans72 wrote:
Here are quick fixes to your credit reports.

Util 21%...get it down to 1-5% to help increase score.
Thin file ....being added as an AU on a card that has long positive history to increase AAOA.

Once you accomplished those 2 variables and let all your reports update, your score should increase across the board. That's when you start apping OR you can sit for the next 2 years and take the simulator route - pay all your bills on time, keep util under 9%, let your profile age some more. It's boring that's for sure. Its not a bad rout to take. Patient.
Thanks. On the AU, not really doable. Not much family left with which to piggy-back on. On utilization. As I just posted to the other person, currently 21% but by March15th, it will be basically be where you stated it should be.

Im not chomping at the bit to go on an app spree. The point of this post was basically to set my strategy on what I might consider when the time is right. I'm not even going to consder an app until all 3 are at least at 700.

Very true...but everyone will get the app spree bug lol. So thread lightly when that time comes. Good luck, much success on your credit future.

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 19:58:53 GMT

Called Synchrony and got cli on my JCPenney card from $500 to $3500. Immediately after that, I called Credit One and canceled that one. I got a lot of, "We're sorry to hear that." and they offered a temporary reduction in APR plus a 20% refund of my annual fee if I stayed with them. Sorry Francis, but no Now, I'll keep paying my other cards down and watching my scores climb.

Re: Where to go from here?

TrialByFire — Tue, 05 Jan 2016 20:00:11 GMT

Awesome well done AP

Re: Where to go from here?

UncleB — Tue, 05 Jan 2016 20:10:09 GMT

@Anonymous wrote:
Called Synchrony and got cli on my JCPenney card from $500 to $3500. Immediately after that, I called Credit One and canceled that one. I got a lot of, "We're sorry to hear that." and they offered a temporary reduction in APR plus a 20% refund of my annual fee if I stayed with them. Sorry Francis, but no Now, I'll keep paying my other cards down and watching my scores climb.

See? With the nice limits on your Wal-Mart and Amazon, I figured you'd have luck getting a bump on the JC Penney.

Good job!

Re: Where to go from here?

Anonymous — Tue, 05 Jan 2016 20:14:42 GMT

@UncleB wrote:
@Anonymous wrote:
Called Synchrony and got cli on my JCPenney card from $500 to $3500. Immediately after that, I called Credit One and canceled that one. I got a lot of, "We're sorry to hear that." and they offered a temporary reduction in APR plus a 20% refund of my annual fee if I stayed with them. Sorry Francis, but no Now, I'll keep paying my other cards down and watching my scores climb.
See? With the nice limits on your Wal-Mart and Amazon, I figured you'd have luck getting a bump on the JC Penney.

Good job!

Thanks. I had tried JC Penney before but the account is still fairly new and they wouldnt raise it. But today, they had no problems. I did check on Walmart and was not successful, but I will try again once I cross 675 on TU.

Re: Where to go from here?

wa3more — Wed, 06 Jan 2016 02:02:30 GMT

What is the OP trying to accomplish here ?

The OP has 10 cards already, I'm not sure what the end goal is.