topic Re: Apply for card now or wait until collection item is removed? Which card? in Credit Cards

Apply for card now or wait until collection item is removed? Which card?

Anonymous — Thu, 02 Mar 2017 21:00:41 GMT

Hello Everyone! Long time browswer, first time poster. This website has been an incredible resource for me so thank you to everyone for your input.

I've been taking steps over the past 2 years to clean up my credit history which is basically non existent. I currently have no CC's (Equifax shows one old Kay Jewelers card from 2001 as "closed"), I have about $37k in student loans that have 100% on-time payment history, and I had 1 negative collection item on my Equifax credit history which was a $712 medical bill that went to collections which I paid last week and I"m hoping will be remove from my history soon. This is not on my TransUnion score.

I have not done a true Credit report but CK currently shows my scores as:

TU: 729

Equifax: 664

Discover Scorecard shows my score as:
Experian FICO: 770

I opened a checking account with Navy Federal Credit Union yesterday which I didn't realize they were going to make a hard pull on my credit (just to open my account). This took 1 point from my TU score.

That all said - I'm now looking to aquire my first CC (in a long time) and I'm wondering if I should attempt to get a card now, or wait until the collection item is removed?

- I have been preapproved for the AMEX Cash Preferred or Everyday cards and was considering the Preferred which has a $250 bonus offer for first $1k spent (and 6% cash back on groceries for first year). This does have a $95 annual fee though, and I'm afraid that with the collection item still on my credit that I would get a very low limit (maybe only $1k).

- Alternatively I think I could get approved for the NFCU Cash Rewards Visa card. This only offers 1.5% cash back, but they tend to give out higher than average limits ($5k-10k+), which would allow me to charge more onto the card (to earn more cash back) while also maintaining lower % of limit used.

- Any other cards recommended?

Perhaps I should get the NFCU Visa now (to get the higher credit limit), and then once the item is removed in a month or two apply for the AMEX? I'm hoping someone with more experience can chime in with some advice.

Any help and advice is greatly appreciated! Thanks in advance,

Re: Apply for card now or wait until collection item is removed? Which card?

dragontears — Thu, 02 Mar 2017 20:44:32 GMT

Check out discover scorecard to get your EX score for free so you have a better idea of what Amex will see if you apply

Re: Apply for card now or wait until collection item is removed? Which card?

rmduhon — Thu, 02 Mar 2017 20:44:48 GMT

You can safely ignore the scores CK provides. They use Vantage 3 scores which very few lenders use. Amex generally pulls EX so you'd need to know what that score is and what that report looks like. Try the 7 day trial from creditchecktotal.com for $1 and see what your scores are and what's on the reports first. And NFCU does a HP for every credit app.

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Thu, 02 Mar 2017 20:59:31 GMT

Ok I just ran the free Discover scorecard and it came back with a 770

I have 4 total accounts (all student loans) with avg credit length of 13 years which I think really helps my score overall (obviously any new cards would hurt that).

Should I still do the creditchecktotal report? Or should I just pull my free annual report?

Re: Apply for card now or wait until collection item is removed? Which card?

dragontears — Thu, 02 Mar 2017 20:59:52 GMT

Sounds like the collection is only on EQ, with 770 and a prequal with amex you have a great chance if the card fits your spending

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Thu, 02 Mar 2017 21:05:38 GMT

Thanks for the quick responses and feedback. So if AMEX only sees the Experian score than it doesn't really matter if I wait until the collection is removed from EQ? If they approve me, the limit should be the same regardless?

Any other cards you may recommend given my scenario, score, etc?

Re: Apply for card now or wait until collection item is removed? Which card?

bourgogne — Thu, 02 Mar 2017 21:27:29 GMT

@Anonymous wrote:
Ok I just ran the free Discover scorecard and it came back with a 770

I have 4 total accounts (all student loans) with avg credit length of 13 years which I think really helps my score overall (obviously any new cards would hurt that).

Should I still do the creditchecktotal report? Or should I just pull my free annual report?

free anuual does not give you scores, cct is the best game in town, without it you are shooting in the dark. measure 2x, cut 1x, dont rush it the cards will be there

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Thu, 02 Mar 2017 21:46:31 GMT

Ok thanks again for the help. Is the Discover Scorecard accurate at all? That score is much higher than I expected, but without the 1 negative I only have 4 accounts of 13yrs that are all 100% on time payment - so I guess it shoudl be pretty good.

DO you think I should wait until I see the $712 item drop from my CK report before I pull the CCT report? The collection company said they report every month, so hopefully it should be gone next month. Or does it usually take longer before it will drop off? I paid in full.

Thanks!!!

Re: Apply for card now or wait until collection item is removed? Which card?

bourgogne — Thu, 02 Mar 2017 22:07:17 GMT

@Anonymous wrote:
Ok thanks again for the help. Is the Discover Scorecard accurate at all? That score is much higher than I expected, but without the 1 negative I only have 4 accounts of 13yrs that are all 100% on time payment - so I guess it shoudl be pretty good.

DO you think I should wait until I see the $712 item drop from my CK report before I pull the CCT report? The collection company said they report every month, so hopefully it should be gone next month. Or does it usually take longer before it will drop off? I paid in full.

Thanks!!!

does not matter, get the cct, cancel it via phone. at the end of 7 days you will have 2-3 more times to get a refresh for n/c. don't screw around with a bunch of portals when you can use just one + cct is owned by ex, its format is far more professional and detailed than anything you are going to get for a buck.

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Thu, 02 Mar 2017 22:18:21 GMT

So if I sign up for the 7-days and cancel, I could run another free report in like a month or so? I assumed cancelling would mean I couldn't view it any more.

Thanks!

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Thu, 02 Mar 2017 22:24:03 GMT

Yes, the Discover Scorecard is a legitimate FICO08 from Experian. (Your question about this was legitimate.)

If the collection isn't on it, then you can apply for any card where the lender exclusively pulls Experian and get favorable terms. Amex is one such lender.

Re: Apply for card now or wait until collection item is removed? Which card?

bourgogne — Thu, 02 Mar 2017 22:21:48 GMT

@Anonymous wrote:
So if I sign up for the 7-days and cancel, I could run another free report in like a month or so? I assumed cancelling would mean I couldn't view it any more.

Thanks!

was I not clear? after the 7 day trial period you can run the report again 2-3 more times for n/c. I suggest spending more time on the forum researching and finding out how things work vs fire ready aim and getting random results. this forum has a ton of info. you have the time, take it. just my .02

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Fri, 03 Mar 2017 20:29:30 GMT

Sorry, I wasn't sure if you meant I could run it 2-3 times during my trial period, or if I could run it again after the 7 days expired (and I had cancelled the monthly service).

I definitely agree that there is a ton of information on this forum and I have spent quite a bit of time trying to sort through it. I signed up for the CTT trial today and got the following scores:

EX: 770

TU: 784

EQ: 661

So it looks like the collections item is only on EQ (and hopefully it should be removed soon). My plan is to start looking into which cards pull only TU or EX score so I have the best odds for approval (any recommendations?). I assume I should also look for a card that will start me with a higher limit so that I can keep my total utilization % down since this will be my only card at this point.

How long should I wait before applying for a second card? Or is it better to do them near the same time (keeping in mind I just had a HP on my TU score for the Navy Federal account I just opened).

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Fri, 03 Mar 2017 20:08:08 GMT

If you're only wanting two cards, doing them at the same time is fine. One other HP won't scare another lender.

I'd look for cards that only pull EX & TU. (I assume when you said the collection was on EX, you meant EQ).

Navy pulls EQ for cc products. They give out big limits, but may be put off by your collection. Google "Credit Pulls database" to see what lenders pull what bureaus, as with some lenders (like Chase) it varies depending on your geographical location.

FYI, Amex pulls EX and Barclaycard pulls TU (almost exclusively).

Best of luck!

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Fri, 03 Mar 2017 20:34:49 GMT

Thank you Thank you Thank you! That's great information and exactly what I needed to get started.

Sorry, I corrected the typo in my last post, but you are correct that it's EQ that I shows the collection item so I will try to stay away from cards that will pull EQ. The HP I received from NFCU to open my checking account was from TU, so I'm surprised they use EQ for their CC's. That's unfortunate too because I'd love to get one of their high CL cards to help with my utilization %, but that 660 score isn't too pretty. Hoepfully the collection item falls off next month.

Good info about AMEX and Barclays though. I'm leaning towards AMEX at the moment for my first. How do their CL's compare to others on average?

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Fri, 03 Mar 2017 20:41:40 GMT

You're welcome! Yes, NFCU is TU for membership and EQ for everything else, basically.

Amex is unreliable. I applied for the BCP in September and they approved it at their highest APR (23%?) and for $2,000 (I already had an EveryDay card at 17% with an $8k limit). Two months later, they approved me for a SimplyCash business card at their lowest published APR (12.24%) with a $22,500 limit. There was no real substantial change in my Experian file. It's a YMMV with Amex, but with that score -- if your income is good -- you should get a perfectly adequate limit (~$10k+).

Good luck, and report back!

EDIT: With scores in the 660's, in 2015, NFCU approved me for a GoRewards with 16.9% interest and a $7k limit. But my score was depressed because of 4+ year old lates and charge-offs (all paid)... there were no collections. This DP may or may not be helpful.

Re: Apply for card now or wait until collection item is removed? Which card?

bourgogne — Fri, 03 Mar 2017 20:39:59 GMT

@Anonymous wrote:
Sorry, I wasn't sure if you meant I could run it 2-3 times during my trial period, or if I could run it again after the 7 days expired (and I had cancelled the monthly service).

I definitely agree that there is a ton of information on this forum and I have spent quite a bit of time trying to sort through it. I signed up for the CTT trial today and got the following scores:
EX: 770
TU: 784
EX: 661

So it looks like the collections item is only on EX (and hopefully it should be removed soon). My plan is to start looking into which cards pull only TU or EX score so I have the best odds for approval (any recommendations?). I assume I should also look for a card that will start me with a higher limit so that I can keep my total utilization % down since this will be my only card at this point.

How long should I wait before applying for a second card? Or is it better to do them near the same time (keeping in mind I just had a HP on my TU score for the Navy Federal account I just opened).

your scores are good but that is only part of it. you should decide what is important to you - having a bunch of cards, having high limits, getting a sign-on bonus of some sort , getting points, getting cash, etc. once that is answered then it will set in motion your next moves. some people here collect cards or are just chasing credit limits. I don't care about either, all I care about is a sign on bonus and points. in my case chase is my chosen lender of choice. they have branches on every corner in my zip and in my mind are the most modern lender and have very good customer service. during my rebuild I thought it was important to have cards with high cl's because it could translate to higher limit's in the future with lenders I cared about. that is the only reason I got cap1 and nfcu cards. this is well discussed here. I dont care about either lender at this point, I dont use the cards but they were, I believe, an important step in getting in with chase which was my end game. same with penfed, the only reason I got in with them was to get a car loan which i did last year, i use the card for 5% on gas and that is it. this board was a big part in my rebuild but you have to drill down into the info and get the details that will help you achieve your goals. get a plan together and then execute the plan. have a nice weekend

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Fri, 03 Mar 2017 20:59:10 GMT

The above poster nailed it. Plan where you going then find what will get you there.

AmEx is once per lifetime bonus.

ED at 25-30k
BC at $250
PRG 50k
Plat 100k
Etc...

Have you looked into using MR? Maybe UR or TYP are better suited. Research reward programs.

Re: Apply for card now or wait until collection item is removed? Which card?

Anonymous — Fri, 03 Mar 2017 21:07:07 GMT

This is great information and I cannot thank you all enough for taking the time to give some input.

With no CC's I currently use cash for everything but am trying to transition to using CC's for all payments and then paying off every month. The sign-on on bonuses and cashback have the most worth to me at this point. My main spending is utilities, groceries, restaurants, and gas in that order - so I'm looking for cards that will optimize cash-back in those categories. I'm liking the 6% on groceries from the AMEX preferred. I can always buy gas cards from the grocery store and essentially get 6% back on gas that way too.

Re: Apply for card now or wait until collection item is removed? Which card?

bourgogne — Fri, 03 Mar 2017 21:27:10 GMT

@Anonymous wrote:
This is great information and I cannot thank you all enough for taking the time to give some input.

With no CC's I currently use cash for everything but am trying to transition to using CC's for all payments and then paying off every month. The sign-on on bonuses and cashback have the most worth to me at this point. My main spending is utilities, groceries, restaurants, and gas in that order - so I'm looking for cards that will optimize cash-back in those categories. I'm liking the 6% on groceries from the AMEX preferred. I can always buy gas cards from the grocery store and essentially get 6% back on gas that way too.

np, just playing it forward. ok, let's get to this. how old is the bad, is it a paid collection or what exactly, dola/dofd, etc. I am going to assume it does not matter. how old are you? go to the cap1 and chase pre-quality sites, we are looking for offers with your name and a set apr. what do you see? take a snip and post it if you can. are you going to be doing any travel and if so domestic or international? you might have to make the moves to where you want to get in a few steps but just answer my query please. this is all 1+1 if you have a plan